ITI recommends policies to bolster US economic security against China's tech rise

In a pivotal meeting of the U.S. House Committee on Financial Services, experts emphasized the urgent need for strategic policies to counter China's technological advancements and economic influence. The discussions highlighted the critical role of American tech companies, which represent a significant portion of the U.S. economy and are essential for maintaining national security.

The Information Technology Industry Council (ITI) presented a compelling case for recognizing the innovation economy as a vital asset. ITI's representative underscored that U.S. tech companies, which account for about 10% of the GDP and employ millions, are crucial in sustaining the country's competitive edge in areas like semiconductors and artificial intelligence. The representative warned against complacency, noting that while the U.S. currently leads in technology, China has made substantial strides in innovation over the past two decades.

To effectively counter China's rise, ITI proposed a set of ten policy recommendations aimed at enhancing U.S. economic security. Key among these were calls for clearer investment review criteria to strengthen ties with allies, revitalizing U.S. trade leadership through strategic agreements, and incentivizing innovation by restoring tax deductions for research and development. These measures are designed to ensure that U.S. companies can compete effectively on a global scale without hindering domestic innovation.

In parallel, discussions on energy policy revealed a pressing need for the U.S. to bolster its energy leadership to compete with China's aggressive expansion in the energy sector. ClearPath's managing director highlighted the importance of strategic financing tools to support U.S. energy projects and counter China's dominance in nuclear and clean energy. The U.S. must act swiftly to modernize its export and development financing mechanisms, ensuring they are equipped to support a diverse range of energy technologies.

The meeting concluded with a consensus on the necessity for bold actions to secure America's technological and energy future. As the global landscape shifts, the collaboration between government and industry will be crucial in maintaining U.S. leadership and safeguarding national security against the backdrop of rising competition from China.