China ordered its government departments to submit a detailed timeline of how they will replace existing western computer hardware and software programmes with domestic products. The order is in-line with the country's vision of using China made technologies by 2025.
The central government's intention it was to reduce the use of computers, servers, semiconductor chips and software made by western companies. The economic giant plans to build its own core technologies and decrease the country's dependency on imported technologies. The country also aims to become the top player in the global tech market.
The country plans to match its tech industry to the country's economic strength that emerged in 2015 when they revealed its "Made in China 2025" (MIC2025) plan. It was reported that the core of the plan is the country's semiconductor industry. The country recognized that the advancement in chip technology will result in new discoveries in other areas of the tech industry which is advantageous to whoever owns the most high-end chip.
Roger Sheng, an analyst at research firm Gartner, said that the U.S. now controls the most important core technologies. He added that the standards are all in the discretion of the United States that means the country controls the upstream and downstream segments of the entire process of making a chip, from designing, manufacturing to consumption of the users.
Mr. Sheng added that China should first see if they can compete with other Asian countries like Korea and Taiwan before checking the possibility of competing with the United States. He also pointed out that competing with the United States is not a one-day or two-day matter.
China is currently the world's biggest consumer of chips due to its large manufacturing industry. The chips work as the core of everything that ranges from electrical appliances, smartphones, and high-end supercomputers to smart cars.
The country currently manufactures 16 percent of the chips used in its industry. It was reported that it has spent $260 billion U.S. dollar on chips in 2017. Its dependence on foreign technology was seen as the strategic frailty over the years.
The country is now doing a great effort in building domestic alternatives to foreign chips. The Chinese government's effort is a sign that there will be a shift in the tech landscape in the country. China just like other nations believes in the importance of the digital things and it also pushes developments in areas like artificial intelligence that could help it move to its economic goals.
