Li Daokui (right), a renowned Chinese economist from Tsinghua University, attends a salon discussion hosted by the China Public Diplomacy Association in Beijing on March 27, 2025. Photo: Ma Tong/GT
The US’ crackdown measures cannot stop China’s technological innovation, and could actually push China’s technological sector forward, Li Daokui, a renowned Chinese economist, said on Thursday, while criticizing the US’ “terrible policies” that backfire on the US itself.
Li, director of the Institute for Chinese Economic Practice and Thinking at Tsinghua University, made the remarks when responding to a question from the Global Times about the impact of the US’ tech curbs against China at a policy salon hosted by the China Public Diplomacy Association in Beijing.
Over the past years, the US has introduced a slew of crackdown measures against Chinese technology firms. In the latest example, the US Department of Commerce’s Bureau of Industry and Security on Tuesday added dozens of Chinese entities to its so-called Entity List, in a bid to restrict China’s ability to acquire and develop high-performance and exascale computing capabilities.
“These curbs can’t stop China’s tech innovation,” Li said, noting that while certain fields might face short-term and minor challenges, the broader impact could backfire on the US itself. “In some areas, it might slow us down a bit, but in other fields, the effect could be completely opposite – these measures might actually push China’s tech forward.”
Li explained that his analysis rests on two factors: the universal nature of fundamental scientific research and China’s competitive edge in turning basic research into applied technology, thanks to its vast pool of talent.
Basic scientific breakthroughs occur within a global community where scientists, including those from the US and the UK, are motivated to publish and share their discoveries worldwide, so basic research is universally applicable around the world, according to Li. “No one can block this [knowledge flow], which is also a universal thing among scientists,” he remarked.
Meanwhile, turning fundamental research into usable technology relies on the sheer volume of engineers and scientists working tirelessly, a domain where China excels. “Many Chinese scientists used to rely on ready-made foreign software and technological tools, but when the US cut off access a few years ago, we just developed our own. With China’s vast pool of engineers, architects, and programmers, building an alternative was hardly a challenge,” Li said.
China has been ramping up its efforts to cultivate innovation-driven new quality productive forces, such as artificial intelligence (AI) and quantum technology, achieving tangible outcomes. This year’s Government Work Report further highlighted “pursuing integrated advancements in technological and industrial innovation” as a key priority on the economic agenda for the year.
Addressing the impact of US tariffs and tech restrictions on China’s broader economic development, Li said that these measures amount to a misstep by US policymakers, and they will fail to achieve their intended goal to slow down China’s economic growth.
“Some US government policymakers don’t really get how tech development works or where America’s own interests lie. They’ve rolled out some terrible policies that backfire its own society, choking off the user base of their own solid universal technologies in some cutting-edge sectors, such as chips and AI,” Li noted.
Li also highlighted the negative impact of US policies on its own industries and consumers, warning that protectionism could put ordinary US consumers and firms at a disadvantage. “In the short term, it might protect some of US industries, like automaking, but hiding behind tariff walls kills the long-term drive to innovate,” Li noted.
As for China’s economic prospects in 2025, Li said that this year could mark a pivotal “full recovery.” China’s economic growth rate will undoubtedly “be faster than that of last year,” Li pointed out.
With ample policy tools at its disposal, the government is likely to roll out more targeted measures to stimulate consumption and boost innovation, a policy mix that is expected to sustain the current economic recovery momentum, Li said.
