Illustration: Chen Xia/GT
In today's era of deep globalization, technological innovation has long become a global endeavor that requires openness, cooperation and mutual benefit. But in Washington's view, the US has become a loser, and investing in China has helped China develop, enabling Chinese companies to surpass it in the technological competition with the US. For that reason, Washington must cut off the investment link with China. This is the logic of the US policies that identified China as its first strategic competitor.
The flaws in this strategy are evident in two recent major news events. The White House issued a memorandum on the "America First" investment policy, further restricting bilateral investments with China, while Huawei announced its renewed push to reintroduce its smartphone products to the global market.
These events highlight a critical misconception in the US' technological competition strategy: Attempting to protect its interests by isolating and fragmenting the technological supply chain may weaken America's innovation capacity and global competitiveness. The development of modern technology is inseparable from the driving force of globalization. From semiconductors to artificial intelligence, and from 5G communications to new energy technologies, the division of labor and collaboration within global supply chains are central to technological advancement.
International technological cooperation is fundamentally a process of complementing each other's strengths. The rise of companies from late-developing countries provides new competition and learning opportunities for US domestic enterprises. By bringing in global innovation resources through cooperation, the US could enhance the competitiveness of its overall technological ecosystem.
However, in recent years, the US has sought to limit technological exchanges with China, ban Chinese companies from entering the US market, and even rally allies to jointly block Chinese tech firms like Huawei. This strategy runs counter to the tide of globalization.
The US' recent policies of closure, ostensibly aimed at protecting the so-called national security and the interests of domestic companies, may, in fact, have profound negative implications for its innovation system.
First, the decision to restrict bilateral investments with China will not only sever US companies' connections to the Chinese market but also cause them to lose significant opportunities to compete in the world's largest consumer market. This potential loss should be a cause for concern.
Second, while banning Chinese companies from the US market may reduce competition pressure in the short term, the long-term consequences are more severe. It will deprive US companies of opportunities to compete and collaborate with leading global firms, thereby weakening their capacity for innovation.
Although the US seeks to contain Huawei through isolation and confrontation, the diverse needs of international markets and the persistent demand for technological innovation continue to create space for openness and cooperation. Technological competition in the era of globalization is not a zero-sum game but a win-win endeavor based on openness and cooperation.
The main challenge facing the US in technological competition is not a lack of free market competition or decline in domestic innovation capacity. Instead, it lies in the flawed strategy of attempting to protect its competitiveness by blocking Chinese companies and their investment.
Washington's Cold War-era strategic thinking deviates from the reality of global technological exchange and integration. Ultimately, it will not succeed in cutting Chinese companies out of the interconnected global market. Instead, severing these ties will only make it more difficult for US companies to maintain their dominance in international markets.
The author is a reporter with the Global Times. opinion@globaltimes.com.cn
