It came without a breaking news alert or presidential tweet, but the technological competition with China entered a new phase last month. Several developments quietly heralded this shift: Cross-border investments between the United States and China plunged to their lowest levels since 2014, with the tech sector suffering the most precipitous drop. U.S. chip giants Intel and AMD abruptly ended or declined to extend important partnerships with Chinese entities. The Department of Commerce halved the number of licenses that let U.S. companies assign Chinese nationals to sensitive technology and engineering projects.
Even as Washington debates the relative merits of decoupling technologically and economically with China, policymakers need to consider that the point may be moot: Decoupling is already in motion. Like the shift of tectonic plates, the move towards a new tech alignment with China increases the potential for sudden, destabilizing convulsions in the global economy and supply chains. To defend America’s technology leadership, policymakers must upgrade their toolkit to ensure that U.S. technology leadership can withstand the aftershocks.
Read the full article in Defense One.
More from CNAS
CommentaryTrump’s Boasts of an Economic ‘Boom’ Are Misplaced and Misguided
President Donald Trump this week laid out his most direct case yet for staying the course in the run-up to the 2020 U.S. presidential election. In a speech to the Economic Clu...
By Neil Bhatiya
VideoWeaponized Interdependence – Economic Networks, Sanctions, and State Coercion
Contrary to traditional arguments that globalization and economic interdependence will lead to increasing international cooperation, this episode discusses how states can weap...
By Elizabeth Rosenberg
VideoSaudi Arabia Moving Forward With Plans To Sell Shares Of Aramco
Saudi Arabia says it's going ahead with plans to sell shares of the state oil company, Aramco. It's a long-delayed effort to raise money for the monarchy's reform program but ...
By Rachel Ziemba
CommentaryWhy corporate America needs to have a code of conduct for China
The dispute between China and the National Basketball Association after Houston Rockets general manager Daryl Morey tweeted support for the Hong Kong protestors is the highest...
By Peter Harrell