A few days ago, the chip and Science Act, which claims to enhance the competitiveness of the United States but actually targets China everywhere, was formally signed into law. In the name of "competition", the bill "curbs fair competition" and is full of Cold War Zero Sum thinking. What are the new trends in the US scientific and technological competition with China in recent years? How should China respond?

On August 9, local time, the chip and Science Act, which has undergone many rounds of games between the US Senate and house of Representatives, was signed into law by US President Biden. Under the banner of "enhancing the competitiveness of the United States", the bill "curbs fair competition" in the name of "competition", which is full of Cold War Zero Sum thinking.

On July 28, foreign ministry spokesman Zhao Lijian said on the bill that to engage in the decoupling of restrictions would only harm others and oneself. At the same time, China insists on putting the development of the country and the nation on the basis of its own strength. No restriction or suppression can stop the pace of China's scientific and Technological Development and industrial progress. A spokesman for the Ministry of Commerce said on July 29 that the bill provides huge subsidies to the chip industry in the United States, which is a typical differential industry support policy. Some provisions restrict the normal economic, trade and investment activities of relevant enterprises in China, which will distort the global semiconductor supply chain and disrupt international trade. China will continue to follow the progress and implementation of the bill and take effective measures to safeguard its legitimate rights and interests when necessary.

Why is a bill claiming to improve the competitiveness of the United States targeted at China? In recent years, what are the new trends in US scientific and technological competition with China? How should China respond? This reporter interviewed Liu Guozhu, director of the American Research Center of Zhejiang University.

Q & A: how to improve the competitiveness of the United States by suppressing China?

Reporter: Why did the bill claiming to improve the competitiveness of the United States target China?

Liu Guozhu:The chip and Science Act originated from the US innovation and competition act, which aims to boost high-tech research and manufacturing in the United States to confront China and other competitors. The main provisions of the "downsizing" bill include providing about US $52 billion for us semiconductor companies. However, if enterprises invest or expand advanced process semiconductor plants in China or other "potentially unfriendly countries", they will not be eligible for this subsidy.

Regarding China as a long-term strategic challenge and competitor in the future is the consensus of few American politicians. The reason why the bill is targeted at China reflects the original intention of the US legislators, that is, to regard China as an imaginary enemy and serve the US competitive strategy against China.

Since the trump era, the US government has regarded China as the most important challenger and threat, and the Biden administration has positioned China as the "most serious competitor". The US strategic circle is particularly afraid of the momentum of China's scientific and technological development. In particular, China is making use of its institutional advantages to quickly make up for the shortcomings of the third scientific and technological revolution and strive to seize the lead in the main fields of the fourth scientific and technological revolution, such as artificial intelligence, quantum information and new generation mobile communications. The change of science and technology pattern is an important factor in the evolution of international economic pattern and political pattern. China has not only become an economic power, but also is moving towards becoming an economic power. This is precisely what the United States does not want to see.

The US strategic circle is very clear that the fundamental factor that determines the competition between China and the United States is the geo economy, and the key factor that can determine the geo economy is the emerging technology. The party with stronger innovation strength will occupy the advantage of big country competition.

Q & A: why do you choose to invest heavily in the semiconductor field?

Reporter: the bill involves many industries, and semiconductor is the top priority. In order to contain China, why did the United States choose to place heavy bets in the semiconductor field?

Liu Guozhu:Semiconductor is known as the "brain of manufacturing industry". With the development of digital technology and the increasing proportion of digital economy in the national economy, the importance of semiconductor industry will be further enhanced. However, the situation faced by the US semiconductor manufacturing industry is quite severe, especially the proportion of the global semiconductor industry is small, and it is increasingly dependent on overseas. According to the data of the Congressional Research Service (CRS), the share of the United States in the global semiconductor manufacturing capacity has decreased from 37% in 1990 to about 12% in 2020. Due to the high cost and complexity of chip manufacturing, many American semiconductor companies have turned to the "fabless" mode, retaining higher value design elements for new and more powerful chips, and outsourcing the manufacturing part to foreign countries, especially East Asia, which has 80% of the global chip manufacturing business. Therefore, the consensus of the U.S. Senate and house of Representatives is reflected in the chip and Science Act.

