China is grappling with the repercussions of the complete blockade imposed by the United States government. The Chinese authorities have promptly decided to replace all imported products with domestically produced ones.

China is actively striving to boost its expenditure to promote local self-reliance. The objective of this policy is to reduce the nation's dependency on Western technology.

In October of the previous year, the Biden administration issued regulations to restrict several technologies aimed at China. This year, the U.S. has expanded these restrictions and is likely to renew them annually.

In response to these regulations, China is increasing its spending across various sectors. This information is sourced from Reuters, which cites data from the government, the military, and relevant state entities.

These efforts to augment spending seem notably significant. In the prior year, state-owned enterprises were directed to transition to domestic software for all office systems by 2027.

These measures are also being extended to other sectors. According to two sources quoted by Reuters on Thursday (26/10/2023), the telecommunications and financial sectors are the next targets.

In the financial sector, specifically, researchers supported by the government believe that digital finance is susceptible to infiltration by Western technology.

Tender processes conducted by state-owned enterprises, the government, and the military have also shown continuous increases over the past year. The number has risen from 119 tenders to 235 since September of last year.

Furthermore, the value of these projects has reportedly tripled compared to the previous year. According to data from the Ministry of Finance, Reuters notes that the total value amounts to 156.9 million yuan.

However, these efforts face obstacles, primarily in terms of China's capacity to domestically manufacture computer chips. This will be a hindrance for Beijing in creating entirely local products.