Tariffs only accelerate China's self-reliance in high-tech sector

In a perilous move to reshape international trade dynamics, the US administration has escalated tariffs on Chinese imports from 10 percent to 20 percent as of March 4, intensifying economic tensions between the world's two largest economies. This policy shift has prompted China to implement calculated retaliatory measures, including 10-15 percent tariffs on more than $20 billion worth of US agricultural goods.

The US' tariff policy is essentially a part of Trump's "America First" strategy, which, among other things, is aimed at containing China's technological advancement. The core goal of the US administration is to undermine China's competitiveness in key sectors and maintain the US' hegemony in high-tech, by raising trade barriers and restricting the flow of technology.

For instance, in the semiconductor sector, the US Department of Commerce added 140 Chinese entities to its export control list, restricting key chip components like high-bandwidth memory from being exported to China, in order to contain the advancement of China's semiconductor industry. In the renewable energy sector, the Office of the US Trade Representative raised the tariffs on Chinese-made electric vehicles (EVs) from 25 percent to 100 percent, in a bid to reduce China's market share in the US and create space for domestic EV industries, reflecting the US' fear of China's leading position in renewable energy technologies.

But China has not backed down in the face of the US' tariff wars and technological containment strategy. Instead, it has strengthened its industry chain by achieving "enterprise-driven innovation breakthroughs" and "increased investment in basic research", carving out a unique path for growth.

Chinese enterprises have taken the lead in technological innovation, acting as a "powerful engine" driving industrial upgrading. For example, in the semiconductor sector, the AI chips developed by Cambrian, given their outstanding performance, are widely used in autonomous driving, smart homes, healthcare, natural language processing, image recognition and other fields, pushing AI technology to the forefront and creating a synergistic effect in those sectors.

In the renewable energy sector, CATL's advanced battery technologies, used in EVs, energy storage systems, electric ships and electric planes, have accelerated the application of renewable energy technologies, driving collaborative growth in related industries such as battery materials research, recycling, and EV manufacturing. These breakthroughs in critical technologies have put Chinese companies at the heart of a self-reliant industry chain, significantly strengthening China's industrial competitiveness.

What's more, China has significantly increased investment in basic research, ensuring the steady progress of its technological innovation program. Last year, China's investment in basic research reached 249.7 billion yuan ($34.52 billion), an increase of 10.5 percent, accounting for 6.91 percent of total R&D expenditure. China's vigorous investment in R&D and concerted efforts to commercialize research results propelled the country to 11th place in the 2024 Global Innovation Index.

For example, in the field of quantum computing, the "Origin Wukong" quantum computer has been operational with 72 domestically-produced superconducting quantum chips and the world's first quantum computing operating system, achieving multiple functional breakthroughs. Chinese scientists have used it to complete the largest quantum simulation of fluid dynamics in the world, expediting the development of the quantum computing industry.

In the field of brain-machine interfaces, Nankai University held the first trial in the world to remove an implanted brain-machine interface sensor via the blood vessels, confirming the safety and biocompatibility of the wireless device. This laid the foundation for clinical applications and is expected to drive innovation in the brain disease treatment and rehabilitation sector. These basic research breakthroughs have enhanced China's scientific and technological innovation capability, facilitating the emergence of new technologies and industries, and helping China secure an advantage in the global technology competition.

When the US government restricted the export of 14nm/16nm processing equipment to China, Chinese enterprises resorted to open-source innovation to find new paths. Earlier this year, DeepSeek gained immediate global attention, with its R1 version attracting more than 100 million users within just seven days of its launch. Its success is not only a testament to China's technological advancement but also demonstrates the strength of the country's industry chain.

From chip development to algorithm optimization, collaboration across China's AI industry chain has made the sector more resilient, enabling DeepSeek to achieve technological breakthroughs. This achievement not only showcases China's independent innovation strength but also highlights the tremendous power of industry chain collaboration.

China will continue to leverage its resilient industry chain and advance along the path of independent innovation, but remains committed to an open and cooperative approach, sharing its innovative achievements with global partners and contributing to global technological progress.

Yang Guoliang is a professor at the Institutes of Science and Development, University of Chinese Academy of Sciences; and Zhao Tengyu is an analyst at the China Telecom Research Institute.

The views don't necessarily represent those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.