Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

China’s 5 big tech issues for 2022

by
November 25, 2021
in Latest News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

New York identifies ‘disadvantaged communities’ that will receive extra climate funding

Goldman Sachs picks the winners and losers in regional banks after the SVB collapse

A technologist inspects a computer chip.

Sefa Ozel | E+ | Getty Images

GUANGZHOU, China — China’s technology sector has taken a wild ride over the past year, with regulations tightened, billions of dollars wiped off companies’ market value, and a continuing push from Beijing for technological self-sufficiency.

Those are among the important themes that will be addressed at CNBC’s annual East Tech West event in the Nansha district of Guangzhou in southern China.

Here’s a look at the top concerns and focuses of China’s technology sector right now.

China’s tech crackdown

That has weighed heavily on China’s internet names. For example, Alibaba’s shares are down 41% year-to-date.

Several questions are swirling:

Will China introduce more new regulation and in what areas?What companies could be targeted next?What does it mean for growth of the tech sector in China?

CNBC tackled some of this in a recent episode of the “Beyond the Valley” podcast below. Those conversations will continue at East Tech West.

Semiconductors

The continuing technology rivalry between the U.S. and China has added urgency to Beijing’s push for increased self-sufficiency across a variety of sectors. One of those is semiconductors, which are critical for everything from cars to mobile phones.

But China is struggling to catch up with the U.S. and other countries, and that’s because of the complexity of the semiconductor supply chain, which is dominated by foreign companies.

A good example is the field of chip manufacturing. SMIC, which is China’s largest contract chip manufacturer, is several years behind Taiwan’s TSMC and South Korea’s Samsung. SMIC is actually unable to manufacture the latest cutting-edge chips required for leading smartphones.

Foreign companies dominate the most advanced tools and equipment required for the manufacture of high-end chips. U.S. sanctions have denied China access to some of those tools. Chinese companies can’t compete.

How China will boost its domestic chip industry in the face of those hurdles is a major, ongoing debate.

Read more on semiconductors

‘Frontier’ tech

The semiconductor industry is just one of many industries where China is trying to boost its credentials.

In its five-year development plan, the 14th of its kind, released earlier this year, Beijing said it would make “science and technology self-reliance and self-improvement a strategic pillar for national development.”

The plan identifies areas which Beijing sees as “frontier technology” — artificial intelligence (AI) and space travel.

China has made notable progress in space, including launching its own space station. It has ambitions to send its first crewed mission to Mars in 2033.

When it comes to artificial intelligence, Chinese technology giants from Baidu to Tencent are investing heavily.

Electric vehicles

Another area that China is emphasizing — and one which investors know well — is electric vehicles. The industry is part of its drive to reduce emissions and pledge to become carbon neutral by 2060.

For several years, the Chinese government has supported the development of so-called new energy vehicles through subsidies and other favorable policies. That has led to tens of thousands of companies entering the industry, though many have never produced a single car.

About 1.1 million electric vehicles were sold in the first half of this year, nearly as many as were sold in all of 2020, according to market research firm Canalys. China is the world’s largest electric vehicle market.

That growth has attracted lots of new players with a technology background. Xiaomi, which is known for smartphones, expects to mass produce its own electric vehicles in the first half of 2024, while search giant Baidu has set up its own electric car business with Chinese automaker Geely.

Read more on electric vehicles

China’s economic slowdown

China’s technology giants now are having to cope with a slowing Chinese economy.

A number of factors including power shortages and efforts to rein in debt-fueled expansion in the real estate sector have added to other economic challenges, such as sluggish consumer spending.

It’s starting to filter through into corporate financial results. Alibaba slashed its revenue guidance for the current fiscal year.

Tencent Chief Strategy Officer James Mitchell said on the company’s earnings call that he expects advertising to “remain soft for several quarters due to macro challenges and regulations affecting certain key advertising sectors.”

ShareTweetPin

Related Posts

New York identifies ‘disadvantaged communities’ that will receive extra climate funding

by
March 29, 2023
0

People walk through the Brooklyn Bridge during a strike for climate on March 03, 2023 in New York City. Protesters...

Goldman Sachs picks the winners and losers in regional banks after the SVB collapse

by
March 29, 2023
0

The banking crisis continues to keep investors on edge about the health of regional banks. Now Goldman Sachs has identified...

ChatGPT and A.I. might have a future as your portfolio manager, study suggests

by
March 29, 2023
0

Lionel Bonaventure | Afp | Getty Images The proliferation of artificial intelligence programs such as ChatGPT and Alphabet's BardAI has...

Elon Musk, tech leaders urge pause on ‘dangerous race’ to make A.I. as advanced as humans

by
March 29, 2023
0

Sopa Images | Lightrocket | Getty Images Elon Musk and dozens of other technology leaders have called on AI labs...

We’re halfway to a tipping point for the Greenland Ice Sheet after which sea levels rise by 6 feet

by
March 29, 2023
0

An aerial view of meltwater lakes formed at the Russell Glacier front, part of the Greenland ice sheet in Kangerlussuaq,...

Next Post

Shares of Chinese real estate developer Kaisa pop 20% after debt restructuring plan

Tencent must get approval from Chinese regulators before publishing new apps and updates

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com