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    U.S. technological hegemony hinders innovation and development: The third commentary in the series of deconstructing the truth about the “market economy” in the United States

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    Beijing, August 16th, title: U.S. technological hegemony hinders innovation and development – the third commentary in the series of deconstructing the truth of the “market economy” in the United States

    Xinhua News Agency reporter Zhang Ying

    In order to increase pressure on China, the United States has unscrupulously introduced a series of measures to curb China‘s technological and industrial development, such as the “Chip Act” under the guise of safeguarding “national security” in recent years, which fully reflects its hegemonic thinking and “Double standard” style.

    This shows that in order to maintain technological hegemony, the United States has completely abandoned the principle of fair competition, and has not hesitated to politicize, instrumentalize, and ideologically transform technological and industrial issues, and set up obstacles for global technological cooperation and innovation. .

    In recent years, China‘s scientific and technological development has made remarkable achievements, while the United States blames China for the relative decline of its own scientific and technological strength and influence in certain fields, generalizes the concept of “national security”, exaggerates the “China threat”, and advocates the development of strategic competition with China.

    During the Trump administration, the United States included technology as a core area of ​​strategic competition with China, began to implement a strategy characterized by “decoupling” from China, and issued a large-scale inventory of the “China Action Plan” Chinese and Chinese scientists have included a large number of Chinese enterprises and institutions on the “entity list” in an attempt to block the flow of knowledge, technology, and talents between the two countries.

    The Biden administration follows the strategy of containing China through science and technology. On the one hand, it integrates ideology into technological competition and draws allies to contain China; on the other hand, it tries to block key technologies from China more precisely. The United States promotes the establishment of the “US-EU Trade and Technology Committee” and lobbying for the formation of the “Semiconductor Quartet”, in an attempt to “de-Sinicize” the global technology system and supply chain.

    Earlier this month, Biden officially signed the “Chip Act”. According to this bill, the U.S. government will invest huge amounts of money to support U.S. chip manufacturing and R&D, but as long as it accepts U.S. government subsidies, companies will not be allowed to expand advanced chip production capacity in China or any other country for 10 years. This is a typical differentiated industry support policy. By promoting the “return” of chip manufacturing to the United States, it suppresses the development of other countries and maintains the hegemony of the United States.

    Represented by the “Chip Act”, the core of the strategic competition between the United States and China in science and technology is not to stimulate their own competitiveness, but to use strategic, economic, trade, diplomatic and other tools to squeeze China‘s development space, Continue the advantages of the United States in key technologies and high-tech industries.

    Under the influence of deep-rooted zero-sum thinking, the United States is accustomed to dealing with international relations in a confrontational way, relying on its hegemony in military, financial and other fields to suppress its identified opponents. Over the years, in order to maintain its technological leadership and industrial advantage, the United States has resorted to various means, ranging from imposing technological blockades to imposing high tariffs, to catching the wind and framing it.

    In the 1980s, the Japanese semiconductor industry boomed, overwhelming American companies for a time. To this end, the United States has resorted to “heavy blows” such as high tariffs and mandatory market share, hitting Japanese semiconductor companies such as Toshiba and Hitachi, which have caused them to not regain their vitality.

    The French Alstom company has thriving in the fields of nuclear power, electrical and other fields. In 2013, the United States arrested the company’s executive, Frederic Pierucci, for violating the Foreign Corrupt Practices Act, and subsequently filed a lawsuit against him and imposed a hefty fine on Alstom. Under pressure from the U.S. side, Alstom eventually sold the relevant business unit to its main competitor, General Electric Company of the United States.

    The United States is anxious about the prospects for the development of China‘s technological competitiveness, and has repeated its tactics to suppress Chinese technology companies by coercion. In addition to the U.S. Commerce Department’s inclusion of Huawei and related entities on its “entity list,” the FCC last year ordered U.S. telcos with fewer than 10 million users to “remove and replace” Huawei and ZTE equipment, spending $1.9 billion as subsidy. These practices do not hesitate to “cut the flesh” and completely “shield” Chinese technology companies, which grossly tramples on the market economy rules of free competition based on factors such as technology and price.

    Ali Raidi, a researcher at the French Institute of International Relations and Strategic Studies, pointed out in the book “Hidden Wars” that the United States uses “long-arm jurisdiction” to openly exert pressure on any country, whether it is an allied country or a country. The opponent is completely “covering the sky with one hand”.

    Economic globalization promotes the formation of industrial division and collaboration worldwide. The industries of China and the United States are highly complementary. Even under the background of the “decoupling” policy implemented by the United States, the trade volume between China and the United States in 2021 will still reach a record high of more than 750 billion US dollars. From January to June this year, the actual US investment in China increased by 26.1%.

    The two countries also share profound common interests in the technological innovation industry. The British “Financial Times” reported that China and the United States are two big technology countries closely linked. Once “decoupling”, it will bring a heavy blow to hundreds of American technology companies. The United States forcibly separates Sino-US industrial cooperation and artificially creates an “isolated island” of innovation. The victims include the United States itself and even the whole world, and the United States’ own innovation capability will inevitably be severely weakened. Henry Paulson, former US Treasury secretary and chairman of the Paulson Institute, believes that “decoupling” policies will create incompatible rules and standards in the global economy, hindering innovation and economic growth.

    Many American companies are also reluctant to “decouple” from the Chinese market, which is conducive to the optimal allocation of resources. Not long ago, the American Chamber of Commerce in China released the White Paper on American Businesses in China, showing that more than two-thirds of the surveyed companies believe that China is still their top three investment markets in the world; 83% of the surveyed companies said they have not considered investing in China Production or procurement is moved outside of China.

    With the development of globalization today, zero-sum thinking and Cold War thinking have long lagged behind the times. The mutually beneficial and win-win scientific and technological cooperation between China and the United States is of great significance to promoting global development and human progress. The U.S. side should get out of the zero-sum game, respect the legitimate rights of other countries to develop, stop imposing no bottom-line suppression and containment on China, and promote fair competition, win-win cooperation, and innovation in the Chinese and U.S. industries under open market conditions. This is in the interests of both China and the United States, and also in line with the common expectations of the international community.

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