Chinese tech firms ‘ cautious’
‘ Abandon illusions’ of major shift in Washington
After US President Joe Biden warned of “extreme competition” with China, while also making clear that he would not pursue the same path his predecessor Donald Trump took, many in China’s technological arena took that as a clear sign that the US government’s crackdown on Chinese technology companies would continue, if not further escalate.
Chinese industry insiders and analysts have urged businesses to abandon any “illusions” that things would improve meaningfully under Biden, particularly with regard to what could be an escalating rivalry in the technological realm that would decide the two countries’ global standing in the coming years and decades. However, some still suggested that Biden might avoid certain “irrational behavior” undertaken by Trump.
In an interview with
CBS News aired on Sunday ( US time), Biden offered more clues as to how he would approach relations with China, suggesting that he might try to avoid a conflict and follow international rules.
However, in keeping with his repeated theme of getting tough on China, Biden said that “we need not have a conflict but there is going to be extreme competition.”
The US, under Trump, raised the stakes in competition with China in many areas, and one of the most significant races – and one that has profound implications – is the rivalry in advanced technologies, including 5G, artificial intelligence, big data and fintech.
Biden’s comment on “extreme competition” served as a warning for many in China’s technology world. “I don’t interpret Biden’s speech as sending a goodwill gesture to China’s technology sector,” a senior employee of a Shenzhen- based technology company, which has faced a US crackdown, told the Global Times on Monday, urging the industry to have “no illusions” on the Biden administration’s China policy.
Although Biden has not yet announced a systematic technology stance toward China, its main direction – deducing from his televised comments – will likely be to promote cooperation only on the basis of protecting and maximizing US interests, said the employee, who spoke on condition of anonymity.
As the US technology sector involves “the interests of a laundry list of shareholders” and differences between the parties on a unified approach toward China’s technology industry have been growing, the technology war between the world’s two largest economies is poised to extend further, according to the employee.
“The priority for us now is to focus on our own course, regardless of how the new administration shifts its tone,” the employee said.
Average annual compound growth rate of R& D spending 2000- 19