US urged to use Beijing playbook to secure Chinese tech transfers

US industrial policy and supply chain experts suggest that the United States should learn from Beijing's approach to securing Chinese technology transfers, according to a recent panel discussion. While Washington is contemplating new restrictions on Chinese technology, such as a proposed ban on sales of connected-vehicle cars and imports of humanoid robots and power inverters, experts argue that a blanket ban without a clear strategy could hinder US competitiveness.

Instead, the US should target areas where advanced Chinese technology could be beneficial and then apply that knowledge, potentially through joint ventures or technology licenses. Jake Werner, director of the East Asia programme at the Quincy Institute, noted that China has successfully incorporated American business and technology in its advanced sectors.

Susan Helper, former chief economist at the US Department of Commerce, observed that Beijing "brilliantly" opened its economy to learn from European and American multinational companies. However, she cautioned against extreme openness without adequate protections for US workers and measures that maximize technology and process-knowledge spillovers while containing security risks.

For instance, local supplier requirements and regulatory walls could be implemented to prevent Chinese firms from relying solely on domestic suppliers. Jonas Nahm, an associate professor at the Johns Hopkins School of Advanced International Studies, emphasized that China has taken steps to prevent this, such as recent regulations that block technology exports to companies suspected of violating export controls and technology transfer rules.

He suggested that if the US and China continue to have a tense relationship, the window for learning from each other's strategies may close.