The US Pledged to Contain China’s Tech Ambitions. It’s Not Working
Oct 29, 2024
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Rebecca Choong Wilkins, Bloomberg's Asia government and politics correspondent, dives deep into China's relentless technological rise. She discusses the triumphs of the Made in China 2025 initiative, particularly in solar energy and electric vehicles. The conversation sheds light on the effectiveness of U.S. tariffs and export controls, revealing the challenges they face in curbing China's ambitions. With contrasting strategies under Trump and Harris, the dialogue explores whether a collaborative approach could bolster U.S. competitiveness in this high-stakes tech rivalry.
Despite U.S. tariffs and export controls, China continues to advance in crucial technology sectors, highlighting the limitations of containment strategies.
Experts suggest that the U.S. could benefit from a collaborative approach with China to enhance its own technological competitiveness and innovation.
Deep dives
U.S.-China Technological Competition
The competition between the United States and China in technology has intensified, particularly in response to China’s Made in China 2025 plan aimed at achieving technological self-sufficiency and global leadership. This plan identified key sectors such as biomedicine, renewable energy, and advanced equipment manufacturing, where China has made significant strides, having achieved global leadership in several areas including solar panels and unmanned aerial vehicles. The U.S. has responded to this challenge not just by imposing tariffs, but by employing export controls to restrict Chinese access to critical technologies like advanced semiconductors. This shift in focus highlights the increasing concern over national security and military readiness on both sides as they vie for supremacy in the 21st century tech landscape.
Impact of U.S. Policy Tools
The U.S. has attempted to contain China's technological advancement using tools such as tariffs and export controls, which serve to limit China's access to vital technologies and supply chains. However, the effectiveness of these measures is debated; while semiconductors remain a stronghold where U.S. policy has made an impact, trade channels still find ways to circumvent sanctions in other areas. High tariffs proposed by candidates like Donald Trump raise concerns about their potential repercussions not only for China but also for the U.S. economy, as increased import costs could drive inflation and reduce economic growth. Overall, the future of U.S.-China relations is at a crossroads, where shifts in strategy will be necessary to maintain competitiveness without destabilizing global markets.
Alternative Strategies for U.S. Competitiveness
With China's growing technological prowess, some experts suggest that the U.S. should consider alternative strategies to enhance its own competitiveness rather than continuing a solely confrontational stance. One proposed approach involves collaborative initiatives that draw on talent and innovation from China, allowing the U.S. to bolster its capabilities by building on Chinese advancements instead of isolating itself. By embracing this concept of 'suction' to attract and integrate the best technologies and talent from China, the U.S. could strengthen its own industrial base and innovation capacity. This strategy could transform competition into collaboration, ultimately benefiting both nations while ensuring the U.S. maintains its technological edge.
China is making steady progress in its quest to dominate key industries of the future, despite years of US tariffs, export controls and sanctions.
On today's Big Take Asia Podcast, host K. Oanh Ha talks to Bloomberg’s Rebecca Choong Wilkins about how the US is struggling to curb Beijing’s technological advances, and whether the upcoming election could change the dynamic.
On Thursday, Odd Lots will dig into Bloomberg’s research on the Made in China plan, and why it largely succeeded in spite of US efforts. Subscribe here.