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Chinese Tech Isn’t the Enemy - 6th Aug
America is rightly concerned about spying and intellectual-property theft. But it risks overcompensating—to the detriment of U.S. companies.For years, the U.S. was unsuccessful in stopping the Chinese government’s blatant stealing of U.S. intellectual property and its industrial policy that seeks to make the country world-class in key technologies like artificial intelligence and semiconductors—in part for China’s own growing and menacing military to use. The U.S. thereby inadvertently helped China, including its People’s Liberation Army, accelerate its development of these technologies. But in correcting this, the U.S. now risks cutting off too much technology cooperation with the world’s second-largest economy, which would harm U.S. interests more than China’s. The goal should be to protect a few key technologies and come down hard on China’s illegal practices, rather than cutting off technology cooperation generally.
Building a wall to keep America’s technology in and others’ out is not the right analogy—rather, America should snip the few bad strands in the otherwise positive web of international tech innovation.
Those who favor different rates for income tax and capital gains tend to argue that people wouldn’t invest if investment income were taxed at normal rates, and that it would stop job creation. There is absolutely no evidence for this.
The key is that China and the United States must work together on this crisis. There really is no other option – and it’s very much in China’s interest.