China

China is leading in chemical production, especially basic chemicals. And while it is currently lagging behind on innovation—especially in more complex fine chemicals—all signs suggest it will catch up with the global leaders within the next decade or two.

While it is important for national security to prevent foreign adversaries from leveraging U.S. data for geostrategic advantage, it is also critical for U.S. economic security and technology leadership not to undermine the critical role that data and data flows play in modern commerce.

Alone, America cannot stem Beijing’s rise in advanced industries. We need a new pact with Europe. Its objective should be to refuse to surrender to technological domination by the CCP. Being pioneers of the green transition will not be enough.

As the Biden administration and Congress increasingly focus on U.S. competition with China, policymakers confront complex problems illustrated both by microchip supply chains and by current debates surrounding TikTok.

A look at the proposals put forth during China's major annual political convening give hints as to what the government may focus on in the year ahead, which includes AI model development, data sharing, skills development, and safety.

Unlike the United States or the European Union, the primary focus among stakeholders in China was how to ensure China does not fall behind in the development or adoption of this emerging technology.

China does not yet appear to be leading in robotic innovation, but its domestic production and adoption are growing rapidly, and the Chinese government has prioritized the industry. It is likely only a matter of time before Chinese robotics companies catch up to the leading edge.

It’s time to move from an Economic Statecraft 1.0 premised on using U.S. strength to support friends and punish adversaries, to an Economic Statecraft 2.0 premised on husbanding U.S. strength while limiting the relative techno-economic advance of China.

A December 2023 working paper found that China’s technology capital would decrease by about 36 percent in the absence of production and knowledge spillovers from multinationals.

China has experienced the same growth trend that some of the Asian Tigers have experienced. Only China’s path is about 25 years behind.