Eric Schmidt Warns US Technology Edge Over China Slipping

Eric Schmidt wants to reshape Washington's industrial policy to combat an intensifying US-China tech rivalry. The former Google chief executive officer's philanthropic arm issued recommendations aimed at encouraging US politicians to counter China's rising technological ambitions by ramping up regulatory scrutiny, encouraging more private investment and offering tax credits to train workers. From a report: China surprised the US on key "battleground" technologies -- including wireless 5G, microelectronics and AI -- as the Asian nation's industrial policy enabled it to dominate markets for drones, high-capacity batteries, critical minerals, solar panels, turbines and shipbuilding, the Schmidt-backed Special Competitive Studies Project said Tuesday in a report. "The US has some immense economic advantages, but there are some warning lights flashing," Liza Tobin, the project's senior director and a former China director for the US National Security Council, said on a call with reporters. "The US needs an America-style industrial strategy that leverages competition in our dynamic private sector and has carefully targeted incentives in sectors where we need to lead." The report calls on the US government to boost microelectronic production with the help of a large fund to unlock private capital, create an open-source security center to assist investments in digital infrastructure, establish a national security commission on digital finance and give regulators more power to screen investment flows to China that could threaten US national security.

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