The US-China decoupling story is not over

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The US-China decoupling story is not over
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Outbound capital heading east is the target of a White House executive order

email rounding up the latestTech decoupling between the US and China is about many things, but chief among them is the notion that western technology should not feed Chinese military modernisation and expansion. From an American standpoint, this seems pretty obvious. Why should US money, products and expertise aid the military strength of its chief strategic adversary?

Strategic investments from the US to China have already been curtailed significantly in the last couple of years. US dollar funding for China-focused venture capital and private equity funds fell to $14bn in 2022 from $95bn in 2021. The new executive order will undoubtedly push those flows lower. Where to draw lines about dual-use technologies isn’t the only hard problem. The White House has tried to keep defence-related technology transfer between the two countries separate from a broader discussion about US industrial policy. This discussion covers how to bolster the availability of critical mineral supplies and key pharmaceutical inputs monopolised by China. It looks at how to increase the location and supply of semiconductor manufacturing globally.

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Belgique Dernières Nouvelles, Belgique Actualités

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