Post
The United States probably never expected that after finally managing to suppress the Eastern giant dragon, China would give rise to even tougher characters. Bill Gates has repeatedly warned the U.S. not to suppress China, or it might lead to the emergence of more 'rivals' from China. Today, his concerns have come true.
The U.S. initially aimed to stifle China's development through technological blockades and trade restrictions but did not anticipate that these suppression measures would instead catalyze China's breakthroughs.
Huawei has continued to increase its R&D investment over the years, and even during the most severe sanctions, it did not reduce related expenditures. In 2023, Huawei's total R&D investment reached 164.7 billion yuan, accounting for 23.4% of its total revenue for the year, with a cumulative investment exceeding 1.11 trillion yuan over ten years. This funding has been precisely focused on the 'bottleneck' fields, allowing Huawei to maintain product iteration even in extreme external environments.
The launch of the Huawei Mate60 Pro in 2023, equipped with the domestically produced 7nm Kirin 9000S chip, directly shattered the myth of U.S. technological blockade. Huawei's HiSilicon Semiconductor, unable to obtain advanced process foundry services, successfully achieved autonomous supply of core chips through architectural innovation and software collaborative optimization.
At the same time, Huawei's HarmonyOS has grown to become the third-largest mobile operating system globally. By early 2024, the number of activated HarmonyOS devices surpassed 800 million, covering various scenarios including smartphones, tablets, smart wearables, and in-car systems.
This system, which employs a distributed architecture, has achieved seamless collaboration across devices, with a technological concept that is ahead of traditional operating system paradigms.
Huawei is simultaneously making strides in artificial intelligence and cloud computing, with its Ascend AI chips and MindSpore framework building a complete AI computing ecosystem. The Euler operating system has become the main force in domestic replacements in the server field, and the Gauss database has replaced core systems in key industries such as finance and telecommunications. These achievements collectively constitute Huawei's integrated self-research system of 'software, hardware, core, and cloud'.
Semiconductor Manufacturing International Corporation (SMIC) has accelerated its growth under the pressure of sanctions as a significant force in China's semiconductor industry. Before U.S. sanctions in 2018, SMIC's revenue was only $3.36 billion; by 2024, this number had risen to $8.029 billion, successfully surpassing UMC and GlobalFoundries to become the second-largest wafer foundry in the world by revenue.
China's domestic production rate for 28nm mature process chips has reached 65%, and Yangtze Memory Technologies has achieved mass production of 232-layer NAND flash memory, breaking the monopoly of foreign companies in the storage chip field.
In the field of artificial intelligence, Chinese companies have also achieved leapfrog development. In early 2025, DeepQues released the AI large model DeepSeek-R1, achieving performance comparable to the top models from U.S. OpenAI with a cost of $5.5 million and a training cycle of two months, which is only a fraction of the cost of its American counterparts.
This achievement directly shattered the U.S. attempts to restrict China's AI development through chip export controls. DJI drones, despite ongoing smear attacks from the U.S., still occupy a significant share of the American market thanks to continuous breakthroughs in key technologies such as flight stability and imaging quality, with even the U.S. military recognizing the competitiveness of its products.
The U.S. suppression measures have ultimately backfired on its own industry. NVIDIA has lost over $15 billion in revenue due to related bans and has had to make partial layoffs. American companies like Qualcomm and Intel, which rely on the Chinese market, have been forced to scale back their business.
A report from the Boston Consulting Group indicates that if the U.S. and China decouple technologically, the U.S. semiconductor market will lose 18% of its share, with 15,000 to 40,000 jobs at risk.
Data from the Semiconductor Industry Association shows that over 240,000 jobs in the industry depend on exports, while the Chinese market accounts for 40% of global chip demand. After losing this market, many jobs in Silicon Valley, U.S., have faced direct impacts.
China's integrated circuit exports reached $159.5 billion in 2024, a year-on-year increase of 17.4%. Behind this figure is the transformation of China's semiconductor industry from import dependence to self-control.
The CHIPS and Science Act passed by the U.S. in 2022 allocated $52.7 billion to subsidize domestic manufacturing but prohibited beneficiary companies from expanding advanced capacity in China.
This policy has not achieved the expected results; instead, it has raised China's investment in its domestic semiconductor industry. Companies like SMIC continue to increase R&D investment and expand market share in mature process fields.
The Chinese government is supporting technological autonomy through measures such as the establishment of a large industrial fund and the implementation of a rare earth export license system. Export controls on gallium, germanium, and military-grade rare earth materials have precisely countered the dependencies of the U.S. military-industrial and high-tech industries.
In the field of new energy vehicles, China has launched a self-developed charging protocol to counter the joint standards of the U.S., Japan, and Europe, while Chinese new energy vehicle companies are rapidly rising in the global market. These developments validate Gates' judgments from years ago: the U.S. blockade has not only failed to stop China's progress but has also accelerated China's self-sufficiency in key areas.
The U.S. originally intended to curb China's development through suppression but unexpectedly fostered a group of Chinese companies that thrived in adversity. The breakthroughs of these companies in fields such as chips, AI, operating systems, and high-end manufacturing have formed a 'tougher character' that the U.S. did not anticipate. Bill Gates' warnings from years ago have now become undeniable facts.
The reduction of jobs in the U.S. semiconductor industry and the oversupply contrasts sharply with the vigorous development of related industries in China. The close ties of the global industrial chain determine that technological blockades have always been a choice that harms both sides.
