Corruption and waste of money
Last summer, senior Beijing officials headed a series of anti-graft investigations into industry data, blaming the corruption on wasteful and inefficient investments.
Insiders said the “big fund” was in danger of losing ground to wasteful investment and inefficiency.
All of the developments occurred as semiconductors were increasingly becoming a major battleground in the US-China rivalry.
Xi has repeatedly spoken of the need for a sense of urgency to address China’s so-called choke points, areas where the country remains heavily dependent on the United States and other foreign powers including critical technologies such as chips.
Xi has pleaded with top officials to become self-reliant in key technologies as the United States moves to isolate China.
After receiving an unprecedented third term in October 2022, Xi pledged to “move faster” in implementing strategic projects to boost innovation, saying, “Efforts will be made to improve the new resource mobilization system nationally to achieve major technological achievements and strengthen China’s strength in strategic science and technology.” “.
Additional incentives
Faced with this, Chinese officials recently discussed offering further incentives to domestic semiconductor companies. But many see the difficulty of hoarding a large sum after Beijing has spent huge sums fighting Covid in recent years, according to People.
Instead, officials are now asking local suppliers of semiconductor materials to lower prices to provide customer support locally, the people said.
Weak tax revenues, falling land sales and the cost of stopping the spread of the Covid virus have squeezed the Chinese government’s financial resources, pushing the fiscal deficit to a record high in 2022.
America is proposing that Europe target export-restricted China like Russia
