Unfazed by US technological containment efforts, the release of Huawei's Mate 60 Pro 5G smartphone symbolizes a strong resurgence of China's advanced semiconductor fabrication capabilities. Some studies suggest that as the overall power gap between China and the US gradually narrows, China's ability to strategically compete with the US will strengthen, causing US strategic concerns to rise sharply. The resurgence in China's tech prowess is largely attributed to its robust reverse engineering capabilities, according to academic sources.
Reverse engineering involves dissecting existing products to understand their design and manufacturing processes, leading to the replication or enhancement of these products. This practice has long been common in less technologically advanced countries. In China, it has been applied across various domains, from high-speed rail, automotive, and aircraft to weaponry, rockets, satellites, space stations, and communication equipment.
Due to the inadequate protection of intellectual property rights for foreign manufacturers in China, reverse engineering has thrived in the country. China has seen numerous companies create product designs with superior performance at significantly lower costs, often without paying technology licensing fees or patent design charges.
While reverse engineering has proven effective in some areas, its application to semiconductor manufacturing remains challenging due to the complex and costly nature of the process, making it limited to specific aspects. As such, some academic experts believe that starting from the source – focusing on equipment and materials – may offer a more promising path to success. However, there is no consensus on the timeline required for China to catch up to the technological standards set by countries like Taiwan and South Korea.
The ongoing tech rivalry between China and the US has reached a "strategic stalemate phase," with the US Department of Commerce considering stricter regulations on chip exports. Nevertheless, academic experts believe that China's abundant pool of engineers skilled in reverse engineering and the growth of its technology manufacturing and IC design industries are seen as key factors in establishing a long-term competitive advantage, supporting China's ambitious global expansion.
The competition between the world's two superpowers has also sparked discussions of "brinkmanship," the strategy of creating uncertain threats to pressure opponents into making concessions. However, experts warn that this approach is risky and could lead to a loss of control over the situation, potentially causing significant losses for both sides.
To secure Taiwan's semiconductor supply chain, the US government has included a dedicated chapter for the "Taiwan Enhanced Resilience Act" (TERA) in the "2023 National Defense Authorization Act," strengthening the Taiwan-US defense relationship. In a proactive move, US President Joe Biden invoked the "Presidential Drawdown Authority" (PDA) for the first time in late July 2023, announcing US$345 million in unconditional military aid to Taiwan to enhance its self-defense capabilities, driven by US strategic concerns.
Article translated by Willis Ke
