America’s new export controls on China have been criticised by some. But the country “is simply adapting to intensified geopolitical competition”, argues a former Biden official in a guest essay
administration is determined to challenge China’s high-tech aspirations. After a series of smaller moves, it has in recent months launched new export controls that broaden and deepen its denial of semiconductor technology to China in dramatic fashion.The rules add three big restrictions. First, they go beyond targeting specific companies and now start by denying exports to China of any chips that perform above a certain threshold.
Meanwhile, American firms earn $100bn each year from semiconductor-related sales to China. It would be naïve for policymakers to expect any individual company to consider the collective risks to national security from the unfettered supply of high-end technology to China, including critical inputs to Beijing’s nuclear and digital-surveillance programmes.
To start, the Biden administration should establish and articulate a doctrine of economic statecraft at the highest levels of government. America has spent hundreds of years developing military doctrine. But it has spent only a fraction of that time setting out the rules of economic engagement for the growing list of potent measures used by major powers across the world. These include export controls, but also sanctions, tariffs, capital and investment restrictions, subsidies and price caps.
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