Results

The Chinese government considers the semiconductor industry to be an important industry closely related not only to economic development but also to national security. Since the mid-2010s it has invested a large amount of resources to increase its self-sufficiency. However, its aggressive measures to support the semiconductor industry have been met with opposition from the United States and other countries, which see them as trade-distorting. At the same time, China’s support measures are also causing duplication of investment within China. In this paper, we will examine how the Chinese government is trying to adjust its support measures, especially financial support measures, for the semiconductor industry in the midst of this dilemma, focusing on financial measures. We will also consider the implications for Japan.