Thread by @thomasdggeddes

Long read by Li Chaomin (李超民) assessing the content and impact of the US Chip Act.

Li is the deputy director of the Institute of Public Policy and Governance at Shanghai University of Finance and Economics.

Below are some of his policy recommendations for #China 🇨🇳:

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"It is necessary to fully mobilise both international and domestic resources to strategically hedge against the impact of the #Biden administration's chip act. Support for and preferential policies targeting investors and tech-related talents are key." 2/10

"[We should] focus on the construction of a national governance mechanism. Priority should be given to increasing government investment and support. [We should] not only directly subsidise chip manufacturing and equipment manufacturers, but also ...

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but also invest in provincial and more localised chip funds through the establishment of a central government mother fund, which will be key to boosting public and private investment and eliminating the risk of central funds investing in unrelated projects." 4/10

"[We should] focus on stimulating the construction of [favourable] policies and mechanisms for #semiconductor companies, major investors and managers … [including] increasing tax relief measures." 5/10

"[We should] focus on the strategy of strengthening the country with [new] talents. In view of the current exodus of Chinese scientists from US research institutes, we should ...

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actively formulate measures to welcome more Chinese scientists back home, explore policies on residency rights and the granting of [Chinese] citizenship, and do a good job in providing [extra] security in this regard." 7/10

"We should both block the US strategy of luring semiconductor companies [already] in China to return to the US and encourage the expansion of the operating capacity of South Korean and Taiwanese semiconductor companies on the mainland." 8/10

"[We should] promote active collaboration with South Korea and other relevant Southeast Asian countries in order to plan and build autonomous and controllable alternative supply chains." 9/10

"Currently, it is particularly important to focus on converting China’s diplomatic and military advantages into active support measures for the development of [China’s] chip industry."

Part 1: mp.weixin.qq.com/s?src=11×…

Part 2: mp.weixin.qq.com/s/QYwKkYKyaSuR…

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