Chinese companies have responded to external pressures with sustained R&D investments and firm self-innovation, proving that no suppression can halt a country's development. America's shortsighted policies have ultimately only cost it a vast market, while China has become even stronger through breakthroughs.
The U.S. initially aimed to stifle China's development through technological blockades and trade restrictions but did not anticipate that these suppression measures would instead catalyze China's breakthroughs.
Huawei has continued to increase its R&D investment over the years, and even during the most severe sanctions, it did not reduce related expenditures. In 2023, Huawei's total R&D investment reached 164.7 billion yuan, accounting for 23.4% of its total revenue for the year, with a cumulative investment exceeding 1.11 trillion yuan over ten years. This funding has been precisely focused on the 'bottleneck' fields, allowing Huawei to maintain product iteration even in extreme external environments.
The launch of the Huawei Mate60 Pro in 2023, equipped with the domestically produced 7nm Kirin 9000S chip, directly shattered the myth of U.S. technological blockade. Huawei's HiSilicon Semiconductor, unable to obtain advanced process foundry services, successfully achieved autonomous supply of core chips through architectural innovation and software collaborative optimization.
At the same time, Huawei's HarmonyOS has grown to become the third-largest mobile operating system globally. By early 2024, the number of activated HarmonyOS devices surpassed 800 million, covering various scenarios including smartphones, tablets, smart wearables, and in-car systems.
This system, which employs a distributed architecture, has achieved seamless collaboration across devices, with a technological concept that is ahead of traditional operating system paradigms.
Huawei is simultaneously making strides in artificial intelligence and cloud computing, with its Ascend AI chips and MindSpore framework building a complete AI computing ecosystem. The Euler operating system has become the main force in domestic replacements in the server field, and the Gauss database has replaced core systems in key industries such as finance and telecommunications. These achievements collectively constitute Huawei's integrated self-research system of 'software, hardware, core, and cloud'.
Semiconductor Manufacturing International Corporation (SMIC) has accelerated its growth under the pressure of sanctions as a significant force in China's semiconductor industry. Before U.S. sanctions in 2018, SMIC's revenue was only $3.36 billion; by 2024, this number had risen to $8.029 billion, successfully surpassing UMC and GlobalFoundries to become the second-largest wafer foundry in the world by revenue.
China's domestic production rate for 28nm mature process chips has reached 65%, and Yangtze Memory Technologies has achieved mass production of 232-layer NAND flash memory, breaking the monopoly of foreign companies in the storage chip field.
In the field of artificial intelligence, Chinese companies have also achieved leapfrog development. In early 2025, DeepQues released the AI large model DeepSeek-R1, achieving performance comparable to the top models from U.S. OpenAI with a cost of $5.5 million and a training cycle of two months, which is only a fraction of the cost of its American counterparts.
This achievement directly shattered the U.S. attempts to restrict China's AI development through chip export controls. DJI drones, despite ongoing smear attacks from the U.S., still occupy a significant share of the American market thanks to continuous breakthroughs in key technologies such as flight stability and imaging quality, with even the U.S. military recognizing the competitiveness of its products.
The U.S. suppression measures have ultimately backfired on its own industry. NVIDIA has lost over $15 billion in revenue due to related bans and has had to make partial layoffs. American companies like Qualcomm and Intel, which rely on the Chinese market, have been forced to scale back their business.
A report from the Boston Consulting Group indicates that if the U.S. and China decouple technologically, the U.S. semiconductor market will lose 18% of its share, with 15,000 to 40,000 jobs at risk.
Data from the Semiconductor Industry Association shows that over 240,000 jobs in the industry depend on exports, while the Chinese market accounts for 40% of global chip demand. After losing this market, many jobs in Silicon Valley, U.S., have faced direct impacts.
China's integrated circuit exports reached $159.5 billion in 2024, a year-on-year increase of 17.4%. Behind this figure is the transformation of China's semiconductor industry from import dependence to self-control.
The CHIPS and Science Act passed by the U.S. in 2022 allocated $52.7 billion to subsidize domestic manufacturing but prohibited beneficiary companies from expanding advanced capacity in China.
This policy has not achieved the expected results; instead, it has raised China's investment in its domestic semiconductor industry. Companies like SMIC continue to increase R&D investment and expand market share in mature process fields.
The Chinese government is supporting technological autonomy through measures such as the establishment of a large industrial fund and the implementation of a rare earth export license system. Export controls on gallium, germanium, and military-grade rare earth materials have precisely countered the dependencies of the U.S. military-industrial and high-tech industries.
In the field of new energy vehicles, China has launched a self-developed charging protocol to counter the joint standards of the U.S., Japan, and Europe, while Chinese new energy vehicle companies are rapidly rising in the global market. These developments validate Gates' judgments from years ago: the U.S. blockade has not only failed to stop China's progress but has also accelerated China's self-sufficiency in key areas.
The U.S. originally intended to curb China's development through suppression but unexpectedly fostered a group of Chinese companies that thrived in adversity. The breakthroughs of these companies in fields such as chips, AI, operating systems, and high-end manufacturing have formed a 'tougher character' that the U.S. did not anticipate. Bill Gates' warnings from years ago have now become undeniable facts.
The reduction of jobs in the U.S. semiconductor industry and the oversupply contrasts sharply with the vigorous development of related industries in China. The close ties of the global industrial chain determine that technological blockades have always been a choice that harms both sides.
Chinese companies have responded to external pressures with sustained R&D investments and firm self-innovation, proving that no suppression can halt a country's development. America's shortsighted policies have ultimately only cost it a vast market, while China has become even stronger through breakthroughs.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.