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Report on Role of Trade Networks Competition Between the U.S. and China

The Washington-based Center for Strategic and International Studies (CSIS) emphasized the critical importance of controlling trade networks for the dominance in the competition of science and technology between the United States and China in a recent report.

According to the report, the control of trade networks is crucial for the superiority in the competition, with the central focus being on “actors consisting of the United States and its allies.” It pointed out that the ease of access would pose a security threat if the United States’ import control mechanism were “too relaxed,” while being “too stringent” would undermine the production and profits of domestic businesses.

The report referred to the “Chip and Science Act” signed by President Joe Biden’s administration in October 2022 in the United States, highlighting how countries like China, affected by import restrictions on semiconductors, have developed their own chip designs to reduce dependence on U.S. companies.

It reminded readers that Chinese President Xi Jinping has classified quantum technologies and artificial intelligence research as the country’s “critical strategic technologies.” The report also highlighted that many companies, in addition to state investments, are engaged in research and development in these areas.

The report cautioned that unilateral control attempts in emerging technologies would be futile and could harm U.S. imports in the long run. It stated that the vacuum created by the withdrawal of U.S. companies from the market would be rapidly filled by other international companies.

While the report recommended the United States to keep investment controls “moderate” in the emerging field of quantum technologies, it underscored the necessity for sectors like cooling and nano-printing to be “controlled by a few actors consisting of the United States and its allies.”

In the realm of artificial intelligence, data collection, computing power, and semiconductors, the report conveyed that the United States and its allies currently “hold the reins.” It suggested that multilateral agreements between the U.S. and its allies could prevent China’s access to artificial intelligence chips.

source: aa.com.tr/ prepared by Melisa Beğiç

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