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On technology, President Biden’s State of the Union address sent a clear message: U.S.-China competition is here to stay, the American people are key stakeholders in the semiconductor industry, and public support is key to a successful technology strategy.
The United States’ new chip export controls on China launched an unprecedented strategy to constrain China’s technological ambitions. Despite some flaws, the Biden administration got the scope, scale, and, critically, the timing right.
The Commerce Department’s Oct. 7 export controls aim to restrict China’s access to advanced semiconductors, supercomputers, and semiconductor manufacturing equipment to prevent the Chinese government from using these items for weapons of mass destruction, military modernization, and surveillance.
America’s drug industry is poised to face the same manufacturing crisis the semiconductor industry faces today: a supply chain mired with chokepoints in East Asia that pose direct risks to U.S. national security and economic growth.
The CHIPS and Science Act is a major, bipartisan plan to compete more effectively with China. But it places too much emphasis on subsidies and state direction.
Including talent provisions in the final version of the House bill should be central to the U.S. strategy to reshore the defense industrial base and stay competitive with China.
As Congress moves towards conference consideration of major China-related legislation, funding for domestic semiconductor manufacturing will feature prominently.