Huawei

America pays high price as it tries to shut out Chinese companies, deny them access to advanced technologies and erode their supply-chain advantages.

With China’s rise as a geopolitical rival to the US, and Russia’s invasion of Ukraine, strategic competition has reasserted itself over economics. However, a scenario is possible with a better balance between the prerogatives of the nation state and the requirements of an open economy.

As many of the country’s tech founders hand over the reins, it’s worth remembering that once start-ups grow to a certain size they need professional managers to take over.

China needs to encourage new ideas and innovation if it is to chart a long term path through tech decoupling.

The two sides ironically see eye to eye as a new US Senate bill proposes banning defence contractors from buying Chinese-sourced rare earths. Meantime, Beijing has been mulling putting restrictions on rare earth supplies crucial to those same manufacturers.

The unexpected turn of events involving the Huawei executive and two Canadians calls for greater interaction between Beijing and Washington in the hope of creating a better understanding to resolve disputes.

Meng’s arrival in China has been recast as a moment of great power parity with the US. In the face of military encirclement, it makes sense for Beijing to show its people it has the fortitude to face down Washington in the diplomatic realm.

While there should be no illusions or unrealistic expectations, both sides should aim to address pressing issues of mutual concerns and not let competition veer into open conflict.

A close reading of a report on cyber capabilities and national power raises questions about whether China really has the offensive aspirations that keep the US intelligence community awake at night, rather than a defensive obsession built on a century of turmoil at the hands of foreign powers.

Frustrated by Washington’s bans on exports of key components and software, the Chinese telecoms giant has built its own operating system; now, let the competition begin.

Beijing has yet to address the policy distortions that have led to a decade-long growth slowdown, amplified by US decoupling measures. It needs to find a balance in allocating public investment and between accessing foreign technological expertise and developing domestic capacity.

Biden should undo Trump’s needlessly confrontational damage to the bilateral relationship – on condition that China takes equivalent steps back. The deep causes of US-China friction will remain but an easing of tension will give both governments space to re-engage.