Archive · 12 Nov 2025
China Accelerates Self-Reliance in High Technology Amid US Rivalry
Imagine two big kids, China and the US, are playing a game where building the smartest and fastest toys (high technology like AI) is key to winning.
China feels like the US is trying to make it hard for them to get the best parts for their toys.
So, China's leader, Xi Jinping, is telling everyone, 'Let's build our own super-strong factories and invent our own amazing parts right here!'
They are putting a lot of money into making their own inventions in areas like flying and super-smart computers.
This way, even if the US stops sharing, China can still keep building and improving its toys, and even use its best inventions to make its army stronger.
China is also facing some other problems, like their economy not growing as fast as it used to.
The US, on the other hand, is trying to make sure it stays ahead by making its own toy parts and asking its friends to help.
They are also watching to see what China is doing and putting some rules in place.
Both countries want to be the best, and this game of making advanced technology is very important for their future power.
China is accelerating its strategy of self-reliance by focusing on high-tech innovation, including AI and quantum computing, to counter US competition.
President Xi Jinping has elevated science and technology as central to China's next five-year plan, aiming for resilience amidst intensifying global rivalry.
China employs military-civil fusion, leveraging civilian research for defense modernization, particularly in dual-use technologies like AI and chips.
Despite US pressure and domestic economic challenges, China is investing heavily to develop its local tech firms and reduce dependence on foreign suppliers.
The US is responding by investing in alternative supply chains, allied networks, and strengthening its own industrial base to maintain technological leverage.
- Who
- China (President Xi Jinping, Communist Party), the United States (President Donald Trump), and its allies.
- What
- China is intensifying its focus on self-reliance and domestic innovation in high technology to counter US competition and ensure resilience, while the US is implementing measures to maintain its technological advantage and secure global supply chains.
- When
- October (pause in trade hostilities, export figures slump), March (finalization of next five-year plan), Present and future years (intensifying competition, relationship instability).
- Where
- Globally, with a focus on China's domestic technological development and its impact on global supply chains and power dynamics, and the United States' strategic response.
- Why
- To ensure Beijing's resilience amid intensifying US competition, to achieve technological self-sufficiency, and to modernize military forces.
China's Perspective
US Perspective
Strategy for Global Power and Competition
China's Perspective
China is doubling down on high technology, focusing on self-reliance and domestic innovation in sectors like aerospace, AI, and quantum computing to ensure resilience amid intensifying US competition and a turbulent global economy. This approach is seen as crucial for both economic and security reasons.
US Perspective
The US aims to maintain its technological leverage over China through export controls and other measures, while also needing to shore up its own industrial base and invest in alternative supply chains and allied networks to counter China's growing influence and technological advancement.
Impact of US Pressure
China's Perspective
China views US pressure, including the trade war, as a catalyst to accelerate domestic innovation and reduce dependence on foreign suppliers. They are developing dual-use technologies through military-civil fusion, ensuring advancements in areas like AI and chips directly benefit the military.
US Perspective
The US is implementing export controls and expecting heavier state intervention in China, tighter trade conditions, and a widening of these controls. The US believes its technological edge is currently strong but could fade if China builds a self-reliant ecosystem.
Domestic Challenges and Leadership
China's Perspective
While Xi Jinping's dominance is affirmed, China faces challenges including a slowing domestic economy, a slump in export figures, and structural issues like a property slump, local government debt, and demographic decline. His legitimacy relies on delivering continued economic prosperity.
US Perspective
The US faces the challenge of acting to avoid a future where global supply chains tilt towards China. This involves investing in alternative supply chains, strengthening allied networks, and shoring up its own industrial base. The effectiveness of current US policies is implicitly linked to China's ability to overcome its domestic structural issues.
- China's Strategy
- Focus on self-reliance, accelerating domestic innovation in high technology sectors like aerospace, AI, and quantum computing.
- Chinese President's Priorities
- Elevating science and technology as pillars for the next five-year plan, emphasizing resilience amid US competition.
- Military-Civil Fusion
- Using advanced civilian research to modernize defense forces, enabling dual-use technologies for military advancement.
- Economic Challenges
- Slowing domestic economy, slump in export figures, property slump, local government debt, and demographic decline.
- US Actions
- Implementing export controls, encouraging alternative supply chains, and investing in allied networks.
- Company Expectations in China
- Heavier state intervention, tighter trade and investment conditions, and widening export controls.
