The U.S. Tech Industry Needs China

Many in the U.S. have looked on China’s astonishing rise with consternation, which again echoes how Japan was viewed in the 1970s and ’80s. The seminal moment came when the Japanese semiconductor industry began to leap ahead of the U.S. in the late 1970s—despite the U.S. being the birthplace of the microchip.100% tariffs

But more importantly, and lastingly, the reaction from the U.S. wasn’t purely negative. Both U.S. companies and the U.S. governmentfrom Japan’s novel innovation ecosystem that integrated its national labs and universities with its industries. Japan’s ascent spurred the U.S. to pass the Stevenson-Wydler Technology Innovation Act in 1980, to facilitate collaboration between researchers in national labs and academia with industry.

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