Innovation Drag: The Impact of Chinese Economic and Trade Policies on Global Innovation

It has become clear to even the most committed free traders that China is not engaged in anything approaching free trade, especially when it comes to its advanced-technology sectors. While some policymakers and analysts dismiss the effects and effectiveness of China’s policies for advanced industries, many others acknowledge their deleterious effects on U.S. production and jobs. But what has been largely unappreciated, at least in policy circles, is the extent to which China’s policies and practices affect global innovation. This is a critical issue because robust technological innovation is the single greatest driver of higher living standards, better health outcomes, better quality of life, and a cleaner planet. Anything that slows the rate of global innovation should be seen as a challenge to all humanity.

With support from the Smith Richardson Foundation, ITIF has conducted an in-depth research project to assess the impact of China’s policies on global innovation. Watch our overview of this research, including sectoral analysis of five advanced industries: telecommunications equipment, biopharmaceuticals, solar photovoltaics, semiconductors, and high-speed rail. ITIF analysts will discuss how Chinese policies affect global innovation and steps allied nations can take to mitigate the harm.