Introduction:
The “US-China tech war,” often referred to as the technology rivalry or tech competition between the United States and China, began gaining significant attention and momentum around the early to mid-2010s. This period saw increasing concerns and conflicts related to technology, trade, intellectual property, and national security between the two countries.
Friends turned into foe:
The United States and China have a long and complicated history, and their relationship has been characterized by both cooperation and rivalry. In the early years of the People’s Republic of China (PRC), the United States supported the country’s economic development and provided military assistance. However, relations between the two countries began to deteriorate in the 1980s, as China became more assertive in its territorial claims and its human rights record came under scrutiny.
The 1990s saw a period of renewed engagement between the United States and China, as both countries sought to cooperate on issues such as trade and counter-terrorism. However, tensions began to rise again in the early 2000s, as China’s economic and military power grew. The United States became increasingly concerned about China’s cyber espionage activities, its human rights record, and its territorial claims in the South China Sea.
The election of Donald Trump in 2016 marked a turning point in US-China relations. Trump took a more confrontational approach to China, accusing the country of unfair trade practices and intellectual property theft. He also imposed tariffs on Chinese goods and withdrew the United States from the Trans-Pacific Partnership trade agreement, which China had been a major proponent of.
The Biden administration has taken a more measured approach to China, but it has also continued to express concerns about the country’s actions. The two countries remain locked in a trade war, and there is little sign of a thaw in relations in the near future.
The Rivalry
There are a number of reasons why the United States and China have become rivals. Some of these reasons include:
- Economic competition: China is now the world’s second largest economy, and it is rapidly catching up to the United States. This economic competition has led to tensions over trade, investment, and intellectual property.
- Geopolitical rivalry: China is asserting its power in the Asia-Pacific region, and it is challenging the United States’ traditional dominance in the region. This has led to tensions over Taiwan, the South China Sea, and other territorial disputes.
- Differing values: The United States and China have different political systems, economic systems, and values. This has led to tensions over human rights, democracy, and the rule of law.
The rivalry between the United States and China is likely to continue for many years to come. It is a complex and multifaceted conflict, and there is no easy solution. However, it is important to understand the roots of this rivalry in order to find ways to manage it and prevent it from escalating into conflict.
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However, it’s important to note that the issues and tensions that contribute to this tech rivalry have roots that go back even further, and it is a complex and multifaceted situation. The exact starting point of the tech war is difficult to pinpoint, but some key events and developments that contributed to the escalation of tensions include:
The Timeline of US-China Relations
Early 2000s – China’s Technological Ascent:
- China’s economic growth and technological advancements start to gain global attention, as the country becomes a major player in manufacturing and electronics.
2001 – China Joins the World Trade Organization (WTO):
- China’s entry into the WTO leads to increased trade and investment, but concerns over intellectual property theft and market access restrictions persist.
2006 – Unfair Trade Practices Complaints:
- The US, along with the European Union and Canada, files a complaint with the WTO over China’s alleged unfair trade practices and inadequate protection of intellectual property rights.
2010 – “Made in China 2025” Initiative:
- China announces the “Made in China 2025” plan, aimed at transforming the country into a global technology leader by investing in sectors like AI, robotics, and aerospace.
2012 – US Congress Warns About Huawei and ZTE:
- The US House of Representatives’ Intelligence Committee releases a report raising concerns about the potential national security risks posed by using equipment from Chinese telecommunications companies Huawei and ZTE.
2018 – US-China Trade War Begins:
- The Trump administration imposes tariffs on various Chinese goods, initiating a trade war between the two countries. The tariffs target high-tech products and intellectual property.
2018 – ZTE Ban and Negotiations:
- The US bans American companies from exporting technology to ZTE after the company violates US sanctions. The ban is lifted following negotiations and a fine paid by ZTE.
2018 – Huawei’s CFO Arrested:
- Canadian authorities arrest Huawei’s CFO, Meng Wanzhou, at the request of the US. She faces charges related to alleged violations of US sanctions against Iran.
2019 – Huawei Added to Entity List:
- The US Commerce Department adds Huawei to its Entity List, restricting US companies from doing business with the company without government approval.
2019 – Clean Network Initiative:
- The US State Department launches the “Clean Network” initiative, aiming to protect US citizens’ data from untrusted foreign entities, singling out Chinese tech companies and apps.
2020 – TikTok and WeChat Bans Proposed:
- The Trump administration announces plans to ban transactions with TikTok and WeChat, citing national security concerns. Legal challenges and negotiations follow.
2020 – Semiconductor Export Controls Tightened:
- The US tightens export controls on semiconductor technology, targeting sales to China, to prevent the country’s access to advanced chip manufacturing technology.
2020 – China’s Export Control Law:
- China introduces an export control law, giving the government more authority to restrict exports of sensitive technologies based on national security grounds.
2020 – Cyber Espionage and COVID-19 Research:
- The US Department of Justice indicts several Chinese hackers for attempting to steal COVID-19 research and trade secrets from US companies.
2021 – Biden Administration’s Countermeasures:
- The Biden administration takes further actions to address China’s tech ambitions. It blacklists Chinese companies from conducting business with the US government, tightens restrictions on sensitive technology exports to China, and boosts funding for R&D in strategic areas.
2022: Solar Panel Import Ban and Tariffs:
- The US government bans imports of solar panels from China due to national security concerns. China responds by imposing tariffs on US solar panel imports, escalating trade tensions.
2023: Major R&D Initiatives Announced:
- The US government introduces a new initiative, committing $100 billion to research and develop critical technologies like artificial intelligence, quantum computing, and semiconductors. This reflects a proactive effort to maintain technological leadership.
2023: China’s R&D Investment:
- In response to the US initiative, China announces a substantial $1.4 trillion investment in research and development across various sectors, signaling its determination to advance its own technological capabilities.
2023: Telecommunications Equipment Bans:
- The US government bans the use of Chinese telecommunications equipment by US government agencies and businesses, citing security concerns. This move aims to reduce potential vulnerabilities associated with Chinese tech in critical infrastructure.
2023: China’s Retaliatory Measures:
- In retaliation, China prohibits the use of US telecommunications equipment by its government agencies and businesses, reflecting the tit-for-tat nature of the ongoing tech rivalry.
These events highlight the evolving nature of the US-China tech rivalry, shaped by concerns over trade, national security, intellectual property, and technology dominance.