Beyond pricing and monetary policy, Beijing is also focused on reducing its reliance on foreign technology.
Beijing Accelerates Push for Technological Independence
Garcia Herrero’s comments on technological independence were particularly timely.
On March 12, news surfaced that China unveiled a new silicon-free chip, which is 40% faster than Intel’s chips and consumes 10% less energy. The development counters the US administration’s move to restrict China’s access to US tech.
In a bid to drive artificial intelligence (AI) and quantum technology, Beijing has also established a 1 trillion Yuan ($138 billion) national venture capital guidance fund.
Brian Tycangco, editor and analyst at Stansberry Research, shared views from Alibaba’s (09988.HK) Chairman Joe Tsai, saying:
“Joe Tsai knows. And he also knows China will be at the forefront of the global push towards full AI adoption to realize the lion’s share of $10 trillion.”
China’s AI sector gained momentum with DeepSeek, which rattled the US tech sector. Since then, momentum has increased, with China’s EV manufacturers also seeing a surge in demand.
Market Moves: Hang Seng and Mainland Stocks Gain Despite US Turmoil
While tariffs and rising threats of a recession plague US markets, sentiment toward China’s position in AI and tech has fueled demand for Hong Kong-listed stocks.
- In stark contrast to the US market woes, the Hang Seng Index has advanced 17.87% year-to-date (YTD), with the Hang Seng Technology Index surging 30.16%.
- Tech giant Alibaba has soared 60% YTD, while EV manufacturer Li Auto (02015.HK) has gained 20%.
Meanwhile, Mainland China equity markets have held their ground despite rising trade tensions. The CSI 300 is down 0.36% YTD, while the Shanghai Composite Index has gained 0.26%.
In contrast, the Nasdaq Composite Index has fallen 8.61% YTD, highlighting diverging economic trajectories and China’s advancement in the tech space.
