Xi Calls for China to Challenge Rivals' Tech Lead Amid US Chip Clash

Xi Jinping Urges China to Boost Innovation Amid Tech Rivalry with US

Xi Jinping has emphasized the need for China to enhance its innovation capabilities due to the dominance of other nations in key technological areas. His remarks highlight the intensifying semiconductor clash between China and the United States. Speaking at a national science conference, Xi acknowledged the progress China has made in science but noted that the country’s ability to innovate is still lacking. He pointed out that core technologies in sectors such as integrated circuits, industrial machine tools, basic software, and advanced materials remain under foreign control. Additionally, there is a deficit of top-tier scientific and technological talent.

US Tightens Tech Investment Rules

Recently, the US Treasury Department proposed new regulations aiming to restrict outbound investments in technologies crucial to future military, intelligence, surveillance, and cyber capabilities that could threaten US national security. Treasury Secretary Janet Yellen, who hinted at such controls almost a year ago, specified that these measures would complement existing export laws. The restrictions, first announced in October 2022, prevent the sale of advanced semiconductors and the related technology and knowhow to China. This move by Washington escalated the ongoing tech rivalry between the two global powers.

China’s Response and Future Goals

In response to the US proposals, China’s Commerce Ministry has called for fair competition and urged the US to abandon the planned investment restrictions. The ministry also asserted Beijing’s right to enact countermeasures if necessary. During his speech, Xi reiterated China’s commitment to becoming a leading nation in science and technology by 2035. He stressed that achieving this goal is essential to boosting China’s economic strength, national defense capabilities, and overall national power.