Friday, March 16, 2018

The battle for digital supremacy

For the past decade the words embossed on the back of iPhones have served as shorthand for the technological bargain between the world's two biggest economies: America supplies the brains and China the brawn.

China's technological rise requires a strategic answer, not a knee-jerk one.

America has no choice but to see Chinese technology as a means to an unwelcome end.

Broadcom is not even Chinese; the justification for blocking the deal was that it was likely to invest less in R&D than Qualcomm, letting China seize a lead in setting standards.

Mr Trump has reportedly already rejected one plan for tariffs on China to compensate for forced technology transfer but only because the amounts were too small.

Were America to impose duties on Chinese consumer electronics, for example, it would harm its own prosperity without doing anything for national security.

Mr Trump's approach is defined only by what he can do to stifle China, not by what he can do to improve America's prospects.

https://www.economist.com/news/leaders/21738883-americas-technological-hegemony-under-threat-china-battle-digital-supremacy

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