China is intensifying efforts to prioritize domestic technology development, potentially impacting global exporters and altering supply chains. The strategy focuses on learning, localizing, replacing, and eventually exporting homegrown alternatives in key sectors. This shift could limit foreign market access and increase policy risks for multinational companies. The move is expected to affect foreign exchange dynamics, potentially supporting the yuan in the long term while maintaining USD strength amid geopolitical tensions. Key sectors such as technology hardware, chip equipment, aerospace, and capital goods may face increased competition and policy challenges. Supply chains are likely to bifurcate, emphasizing in-market production and diversified sourcing strategies.