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China's Ambitious Plans for AI and Computing Boost Local Firms

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China's Plan to Boost Computing Power Benefits Local Firms

China is set to increase its computing power by over a third in less than three years, a move that will benefit local suppliers and enhance technology self-reliance amid US sanctions. The country aims to achieve more than 300 exaflops of computing capacity across its tech sector by 2025, up from 220 exaflops this year. This ambitious goal is part of Beijing's strategy to develop digital infrastructure and stimulate economic growth. China also plans to establish 20 smart computing centers and improve optical networks and data storage capabilities. The increased computing power will support various sectors, including manufacturing, education, finance, transportation, healthcare, and energy.

Focus on Supply Chain Security

China intends to strengthen industry synergy and safeguard the supply chain by developing controllable solutions and promoting the use of reliable domestic software. Supply chain security is a crucial aspect of this infrastructure build-up, particularly in light of US restrictions on high-end exports to China. The US-China tech war has prompted China to prioritize the adoption of homegrown IT products, reducing dependence on American technology.

Advancements by Huawei and Semiconductor Manufacturing International Corp.

US-blacklisted companies like Huawei Technologies Co. and Semiconductor Manufacturing International Corp. have been at the forefront of advancing local technology. Despite US restrictions, they have successfully developed sophisticated chips, highlighting the limitations of Washington's curbs on China. This progress showcases China's determination to create an American-free supply chain and bolster its technological capabilities. In conclusion, China's plan to enhance its computing power and invest in digital infrastructure presents opportunities for local firms and promotes technology self-reliance. By strengthening the supply chain and developing domestic solutions, China aims to mitigate the impact of US sanctions and propel its technological development forward.

Hot Take: The Impact of China's Computing Power Boost on New Businesses

China's aggressive plan to increase its computing power by over a third in less than three years presents a unique opportunity for new businesses, particularly those in the tech sector. This move is set to benefit local suppliers, creating a surge of demand for homegrown IT products and services. This could lead to a significant boom for startups and small businesses specializing in these areas.

Opportunities Amid Global Tech War

The ongoing US-China tech war has led China to prioritize the development and adoption of domestic IT products. This shift towards self-reliance could open up new avenues for local businesses to innovate and thrive, even as it reduces dependence on American technology.

Boosting Local Tech Advancements

The success of companies like Huawei and Semiconductor Manufacturing International Corp in advancing local technology despite US restrictions is a testament to China's resilience. This showcases the potential for new businesses to make their mark in this American-free supply chain. In conclusion, China's plan to bolster its computing power and invest in digital infrastructure could result in a windfall for new businesses. By focusing on supply chain security and homegrown solutions, China is creating an environment where local firms can flourish, even in the face of international sanctions.
Story First Published at: https://financialpost.com/pmn/business-pmn/china-plans-big-ai-and-computing-buildup-in-boon-for-local-firms
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