The United States–China ‘tech war’: Decoupling and the case of Huawei

Abstract

AbstractThis paper offers an analysis of US strategy in the unfolding United States–China ‘tech war’ and its consequences. We argue that a tech war is now underway, and that Washington is the driving force behind it. Here, we focus on the most impactful policy so far: the placement of Huawei and over 150 of its affiliates on the sanctioned Entity List. As a result, a decoupling between high‐end US tech and Huawei Technologies is well underway, if not already complete. However, the consequences of the sanctions have not been what Washington intended or expected. The company appears to have maintained its position as one of the world's leading innovators in 5G technology and remains a leading supplier of 5G base stations. The United States risks undermining co‐operation with China in other critical policy areas because the tech war is viewed as aggressive in Beijing. It has also exposed the limits of US influence over allies and third countries, many of whom are opting for Huawei's cheaper 5G infrastructure. Nevertheless, the expansion of this approach by the Biden administration suggests that, in future, Washington may prioritise security interests over commercial ones as it seeks to preserve as much US primacy as possible.