The United States has tightened restrictions on Chinese technology companies, aiming to curb China’s advancement in high-tech sectors. However, these measures seem to be having the opposite effect, propelling China’s tech industry into a new era of innovation.
Boost in Domestic Innovation
When the U.S. imposed export controls on advanced chips and semiconductor equipment, many expected China’s tech growth to slow down. Instead, Chinese companies like Huawei, Biren, Enflame, and Yangtze Memory Technologies Corporation have accelerated their efforts, making significant strides in developing their own advanced technologies.
China’s chip exports have soared, doubling from 559.1 billion yuan ($77.85 billion) in 2018 to over 1.1 trillion yuan in 2024. Despite initial setbacks, companies have adapted and emerged stronger, launching self-developed operating systems and cutting-edge AI chips.
Huawei’s Resurgence
Take Huawei as an example. After facing sharp revenue declines due to U.S. export restrictions in 2019, the tech giant made a remarkable comeback. By 2024, Huawei’s revenue surpassed its 2019 peak. In May, Huawei unveiled a new line of personal computers powered by its own HarmonyOS. Their new AI chips are reportedly approaching the performance of leading competitors but at a fraction of the cost.
Global Impact on 5G Technology
The U.S. previously targeted China’s 5G technology, aiming to exclude Chinese firms from global markets. However, statistics from Strand Consult, a Denmark-based telecom consultancy, reveal that one-third of 5G sites in 32 European countries were still using Chinese network equipment as of late 2024. Projections suggest that by 2028, Chinese 5G equipment will maintain a market share of around 30 percent in Europe.
Challenges to Global Supply Chains
The U.S. strategy of pressuring other countries to align with its export controls is causing disruptions in global supply chains. Advanced chips are integral to products ranging from smartphones to medical devices. Targeting Chinese producers creates ripple effects, increasing costs and hindering innovation worldwide.
The Way Forward
Industry leaders argue that safeguarding national security should not be a blanket excuse for protectionism. Policies that aim to exclude and dominate can undermine global trust and stall technological progress. As noted by tech visionaries, lasting dominance in the tech space is unlikely for any single nation. The real opportunity lies in collaboration and shared innovation.
China remains committed to pursuing high-quality development and expanding its scientific capabilities. By focusing on openness and collaboration, China is demonstrating that progress is achieved through persistence and partnership, not confrontation.
