ZTE - one of China's pin-up companies has been hand-strung by the US ban on selling it semiconductors for violating Iran sanctions. Huawei is under a similar investigation. China is currently the world's biggest chip market, but it manufactures just 16% of the semiconductors it uses domestically. It imports about $200 billion worth annually, more than its oil imports. Although acquisition is the most logical path to develop its industry - a strategy that has worked for Japan, South Korea and Taiwan, China has made $34 billion in bids for US semiconductor companies yet completed only $4.4 billion in deals since 2015.
*) China Skinny 2 May 2018