Bloomberg News Report
Xi Jinping's Closest Aide Pushes for China's Semiconductor Rise
[Asia Economy Reporter Kim Suhwan] Chinese President Xi Jinping has appointed his closest aide, Vice Premier Liu He, as the commander overseeing China’s semiconductor competition front against the United States.
On the 17th, Bloomberg News, citing sources, reported that President Xi is expected to appoint Vice Premier Liu He, who has experience handling China’s financial and technology policies, as the key figure leading China’s next-generation semiconductor development policy.
The State Council of China has not issued any specific statement regarding this report.
Vice Premier Liu is a core economic advisor to President Xi and is one of the most trusted figures by Xi Jinping.
Additionally, Liu He has recently participated as China’s chief negotiator in the US-China trade conflict, making him the most pivotal figure in China’s trade policy toward the United States.
The fact that President Xi has chosen one of his most trusted aides as the semiconductor commander is interpreted as a demonstration of the Chinese government’s determination to realize the rise of China’s semiconductor industry.
Gu Wenzhun, an analyst at research firm IC Insights, said, "China is the world’s largest semiconductor buyer, so securing its own semiconductor supply chain will be extremely important."
Previously, under the Trump administration, US sanctions against China severely impacted Huawei’s smartphone business.
In response, China is recognizing technological competition as a new national security issue and is showing signs of actively responding.
Earlier, President Xi instructed Vice Premier Liu He, who was educated at Harvard University, to "prioritize safeguarding national interests" in relation to the trade dispute with the United States.
Last month, Vice Premier Liu held a task force meeting to discuss policies for next-generation semiconductor development.
At a meeting with China’s scientific community last month, Liu emphasized, "For our country, technological innovation is not just a matter of growth," but "also a matter of survival."
Bloomberg News, citing sources, reported, "Vice Premier Liu is driving China’s technological innovation in all areas related to semiconductor manufacturing, including semiconductor design software and manufacturing equipment."
According to the media, the Chinese government is expected to invest trillions of won in its advanced technology research and development (R&D), with a significant portion of the budget allocated to semiconductor development.
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