Geoeconomics of US-China tech rivalry and industrial policy

Abstract

The focus of the current US–China rivalry is mainly on technology and the race to dominate strategic emerging sectors. Industrial policy, as a return of key instrument, is playing an increasingly important role in both countries for competition. This paper aims to study several issues about US-China geoeconomic rivalry of technology and industrial policy adopted in the two countries. We first explore the evolution of China's technology advancement since 1978, focusing on industrial policy used to help China emerge as a global tech power. A theoretical framework is developed to explain how and why US-China geoeconomic tech rivalry arise. We argue that industrial policy plays a critical role in both the US and China to compete each other. We conclude that the intensifying US-Chinese rivalry has the potential to foster a new era of public policies characterized by global tech statism and tech nationalism.