China should drop nationalistic approach to manage tech war risk with US, Chinese scholars say
- Institute of International and Strategic Studies at Peking University memo says focus should shift away from ‘national industry’ and ‘indigenous innovation’
- Group suggests China must learn a lesson from ZTE and Huawei and ensure firms comply with the laws of other nations if they want to operate globally
China should drop its nationalistic approach of focusing on “national industry” and “indigenous innovation” to manage the risk of a trade and technology decoupling with the United States, according to a group of academic policy advisers, offering insight into the debate on how the country should respond to an increasingly hostile Washington.
The trade war with the US has rumbled on for over a year with its series of tariffs imposed by both sides, while the tensions have extended into advanced technologies, with the likes of ZTE and Huawei caught up in the battle between Beijing and Washington.
“We shouldn’t focus too much on indigenous innovation that is fully under our control. We need to build up a global value chain, not a Chinese one,” according to a memo published by the Institute of International and Strategic Studies at Peking University in Beijing.
“We can’t develop China’s hi-tech industry with the mindset that developed China’s first nuclear bomb and satellite [in 1960s].”
The ultimate goal of China is to overcome the middle income trap, to enrich the Chinese people, not to compete against the US
China’s successful development of its first nuclear bomb in 1964, despite a US blockade and a reduction in Russian support, has long been hailed as a model for how China can develop advanced technologies on its own.