Viewing Domestic Replacement Optimistically
Tang Wei
In recent years, the escalation of Sino-US trade tensions and technological competition has led to a surge in mentions of "domestic replacement." Some people view domestic replacement as a "second-best" option that is inferior to imports, even linking it directly to "poor quality" and "backward technology." This stereotype not only overlooks the progress made by China's domestic technologies but also underestimates their strategic value in a globalized era.
The so-called "domestic replacement with poor quality" bias is, in essence, an exaggeration of early local phenomena that is extended to the entire conclusion. In the past, some Chinese products were indeed inferior due to late start-ups and inadequate experience compared to similar products from advanced countries. However, this gap has been rapidly narrowing or even reversing. For example, Lianji Medical Imaging has released numerous innovative products globally, with CT equipment entering the global high-end market; DJI drones and Ningde era batteries have also taken the lead in global competition... These cases demonstrate that domestic replacement is not "low-quality replacement," but rather a reflection of China's manufacturing industry transitioning from "following" to "keeping pace" or even "taking the lead."
Domestic replacement is not simply replacing imported components, but rather reconstructing industrial chains, technical standards, and market rules. For instance, in the field of new energy vehicles, China has broken through core technologies such as batteries, motors, and control systems to establish a complete ecosystem from lithium mining to vehicle manufacturing, driving the global automotive industry towards "Chinese standards." In the industrial software sector, domestic software has achieved self-control in key fields such as aerospace and military. This ecological reconstruction not only reduces dependence on single external supply chains but also gives Chinese enterprises more bargaining power in the global value chain.
The US's "kill switch" list for China's technology, which appears to restrict China from acquiring advanced technologies, actually forces domestic replacement to accelerate. Under the US's layer-by-layer blockade of artificial intelligence, DeepSeek, as a representative enterprise in China's AI sector, has relied on technological innovation to not only benchmark with OpenAI but also reshape the global AI competition landscape at low costs and high efficiency. Huawei, after being cut off, has exceeded 10 billion units of equipment installed with its HongMeng system. These breakthroughs reveal a fact: external pressure has become a catalyst for China's technological innovation.
Of course, domestic replacement still faces realistic challenges such as some fields' basic research being relatively weak and high-end talent being in short supply. However, it is more important to recognize the accumulation of innovative elements: by 2024, China's total R&D expenditures will reach 361.3 billion yuan, a year-on-year increase of 8.3%, with an investment intensity exceeding 10% on average; there are over 570 industrial enterprises that have entered the global top 2500 in terms of research and development investment, accounting for nearly one-quarter; and the model of enterprise-university joint laboratories and integrated innovation is accelerating technology conversion. These data show that the soil for domestic replacement is becoming increasingly fertile.
Domestic replacement should not be viewed as simply "replacing imports." China's manufacturing industry is gradually shifting from "comparative advantage" to "technological superiority," and we need to view this change optimistically.
This column article only represents the author's personal views