China prepares to fluff up local tech companies

ChinaThe Chinese government is preparing to invest shedloads into local technology companies as part of its cunning plan to raise IT competitiveness.

China’s President Xi Jinping’s move has US tech companies worried that it might ¬†be making steps towards ¬†protectionism and many of them, like Apple had been hoping to make a bob or two out of the huge market.

Beijing has put forward what it calls Internet Plus and Made in China 2025 strategies, which aim to make Chinese firms world technology leaders and call for progressive increases in domestic components in priority industries such as robotics and aerospace equipment.

The official Xinhua news agency cited Xi as saying that to be the world’s major scientific and technological power, the state will have to champion first-class institutes, research-oriented universities and innovation-oriented enterprises.

Xi said the country will “provide bigger support for tech companies”, especially small and medium-sized firms, reorganise research institutes and universities, and plan cities and regional centres to be attractive to innovation industries.

“Our biggest advantage is that we, as a socialist country, can pool resources in a major mission,” Xi said, in comments reported late on Monday.

He also vowed to give scientists more power in allocating funding and directing their research, Xinhua reported.