The Coming Tech Cold War With China

The Coming Tech Cold War With China

  • Beijing Is Already Countering Washington’s Policy

Three and a half years into its first term, the administration of U.S. President Donald Trump has finally assembled a comprehensive strategy for technological competition with China. From cutting chains that supply Chinese tech giants to barring transactions with them to regulating the undersea cables on which telecommunications depend, the Trump administration’s measures have often been incomplete, improvisational, and even detrimental to some of the great strengths of the American innovation system. They have, however, set the outlines of U.S. technology policy toward China for the near future. That policy rests on restricting the flow of technology to China, restructuring global supply chains, and investing in emerging technologies at home. Even a new U.S. administration is unlikely to stray from these fundamentals.

Beijing’s counterstrategy, too, has crystallized. China is racing to develop semiconductors and other core technologies so as to reduce its vulnerability to supply