Shanghai (ZXZC)- China will make greater efforts to strengthen the coordination and precise connection of supply chain, in a bid to comprehensively improve the supply capability of automotive chips and ensure a stable and sound development of the automotive industry, Tian Yulong, Spokesman of China's Ministry of Industry and Information Technology (MIIT), said at a press conference on Monday.

Journey 5; photo credit: Horizon Robotics

Mr. Tian said the chip supply constrain is still a tough problem for the whole industry and will exist for a while. To enhance the ability of supplying automotive chips, Chinese government will take actions on three fronts.

To be specific, to guarantee a stable run for supply chain, the government will encourage chip manufacturers to speed up the improvement of their supply capability and put alternative solutions into operation earlier. The problem can be ultimately solved only by optimizing the overall industrial chain deployment and building the capability of long-term and stable chip supply.

Besides, to promote the sustained and sound development for automotive industry, China will adhere to the development directions of electrification, connectivity, and intelligence, especially accelerate the development of new energy vehicle (NEV) industry.

To maintain an unimpeded industrial chain, China should strengthen global cooperation to stabilize domestic and overseas supply chain, said Mr. Tian.