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Convince and Coerce: U.S. Interference in Technology Exchanges Between its Allies and China

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The tough-on-China policy adopted by the Trump and Biden administrations has – and will increasingly have – important consequences for Washington’s allies, both on their infrastructure choices (5G, submarine cables...) and on their technological exchanges with China. 

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Biden Signs an Executive Order on the Economy, Washington, USA - 24 February 2021
Biden Signs an Executive Order on the Economy, Washington, USA - 24 February 2021
(c) Shutterstock
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Indeed, the U.S. objective of slowing down China’s technological development has been translated into multiple policies, primarily targeting China but also – directly or indirectly – U.S. partners.
 
On the one hand, Washington deploys a range of coercive and incentive tools to prevent its allies from adopting certain technologies, supplied by Chinese companies and « untrusted » by American authorities (in terms of cyber, data or infrastructure security). Case studies of U.S. efforts against the deployment of Huawei’s 5G or Hengtong Group’s undersea cables reveal a similar strategy, combining direct diplomatic pressure, a threat awareness campaign, and financial incentives.
 
On the other hand, in line with the United States’ historical use of the extraterritoriality of its law and its position as an economic superpower to influence its allies’ decisions, Washington seeks to restrict transfers of critical technologies from allies to China. As the main manufacturers (along with the United States) of these technologies, American allies are increasingly constrained by these legal and diplomatic restrictions, which target one of their main trading partners and tend to extend beyond strictly military or cutting-edge technologies. For example, in order to limit sales of semiconductor manufacturing equipment, U.S. authorities are combining changes to the American export control regime with diplomatic efforts (bilaterally and multilaterally) to persuade allies to align their own export policies with those of the United States.
 
While the Biden administration appears to be placing greater emphasis on cooperative and incentive approaches, it seems likely that the multidimensional U.S. strategy serving these two objectives will continue, and even be strengthened.
 
Among allies (and especially in Europe), this trend has raised awareness of the security challenges posed by certain Chinese suppliers, but also of the risks associated with the growing coercive practices of the great powers.
 
 
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979-10-373-0490-2

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Convince and Coerce: U.S. Interference in Technology Exchanges Between its Allies and China

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Author(s)
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Mathilde VELLIET

Mathilde VELLIET

Intitulé du poste
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Illustration Programme Amériques
Americas Program
Accroche centre

Ifri's work on the Americas region focuses mainly on the United States. Indeed, for more than 20 years, Ifri's Americas Program has provided keys to understanding American society and domestic policy while shedding light on developments in the country's foreign policy, including transatlantic relations and trade issues. 

 

Since 2023, a specific axis on Latin America structures more actively Ifri's research on this region.

 

Ifri's Canada program was active in 2015 and 2016.

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Authentic Modern High Tech Robot Weapon
Center for Geopolitics of Technology
Accroche centre

Artificial intelligence (AI), 5G, cybersecurity, robotics, semiconductors, space... Technology, especially in the digital domain, is now deeply affecting all human activities and, by extension, international relations. The resulting political, strategic, economic and social issues manifest themselves at multiple political scales involving states, international organizations and private companies. The dynamics of international competition and cooperation are transformed.

It is to respond to these challenges that Ifri is launching the Geopolitics of Technology program in the fall of 2020, which builds on the work it already carried out on these subjects for several years.

The program takes a resolutely European approach to international issues related to so-called critical technologies. Its work is organized around four cross-cutting themes:

  • Power: redistributions of power caused by new technologies, in particular digital; military and dual innovations; transformations of international competition;
  • Sovereignty: definition of critical infrastructures and technologies; industrial and innovation policies in strategic sectors; opportunities and risks associated with international value chains;
  • Governance: ethical and legal issues; interactions between companies, states, international organizations and users; public-private partnerships and GovTech;
  • Society: political and social impacts of technological innovations; risks and opportunities for the future of work, health, the fight against climate change; connectivity and economic development.
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Biden Signs an Executive Order on the Economy, Washington, USA - 24 February 2021
(c) Shutterstock

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Convince and Coerce: U.S. Interference in Technology Exchanges Between its Allies and China