Chinese authorities will allocate $55 billion this year to finance advanced developments

The new US government has not yet determined the fate of the $53 billion, five-year program for subsidizing the national semiconductor industry, adopted by its predecessors. At the same time, the Chinese authorities are allocating $55 billion this year to support scientific research in the advanced sectors of the national economy alone.

Image Source: SMIC

This was reported by the Tom’s Hardware website, citing documentation published by the Chinese Ministry of Finance. Budget expenditures to support science and technology this year will be increased by 10% compared to last year, to $55 billion. Priority areas of funding will be artificial intelligence, semiconductors, quantum computing, and space exploration. Given that competition in the AI ​​field is growing, and sanctions are pushing China’s semiconductor industry to achieve self-sufficiency, a $5 billion budget increase can be considered at least reasonable.

Last year, the Chinese authorities also introduced new support measures for small and medium-sized businesses in the form of loan guarantees, subsidies and tax incentives. In general, the program to support innovation in China is designed until 2030. The priority areas are artificial intelligence, semiconductor components and quantum computing. The US authorities often reproach the Chinese government for subsidizing many industries, due to which, in their opinion, Chinese products are much cheaper outside the country compared to local ones, and therefore cannot withstand competition. It was for these reasons that 100% duties were introduced on the import of Chinese-made electric vehicles into the US.