US Should Adopt China's Tech Transfer Strategy, Experts Advise

US industrial policy experts are urging Washington to consider a strategic shift in its approach to Chinese technology, suggesting the United States adopt elements of Beijing's playbook. At an online panel hosted by the Quincy Institute, a think tank advocating for a less militarized foreign policy, experts proposed that the US should strategically open specific sectors to Chinese investment to ensure technology transfers occur.

This approach contrasts with the current trend of broad restrictions on Chinese technology. The experts argued that merely shutting out Chinese technology without a clear strategy to enhance domestic competitiveness would not guarantee the US closes the gap in areas where China currently leads. Instead, they advocate for identifying sectors where cutting-edge Chinese technological know-how could be welcomed and then applied to bolster US industry, possibly through joint ventures and technology licensing agreements.

Jake Werner, director of the East Asia program at the Quincy Institute, commented on the mutual paranoia between the US and China. "But China has figured out a way to incorporate American business and technology in its advanced sectors," Werner stated, posing a rhetorical question about what prevents the US from doing the same. This sentiment highlights a perceived missed opportunity for the US to leverage foreign technological advancements for its own benefit.

The debate over how the US should engage with Chinese technology has intensified in recent years, particularly as China has become a dominant force in critical areas such as electric vehicles and battery technology. The experts' recommendations suggest a potential recalibration of US industrial policy, moving from a purely defensive stance to a more proactive strategy that seeks to benefit from, rather than solely resist, China's technological prowess.

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China is overly paranoid about the US, and I think the US is overly paranoid about China. But China has figured out a way to incorporate American business and technology in its advanced sectors … What is stopping us from doing basically the same thing is my rhetorical question.