The collapse of low-value exports has forced China’s hand: a historic $1 trillion reallocation to secure dominance in chips, batteries, and artificial intelligence.
Sector Breakthroughs:
- Chips: SMIC achieves 5nm chip production despite US sanctions (45% yields)
- EVs: CATL’s sodium-ion batteries cut lithium dependence
- AI: Baidu’s Ernie 4.0 outperforms GPT-4 in Mandarin
Provincial Overhauls:
- Guangdong replacing toy factories with quantum computing parks
- Jiangsu converting textile mills to robotics incubators
- Zhejiang’s “Silicon Delta” attracting 3,000 chip designers
Corporate Case Studies:
- Xiaomi: From phones to humanoid robots (CyberOne workforce)
- Tencent: $70B invested in industrial metaverse tools
- BYD: Vertical integration from mines to megafactories
Global Implications:
- US semiconductor equipment sales to China down 82%
- EU investigating Chinese wind turbine “dumping”
- Japan loses 35% chemical export market share
