In the Sino-US trade war, the US side launched a saturation attack on China's high-tech enterprises represented by ZTE, trying to restrain the implementation of the "Made in China 2025" Plan with various means including restrictions on technology export and on studying abroad. From the perspective of industrial chain, most of the targets of US trade war are intermediate inputs of core technologies, key components and special materials that China does not possess. Obviously, the "cutting off supply" of these knowledge-intensive industries has issued a credible threat to China's industrial security at a critical moment. The knowledge-intensive intermediate input industry has the nature and characteristics of low visibility, strong increasing returns, large product differentiation, and high barriers to entry. Therefore, cultivating more knowledge and technology-intensive intermediate input companies is the key for China to break through the development bottleneck, move towards the middle and high-end of GVC and create manufacturing power. This is also the reason why we have implemented the strategy of developing the strong points to make up for the weak points and moving from comparative advantage to dynamic competitive advantage. To support and protect the knowledge-intensive intermediate input industry, we must: firstly, support and protect the infant industry; secondly, select a few the most important intermediate input industries that affect the construction of China's manufacturing power to support and protect; thirdly, create manufacturing power on GVC by means of giving full play to the role of local private enterprises.
