China Sets New Tax Policy for Chip, Software Industries After US Tariff Increase

A worker controls the production line of the silicon chips which used for making photoelectric board product at the plant of Tianwei Yingli Green Energy Resources Co., Ltd on June 24, 2009 in Baoding, China. Feng Li/Getty Images

Soon after U.S. President Donald Trump announced that his administration would boost tariffs on Chinese imports, Beijing initiated a new policy to push domestic development of China’s integrated circuit and software industries.

These high-tech sectors are part of Beijing’s “Made in China 2025” strategy to turn the country into a high-tech manufacturing superpower.