Xi Jinping Urges Innovation; US China Tech Battle Escalates

China's President Emphasizes Innovation as US Tightens Tech Investment Rules

President Xi Jinping emphasized the importance of increasing innovation in China, especially in key technologies where the country is currently lagging behind. He made these remarks at a national science conference, expressing concerns about China's limited original innovation capabilities and the shortage of top scientific and technological talents.

Xi highlighted the bottlenecks and constraints in crucial areas such as integrated circuits, industrial machine tools, basic software, and advanced materials. This push for innovation aligns with China's goal to become a global leader in science and technology by 2035.

These remarks coincide with the US Treasury Department's recent announcement of new rules that restrict outbound investment in critical tech fields with implications for national security. Janet Yellen, the US Treasury Secretary, had previously mentioned these planned investment controls, signaling an escalation in the US-China tech battle.

Key Takeaways

• President Xi Jinping highlights the urgency for China to enhance innovation, especially in crucial technology sectors where it currently lags behind.
• The US Treasury Department's new rules restrict outbound investment in tech critical to national security, intensifying the tech battle with China.

Analysis

The simultaneous emphasis on innovation in China and the tightening of US investment rules reflects the increasingly competitive landscape in the global tech sector. This development is likely to impact international trade relations and technological advancements in both countries.

Did You Know?

President Xi's call for innovation in China aligns with the country's ambitious goal to become a global powerhouse in science and technology by 2035, showcasing the escalating competition for technological dominance in the international arena.