China throws money after tech, while Trump pivots away.

Author: Christine Mui | Source: POLITICO | Read the full article

In a competitive landscape between the United States and China, both countries are pursuing different strategies to lead in advanced technologies like artificial intelligence and quantum computing. China has announced a significant state venture capital fund aimed at investing approximately $138 billion in startups that focus on critical areas such as semiconductors and renewable energy. This move highlights China's commitment to enhancing its technological capabilities through a robust industrial policy.

On the other hand, former President Donald Trump has expressed his intention to roll back U.S. investments in high-tech manufacturing, specifically targeting the CHIPS and Science Act, which was designed to support the domestic semiconductor industry with $50 billion in funding. This shift in U.S. policy raises questions about the future of American technological leadership, as the country appears to be stepping back from direct government involvement in industrial development.

The contrasting approaches of the two nations underscore a broader debate about the effectiveness of industrial policy. While China continues to invest heavily in its technological infrastructure, the U.S. seems to rely more on the private sector to drive innovation. This divergence in strategy could have significant implications for the global tech landscape, as both countries navigate their paths in an increasingly competitive environment.

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