US-China tech war & rivalry

The race for the tech of the future
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The US and China are ramping up competition to see who will the future of global technology

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Washington is taking a leaf out of Beijing’s book by pouring state funds into technology development, with a focus on semiconductors. Yet, while both the US and mainland China are striving for greater self-reliance, catching up with Taiwan in advanced chip-making remains a challenge.
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American attempts to decouple from chips trade by boosting domestic manufacturing threatens innovation and carries a high price for consumers.
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Given China’s strong and highly valued economic relations with a large part of the world, where can the US go to find a big enough group of trusted countries to friend-shore with? And is it worth risking a multilateral trading system built up over 75 years?
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The US is recklessly forging ahead with a campaign to block China, in particular telecoms giant Huawei, from access to the global market and advanced technologies. Yet, as China continues to lead in 5G innovation and has made strides in developing its own microchips, the US is hurting both itself and its allies.
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America pays high price as it tries to shut out Chinese companies, deny them access to advanced technologies and erode their supply-chain advantages.
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US president will have countering growing Chinese influence in the region squarely in his sights when he begins his four-day trip to Seoul and Tokyo.
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Hikvision, DJI and Xiaomi have had to confront a barrage of negative headlines over the past few weeks that could impact the overseas business of other Chinese tech companies.
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Superseding the World Trade Organization with an ‘economic Nato’ and registering American business leaders too close to China as ‘foreign agents’ are more alarming ways of hawkish US economist Clyde Prestowitz to promote a hardline disassociation of two of the world’s largest economies.
SCMP ColumnistAlex Lo
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Perhaps the greatest impact of the US effort to contain China has been to clarify China’s weaknesses and spur more progress in addressing them. US policies will not force China out of the existing global economic system, let alone lead it to embrace an insular, state-controlled development model.
Freeskier Gu has been vilified for her decision to represent China in sporting competitions, while MIT scientist Chen was targeted by federal prosecutors under a programme to root out espionage. The double standards applied to them hurt American interests – and advance China’s ambition to draw global talent.
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Biden is pushing his protectionist agenda as raging shortages and rising prices are made worse by the war, amid US worries over its dependency on China. If a wedge is driven against China, then the consensus over the value of free trade weakens further – along with its power to foster peaceful cooperation.
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China needs to encourage new ideas and innovation if it is to chart a long term path through tech decoupling.
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