The New York Times reported and summarized the main contents of the bill: first, provide about US $52.7 billion of financial support to the semiconductor industry, provide us $24 billion of investment tax credit for enterprises, and encourage enterprises to research, develop and manufacture chips in the United States; Second, we will provide about US $200 billion in scientific research funding in the next few years, focusing on supporting cutting-edge technologies such as artificial intelligence, robotics and quantum computing.

In terms of importance, semiconductor products in the digital era are equivalent to oil in the internal combustion engine era. Therefore, semiconductors have become the core field for the United States to implement scientific and technological containment against China. The US government believes that if semiconductor products are blocked, it may block a power source for the development of China's digital industry. Therefore, the chip and Science Act aims to reorganize the global supply chain of the entire semiconductor industry through administrative means of the US government, especially to restrict the development of the Chinese semiconductor industry.

Q & A: is it called the "competition act" but does it actually "curb fair competition"?

Reporter: in recent years, what measures has the United States taken to curb the development of China's high-tech industry? How do you evaluate this?

Liu GuozhuIn recent years, the United States has introduced a series of measures to curb China's high-tech development, which fully reflects the hypocrisy of the US government. The chip and science act is derived from the American innovation and competition act. However, the US government often acts as "curbing fair competition" in specific practices. In particular, the United States has "Pan security" and "Pan ideology" of scientific and technological issues, poisoning the fair competition environment in the global market, especially the digital market.

"Pan security" is a common means used by the United States to crack down on its competitors. The United States not only excluded China's new generation mobile access equipment from the US communication market on the ground that Huawei and ZTE and other Chinese electronic equipment "may" have security holes, but also actively lobbied other countries, especially European allies, to jointly resist China's new generation communication equipment. The US state department even launched the "clean network" program to review telecom enterprises in other countries in the world. As long as Chinese equipment is used, it is "unclean" and the United States will boycott or even sanction it. Under the pressure of the United States, about 50% of the world's telecom enterprises were forced to join the plan.

Not only that, the United States also prohibited American enterprises and enterprises using American technology from providing spare parts to Huawei, which led to the interruption of Huawei's 5g product supply chain and forced the separation of the "glory" series brand from Huawei. The United States' suppression of Huawei in the name of "national security" is in fact that it does not want China's advanced digital enterprises to gain technological advantages in any field of the fourth scientific and technological revolution.

"Pan ideology" is another weapon that the United States often uses to suppress its opponents. In recent years, the United States has not only strengthened export control, prohibited American enterprises and enterprises using American technology from providing spare parts to Chinese digital enterprises listed in the sanctions list, but also prevented their digital products from entering the US market.

The United States is also actively building a science and technology alliance against China in the international community, and it excludes and suppresses China in various fields such as export control, investment screening, market access, and the formulation of emerging technology standards. The decoupling of precision technology from China in the form of "small courtyard and high wall" disrupts the existing mature supply chain in the world, and makes global industries, especially those related to semiconductor technology, face supply chain restructuring, exacerbating the global "chip shortage".

Not only that, the United States is also actively restricting people to people and cultural exchanges between China and the United States. Some Chinese students in the United States were forced to change the topic of their papers because they were not allowed to enter some laboratories again; Some Chinese scholars who are regarded as sensitive majors by the United States can no longer obtain visas from the United States; The majors of some American universities are closed to Chinese students, and some university courses are not allowed for Chinese students; The FBI also launched the "China Action Plan" to catch so-called "Chinese spies" in the United States. Some Chinese scholars, Chinese scholars and even white people were expelled from American universities and scientific research institutions, prosecuted or imprisoned by the FBI. In recent years, 80% of the economic and technological espionage cases prosecuted by the US Federal Bureau of investigation are related to China, and 60% of the commercial secrets leakage cases are related to China. All these are undoubtedly creating a chilling effect and poisoning the environment for normal academic exchanges between China and the United States.

