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The Economic Times
The Economic Times

Singling out Huawei, China's premier defends tech rise, rejects subsidy claims

China's Premier Li Qiang defended ​on Wednesday his country's ​emergence in frontier technologies from AI to electric vehicles, ​rejecting accusations it was down to state subsidies, in a speech at a World Economic Forum summit in Dalian.

Singling out Huawei as having "long suffered from foreign restrictions," ‌but without ⁠referencing the ⁠United States or European Union, which have both curbed the company's role in critical ​infrastructure, Li said China's prowess in technology and innovation was down to the ​huge sums its firms invest.

"People say Chinese products are competitive mainly because the Chinese government extends subsidies, but that is not the case: ​the Chinese government is not that ⁠wealthy," the ‌country's No.2 official added, in a rare moment of ​joviality for ​the man in charge of the $20 trillion economy's day-to-day ⁠operations.

Beijing could soon confront a second, European front ​in its trade war with the West, analysts say, ​as Brussels increasingly echoes Washington's concerns over alleged state support for Chinese firms and the risk they could dominate critical technologies including AI, big data and manufacturing.

Li struck a defiant tone in the northeastern Chinese port city, highlighting China's achievements in multi-use rockets, quantum technology ‌and semiconductors.

He also pointed to the rapid pace at which Chinese researchers are consuming AI tokens in their ​pursuit of ​fresh advances.

The U.S. earlier ⁠this month expanded the Pentagon's blacklist of alleged "Chinese military companies" to 188 entities, reflecting concerns China's military could tap the private sector for advancements.

Li said ​China would continue to participate in global discussions on the governance of AI and other frontier technologies with a "responsible and constructive attitude," debates which experts say will have major ramifications for the use of these technologies on battlefields and in civilian life.

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