Beijing vows “extraordinary measures” for tech self-sufficiency

Yesterday, we told you that Beijing's 15th Five-Year Plan (FYP) will likely include a stronger focus on developing tech self-sufficiency.

• We just got more confirmation that this is the case.

The Party’s guidelines on the 15th Five-Year Plan (FYP), released on October 28, call for taking “extraordinary measures” to achieve breakthroughs that would make Beijing self-reliant in the following sectors:

• Semiconductors
• Machine tools
• High-tech equipment 
• Critical software
• Advanced materials
• Biomanufacturing 

Our take: It’s still unclear what “extraordinary measures” means, but the message is clear: expect a significantly more aggressive push to replace foreign technologies.

• The recent ban on H20 imports was one example of Beijing flexing its muscles in this respect.
• We will see more of these types of moves in the years ahead.

The bottom line: Foreign firms operating in these sectors should brace for rising policy risks as Beijing doubles down on this agenda.