Illustration: Liu Xiangya/GT

As optimism surrounding China's technological innovation and progress continues to grow, it has emerged as one of the most hotly debated and closely followed topics at this year's two sessions. Meanwhile, the financial markets have shown a positive response, with investors anticipating policy signals that will allocate more resources to support innovation this year.

The Shanghai Stock Exchange Science and Technology Innovation Board 50 Index rose by 1.72 percent on Tuesday, with active performances in areas such as memory chips, brain engineering and humanoid robots concept stocks, the Securities Times reported. ChiNext AI shares surged, with Allwinner Technology, a chip manufacturer, rising by 16 percent, according to reports from Chinese financial media.

More importantly, this positive market performance reflecting optimistic sentiment regarding the development of China's technological innovation comes even as the US government continues relentless tech blockades and crackdowns on China's technology development and makes further protectionist tariff threats.

Chinese tech stocks have been remarkably resilient this year, considering the blizzard of tariffs US President Donald Trump is unleashing on China, according to an article headlined "When Even China Markets Start to Ignore Trump" from Bloomberg on Tuesday.

In the current process of China's economic development, science and technology play a crucial role, and the restoration of confidence against the severe external pressures arising from the US tech suppression and tariff threats will gradually spread from the tech sector to the broader economy, significantly boosting investor confidence in China.

China Dragon Securities said that although the market may experience fluctuations due to external negative factors, the push from policies is expected to enhance the outlook for fundamental improvements throughout the year, which should support a stable market performance, according to the Securities Times.

Driven by the strong momentum of China's science and technology development, the performance of China's tech stocks has beaten expectations this year. The Securities Times reported that the Sci-Tech Innovation 50 Index surged by 12.95 percent in February. In Hong Kong, the Hang Seng TECH Index rose by 17.88 percent during the month, according to China News Service.

This optimistic sentiment among investors regarding China's prospects of technological and innovation development stems from the deep integration of technological and industrial innovation in China in recent years, as well as the significant development of new quality productive forces.

Data shows that the value added of high-tech manufacturing above a designated size has grown by 8.9 percent year-on-year in 2024, while the installation of industrial robots accounts for half of the global market. 

For instance, China's integrated circuit (IC) exports reached $159.5 billion in 2024, marking a year-on-year increase of 17.4 percent. For the first time, ICs surpassed mobile phones to become the highest-value single export commodity, according to data from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

This growth reflects the sustained advancement of China's semiconductor industry, driven by technological innovation, policy support and strong market demand. It underscores the significant role of technological innovation in boosting industrial and economic momentum in China.

Admittedly, the US' relentless restrictive and containing measures against China in the tech sector still impose immense pressure and challenges on Chinese tech companies. However, from another perspective, this external pressure has also become a touchstone for the comprehensive restoration of confidence in China's technology industry.

Looking forward, more cutting-edge technological achievements emerging like humanoid robots, "cyber fireworks" and artificial intelligence will not only showcase the vitality of Chinese technology but also further enhance investors' confidence in China's technological innovation.

In the face of external challenges, China's technology sector is expected to further demonstrate strong resilience and independent innovation capabilities, continuously driving industrial upgrades. This growth in adversity not only consolidates China's position in global technological competition but also injects strong momentum into investor confidence, transforming it into confidence in high-quality economic development.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn