Ni Guangnan, wrote recently that the country should create a “Chinese system” that could supplant the combined systems of Intel, Microsoft, Oracle and others that have historically dominated computing. China should also increase the world’s reliance on its telecom infrastructure technology to “form a powerful deterrent” against future embargoes, he added.

The tech supply chain remains hugely complex and resolutely global, and too much meddling in the markets can have unforeseen consequences, experts have warned. Top-down jockeying by the United States and China over microchips has in part triggered a chip shortage that recently hit the auto industry.

said it had extended a contract to provide equipment to China’s largest semiconductor maker, even though Washington put the firm, known as SMIC, on a blacklist last year. The extension did not break any restrictions, but showed how there are limits to the United States’ ability to cut off supplies.

Decisions like that could continue to frustrate President Biden, who has cast China as the country’s most significant foreign policy challenge. China hopes to undercut American efforts to isolate it by entwining itself with major economies, including those politically allied with the United States.

the $1.9 trillion economic stimulus plan.

The phrase echoed one he had made as a candidate only two years before — to dismiss the challenge posed by China. “China’s going to eat our lunch?” he said while stumping in Iowa in 2019. “C’mon, man!”

Chris Buckley contributed reporting. Claire Fu and Lin Qiqing contributed research.

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