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US-China: Focus on protecting strategic technologies vs wholesale reconsideration of US-China economic integration? [Bloomberg]

January 30, 2019

Bloomberg interview with former Treasury Dept. China representative David Dollar (now Brookings). Video, 7.5 minutes:

The most interesting part is the last 2 minutes. Note that even the milder of the two scenarios he refers to, would include potentially dramatic actions. To slow the growth rate of the Chinese hi-tech sector, for the sake of maintaining US leadership in vital technology areas – which we define very broadly.

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  1. According to some, it’s a matter of “regain” not “maintain” leadership in key technologies.

    • Ah yes, good point. Thanks for the link.

      I guess there are other areas the US is currently strong in that are not quite “telecom” but still “internet”. Such as 100 gigabit range fiber-optic network technologies – everything from chip fabrication and up to switching gear (Cisco products). I really haven’t kept up with this stuff to be honest.

      The other aspect of it is, China doesn’t actually need to have the latest tech. If they produce something that’s 10-15 years behind, but for 30% of the cost the US deploys it for, that’s still a winner for them. Or a threat, to many US strategists. And also, unlike almost every other country, the Chinese domestic market is easily big enough to support any required R&D effort, and places like India will not get fully “wired” at first world prices, and will remain a natural export market.

    • Here’s another link on Huawei

      The USA is not going to make itself stronger by trying to weaken China.

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