China seeks technological self-sufficiency, sparks tensions with US, Europe – Epocha Negosios

Help to do China A self-sufficient “technological superpower”, the country’s Communist Party prompts the world’s largest e-commerce company to take on the complex and expensive business of making its own processor chips – unlike anything else in the world. Alibaba Group Have done before.

The company’s chip unit, D – Head, is three years old and released its third processor, the Yitian 710, in October for Alibaba’s cloud computing business. The company said it has no plans to sell it at the moment.

Other emerging chip developers, including Tencent, gaming and social media company Xiaomi, and smartphone brand Xiaomi, pledge billions of dollars in line with official plans to build computers, clean energy and other technologies that could boost wealth and China’s global influence.

Processor chips play an increasingly important role in products ranging from smartphones and cars to medical devices and equipment. Deficiencies caused by the corona virus infection are disrupting global production and raising concerns about distribution.

These items are prioritized in the Communist Party’s campaign to end China’s dependence on technology from other suppliers that the United States, Japan and Beijing see as potential economic and strategic competitors. Business and political leaders warn that if successful, it will slow inventions, disrupt global trade and impoverish the world.

“We must strive to become the world’s leading science hub and foundation for innovation,” President Xi Jinping said in a March speech. Despite the large official investments, entrepreneurs and analysts say chip makers and other companies will struggle to compete. Stay away from global suppliers of advanced components and technology – a goal that no other country can pursue.

“It’s hard to imagine a country rebuilding all this and having the best technology,” said Peter Honbury, Payne & Co.’s industry overseer.

The Beijing campaign is increasing tensions with Washington and Europe, who see China as a strategic competitor and cite security concerns, blocking access to the most advanced tools needed by Chinese chip makers to accurately and efficiently reach global leaders.

If the world splits or splits into markets with incompatible standards and products, parts made in the US or Europe may not work on Chinese computers or cars. With a dominant global operating system and two networking standards, smartphone makers will have to create unique versions for different markets. This can slow down growth.

China’s factories assemble smartphones and tablets around the world, but also need parts from the United States, Europe, Japan, Taiwan and South Korea.