Biotech, Clean Energy Sectors in China Face Uncertain Future, Insider Says
News Analysis
China’s biotechnology And clean energy According to Japan’s president of a high technology corporation, certain sectors may be next targets for U.S. sanctions.
Such sectors will probably face a downturn following China’s hard-hit semiconductor industry. The president was not allowed to be identified other than Desen for security reasons.
These sectors will beecome stagnant as the technology decoupling between the U.S. and China continues, Desen said.
He said that Chinese companies in these areas will lose the foundation on which they learn and copy.
He said that the wider economic decoupling is also increasing the outflow of capital from China. This will put further pressure on the economy.
Decoupling with the United States will affect China’s cheap commodities as they will lose their main market. The production capacity of new energy battery factories, as an example, will need decrease.
The situation will change to one in which small and mid-sized enterprises face the possibility of losing their existence and may be forced to close. Desen stated that large enterprises will lose the incentive for production expansion.
Clean Energy, New Energy Technology
China accounts for a large portion of the global clean energy market. new energy vehicles.
Chinese state media have claimed that China’s new energy vehicle production and sales volume have ranked first in the world since 2015. Cui Dongshu, secretary-general of the China Passenger Car Association(CPCA), stated that in August 2022 China’s new vehicle production and sales volume had ranked first worldwide since 2015. “China has basically achieved its goal of overtaking the world in new energy vehicles,” according To CCTV
Desen says that China’s prospects for clean energy and the development of new energy vehicles in China are not as promising.
Before the United States sanctioned it, Chinese chip design was booming. For example, in 2018, Huawei’s chip plant Hisilicon ranked fifth in the list of the world’s top 10 integrated circuit (IC) design companies, but after Huawei was added to the U.S. Entity List 2019: Intel, Qualcomm, Xilinx and Xilinx have cut their Huawei deals. Hisilicon’s production values have since plummeted.
Starting in 2022, the U.S. Biden administration has ramped up sanctions on China’s semiconductor industry. The growth rate of Chinese semiconductor design firms has slowed as a result.
Jake Sullivan (US National Security Advisor) raised concerns regarding biotechnology and clean technology on Sept. 16, 2022.
Sullivan indicated that the next decade would see three key technology areas become particularly important. These technology areas include computing-related technologies such as microelectronics and quantum information systems and artificial intelligence. Biotechnology and biomanufacturing are next, followed by clean energy technologies.
Desen believes that this could be an indication that the U.S. has shifted its focus to high-end biotechnology and clean technology at the national level.
Chinese Chip Industry
The U.S. government announced on October 7, 2022 a series of export restrictions that prohibit U.S. companies exporting advanced technology and chips to China. It also prohibits certain U.S.-made semiconductor chips from being exported to China regardless of where they are from.
Export controls have been regarded as one of the most important policy shifts in U.S. technology exports (CCP) since 1990s.
Wei Shaojun, chairman of the IC design branch of the China Semiconductor Industry Association, said in a speech at a summit on integrated circuit design on Dec. 26, 2022, that the sanctions on China’s semiconductor industry are “getting more and more severe” And that “in the face of the severe external environment, one should not be blindly optimistic that one can do anything.”
Wei is a leading figure in China’s semiconductor industry and a professor in the Department of Micro and Nano Electronics at Tsinghua University, where he has long been involved in research and development in IC design technology.
Additionally, the U.S. Department of Commerce will be closing its doors on December 15, 2022. placed 36 technology companies and entities with CCP links on the blacklist, including Shanghai Micro Electronics Equipment (SMEE), a leading company in China’s lithography industry.
Regarding the current status of the U.S.-China technology decoupling and its impact on the future, Peking University’s Institute for International Strategic Studies published a research report on Jan. 31, 2022, on its official site, concluding that the decoupling would lead to losses for both sides. But the report added that China’s losses would be significantly greater than those of the United States and that China might be caught in a bottleneck in some key technological developments, making it difficult to break through.
Only a few days before the report went online, according VOA’s February 4, 2022 report.
The U.S. mainstream will take a tougher stance against China as it comes to realize that the CCP, once it swells economically, will become a ticking time bomb over the Taiwan Strait issue and a growing threat to the rest of the world, said Desen, citing the CCP’s attempt to mislead the nation away from universal values.
Ellen Wan contributed this article.
Since 2009, Kathleen Li has been contributing to The Epoch Times. She focuses on China-related issues. She is an engineer in Australia, and she is chartered in civil-structural engineering.
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