Open questions | How China and the US went from ‘90% cooperation to 90% competition’
Political scientist Elizabeth Economy gives her view on the big issues in the relationship and why US policy on China has changed
Joe Biden’s administration has launched policies on semiconductors such as the Chips and Science Act, expanding export controls and forming new partnerships. How effective has this strategy been?
The US government is investing US$39 billion into manufacturing, and an additional US$13 billion into R&D, but it has attracted over US$400 billion in private sector investment into manufacturing as a result of the Chips and Science Act. It’s moving at an incredibly aggressive pace, and I would say that has been quite successful to date.
In terms of export controls, those are really directed at chips and equipment that the United States believes can be used for military applications that would undermine US national security.
I don’t think that we have seen a full study of the efficacy of export controls. My preliminary assessment based on what I’ve read is that the export controls are having mixed success. But I think that more work needs to be done to assess the real implications or the ramifications of the export controls.