The Tech High Ground

Why It Matters

A robust, production‑focused tech strategy is essential for U.S. economic security and military deterrence in the long‑term U.S.–China rivalry.

Key Takeaways

• China controls 70% of global lithium‑ion battery production
• U.S. aims to revitalize techno‑industrial base and secure supply chains
• Strategy focuses on semiconductors, AI, biotech, and clean‑energy stack
• Bipartisan policy tools include CHIPS Act, Inflation Reduction Act, and DPA actions
• Allied coordination essential for standards, investment, and counter‑dumping measures

Pulse Analysis

The U.S.‑China technology contest has shifted from a pure innovation race to a battle for control of production inputs. China’s state‑driven model has already captured dominant positions in rare‑earth processing, battery manufacturing and emerging biotech supply chains, allowing it to translate breakthroughs into scalable capabilities. For American policymakers, the challenge is not merely to out‑innovate but to secure the downstream ecosystem that turns research into market‑ready products, a task that demands coordinated industrial policy, strategic subsidies, and a resilient supply‑chain architecture.

Revitalizing the American techno‑industrial base requires a two‑track approach: boost frontier R&D while simultaneously rebuilding advanced manufacturing capacity. Legislation such as the CHIPS and Science Act and the Inflation Reduction Act provide a template for federal investment, but a broader toolkit—price floors, long‑term procurement contracts, and streamlined permitting—will be needed to attract private capital to high‑cost sectors like next‑generation batteries, quantum chips, and synthetic biology. Aligning these incentives with national‑security criteria ensures that critical inputs remain under allied control, reducing vulnerability to coercive trade actions.

Beyond domestic measures, the United States must leverage its network of allies to set global standards and counterbalance Chinese subsidies. Initiatives like AUKUS and the NATO Defense Innovation Accelerator illustrate how technology sharing can amplify deterrence and accelerate diffusion of democratic digital norms. By coupling a secure supply chain with a values‑based digital order—emphasizing data privacy, human‑rights safeguards, and transparent financing—the U.S. can offer a compelling alternative to China’s state‑centric tech bundles, preserving both economic opportunity and strategic stability.