The trade war between China and the United States has led Xi Jinping, president of China, to announce a massive round of financing to boost its local technology industry.
According to Bloomberg, in the masterplan, China will invest an estimated $1.4 trillion over six years to 2025 directly into the local semiconductor industry and other technology-focused sectors.
This move from China could shake a good part of the technology industry, although its most important effects would only begin to be noticed in the long term.
The constant pressure from the United States, a direct consequence of the Trump Administration’s particular crusade, has pushed China to an extreme situation.
China had two options, constantly yield to pressure or impose itself and seek solutions on its own, and in the end, the Xi Jinping government has opted for the latter route.
Semiconductors are one of the key pillars of the entire tech industry, and with the restrictions imposed by the United States, China has realized that it can no longer depend on third parties.
China still has a long way to go, but it has the financial means and the talent to achieve its goals. It will be interesting to see what impact that possible technological independence on the part of China ends up having on a global level. And how it ends up affecting the main US giants since it could harm such vital names as Google, Intel, AMD, and Qualcomm, among others.