Nothing has stopped the Chinese government from investing in technology - not even the U.S. trade war, analysts revealed on Monday. They said "Made in China 2025" is pushing through even with tech restrictions from the White House.
According to the South China Morning Post, Beijing's state-backed fund, the China Integrated Circuit Industry Investment Fund Co., has been injecting financial stimulus to the country's tech supply chain since April 2018.
Over nine Chinese firms have posted investments from state-backed funds, as revealed by stock filings. Most of the companies are focused on the microchip and chip designing segments.
It is worth noting that Chinese tech giant Huawei was blacklisted by the White House in May. The ban restricts the company from purchasing components, including chipsets, from American firms.
Tech analyst working with China Renaissance Securities, Ng Sze Ho, noted that the actual investments may be more significant than what stock filings disclose.
Analysts believe China's overall chip industry continues to receive more financial aid from both Beijing and private equity funds.
Aside from massive investments to the chip industry since last year, the Big Fund, a nickname for the state investment fund, has also established a 15.1 percent stake in the country's biggest foundry firm, the Semiconductor Manufacturing International Company (SMIC) within the last four years.
Industry analysts believe China is pushing through with its plans to improve its already bustling tech circle as part of the preparations for a potential scenario wherein the United States continues to block Chinese tech firms from working with American providers.
Among the most notable investments made by China's Big Fund is for Piotech, a local deposition equipment company. The investment is considered a breakthrough in Chinese tech since Piotech is just one of the few domestic companies that compete for face-on with nano-scale semiconductor segments that are known to be dominated by American companies.
Experts believe that Beijing is continuously working on its "Made in China 2025" scheme despite setbacks such as the Huawei blacklisting. Additional investments in other segments dominated by U.S. tech may be only a fraction of what China is preparing for as it creates a domestic tech environment that Washington has no power or control over.
Last week, some analysts noted that the China-U.S. trade war has indeed put a dent on China's economy. The country's second-quarter data indicated a decline in several sectors but economists said these headwinds will make the Asian country stronger.
Despite U.S. tariffs on billions of Chinese goods, Beijing is focused on revamping its economy. The government particularly has its eye on innovation as it was previously predicted that China has the power to overtake the U.S. in 5G and other high-end technologies.
