China plans to develop semiconductor industry to counter US blacklist

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The Trump administration has restricted technology exports to Chinese companies such as Huawei. FMTNews

BEIJING: China is planning a set of new government policies to develop its domestic semiconductor industry and counter restrictions imposed by the administration of US President Donald Trump, Bloomberg News reported on Thursday.

The Chinese government is preparing broad support for so-called third-generation semiconductors for the five years through 2025, the report added, citing people with knowledge of the matter. Measures to bolster research, education and financing for the industry have been added to a draft of China’s fourteenth five-year plan, according to the report. It said that the plan will be presented to the country’s top leaders in October.

The Trump administration has restricted technology exports to Chinese companies in particular, notably Huawei Technologies Co Ltd, citing national security risks. The Bloomberg report comes amid increasing US.-China tensions over the handling of the coronavirus outbreak, the ongoing trade war between the two countries, China’s imposition of a national security law on Hong Kong and the subsequent end to Hong Kong’s special status under US law by Trump.

 

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