China's Race to Global Technology Leadership by Alessia Amighini

Author:Alessia Amighini [Amighini, Alessia]
Language: eng
Format: epub
Tags: Public Policy, Political Science, Science & Technology Policy
ISBN: 9788867059911
Google: JdWuDwAAQBAJ
Publisher: Ledizioni
Published: 2019-09-11T07:07:31+00:00

If the US is serious about reducing the flow of technology to a hostile competitor, each of these methods must be addressed. All pose political difficulties because of commercial and academic pressures to continue lucrative arrangements with China (and the Chinese count on this). In some cases, such as using regulatory powers to restrict foreign investment and technology exports, Congress has given agencies the authority to take action against China. In other cases, such as coercive business practices in China or the presence of Chinese students and workers in the US, existing authorities may be inadequate, and it remains uncertain if the trade talks now underway will change this. In all cases, an over-reliance on restrictions (such as limiting or even banning Chinese researchers) would be counterproductive and harmful to US interests.

The dispute with China over its aggressive mercantilist policies and constant theft of intellectual property does not change this, and it is unlikely that any “trade deal” will solve this (and any deal is unlikely to be sustainable). However, the attention given to the risks of doing business with China have created market effects that slow China’s growth. Essentially, the cost of manufacturing in China has gone up. Companies are increasingly reluctant to trust their IP to Chinese firms and while in some instances this means that manufacturing is returning to the US (which has one of the most advanced and efficient manufacturing bases in the world) it also means that firms are moving beyond China to other countries (like Vietnam) to gain the advantage of differential costs in labour.

Technology and Competition

The complex pattern of commercial and research relationships challenges both nations. A straightforward correlation between technology and power can be challenged – having the best technology does not guarantee influence, power, or victory (as we have seen in the last 15 years, as the most technologically advanced military power confronted ragtag groups of insurgents in Afghanistan). The diffusion of technology and access to the commercial services provided by new technologies (such as space remote sensing) create challenges in both the economic and military spheres. From a military perspective, having indigenous capabilities to produce advanced technology may be becoming less important than the ability to exploit advanced technologies produced elsewhere.

Technological leadership does not automatically confer power. Political culture, national strategies, and business policies play a greater role, as do geographic size or population. Technology is one element among many in determining national power. The World Economic Forum once found Finland to be the most technologically advanced nation, and while this may translate into wealth for the Finns, it does not translate into power and influence. Both China and the US have innate advantages and disadvantages, but over the long term, the US has had a more consistent record of success – the real question is whether it has abandoned the policies and social constructs that provided this success.

America is hampered in this technological competition by its inability to finance public goods like research and its political discord. Such discord is suppressed in China, but other factors may hamper its continued technological improvement.

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