Asia
Local Chinese Tech Companies Gear Up for Government Support Boost, S&P Says
Domestic Chinese technology companies should see greater government support amid a push for self-sufficiency in the country, S&P Global Ratings said in a recent release.Upstream technology hardware sectors, especially those linked to the semiconductor and AI supply chains, will benefit most from such a government push, credit analyst Clifford Kurz said.Chip production, semiconductor equipment manufacturing, and advanced packaging are some of the lines that will gain from increased support, S&P said.China's five-year plan, which aims at boosting strategically important areas and weak supply chain links, should raise bank lending to the high-tech sector to about 24.8 trillion yuan by 2027 or a compounded annual growth rate of about 10%, S&P said.The support will range from funding access, tax breaks, and protectionist or targeted demand, according to S&P.
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