Exclusive: Security At The Forefront Of China's US Trade Discussions

Natalie Brooks

5 min read

Post on May 10, 2025

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National Security Concerns Shaping Trade Policy

The escalating tensions between the US and China are no longer solely about economic competition; national security now sits at the forefront of trade policy decisions. This is evident in two critical areas: data security and intellectual property theft, and China's military-civil fusion strategy.

Data Security and Intellectual Property Theft

The US harbors significant concerns about China's access to sensitive American data and the persistent theft of intellectual property. These concerns are fueled by numerous incidents involving the alleged theft of trade secrets and the unauthorized access to sensitive corporate and government data. This has prompted legislative action, such as the CHIPS and Science Act, aimed at bolstering domestic semiconductor production and reducing reliance on Chinese technology.

• Examples of incidents: Allegations of Chinese companies stealing trade secrets from US technology firms, breaches of data security involving sensitive government information.
• Legislation: The CHIPS and Science Act aims to incentivize domestic semiconductor manufacturing and reduce dependence on foreign suppliers, particularly China.
• Affected Companies: Numerous US technology companies across various sectors have reported losses due to intellectual property theft and cybersecurity breaches linked to Chinese actors. This includes companies in the semiconductor, telecommunications, and software industries.
• Keyword focus: data security, intellectual property theft, cybersecurity, technology transfer, CHIPS Act, national security concerns.

Military-Civil Fusion and Technological Dominance

Another significant concern is China's military-civil fusion (MCF) strategy. This strategy blurs the lines between civilian and military research and development, raising fears about the potential for rapid technological advancements with significant military applications. The US worries this could disrupt the global power balance and undermine its technological dominance.

• Examples of Chinese technological advancements: Advances in artificial intelligence, hypersonic weapons, and quantum computing, all of which have potential dual-use applications.
• Concerns about dual-use technologies: The ambiguity surrounding the civilian and military applications of certain technologies makes it difficult to distinguish between legitimate economic activity and activities that pose a national security threat.
• Keyword focus: military-civil fusion, technological dominance, dual-use technology, national security strategy, China's technological advancement.

Economic Security and Supply Chain Resilience

The emphasis on national security has also spurred efforts to bolster economic security and enhance supply chain resilience. This is manifest in two key approaches: diversification of supply chains and the strategic use of trade restrictions.

Diversification of Supply Chains

The US is actively promoting the diversification of its supply chains to reduce its dependence on China for critical goods and components. This involves "friend-shoring," a strategy that emphasizes strengthening economic ties with trusted allies and partners.

• Examples of industries affected: Semiconductors, pharmaceuticals, rare earth minerals, and other critical technologies are central to this diversification effort.
• Initiatives like "friend-shoring": This strategy involves shifting production and sourcing to countries with aligned values and security interests, reducing reliance on China.
• Costs and benefits of diversification: While diversification enhances security, it also involves higher costs and potential disruptions in the short term.
• Keyword focus: supply chain resilience, diversification, friend-shoring, economic security, critical infrastructure, nearshoring.

Trade Restrictions and Tariffs

Trade restrictions and tariffs are increasingly utilized as tools to address security concerns related to China. These measures aim to level the playing field, protect domestic industries, and counter unfair trade practices.

• Specific examples of tariffs and restrictions: Tariffs imposed on certain Chinese goods, restrictions on investment in sensitive technologies, and export controls on dual-use technologies.
• Analysis of their effectiveness and economic consequences: The effectiveness of these measures is subject to ongoing debate, with economists weighing the benefits against potential economic costs.
• Keyword focus: trade restrictions, tariffs, trade war, sanctions, economic warfare, China trade relations.

The Role of International Alliances

The US is actively leveraging international alliances and partnerships to counter China's influence in trade and technology. This multilateral approach aims to create a united front to address shared security challenges.

Strengthening Partnerships to Counter China

The US is strengthening ties with key allies to create a more robust and resilient international order. This involves collaborating on technology standards, sharing intelligence, and coordinating responses to China's economic and technological strategies.

• Examples of specific alliances: The Quad (US, Japan, Australia, India) and AUKUS (US, UK, Australia) are significant examples of such alliances.
• Joint initiatives on technology standards and security: Collaborative efforts are underway to establish secure and interoperable technology standards and to address cybersecurity threats.
• Keyword focus: international alliances, multilateralism, strategic partnerships, geopolitical competition, China's global influence.

Conclusion

The intertwining of security and economic considerations is reshaping the dynamics of China-US trade relations. National security concerns, driven by anxieties over data security, intellectual property theft, and China's military-civil fusion strategy, are profoundly influencing US trade policy. The pursuit of economic security through supply chain diversification and the strategic use of trade restrictions further underscores this shift. Strengthening international alliances is a crucial element in countering China's influence and promoting a more secure and stable global order. Stay updated on the latest developments in China-US trade and security discussions to fully grasp the implications of this evolving geopolitical landscape.