"Need to Review Export Controls and Other Strategies Toward China"… U.S. Congressional Research Service Announcement

"Need to Respond to China Aiming for Global Industrial Hegemony"

A report from the United States has called for a review of industrial policies such as export controls to counter China, which is aiming to dominate global key industries. The advice also includes seeking strategies to reduce dependence on China.

The Congressional Research Service (CRS) made this assertion in a report released on the 11th (local time).

CRS explained, "China is trying to secure a leading position in the global economy and technological development through state-led industrial policies," and "many lawmakers expressed concerns that if China's policies succeed, the U.S. technological advantage could be undermined, and it could be caught up in critical areas including national defense."

It also stated, "China is systematically acquiring advanced technologies to complete large-scale technology transfers," and "in the long term, it wants to control sectors that can benefit the most from the global supply chain." It added, "Chinese semiconductor companies have enjoyed government support at interest rates lower than the market rate," and "the state's role in Chinese industry is extensive."

[Image source=Yonhap News]

CRS sees 'Made in China 2025' as central to China's strategy. Made in China 2025 aims to innovate manufacturing within China and increase labor productivity by 2025. Through this, the Chinese government envisions leading global industry by 2049.

CRS noted, "Some lawmakers are exploring ways to diversify supply chains by restricting investments and research linked to Made in China 2025 to exclude China," and "Congress may need to review policies such as export controls, foreign investment, and antitrust measures to respond to China's industrial policies." It also explained, "It is necessary to examine how trade, investment, and technology transfer affect U.S. competitiveness, as well as how to reduce dependence on China."