Commerce Official Calls for Partnerships with Global Allies in Tech Race with China

WASHINGTON, February 6, 2023 – Deputy Commerce Secretary Don Graves said an event late last month that the U.S. needs to build partnerships with other countries to tilt the balance in its favor against the technological influence of China.

“This is how we’re going to build U.S tech leadership, not with silver bullets, but step-by-step with government, business, educational institutions and communities all working together to create the conditions that will drive innovation, attract investment and grow quality middle class jobs,” said Graves at the Information Technology Industry Council’s tech and policy summit on January 31.

Graves addressed a concern that China has moved aggressively to establish a technological powerhouse “through massive government support for their own domestic industries, strategic use of capital to gain access to early stage, commercial tech” and allegedly through technology theft.

Graves said the Joe Biden administration understands the need for a different approach, a modern strategy that will focus on technology that provide innovation and job opportunities. He referred to a focus on computing-related technologies comprising chips, quantum and artificial intelligence and clean energy tech, that will reduce dependence on fossil fuels and protect against the costs of climate change.

The comments come after the House voted to establish a new committee to study the competitive landscape between China and the U.S. The Federal Communication Commission has already designated major Chinese companies such as Huawei and ZTE national security threats. In order to increase independence, President Biden has signed the Chips and Science Act into law in August last year that incentivizes the domestic manufacturing of key technologies, including semiconductors.

Sen. Todd Young, R-IN, one of the speakers at the event, called on Congress to be more united when it comes to the issues with China.

“We need to become more economically resilient,” Young said. “That means hardening our supply chains,” which he said can be done using the success of the Chips and Science Act.

“The administration’s theme that domestic policy is foreign policy is a good way to think about many things.”