Local government in China does not understand the industry, ”said Mr Gu. It's not just using resources that private companies know how to spend more efficiently, it added.
The role of China as the world's leading electronic assembler, and its large consumer market for electronics, convinced some observers that the country would attract or sustain the knowledge to produce high-level chips. If China could come up with toys and then to produce a mobile phone, the thinking goes, then why not in semiconductors somewhere?
To this day, it is surviving without American chips the ultimate test for Huawei, despite the company's recent progress in developing its own processors.
In an interview with Chinese media Tuesday, founder and chief executive of Huawei, Ren Zhengfeihe said that half of Huawei's chips of “peaceful weather” came from American companies, and that the other half developed himself. Chip has been scheduled by Huawei for emergencies like this, said Mr Ren.
But the company could not completely reject American technology, he said. IPhone users are even members of their own family.
“We won't recklessly get rid of American chips,” said Mr Ren. “We must grow together.”
The Beijing sheets have a lot of time on foreign semiconductors.
As Japan, South Korea and Taiwan emerged with spectacular chip industries in the 1980s and 90s, China tried various forms of state planning to develop its own capabilities. In 2014, Beijing set a target as a world leader in all parts of the chip industry by 2030, and national and local government semiconductor investment funds began nationwide.