National Security is Economic Security

Last week, the White House released the much anticipated Executive Order on outbound investment. As Politico notably reported in a preview story, President Biden’s action will require “U.S. firms to notify the federal government if they invest in some lower-end semiconductor production not already covered by export controls.” This is a step in the right direction and comes as the Administration is starting to wake up to the threat of a China-dominated legacy chip market. But more needs to be done.Financial Times columnist Rana Foroohar reacted to the Executive Order in a piece aptly titled, “The US now accepts national and economic security can’t be separated.” She says:[W]estern technology should not feed Chinese military modernization and expansion. From… Read More

Fixing the Failings of the Interagency Export Control Review System

By Steve CoonenAs I established in my paper Willful Blindness released in May, the Commerce Department’s Bureau of Industry and Security (the unit within the U.S. government primarily responsible for stopping the Chinese military from obtaining American technologies) has become a rubber stamp for the export of controlled technologies to China. Case in point: In 2022, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) approved over 91% of applications for the export of controlled technologies to China, even greater than 2021’s 88% rate. Yes, BIS needs to do a better job of denying tech exports to China. But BIS is not entirely at fault—it is just one cog in the broken federal machine tasked with defending U.S.… Read More

New CTT Paper: Three Solutions for Confronting the Looming Chinese Legacy Chip Monopoly

Yesterday China Tech Threat released a new paper detailing the dangers a looming Chinese legacy chip monopoly poses to U.S. national security and economic competitiveness.  In essence, With the U.S. government exclusively targeting China’s advanced chip manufacturing sector, the People’s Republic of China (PRC) – led by SMIC, its national champion working with the Chinese military – is exploiting the U.S. government’s tunnel vision and spending billions to dominate legacy chip manufacturing.CTT also wrote a brief summary  yesterday of three major dangers:The U.S. would potentially be dependent on China for chips essential to various military technologies and critical infrastructure.The world would be re-exposed to supply chain vulnerabilities associated with China-based chip production.The Chinese Communist Party would… Read More