China’s innovation drive is reaching fever pitch in 2025. Let’s cut to the chase and focus on four crucial domains.
1.The Huawei Factor
Huawei is already testing its first, self-developed EUV lithography machine capable of producing 3nm chips. Trial tests are going full blast at the research center in Dongguan, and mass production should start in 2026.
It’s impossible to overstate how much of a game-changing paradigm this Chinese breatkthrough – specifically in laser-induced discharge plasma (LDP) – is all about. It’s set to turn the seminconductor technology environment totally upside down.
The physics involved in Huawei’s LDP is fundamentally different from the method employed by the Dutch ASML’s de facto monopoly. This being China, it’s simpler, smaller and cheaper......
1. “The Chinese people are resilient and patient. As long as domestic stability is maintained, external pressure only strengthens their endurance (…) in this China–U.S. rivalry, there will be no true winner, but the side that stands longer in the end will be China.”
2. “China’s economy has not been over-financialised, and it continues to be grounded in the real economy. Only when manufacturing is strong can a nation remain stable and resilient.”
3. “China must stay calm — neither blindly optimistic nor blindly pessimistic. China possess a vast market, a complete industrial chain, and a diligent population. As long as internal stability holds, external pressures cannot defeat it. The real opportunities ahead do not lie in real estate or finance, but in the service sector and innovation-driven real economies.”
There is no Chinese “miracle”: it’s all about planning and hard work. And now to the next stage: no holds barred innovation.
