Former Google CEO Eric Schmidt discusses the growing economic rivalry between the U.S. and China in a recent op-ed.
Key Details
- Schmidt offers three pieces of advice for how the U.S. should grapple with the growing reality of China’s innovation and global influence, borrowing from his recent testimony before the House Select Committee On Strategic Competition Between the U.S. And CCP.
- First, the U.S. needs to invest in greater science and technology research, maintaining its position as the global leader in artificial intelligence while competing against China’s lead in 5G networks, financial technology, drones, and battery technologies.
- Second, the U.S. needs to make its democratic values prominent, aligning technology and world governments with its values while maintaining a competitive advantage.
- Third, the U.S. needs to invest in talent, building a pool of thinkers and scientists equipped to grapple with digital technologies and building an economy that attracts and retains the smartest scientists worldwide.
Why It’s Important
The U.S. is facing a Cold War-style confrontation with the Chinese Communist Party on almost every aspect of economic and scientific development. China is pushing forward on clean energy solutions, artificial intelligence innovation, and even attempting to beat the U.S. back to the moon in another space race.
The economic innovation is similarly met with hostile military aggression, with repeated standoffs between the U.S. and Chinese vessels and aircraft in the South China Sea, skirmishes on its border with India, proclamations that China will invade Taiwan, and international criticism against the Chinese government for its treatment of Hong Kong and Uyghur Muslims.
U.S.-based corporations have seen a three-year push to gradually reduce supply-chain dependence on China after the COVID-19 pandemic and subsequent supply-chain issues, with Apple moving a significant portion of its production to India and Vietnam.
With China continuing to push its advantages in global consumer production and innovation while closing the gap on innovative technologies, it will not be long before China is able to seriously challenge U.S. global hegemony as the gap wanes, exerting greater influence over the world, spreading the values of the Chinese Communist Party in the process.
“To sustain innovation power, the United States needs to act together with its allies. Now is the moment when we must deepen the cooperation with our allies and partners across critical technology sectors, supply chains, and markets. This effort should be guided by the ideals of American innovation—with the government and the private sector working together as true partners. We can succeed with our brilliant domestic talent and by attracting immigrants, not by walling off the world,” says Schmidt.
However, with a decreasing population and shrinking GDP, China may face a greater uphill battle in closing the gap with the U.S. than it wants to admit publicly.
