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China will focus on speeding up self-reliance in science and tech in new five-year economic plan - WTOP News

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  Published in Science and Technology on Saturday, October 25th 2025 at 13:03 GMT by WTOP News
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Strategic Rationale

The Chinese leadership frames the drive for technological self‑reliance as essential for safeguarding sovereignty in a world where geopolitical tensions and supply‑chain disruptions threaten economic stability. Analysts note that the plan responds directly to recent U.S. export controls that have curtailed Chinese access to high‑end microelectronics, advanced packaging, and software tools. By building domestic capacity, China aims to mitigate the risks of technology embargoes and to maintain momentum in its “Made in China 2025” vision, which had begun to face criticism and counter‑actions from other nations.

Key Sectors and Targets

1. Semiconductor Industry
   The plan sets an ambitious target of producing 60 percent of the country’s semiconductors domestically by 2030. It calls for a quadrupling of domestic wafer production, a tripling of chip design talent, and the creation of a robust ecosystem for advanced packaging and testing. New state‑run funds are earmarked for building fabrication plants (fabs) with capacities ranging from 300mm to 450mm wafers, and for investing in research into 7‑nanometer (nm) and 5‑nm manufacturing technologies. The government also pledges subsidies for small‑ and medium‑sized firms that can innovate in low‑power, high‑performance computing chips for automotive and Internet‑of‑Things (IoT) applications.

2. Artificial Intelligence
   China’s ambition is to become a world leader in AI by 2030, with a particular focus on generative AI, natural language processing, and machine vision. The plan calls for a 30 percent increase in AI‑specific research grants and the establishment of national AI labs in each province. The Ministry of Science and Technology will coordinate cross‑sector collaborations among universities, industry consortia, and venture capital to accelerate the transition from research to commercial products.

3. Quantum Computing and Advanced Materials
   The plan invests heavily in quantum information science, targeting the development of quantum processors capable of outperforming classical computers in cryptographic and simulation tasks. To support this, the government will fund dedicated research institutes and incentivize private‑sector participation in quantum hardware and software ecosystems. In materials science, the focus will be on high‑temperature superconductors, carbon‑nanotube composites, and next‑generation battery chemistries—especially solid‑state lithium‑ion batteries that could transform electric vehicles and grid storage.

4. Biotechnology and Life Sciences
   The plan underscores the importance of biomedicine, with a focus on gene editing, regenerative medicine, and vaccine development. China is set to increase its R&D budget for drug discovery by 25 percent, aiming to shorten the pipeline from discovery to clinical trials. Domestic biotech companies are expected to receive tax incentives and access to public‑private partnerships to commercialize breakthrough therapies.

5. Space and Aerospace
   The plan reiterates China’s commitment to becoming a “world leader in space science and technology” by 2035. This includes the launch of the “Space Supercomputing” initiative, aimed at creating the world’s largest supercomputing facility on orbit, and the development of a new generation of reusable launch vehicles. The plan also signals an intention to collaborate with other spacefaring nations on lunar and Mars missions, leveraging China’s experience with the Chang’e and Tianwen programs.

Policy Instruments

The plan employs a mix of fiscal and regulatory tools. It introduces a “dual‑track” funding system, where core research receives stable, long‑term government grants, while high‑risk, high‑reward projects are financed through venture funds and risk‑sharing mechanisms. Tax breaks and reduced import duties are offered to companies that invest in domestic R&D. The Chinese government also plans to streamline approval processes for technology commercialization, reduce the regulatory burden on startups, and foster innovation ecosystems in technology hubs such as Shenzhen, Beijing, and Shanghai.

Global Repercussions

China’s acceleration of domestic technology capabilities is likely to reshape global supply chains. Western firms that rely on Chinese manufacturing will need to diversify their supplier base, potentially leading to a reshoring of certain production lines or a move to other emerging economies. Conversely, Chinese firms will become more competitive in high‑tech exports, potentially gaining market share in the semiconductor and AI sectors. Analysts predict that the policy will intensify existing trade tensions, especially in the U.S., where lawmakers have already pushed for stricter controls on dual‑use technologies that could be used for military purposes.

The plan also raises questions about intellectual property and data security. The Chinese government has pledged to strengthen domestic standards for data privacy and cybersecurity, which may influence international cooperation on cross‑border data flows. At the same time, concerns persist regarding potential state‑backed espionage or forced technology transfer—issues that the plan attempts to mitigate by fostering internal innovation and reducing reliance on foreign expertise.

Conclusion

China’s 2025‑2030 economic plan sets a bold course for self‑reliance in technology, positioning the country as a formidable contender in the global innovation arena. By allocating substantial resources to key sectors—semiconductors, AI, quantum computing, advanced materials, biotechnology, and space science—China aims to protect itself against external shocks while driving domestic economic growth. The strategy’s success will hinge on the government’s ability to balance rapid industrial scaling with the creation of a robust, talent‑driven ecosystem that can sustain long‑term technological advancement. As the world watches, the plan’s implementation will likely reverberate through international markets, reshape global supply chains, and influence the trajectory of future technological competition.