Tech is the engine that powers the American economy and drives U.S. innovation. Today, leading U.S.-based tech companies have given our country a competitive advantage over foreign rivals, and American global technological leadership has become a cornerstone of our national security. But, as outlined in a recent report from the Center for Strategic and International Studies, officials at home and abroad are considering policies that risk undercutting the American tech sector’s potential and undermining our country’s long-term national security interests.
As the report details, the Biden Administration acknowledges the important role the American tech sector plays in the strength of our nation. Currently, 81 of the most successful tech companies in the world are based in the United States, and private-sector businesses are responsible for 74.9% of our nation’s research and development. These American tech companies are responsible for creating the innovative new technologies that underpin our digital infrastructure, from cloud computing to advances in AI.
As global competition between the U.S. and foreign rivals has intensified, it’s increasingly important that American officials take steps to maintain the United States’ innovative and competitive edge because, as the CSIS report lays out, China is making proactive efforts to bolster its tech sector and would be eager to take our place. This is clearly a problem for our national security.
The report also provides insights into how some U.S. officials have pushed for harmful antitrust regulations and policies that put American national security at risk, and outlines fresh considerations that antitrust enforcers should take into account.
For example, top Biden Administration antitrust enforcers at the Federal Trade Commission (FTC) and Department of Justice (DOJ) have launched lawsuits against some of our country’s leading tech companies. High-level officials at the FTC and DOJ have even worked closely with regulators in other countries to implement foreign regulations that disproportionately hurt U.S. companies and economic interests, threatening American global competitiveness.
In Congress, elected officials have introduced legislation that mirrors foreign regulations targeting American companies. Experts have warned that these legislative efforts risk overregulating the tech sector, threatening to stifle U.S. innovation and the development of emerging technologies like AI and quantum tech. Concerningly, some of these bills, including the American Innovation and Choice Online Act, aim to place burdensome regulations on U.S. tech companies, but would leave large Russian and Chinese businesses untouched.
Even American trade officials – including United States Trade Representative (USTR) Ambassador Katherine Tai – have backed away from long-standing bipartisan principles designed to protect U.S. digital trade interests. Last year, Tai withdrew her support for digital trade rules during ongoing negotiations at the World Trade Organization (WTO). Previously, these rules were seen as essential in maintaining the United States’ global digital leadership. While other nations have taken actions like these as a green light to discriminate against U.S. businesses to the benefit of foreign competitors, Tai has minimized foreign digital trade barriers, including in the annual National Trade Estimate (NTE) report, which was designed to catalog foreign threats to U.S. business interests.
Technology plays a central role in protecting the United States. However, misguided policies and enforcement actions put American technological leadership – and U.S. national security – at risk. American officials must recognize that a strong U.S. tech sector is key to maintaining our edge and keeping America safe. In today’s landscape of global competition, promoting policies to encourage innovation is essential for U.S. national security.
