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Western Digital Urges China to Tread Carefully on Chip Ambitions

Exactly. Semiconductors and aero-engines are said to be largest import items in terms of value. It is no accident, then, that there has been considerable effort on these two fronts as part of the 13th5-Year Plan.

I guess the time span till 2020 is very critical and we will see numerous developments in these two industries.
China's trade deficit with Taiwan and SK due to chips
 
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China's trade deficit with Taiwan and SK due to chips

Yes, I think Mainland China is more comfortable having trade deficit on critical items with regions/countries like Taiwan and South Korea than with the US.

And the US is not actually helping about this by sanctioning imports of certain technological components.

Their misjudgment is such that China has very much the capability to produce anything that the US can.

On the very high-tech components that China has yet to achieve full independence, China's near periphery (developed NEA) is actually more advanced than the US in many areas. They supply China with what it needs.
 
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