The Trade War between China and the US is heading to Dangerous Levels

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Just a few years ago, leaders in the United States predicted that the development of the Chinese economy would give birth to a stable middle-class in that country. These leaders added that such democracy would give rise to a democratic system of government where the Chinese people get the chance to choose their leaders and the way they would like to be governed. However, the leadership in the People’s Republic of China has reaped numerous benefits from the countries in the West.

President Xi Jinping and his administration has capitalized on the political dysfunction in the United States and the fragmentation in the European Union as an alternative model for the country’s stability and development. The lawmakers at Capitol Hill have over the years expressed their doubts on Chinese ability to develop innovations and become a global leader in the world of technology. Legislators often bought the idea that the Chinese economic system that is state-dominated would come to a screeching halt when it comes to the development of new ideas.

The American legislature’s assumption was informed by what happened in the Soviet Union. However, the Chinese learned from the mistakes that had been committed by the Soviet Union during the Cold War. First off, the Chinese government assisted the tech firms in the country to steal technologies from the west that could not be developed back at home.
Moreover, the Chinese government is pumping hundreds of billions of dollars into the country’s tech corporations. The Chinese tech companies are also looking at how they can best incorporate data management innovations, robotics and artificial intelligence to determine the balance of power. In October last year, President Xi Jinping declared that China must take all the necessary measures to become a tech superpower. President Jinping has repeatedly insisted on the need for the Chinese to reduce their over-reliance on intellectual property from the West and the United States in particular.

Technological self-reliance and indigenous innovation are now the basis of the tech development in China. President Jinping’s ‘Made in China 2025’ program is central to the country’s vision. The Chinese government is giving huge subsidies to the tech sector as a building block to the country’s mission of becoming a global tech leader. President Donald Trump launched an offensive against the Made in China 2025 program on May 29th. The White House announced that it would be restricting Chinese firms from investing in technology that was of industrial significance in the United States.

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