China Strengthens Commitment to Technological Self-Reliance Amid U.S. Trade Tensions
China has intensified its pursuit of technological self-reliance, highlighting it as a key goal in its five-year development plan. The move comes amid heightened trade tensions with the U.S., which has imposed restrictions on semiconductors and tariffs on Chinese goods, prompting Beijing to retaliate with export controls on rare-earth metals. The U.S. has also launched a $500 billion initiative to bolster its leadership in AI, which China views as part of an effort to curb its technological ascent.
The new plan, approved by the ruling Communist Party, aims to achieve substantial improvements in scientific and technological independence by 2030. This commitment is part of a broader strategy to reduce dependence on foreign technology, particularly in sectors critical to national security and economic growth. The Chinese government has long pursued a vision of self-reliance, but the recent trade war with the U.S. has accelerated these efforts. President Xi Jinping has emphasized the importance of achieving superiority in AI and strengthening domestic production of chips and software as part of China’s modernization drive.
In response to Washington’s actions, Beijing has imposed export curbs on rare-earth metals, which are vital to U.S. high-tech industries. These measures are seen as a direct counter to U.S. sanctions that have restricted Chinese access to semiconductors and other advanced technologies. The U.S. President, Donald Trump, has supported a $500 billion federal initiative to secure American dominance in AI, a move China perceives as part of a broader strategy to contain its technological growth. This initiative is part of a larger effort by the U.S. to maintain its global technological leadership, which China views as an attempt to stifle its rise.
The Chinese Foreign Ministry has framed its strategy as a vision for a multipolar world, emphasizing self-confidence and self-reliance, while accusing Washington of economic bullying. The ministry has stated that China is committed to developing its own technological capabilities without relying on foreign entities, a stance that reflects broader geopolitical tensions between the two nations. These tensions are further complicated by the United States’ accusations of cyber-attacks and other forms of economic pressure, which China has consistently denied.
Despite the adversarial relationship, both nations recognize the need for some level of cooperation, especially in areas of mutual interest. The upcoming APEC summit in South Korea, where Trump and Xi are set to meet, represents a potential opportunity for the two nations to address these trade tensions and seek a mutually beneficial agreement. However, the prospects for a breakthrough remain uncertain, given the deepening divisions over key issues such as technology sovereignty and trade imbalances.
The trade war has had significant economic implications for both countries, affecting industries ranging from semiconductors to consumer goods. China’s focus on self-reliance has led to increased investment in domestic research and development, while the U.S. has prioritized protecting its technological edge through domestic innovation and international alliances. As the competition for technological supremacy continues, both nations are likely to face challenges in balancing their strategic goals with the need for global economic integration and cooperation.