In order to increase market share in the technology sector by around 20% from 2019 to 2023, the Chinese government has begun to set its own strategy. The Ministry of Industry and Information Technology of China announced that it will expand the domestic electronic components market to $327 billion.
The announcement covers components, materials and manufacturing equipment used in areas such as smartphones, drones, 5G wireless, connected factories, electric vehicles, robotics, high-speed rail and aerospace. China aims to increase its electronic component market share by around 20% from 2019 to 2023.
In particular, the Chinese government wants to increase the output of semiconductors, sensors, magnets, fiber optic equipment, software, and others. The target is to develop 15 globally competitive electronic component makers with annual sales of 10 billion yuan or more, as quoted from the Nikkei Asian Review, Monday (1/2/2021).
China Plans to Merge with Big Players
In order to achieve this target China will encourage mergers of big players in every field. This serves to create a bigger and more competitive company. This approach will focus on granting construction permits and financial assistance to the main factories and providing funding through local government funds. It will also help companies meet international standards on a variety of technologies.
Tensions between China and the US in the technology sector have continued to escalate in recent years. President Donald Trump has squeezed China’s supply of chips.
In response to that, Chinese President Xi Jinping decided to maintain the country’s supply chain. And urged companies that previously only acted as simply assembling components to become manufacturers of finished products.
Xi Jinping hopes the technology competition will subside under Joe Biden’s rule. In addition, it is working to increase the production of domestic chips and other components that China still relies on for the US.
The new plans announced last week also call for increased international cooperation. Which will then support large companies from Japan, the US, Europe, South Korea and elsewhere wishing to set up factories and research facilities in China.