China is showcasing its technological advancements in response to United States restrictions on semiconductor exports.

During a government-organized press tour in Jiangsu and Zhejiang provinces, executives from Chinese tech firms highlighted their ability to innovate without relying on American chips.

Magiclab Robotics Technology, based in Suzhou, reported that over 90% of its humanoid robot components are developed domestically.

The firm sources the remaining parts, including semiconductors, from local and international suppliers, avoiding US technology.

Firms on the tour, representing sectors like robotics, biotechnology, and artificial intelligence, echoed the theme of self-reliance.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ China’s semiconductor self-sufficiency accelerated by necessity, not choice

China’s journey toward semiconductor independence began decades ago but has intensified dramatically in response to US restrictions.

The country’s push started in the 1950s but gained serious momentum after economic reforms in the late 1970s, evolving from basic capabilities to today’s advanced ambitions 1.

This trajectory took a decisive turn with the Made in China 2025 initiative, which set an ambitious goal of 70% semiconductor self-sufficiency by 2025, a target that remains challenging despite massive investment 1.

The intensity of this push is evident in capital expenditure figures: China now accounts for one-third of global semiconductor investment, marking a 28% increase from the previous year and approximately five times greater than in 2012 2.

While Chinese firms have made significant strides in chip design and manufacturing through companies like HiSilicon and SMIC, they continue to face substantial challenges in developing advanced processes without access to cutting-edge Western technology 1.

This explains why Chinese executives on the government-organized tour emphasized capabilities in sectors that don’t require the most advanced chips, while downplaying dependencies that persist in cutting-edge AI and semiconductor technology.

2️⃣ Economic interdependence creates complex leverage on both sides

The evolving tech standoff occurs against a backdrop of unprecedented economic integration, creating leverage points for both nations that complicate the conflict.