China has the second-largest computing capacity in the world, but an expansion is necessary to boost China’s digital economy to ward off US’ tech curbs.
China puts onus on more computing power amidst the US tech war. China will build more data and computing power while committing to technological breakthroughs.
According to the South China Morning Post, China will prioritize the advancement of computing power as the country is turning its attention in creating a strong foundation for the nations’ fast expanding digital economy, which has become a vital battleground in the US tech war.
Jin Zhuanglong, the head of the Ministry of Industry and Information Technology, said at a forum on Saturday that computing power is now a cornerstone of digitization. With more than 41 percent of China’s economic output generated from the country’s digital economy, China is the second largest computing capacity after US.
To catch up, China must accelerate the construction of computing power and data centers as well as quickening the pace of technological breakthroughs, said Zhuanglong. Deputy MIIT minister Zhang Yunming said that computing power is now a focal point for the world’s major economies, and computing power is driving a new wave of technological and industrial revolution.
“Global Competition for data and computing power has notably intensified, with major nations enhancing their strategic deployment in computing power and computing industries, aiming to seize a commanding position in future global competition.” – Deputy MMIT Minister Zhang Yunming.
Computing power is important in supporting operations of AI, big data and cloud computing. This is a basis for everything like business operations to chatbots like ChatGPT.
It is estimated that for every yuan spent on boosting computing power, it would boost China’s gross domestic product by between 3 and 4 yuan, according to The China Academy of Information and Communications Technology.