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Former Google CEO and others call for U.S.-China tech "bifurcation"

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Illustration: Aïda Amer/AxiosA new set of proposals by a group of influential D.C. insiders and tech industry practitioners calling for a degree of "bifurcation" in the U.S. and Chinese tech sectors is circulating in the Biden administration. Axios has a copy.Why it matters: The idea of "decoupling" certain sectors of the U.S. and Chinese economies felt radical three years ago, when Trump's trade war brought the term into common parlance. But now the strategy has growing bipartisan and even industry support.The report, called "Asymmetric Competition: A Strategy for China &amp; Technology," was authored by an informal working group formed last summer with 15 participants writing in their private capacities, including:What they're saying: "America’s technological leadership is fundamental to its security, prosperity, and democratic way of life. But this vital advantage is now at risk, with China surging to overtake the United States in critical areas," the authors write. The nature of the challenge, according to the report:Their proposed solutions:What to watch: Whether or not the proposal gets traction in the Biden administration, its emphasis on multilateralism fits with the administration's goals and priorities.Editor's note: This story was updated to reflect that the report's authors were writing in their private capacities and that Eric Schmidt is also a co-founder of Schmidt Futures.Go deeper: The new administration's first few moves and statements on China suggest that President Biden may continue some of the Trump era's most assertive policies.Why it matters: China's severe domestic repression, its dramatic rise as a technological superpower, and its increasingly aggressive actions around the globe mean that the world expects the American president to take action.Trade groups representing major tech firms are moving aggressively to push their ideas in front of the Biden administration, urging action on policy areas including privacy and broadband.Why it matters: After a tumultuous few years under the Trump administration, the tech industry is hoping for a reset.Chinese President Xi Jinping warned that a "new cold war" could turn hot, and must be avoided, in a speech on Monday at World Economic Forum’s virtual “Davos Agenda” conference.Why it matters: Xi didn't refer directly to U.S.-China tensions, but the subtext was clear. These were his first remarks to an international audience since the inauguration of President Biden, whose administration has already concurred with that China is committing "genocide" against Uyghur Muslims, and issued a about China's aggression toward Taiwan.

Illustration: Aïda Amer/AxiosA new set of proposals by a group of influential D.C. insiders and tech industry practitioners calling for a degree of "bifurcation" in the U.S. and Chinese tech sectors is circulating in the Biden administration. Axios has a copy.Why it matters: The idea of "decoupling" certain sectors of the U.S. and Chinese economies felt radical three years ago, when Trump's trade war brought the term into common parlance. But now the strategy has growing bipartisan and even industry support.The report, called "Asymmetric Competition: A Strategy for China &amp; Technology,"...

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Bethany is the China reporter at Axios. She is the author of the weekly Axios China newsletter, and she covers Beijing's influence and intentions.

https://www.axios.com/authors/baebrahimian

Bethany Allen-Ebrahimian

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Former Google CEO and others call for U.S.-China tech "bifurcation"

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