The U.S.-China Technology War: Risks and Opportunities for P.R.C. and Global Tech Sector. Comparative Politics Russia. 2020;11(4):160-176. https://doi.org/10.24411/2221-3279-2020-10056
ISSN 2221-3279
DOI 10.24411/2221-3279-2020-10056
US-China Technology War in 2019-2020 reached a new level. Washington introduced new measures aimed at preventing Chinese corporations from access to the emerging technologies, «smart» capital, and academic sector. For the PRC and Chinese technology sector this process was a severe blow, significantly complicating medium-to-long term development prospects. In response, PRC intensified import substitution, scientific and technological development - also through international scientific and technical cooperation (ISTC). China still lacks competencies and time to compensate the U.S. actions, so it concentrates on science and human capital development for the future breakthroughs. We envision significant economic risks for the PRC including its ability to recreate itself as a new science and technology center, alternative to the U.S.A. Regional and global implications are not less significant. Unlike other cases of sanctions, U.S. measures are aimed not only at impairing economic potential of an opponent nation, but also at supporting dominance of the U.S. entities in some key high-tech processes, conserving their key role in global value chains (GVC), markets, and industries. These actions and the PRC’s response may lead to reformatting of global S&T processes, including rise of parallel GVCs, alienation from an «open» logic of high-tech development, and shift in the focus of ISTC. In future, this will also have important geopolitical implications, since the new system of GVCs and markets will structure alliances, influence and strength - especially considering emphasis on emerging technologies of key importance for the future economy (from 5G to artificial intelligence).
Keywords: U.S.-China technology war | digital technologies | electronics | sanctions |
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