China's Technological Rise

China's growth as a technological powerhouse is one of a number of momentous changes taking place in the U.S.-China relationship. Some changes are driven by pressing threats, like North Korea's belligerence. Others like the President's executive order on steel imports are simply the result of our change in administration. Still more, like the impending launch of China's first indigenous produced aircraft carrier, are symbolic of China's growing power. These changes will demand policy adjustments. The bilateral relationship between the U.S. and China is the most consequential in the world. The United States can't set policy based solely on short-term commitments by China to reign in its dangerous North Korean trading partner or predatory trade practices. During this time of recalculation, the United States must account for the complete picture, taking into account broader long-term trends. China's policies toward high technology and its conduct in the high-technology sectors make up concerning pieces of this picture. China is relentlessly pursuing long-term degradation of U.S. strategic and economic interests through its high-tech policies. China has undertaken a comprehensive industrial strategy to advance domestic high-tech industry through nonmarket means. Massive state subsidies and zero sum tactics degrade foreign competitiveness, and the systematic and widespread theft of intellectual property and forced transfers of technology destroys innovation and research investments.