Since 2022, the Chinese economy has been haunted by a weak recovery. Real gross domestic product (GDP) growth has fallen below 5 percent for two consecutive quarters this year, posing challenges for Beijing to meet its annual growth target of about 5 percent.
The International Monetary Fund estimates that the proportion of China’s nominal GDP in US dollars to that of the United States will be around 62.6% in 2024.
How can China get out of the current economic dilemma? National technological advancement is generally considered a solution. The history of every industrial revolution teaches us that technological progress can increase productivity. It is therefore imperative for China to move forward in this area.
As China’s economy slows, the United States is tightening monetary policy. technological sanctions. Recently, in an escalation of the technology war, 140 Chinese chip-related entities have been added to the U.S. Department of Commerce Entity List. Today, at least 1,000 Chinese entities from multiple industries have been added to the Entity List, preventing them from accessing U.S. technologies.
This is why Beijing continues its campaign to become self-reliant in core technologies, with industrial policies such as Made in China 2025 and the Investment funds for China’s integrated circuit industryalso known as the “Great Fund”. This is the only way for China to alleviate its dependence on foreign technology, reduce its vulnerability to global market fluctuations, and preserve its economic security.