China plans to become independent in components and semiconductors industry. Therefore, by 2025, the PRC is going to launch its own production of electronic components, and this work is already underway.

Over five years, the country will allocate $ 1.4 trillion (this is not a typo) for the needs of the electronic components industry. The state will not directly build factories and plants, instead, funds are allocated to Chinese specialized companies under the strict control of officials.

It is already known that the funds will be received by Alibaba Group, Huawei Technologies Co. Ltd, SenseTime Group Ltd. and a number of other high-tech companies. The main task set before them is to reduce the dependence of the electronic industry in China on other countries, mainly the United States. This was announced at the launch of the Made in China 2025 program. This year, China will allocate totally about $563 billion.

In mid-August, the Chinese government released data on the volume of semiconductor chips produced in the country. As it turned out, this figure grew by 41.3% over the year. And the country continues to increase production volumes.

Huh.

The Chinese economy, with nearly 300% of GDP in debt, is on the brink of its first major corporate crisis.

The second largest construction company, Evergrande, may face a default after reaching a total debt of 1.97 trillion yuan ($ 305 billion).

Evergrande's two largest non-bank lenders have demanded immediate repayment of some of the loans amid reports of a potential default by the company.

On Friday, the national clearing center CSDC cut the company's securities from the repo market. The inability to pledge Evergrandе bonds and get financing for them caused panic among investors.

Evergrande bonds fell sharply on Monday, prompting the Shanghai Stock Exchange to suspend trading. The drop in securities was caused by a decrease in the company's credit rating by the national agency Chengxin.

If Evergrande goes bankrupt, it will set off a chain of upheavals in the financial sector, the social sector, the real estate market and everything connected with it.

Last week the international rating agency Moody’s downgraded the outlook for Chinese developers to “negative”, citing falling sales, liquidity risks and a snowball of debt, which is becoming increasingly difficult to refinance.

Things are bad.

Video by World Economic Forum

China's tech big business is listening to President Xi Jinping's calls for "smart adjustments to excessive incomes" and to encourage wealthy citizens to "give back to society," writes CNBC.

The largest companies actually force them to make multibillion-dollar donations and investments in various sectors of the economy.

Specifically, e-commerce giant Alibaba plans to invest 100 billion yuan ($ 15.5 billion) over the next few years. They are required to realize the idea of ​​"common prosperity". These funds will go to 10 government initiatives, including technological innovation, economic development, the creation of quality jobs, as well as support for vulnerable groups.

"Alibaba has been the beneficiary of China's significant socio-economic progress over the past 22 years. We are convinced that if both society and the economy are doing well, then Alibaba will be doing well," said CEO Daniel Zhang.

Other Chinese tech giants have also pledged to fund the government's plan.

Last month, video game maker Tencent announced plans to pay 100 billion yuan ($ 15.5 billion) to support social initiatives. This money will go towards rebuilding rural areas and increasing the incomes of the poor. The company said its actions are in response to China's "national strategy".

The founders of Pinduoduo, Meituan and Xiaomi have also donated billions of dollars in social welfare.

Interesting.