The Chinese government will increase its funding for technology innovation and to ensure the security and stability of its product supply chains, which have been hit hard by the coronavirus pandemic, Chinese state TV reported on Tuesday.
The move, which is expected to help China remain competitive with other rivals in technology, especially the United States, was announced by President Xi Jinping, China Central Television said.
China, which has for the past two months experienced its worst outbreak of the coronavirus since the start of the pandemic, has shut down entire cities and multiple tech manufacturing factories in an effort to slow the spread of the virus.
The Chinese Communist Party will also increase its financial support for less-developed areas and border regions in the country while trying to keep hidden government debt in check.
COVID-19 OUTBREAK IN CHINA THREATENS TO MAKE INFLATION EVEN WORSE
“Advancing the building of a digital government is of great significance to building a law-based, clean and service-oriented government,” the CCP said in a statement released after the 25th meeting of its central commission for deepening overall reform.
“Digitalization should play an important role in supporting government functions such as economic regulation, market supervision, social management, public services and ecological and environmental protection,” the statement added.
China announced in 2020 that it was investing an estimated $1.4 trillion between 2020 and 2025 to advance its cutting edge technological capacity in areas such as artificial intelligence, quantum computing, 5G telecom, and advanced manufacturing.
In response, members of both parties in the U.S. have sought to use the federal government to boost key industries needed to compete with China in technology, through the U.S. Innovation and Competition Act, which passed the Senate last year but faces major obstacles in the House.
Republicans and Democrats have battled over the appropriate role for the government in tech manufacturing, with the GOP worried that the bill’s increased federal funding would make the U.S. too similar to China’s highly centralized economy, while Democrats say that national leadership is needed if the U.S. wants to be serious about competing in key tech sectors.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The bill would direct hundreds of billions in new funding toward U.S. research and development of semiconductors and other critical technologies.
