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 into the intense tech rivalry between the US and China. She discusses how China is making significant advancements despite US tariffs and sanctions. With the upcoming presidential election, the dynamics could shift. Wilkins also highlights China's strategic countermeasures, like stockpiling semiconductor equipment, and examines the implications of US actions against companies like Huawei. The conversation reveals the complexities of curbing China's tech ambitions amidst escalating tensions.
China's strategic government intervention through the Made in China 2025 plan has resulted in significant advancements in key technological sectors like solar energy and aerospace.
The U.S. is reevaluating its approach to China, with contrasting presidential candidates suggesting either extreme tariffs or collaborative strategies to address technological competition.
Deep dives
Understanding China's Technological Advance
China's progress in key technological sectors is significantly attributed to its 2015 Made in China 2025 plan, which focused on achieving self-sufficiency and global competitiveness. The plan highlighted priority areas, including aerospace equipment and energy-saving vehicles, where China has emerged as a leader in sectors like solar panels and unmanned aerial vehicles. By mobilizing resources in response to governmental priorities, the Chinese economy has been able to rapidly accelerate its advancements. Nearly a decade later, research indicates that China has prominently achieved global leadership in several of these technologies, showcasing the effectiveness of strategic government intervention.
U.S. Strategies to Counter China's Growth
The U.S. has implemented several strategies to limit China's access to advanced technologies, notably in the semiconductor sector. By using tariffs, export controls, and financial sanctions, the U.S. aims to hinder China's technological growth and maintain its own competitive edge. Notably, the Biden administration has garnered international support for its measures, successfully aligning allies in efforts to restrict China's technological acquisition. This coordinated approach aims to safeguard U.S. interests and bolster its position as a global technological leader amidst rising competition from China.
Future Approaches to U.S.-China Relations
Both candidates in the U.S. presidential race advocate differing approaches to handling China's technological ambitions, indicating a complex future for U.S.-China relations. While Donald Trump proposes extreme tariffs that could drastically affect trade dynamics, Kamala Harris aligns more closely with the Biden administration's balance of job-centric policies and national security concerns. Experts suggest exploring collaborative avenues, termed 'suction' instead of sanctions, as a potential way to harness innovation from China to enhance U.S. industries. This shift in perspective could foster a more constructive relationship that promotes mutual growth and avoids counterproductive trade wars.
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.