India’s "QRIUS" website article on May 23, the original title: The US anti-China science and technology war is unfounded and tantamount to self-destruction. For American companies, financial giants, high-tech industries and consumers, President Biden’s expansion of the technology war is bad news. Over time, this will damage the Asian recovery and the global economic prospects.
Recently, the Biden administration sent two senior officials to "explain" that the United States is not seeking to decouple from China (in fact, the United States seems to be doing so). However, neither Finance Minister Yellen nor Assistant to the President for National Security Affairs Sullivan answered how Washington plans to restrict technology transfer and investment in China. This encourages the view that the new measures of the United States may harm investors and disrupt the world trading system. At the beginning of 2021, Anne Kruger, a former WTO economist, warned that the US practices were "bullying China in trade, foreign investment, cyberspace, e-commerce, intellectual property rights, the South China Sea, the Taiwan Strait and other matters." The U.S. measures (aimed at China’s suppression) have produced extensive and aimless negative effects, especially when the U.S. economy is teetering on the brink of recession. No matter what strategy the Biden administration adopts, the long-term economic challenges of the United States have just begun, and the war on science and technology will make the situation worse.
In addition to prohibiting American companies from making foreign investments in China’s technology enterprises, Biden’s administration is also trying to restrict the types of technologies sold in China. As high-end semiconductors become the initial focus, the restrictions will be extended to artificial intelligence, quantum computing, electric vehicles and rare earth metals; In short, those emerging industries in the future. Ironically, American companies and financial giants still want to cooperate with China, just as ordinary Americans want cheap and affordable goods.
For several weeks, Biden’s administration said that it would announce restrictions on investment in China with its American allies before the Group of Seven (G7) Hiroshima Summit. But it didn’t happen. On the contrary, it is only stated in the summit communique that G7 partners "stand together" in their respective aspects of China, but all member States will "act in accordance with national interests". Although the U.S. government tries to multilateralize misleading policies, it may be that only the United States will really implement such policies.
No matter how meager security benefits Biden administration hopes to gain from preventing American investment and international recognition of China’s technology enterprises, these benefits may be offset by the huge collateral damage caused by the new restrictions in the United States and the world. Over time, these restrictions will also prevent Americans from learning from China technology companies — — Many of them are at or near the top of the technology field.
Washington’s technical restrictions (aimed at China) will punish American enterprises, investors and consumers over time, undermine global recovery and drag American allies into geopolitical stagnation, and suffer huge losses due to missed opportunities. This is the wrong action at the wrong time. (The author Dan Steinbeck is the director of the International Trade Research Office of the Indian-Chinese Institute of American Think Tank, translated by Ding Ji)
