The world’s technology-leading democracies must take a fresh approach to high-end tech exports and policy to prevail in the competition with China. The global semiconductor industry is an illustrative case study. As part of its Made in China 2025 initiative — a wide-ranging industrial policy intended to vault China into the select club of global technology powers — Beijing seeks to wean itself off dependence on foreign sources for semiconductor manufacturing and position itself as an independent semiconductor powerhouse.
This technonationalism strategy is ambitious. Semiconductors are particularly vexing because they require extensive know-how and meticulous manufacturing practices. To build its own semiconductor foundries, China is dependent on foreign semiconductor manufacturing equipment — the machinery needed to produce semiconductors — made by companies in just a handful of countries. The United States, Japan, and the Netherlands account for 90 percent of global market share.
Read the full story in The Diplomat.
More from CNAS
CommentaryWhen and Why China Might—or Might Not—Attack Taiwan
Washington should continue to emphasize to Beijing the costs of aggression and the value of the status quo for China, the region, and the world...
By Jacob Stokes
VideoWhy China’s eventual aims with Taiwan could have a major global financial and economic impact
On CNBC’s Worldwide Exchange, Martijn Rasser discusses the rise in tensions between China and Taiwan, potential responses by the U.S. and G-7 countries, and whether Beijing co...
By Martijn Rasser
CommentaryChina and Russia’s Dangerous Convergence
Any effort to address either Russia’s or China’s destabilizing behavior must now account for the two countries’ deepening partnership....
By Andrea Kendall-Taylor & David Shullman
VideoUS monitors Beijing interest in global microchip market
Martijn Rasser offers insights to Fox News on how semiconductor shortage intensifies US-China tensions. Watch the full conversation on Fox News....
By Martijn Rasser