🇨🇳 Tech war escalation! China has prepared a $70 billion chip-making incentive package. In brief: China is reportedly preparing a massive subsidy and incentive package worth $70 billion to dramatically accelerate its domestic chip-making industry. This move is a direct, aggressive response to the U.S. "CHIP and Science Act and export controls. Strategy and implications: Push for self-sufficiency: The goal of this historic funding is to achieve complete semiconductor self-sufficiency, particularly in artificial intelligence (AI) chips, emphasized by the president. "AI Cold War": The investment is a direct response to U.S.-led restrictions targeting China's access to advanced manufacturing equipment and AI processors (like those from Nvidia), escalating the global tech war. Massive capital flow: Funds will flow through various state-supported funds, tax breaks, and grants, incentivizing the development of domestic design, manufacturing (fabs), and equipment production capacities. China's total subsidies for the sector are already estimated to be comparable to or greater than U.S. spending. The chip war is now a $70 billion injection into the foundational engine of innovation. The world's two largest economies are in a race of subsidized weapons!