Gregory C. Allen: China is laying out its strategy in the tech war with the U.S.
and illegally selling it to Chinese government-backed firms. American, Japanese, Korean, and Taiwanese semiconductor companies are all facing similar challenges.hundreds of billions of dollars to build an all-Chinese supply chain that eliminates dependence on foreign technology suppliers. The Biden Administration’s export controls did not cause this; it has already been underway for more than a decade.
These are unacceptable terms for the basis of any trading relationship between China and the U.S. The Biden administration’s efforts have routinely as a decoupling strategy. In reality, however, China’s policy is far closer to decoupling than America’s. The October 7th export controls didn’t change China’s strategy, but by blocking access to chip-making equipment, they did make it harder for China to succeed.
Thus, German and South Korean firms who might be attracted to the short-term profits that would come with transferring technology to their Chinese competitors would do well to remember that they are helping to build a Chinese future that foresees no meaningful long-term role for non-Chinese companies. The quarterly and annual profits will probably be great. The five- and ten-year outcomes will be disastrous.
China’s retaliatory efforts are meant to scare the U.S. and its allies, and in that sense they are probably working. Fears of retaliation continue to dominate the news cycle and loom large in the minds of policymakers, particularly in key fence-sitting countries such as Germany and South Korea.
Belgique Dernières Nouvelles, Belgique Actualités
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