Looking ahead

In April, ZTE Corp, China's second-biggest telecommunications equipment maker, was forced to suspend operations because inventories were almost exhausted. The situation arose after the US imposed a seven-year ban on the company purchasing crucial components, including computer chips, after allegations it had breached sanctions on the export of goods to Iran.

Although the ban was lifted three months later, the incident was a wake-up call because it illustrated how dependent and vulnerable the nation's industries are to disruptions to supplies of imported equipment, especially mid-to high-end apparatus and products.

At the same time, there is still room for improvement in China's scientific drive. The amount of R&D funding allocated for basic research still lags developed countries. In addition, the number of international collaborations and foreign talent in China, both in research and the high-tech industries, are noticeably lower than in other technological powerhouses, such as the US.