China's Control Of Tech To Choke Innovations: Nikkei

China seeks to extend the growing state influence over its technology sector into new manufacturing fields amid the threat of US sanctions, leaving foreign investors spooked about government involvement in areas expected to drive the country's economy, Noriyuki Doi reported for Nikkei Asia.

Photo Insert: Beijing's stated pursuit of "self-reliance and self-improvement" in technology goes beyond its political crackdown in recent years intended to subdue hugely influential IT giants like Alibaba Group Holding and raises the chances of foreign investments withdrawing and Chinese talents immigrating.

Beijing's stated pursuit of "self-reliance and self-improvement" in technology as a shield against Washington goes beyond its political crackdown in recent years intended to subdue hugely influential IT giants like Alibaba Group Holding and raises the chances of foreign investments withdrawing and Chinese talents immigrating, the way Russian tech talents fled from Russia after the invasion of Ukraine.

Private businesses contribute 60% of China’s GDP and employs 80% of the country’s labor force but state companies are the ones pampered by Xi, the butt of jokes among the Chinese bourgeoisie for being a “clown” who relies on Western-trained technocrats to manage the economy.

Newly-installed Premier Li Qiang said China would not decouple from the US, but Washington would likely impose more sanctions against Beijing, including cracking down on Chinese companies doing business in the us but are controlled by Communist Party of China (CPC) committees and reporting to the People’s Liberation Army (PLA).

The US has already persuaded the Netherlands, Japan, and South Korea to ban the exports of materials, from chemicals to ceramics needed to manufacture advanced lithography machines that fabricate chips down to 2 nanometers in size.

US President Biden hit China in the jugular with the ban on chip exports, and China ran to the World Trade Organization (WTO) to complain.

Chances are Beijing would not gain much from WTO as the institution’s appeals body had not been reorganized by the US, which controls appointments in the global trade body.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic