Can the US “Out China” China?

The passage of the US Innovation and Competition Act by the US Senate last week generated a lot of media attention. It’s a unique piece of news in that it’s newsworthy both as a “process story” and a “substance story.”

By process, I mean the 68-32 vote tally -- a true bipartisan effort that’s as rare as snowstorms in Texas. Only a united adversarial attitude towards China can bring about this level of bipartisan cooperation. This isn’t the first time Congress presented an united front regarding China. Last year, I wrote about the bipartisan passage of the Holding Foreign Companies Accountable Act, which aims to delist Chinese companies from Wall Street in “Why Huawei Should IPO in America”.

By substance, I mean the $250 billion investment where the list of technology sectors to “innovate” or “compete” in looks eerily similar to the items outlined in the Made in China 2025 plan. Semiconductors, AI, quantum computing, electric vehicles, 5G -- you name it, both countries got it. Even the deadline is similar; the bill’s funding is for the next five years.

Of course, being the Senate, there are still some random things that get squeezed into a proposal destined to pass -- your typical “riders.” Sandwiched between sections to limit nuclear cooperation with China and supporting an open 5G network with OpenRAN is a provision to limit shark fin sales.

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