Clean-energy innovation has become intertwined with deepening geopolitical tensions, writes Carolyn Kissane.
About the author: Carolyn Kissane is the associate dean of the NYU-School of Professional Studies Center for Global Affairs, and the founding director of the SPS Energy, Climate Justice and Sustainability Lab.
But in the time since, the U.S. has taken steps to intensify its efforts to distance itself from China. That includes a move this month by the Biden administration to ban investment in strategic tech sectors: AI, quantum computing, microelectronics, and semiconductors. The deployment of such defensive tools to reduce competition from China marks an important shift.
To counterbalance China’s military surge and ambitions, the U.S. is reining in and retaining investments in critical technology areas. The government seeks to prevent financial support that could support China’s military modernization and advancements. In 2027, China’s People’s Liberation Army will celebrate its centennial, a moment intended to showcase its accelerated progress in military modernization. This acceleration alarms Washington, driving the U.S.
However, the essence of technological advancement often relies on cross-border collaboration, and these new moves from the U.S. signal blurred the demarcation between prohibited and permitted investment. Many firms may recoil from investment in China’s tech sectors due to mounting policy and regulatory uncertainties.
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