Tech Wars: US-China Technology Competition and What it Means for Australia

Book excerpt: Technology is now the defining element of the Trump administration’s self-professed “strategic competition” with China. Washington is highly attuned to the long-term consequences and links between scientific progress, technological adaptation and national power in burgeoning US-China competition. Policymakers are attempting to balance efforts to maintain the open and global foundations of US and allied research and development systems, while deterring those that abuse its accessible and integrated nature. While President Donald Trump has been highly inconsistent on technological issues, Congress and the executive branch have slowly moved forward in executing the 2017 National Security Strategy and protecting what it termed the US National Security Innovation Base. Congress and the Trump administration have embarked on a ponderous — and at times heavy-handed — effort to protect America’s technological advantage across multiple domains and through actions by several branches of government. Congress has expanded the powers of the Committee of Foreign Investment to review non-controlling investments in technology companies. New export controls are being rolled out which feature vastly more expansive definitions of “foundational” and “emerging” technologies, broadening their scope and potential reach. The Department of Justice has launched a major criminal justice campaign labelled the “China Initiative”, with the goal of prosecuting technology theft and enforcing existing regulations in every US state. Draft bills indicate the likely expansion of Congressional reform to halting the flow of US government funds flowing to overseas partners also involved in joint high-tech research and development (R&D) with China, affecting third parties like Australia. Australia will be significantly affected by Washington’s unravelling of the US-China technological relationship, owing to its deep enmeshment with America’s scientific infrastructure. To navigate these changes in the national interest, Canberra must consider the following. Australia will face growing pressure to limit its science and technology interaction with China in critical dual-use fields in order to maintain technological collaboration with the United States in some emerging technologies, and may even be required to adopt restrictive export control policies. Australian research by universities, defence industry, business and government agencies will be seriously impacted by the United States’ expanded export control reform. Canberra should continue to lobby US policymakers on solutions, such as providing exemptions under the National Technology and Industrial Base framework. As the global technological ecosystem becomes more nationalised, securitised and difficult to navigate for industry and governments alike, Australia should implement a national research and development strategy that builds its own technological ‘counterweight.’