Tech: Senators Talk Competition with China at CES, China Economics and Trade Bulletin, USCC, Jan. 31, 2023.
Prepared by the research staff of the U.S.-China Economic and Security Review Commission (USCC.gov)
CONTEXT:
• Under General Secretary of the CCP Xi Jinping’s “Made in China 2025” policy, the Chinese government has increased research and production capacity in strategically significant high-tech sectors like EV batteries,
artificial intelligence, and semiconductors.
• U.S. policymakers discussed the importance of continued and robust tech competition with China for national security at CES, a consumer electronics tradeshow. While government officials have previously attended the
event, this year hosted a larger lineup with a greater focus on competition with China.
• The CHIPS and Science Act of 2022 promotes U.S. manufacturing in computer chip technology in an effort to offset China’s increasing control over the semiconductor supply chain.
U.S. policymakers highlight Chinese tech competition at CES.
The Consumer Technology Association’s flagship tradeshow was held January 5–7 in Las Vegas and featured Senators Mark Warner (D-VA), Jacky Rosen(D-NV), and Ben Ray Luján (D-NM) and Secretary of Energy Jennifer Granholm, among others. Competition with China was a dominant theme in discussions led by one of the largest lineups of government officials ever to attend the event, highlighting policymakers’ growing interest in domestic innovation. In his presentation, Senator Warner, chairman of the Senate Intelligence Committee, identified quantum computing, artificial intelligence, advanced
engineering, and synthetic biology as the frontiers of technology competition between the United States and China. These areas, several of which General Secretary Xi identified as “core” Chinese interests, stand to benefit from
investment in the domestic semiconductor market made under the CHIPS Act.
At CES, Secretary Granholm emphasized the need to secure the EV battery supply chain out of China’s control.
While China holds only 7 percent of global lithium reserves, a key element in producing EV batteries, it ensures access to this resource through overseas investments like Contemporary Amperex Technology Co. Limited’s (CATL) recent bid to develop mines in Bolivia.* China also maintains 60 percent of the world’s lithium processing capacity.† Moreover, 55 percent of U.S. finished lithium-ion battery imports came from China in 2021.