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SCMP Reporters

Tech chiefs turn out
Every year, China’s most notable tech industry leaders are invited to the country’s two most important political meetings, known as the “two sessions”, to help formulate a national vision for the country’s technological development. As delegates of the National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC), they submit proposals and suggestions in advance of the meetings.
The big mystery ahead of this year’s meetings was whether Tencent Holding CEO Pony Ma Huateng would show up, after being absent the previous two years. Then Chinese media published a report showing pictures and a video of Ma attending a debate with other NPC delegates from Guangdong.
In his “two sessions” proposals, Ma called for “strict scrutiny” of peer-to-peer lending, bike-sharing, apartment rentals and community group buying to better protect the security of user funds.
Xiaomi CEO Lei Jun and Baidu CEO Robin Li Yanhong both offered “smart retirement” proposals to ease the burden of senior care for China’s ageing population. Li focused on introducing more intelligent devices to health care, and Lei asked for standards and regulations that could help better implement a smart retirement system.
Tencent boss proposes tech industry scrutiny ahead of NPC kick-off
Observers are also looking for signs of Beijing marshalling its technological resources and policies to pursue its aim of becoming a leading innovative country by 2035. Measures such as the country’s next R&D spending target could offer indications of Beijing’s technological ambitions, particularly after the country failed to meet its previous five-year plan’s spending target.
The chips are down
The semiconductor shortage has put the spotlight on China’s chip making champion Semiconductor Manufacturing International Corporation (SMIC), with reports indicating a possible softening of US sanctions on the company.
Gu Wenjun, chief analyst at research firm ICwise, wrote in a social media post that some American equipment suppliers have obtained licenses to export certain types of equipment to SMIC, but he did not provide the source of his information.
US suppliers to SMIC said to be struggling to get export licences
SMIC also reported that it secured supply of DUV lithography systems from Dutch firm ASML in an amended purchase agreement worth US$1.2 billion, a move that could help ease its supply chain risks. ASML’s EUV systems, required for producing leading edge 5- and 7-nm node chips, were not included in the purchase agreement.
Separately, China’s Ministry of Industry and Information Technology (MIIT) said it would “vigorously support” the semiconductor industry as the country pushes for self-sufficiency in chip-making.

To that end, China Development Bank (CDB) earmarked 400 billion yuan (US$62 billion) of loans this year to support strategic emerging industries and advanced manufacturing, as Beijing accelerates moves to cut reliance on imported technologies amid trade frictions with Washington.
The chip shortage has spilled over to vendors selling graphics cards in Huaqiangbei, the world’s largest electronics market located in Shenzhen. Many vendors are left with just a few dozen GPUs in stock, making it a tough seller’s market.
Green is good
China was once a dumping ground for the world’s discarded electronic products. Those days are largely over, as shown by a factory in Shanghai operated by e-waste specialist TES. Skilled workers in blue uniforms, goggles and masks break down used smartphones, sorting the case, screen, battery and circuit board into bins for further recycling.
It is also good business. TES China marketing director Richard Wang said the recycling of 100 million phones could, in theory, produce more than 120kg of gold, with the purity above 99.9 per cent after refining.
TES has teamed up with Chinese smartphone maker Huawei Technologies Co, which even changed the design of its phones to make it easier to remove parts for recycling.

Separately, State Grid Corp of China, the world’s largest utility, published its carbon neutrality action plan, which aims to maximise the buildout of wind and solar energy infrastructure across the country.
It is the first state-owned enterprise to unveil such a plan, following China’s pledge it would scale up its voluntary emissions targets under the Paris climate agreement – hitting peak emissions before 2030 and achieving carbon neutrality before 2060.
State Grid leads state-owned enterprises with carbon neutrality action plan
State Grid will “build a diversified clean energy supply system” in the next five to 10 years, according to the action plan published on its website. The company plans to step up the development of clean energy infrastructure, including wind, solar and hydro power for generating electricity.


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Two Sessions 2021 (Lianghui)

Inside China Tech: At China’s ‘two sessions’, chips and clean tech in the spotlight

Zhang Yesui, the spokesperson for the fourth session of the 13th National People's Congress (NPC), is seen on screens as he speaks during an online press conference in Beijing, March 4, 2021. Photo: EPA-EFE

epa08652221 A SMIC company logo is seen in their factory in Shanghai, China, 07 September 2020. SMIC (Semiconductor Manufacturing International Corporation), Chinese chip maker corporation, became the target of export restrictions by USA according to US Defence Department officials. EPA-EFE/ALEX PLAVEVSKI

Smartphones are disassembled during the process of recycling. Photo: Handout

China’s ‘two sessions’: Tech titans’ proposals echo government goals for 5G, AI, autonomous driving and climate change

Chinese paramilitary police officers stand guard at Tiananmen Square prior to the opening session of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing on March 4. Many of the country’s tech industry leaders are also delegates at the annual “two sessions”. Photo: EPA-EFE

CPPCC member and Baidu's Chief Executive Officer (CEO) Robin Li speaks to the media as he arrives for the opening session of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing, China March 3, 2019. REUTERS/Stringer ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT.

Xiaomi's Founder, Chairman and CEO Lei Jun speaks with journalists as he leaves a meeting one day ahead of the opening session of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Monday, March 4, 2019. A year since removing any legal barrier to remaining China's leader for life, Xi Jinping appears firmly in charge, despite a slowing economy, an ongoing trade war with the U.S. and rumbles of discontent over his concentration of power. (AP Photo/Mark Schiefelbein)

US-China tech war: hopes rise for Washington to ease restrictions on SMIC amid chip shortage

In the fourth quarter, mature nodes such as 55 and 65-nm contributed 34 per cent of SMIC’s total wafer revenue. Photo: Bloomberg

Tech

Policy

Big Tech

Observers are looking for signs of Beijing marshalling its technological resources and policies to pursue its aim of becoming a leading innovative country by 2035
China’s MIIT said it would ‘vigorously support’ the semiconductor industry as the country pushes for self-sufficiency in chip making


This week’s top stories include tech developments at China’s biggest annual political meeting, how SMIC is doing amid the global chip shortage, and recent green initiatives.
