My Take | US cannot stop China’s hi-tech rise

For years, American policymakers and pundits have believed China’s search for technological mastery or supremacy is doomed to fail or at least be consigned forever to mediocrity and also-ran status. This belief lies behind the strategy, first put forward by the Donald Trump administration, and now followed by Joe Biden’s White House, to restrict or ban the transfer of crucial technologies, notably the most advanced semiconductors and their production methods.

And yet, paradoxically, China is bound to succeed, despite the inevitable hiccups and setbacks, because it is essentially replicating the actual history of the economics and policies that led the United States to technological dominance, rather than the ideological history of what many Americans believe lies behind their success.

They have applied their own ideological models to predict China’s supposedly “inevitable” failure, instead of using their own actual history of American technology and science, and economic policy, to analyse China’s development and acquisition of key technologies in the 21st century.

This is perhaps not surprising. Rich, powerful and successful people usually tell a different story about how they get to where they are to what actually happened to them. It’s human nature.

China’s Great Firewall

It’s generally believed that free enterprise is the necessary and sufficient condition for hi-tech industries. This means: the free flow of information and talent; open market; no or minimal government intervention, also called deregulation; and intellectual property rights protection. It’s believed only the market can choose winners and eliminate the losers, and that any state attempt to choose “national champions” is bound to fail and to be wasteful.