The above-mentioned actions of the US government have come to the opposite of the basic principles of the founding of the United States. It not only abandons the traditional market economy principle, but also abandons the traditional political principles of the United States, especially the principle of civil rights, which reflects the typical "double" or even "multiple" standards of the United States government under the pressure of competition from big powers. Whether it is to strengthen its own scientific and technological competitiveness or to increase the pressure on China's scientific and technological development, its ultimate goal is only one: to safeguard the US scientific and technological hegemony.

Q & A: facing the containment,How can China break through the tight encirclement and seek development？

Reporter: in the face of the technological blockade and encirclement and interception by the United States in many fields, how can China break through the encirclement and seek development?

Liu GuozhuIn view of the US competitive strategy against China, China should adopt different coping strategies in different fields.

First of all, we should do our own thing well. China's own affairs are more important than anything else, and its own development is the last word. The Fifth Plenary Session of the 19th CPC Central Committee proposed that we should adhere to the core position of innovation in the overall situation of China's modernization, and take scientific and technological self-reliance and self-improvement as the strategic support for national development. The general direction has been set, and all localities, departments and units should carry out targeted work in accordance with this general policy. Especially in the field of scientific and technological innovation, it is necessary to give play to the innovation driving role of the scientific and technological community and the business community, and all functional departments should create a good institutional environment and policy environment for scientific and technological innovation to truly realize the "two wheel drive" of scientific and technological innovation.

Second, give priority to the development of crucial "killer" technologies and improve the dependence of relevant international industrial chains on China. In the short term, it is impossible for China to achieve the international leading position in all key technology fields. However, it is necessary to develop as many "killer" technologies as possible, update China's export control list in time, and increase the bargaining chips in negotiations with European and American countries. The more "killer mace" technologies China has, the more fearful the European and American countries will be of technology blockade and supply interruption to China.

Third, promote deeper integration with the world economy with a higher level of openness. China will unswervingly expand its domestic demand market. China's domestic market will play a more important role than the US domestic market. The market will not only determine the technical standards to a certain extent, but also influence the policy direction of other countries. Most of the allies of the United States in the Asia Pacific region do not choose sides between China and the United States, which is a victory for the Chinese market. China must adhere to the general policy of "opening up to a higher level", promote the member countries of the regional comprehensive economic partnership agreement (RCEP) to negotiate digital standards and digital trade cooperation as soon as possible, and upgrade RCEP to RCEP version 2.0; More importantly, it is necessary to rapidly carry out negotiations with cptpp member states.

It should be pointed out that if the United States imposes too strict restrictions on the export of China's technological products, Japanese and European enterprises that rely heavily on the Chinese market may develop two technological systems corresponding to the United States and China respectively, which will greatly reduce the effectiveness of the United States' science and technology alliance.

Fourth, the core of the US science and technology alliance is the EU countries and Japan. These countries share the same value orientation with the United States in the fields of intellectual property, market access and government subsidies, but they are not the same. The EU's "digital sovereignty strategy" is regarded by the United States as the EU's "technological nationalism"; China should develop practical technical cooperation with them, including cooperation in the formulation of new technical standards.

Fifth, in view of the weaponization of ideology by the United States, we should do targeted work. On the one hand, China should adhere to the concept of "community with a shared future for mankind" and make use of multilateral cooperation mechanisms including the United Nations, the China Africa Cooperation Forum and the G20 to put forward and advocate a common development concept in the digital era, so that developing countries can share the dividends of digital development and build a "community with a shared future for mankind in the digital era"; On the other hand, tell the story of China's national governance well, especially compare the advantages and disadvantages of the national governance systems of China and the United States from the perspective of the effect of national governance, proving that the effect is more important than the form.

Sixth, the foundation of scientific and technological development lies in talents. China must also formulate more targeted talent development strategies and policies to attract international talent. On the basis of the "strong foundation plan" of the Ministry of education, the Chinese version of the "stem" (Science, technology, engineering and Mathematics Education) strategy should also be formulated to continuously strengthen stem education from primary school to continuing education. Attract the strongest brain in China to stem disciplines. Attract international scholars and students, especially outstanding talents in stem disciplines, to work and live in China, and realize the gathering of talents from all over the world to devote themselves to China's scientific and technological innovation.

Author: reprinted on the website of the Central Discipline Inspection Commission and the State Supervision Commission