China Accelerates Domestic Tech Self-Reliance, Impacting Global Markets

In accordance with Bpaynews, China is accelerating a strategy to prioritize domestic technology over foreign imports, which could reduce revenue for global exporters and reshape supply chains and currency flows. The policy aims to learn, localize, replace, and eventually export homegrown alternatives in strategic sectors. This shift may compress foreign market access and increase policy risk for multinational firms. The impact on foreign exchange dynamics is two-sided, with potential support for the yuan in the long term but continued USD strength due to geopolitical risks. Technology hardware, chip equipment, aerospace, and capital goods sectors face rising competitive and policy headwinds. Supply chains are expected to bifurcate, with a greater emphasis on in-market production and diversified sourcing. Traders are advised to monitor procurement rules, export controls, and subsidy signals as key catalysts.