Locked in a long-term competition around advanced technologies, the US is using outdated policy tools to slow China’s rise as a technology power. A worst case scenario: decoupling of the two countries’ technology, financial, and economic sectors.
By Paul Triolo*
The United States and China are now clearly locked in a competition over dominance of the technologies of the future. At the same time, some elements of key government organisations on both sides are pushing for a major decoupling of very intertwined supply chains and value generation ecosystems that have developed over more than 30 years.
How did we get to the point where zero sum competition and some level of decoupling are now widely accepted in government, academic, and business circles, and companies on both sides are acting in ways that will both heighten the competition and accelerate the decoupling? All this in several short years?