America is at risk of losing its strategic advantage in technological innovation. One warning sign is in semiconductors, the silicon chips in everything from cell phones to satellites to jet planes. Recently, the hedge fund Third Point warned that US semiconductor giant Intel, the only US-based company that both designs and manufactures leading-edge logic chips domestically, was in trouble. The Biden administration faces a test: Can it craft an industrial policy as part of our competitive response to China?
Policymakers and business leaders need to forge a sound industrial policy with a “buy American” standard and incentives to keep the manufacturing and innovation of critical goods like semiconductors on shore.
While Intel has made some moves in recent days, policymakers and business leaders need to forge a sound industrial policy with a “buy American” standard and incentives to keep the manufacturing and innovation of critical goods like semiconductors on shore. The goal of this policy should not be ending trade, but building resilience in strategic sectors.
Read the full article from RealClearPolicy.
More from CNAS
CommentaryEconomic defence alliances may help deter economic warfare
China is also using its economic power to achieve geopolitical ends through the threat and execution of unilateral, punitive tariffs and other coercive methods....
By Anthony Vinci
PodcastNSA’s Pre-History is a Love Story
Jordan Schneider reviews the latest stories of tech companies getting a little too close for comfort to the Chinese surveillance state for The Cyberlaw Podcast. Listen to the...
By Jordan Schneider
CommentaryThe Biden Administration Should Review and Rebuild the Trump Administration’s China Initiative From the Ground Up
The incoming Biden administration should reform and rebuild the China Initiative from the ground up to better reflect the highest values of the American justice system....
By Elsa B. Kania & Joe McReynolds
VideoUnderstanding China’s Military-Civil Fusion strategy
Elsa Kania discusses myths she has seen about China’s Military-Civil Fusion strategy and the actual scope of MCF in China....
By Elsa B. Kania