For the U.S. and China, a Technology Cold War That’s Freezing Over

In the current state of our economy and political climate, the desire to protect domestic industry is greater than ever. This battle for protection of firms can be seen in the heavily competitive technology sector. China has historically placed heavy burdens on US companies trying to do business in China to support the emerging Chinese industry. Recently, however, the capacity of Chinese factories have begun to approach that of US firms. Because of this, the US government is beginning to take steps to protect our tech firms against the growing Chinese firms.

This is one of the first times in history that we have been at odds with a country that we share so much investment with that is also seen as a political threat. For example, Japan has always competed with us economically but they have also been a military ally and Russia has been an adversary but has never come close to our economic output. China is in a strange position of being able to compete with us in the open market but is also seen as a political adversary.

This article highlights that problems that arise when infant industries begin to compete on the open market with their mature peers. Only time will tell how we begin to solve this problem of approaching equity in the international tech industry.

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