Two weeks ago, United States President Joe Biden signed an executive order banning new US investment in China’s “sensitive technologies”, including semiconductors, quantum computing and certain artificial intelligence systems. According to the order, the ban will apply to “narrow subsets”, with specifics yet to be determined, and is currently open for public consultation.

The move was well-expected, as US politics is now in a downward spiral of radicalism. The Democratic Party, which has long had good relations with US tech giants and global venture capital firms, knows how important it is to be engaging in China’s technological development. Biden, a veteran politician who has spent decades handling foreign affairs for both the legislature and the government, also knows that the country should interact with China. 

But as antagonizing China became the new political correctness, to win the next election and avoid being called a coward, Biden chose the easiest way. In Washington, given the current narrative, politicians are not debating whether technological equipment made by Chinese companies really poses a threat to US national security. They are engaged in a reality show about who is tougher on China. Whoever appears the toughest against China is called a real patriot. But shouldn’t the one who helps solve the toughest problems for the American people get the credit?

On Capitol Hill, even though such a ban undermines the international economic and trade order, some Republican lawmakers still think it’s not enough and are hounding Biden for more sanctions. 

Like it or not, this is now the US. It used to be an open, free and confident nation. However, the world is saddened and disappointed to see it has declined to this level. The US dares not apply the same rules to a country that competes with it in some areas. And decisions are made not in accordance with the interest of the state, but with the needs of politicians to keep their seats. The political radicalism started under the Trump administration, but it did not abate under Biden. Instead, it spread all over the country.

Indeed, by imposing the restrictions, the US government may slow down China’s progress in technological development. But ultimately, it will hurt US interests.

Let’s be frank. Eventually, China will make breakthroughs in key tech sectors; it’s just a matter of time. The executive order may delay progress, for sure, but will ultimately hurt US interests

First, China is the largest single market. In the internet era, this means that the country has the best field for companies to optimize their technology. For instance, AI development requires massive scale training. China, as one of the most populous, sophisticated, and diverse societies, can provide vast amounts of data to feed training and improve functions. Excluding China would leave a big hole in any company’s technological advancement. US companies would suffer a loss if they were barred from the country. 

Second, China offers a favorable competitive environment for tech companies. Chinese people may not be the most creative, but we are good at making perfect improvements to new creations. Look at the electric vehicle industry: China was a late entrant, but we are making some of the most intelligent cars. Chinese brands are now at the forefront of cockpit, autonomous driving and human-vehicle interaction technologies. I believe that is also partly why Tesla is betting big on China. Visionary businesspeople like Elon Musk must know very well how healthy competition propels the development of a company, especially an industrial giant. 

Tesla basically dominates major global markets, and its business model has become the most successful worldwide. But in China, it has had to face a group of strong and diverse competitors, who have rolled out special business models that are very different from Tesla’s. Without Li Auto, Nio, XPeng and BYD, Tesla would not be able to update its technologies as quickly as it does now.

Thirdly, with the ban in place, US capital and tech companies will most likely miss the “China growth”. Now, high-tech development is both a State strategy of the government, and the result of a real demand from Chinese society. The ubiquity of advanced apps and smart solutions in every corner of the nation demonstrates that high-tech will be the next major growth point for the country. Any business and tech entities will be more than willing to join and profit from this booming market. But the executive order will bar US companies from those opportunities, and will ultimately hurt their business performance and future development prospects. 

Let’s be frank. Eventually, China will make breakthroughs in key tech sectors; it’s just a matter of time. The executive order may delay progress, for sure, but will ultimately hurt US interests. Later, when things get nasty, corporate America may object to the government’s policies, and new political discourses may lead to another round of wrangling in Washington. Such is the karma of radical politics.  

History has proved time and time again that human societies advance through cooperation and healthy competition, not isolation and adversarial behavior. And now the world’s only superpower is obviously going off course. 

Moreover, we all know that China will not just stand idly by while its companies are unfairly treated. Retaliation will follow. “An eye for an eye” fight, initiated by Washington, will boomerang on the US itself and will also hit the world’s economy hard.

The author is a member of the Hunan Province Committee of the Chinese People’s Political Consultative Conference and vice-chairman of the Hong Kong Y Elites Association. 

The views do not necessarily reflect those of China Daily.