Ban on ZTE: Expert: US ban on ZTE aims to hinder 'Made in China2025'

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China is working to raise funds to build up its semiconductor industry. This comes as the US imposed a ban on the sale of American mobile phone software and parts to Chinese telecommunications giant ZTE. Experts say the US' action aims to hinder China's telecom development and may serve as a wake-up call for the country to boost its semiconductor industry. CGTN's Li Jianhua has more.

Trade frictions, escalating between China and the United States.

This time the US hit China's Achilles' heel, targeting Chinese telecom equipment maker ZTE.

YIN YIMIN CHAIRMAN, ZTE CORPORATION "I'm strongly against the decision by the US Commerce Ministry, which is unfair and unreasonable. In the meantime, we are self-examining and determined to step up investments in our research on the semiconductor industry. It's never good to rely on others than ourselves."

But China has indeed tried to be self-reliant, the country established its Integrated Circuit Fund in 2014, raising 120 billion yuan, about 19 billion US dollars, in the hope of boosting chip-making

LIU CHUNSHENG, ASSOCIATE PROFESSOR CENTRAL UNIVERSITY OF FINANCE AND ECONOMICS "We actually have many patents in the field, and we indeed have accumulated much experience in the field. But for all the core technologies, we need tons of time and experience. In the US, scientists and students of Chinese ethnicity all have very limited access to these core technologies."

Now, for the fund's second stage, the Chinese government aims to raise some 32 billion dollars, to build its semiconductor industry.

CHEN YIN, CHIEF ENGINEER MINISTRY OF INDUSTRY AND INFORMATION TECHNOLOGY "China has a huge market for electronic products and information, and we'll stick to the principles of innovation, cooperation and openness. As for China's Integrated Circuit Fund, we are on the second stage right now. We welcome foreign enterprises to join us."

Experts say the US' move to ban mobile components to China's ZTE, and maybe some other companies in the future, aims to hinder China's technology ambitions of "Made in China 2025."

LI JIANHUA BEIJING "Pressure has been dumped on China ever since the US imposed a ban on the sale of American mobile phone parts and software to Chinese telecom giant ZTE. Experts say this may be a wake-up call for China to boost its semiconductor development, but this needs time and investment. LJH, CGTN, BEIJING."