[EAI Working Paper] US-China Technology Rivalry and Implications for US-Korean Technology Cooperation

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Editor's Note

On November 13, 2020, the East Asia Institute (EAI) and the Brookings Institution jointly held the second online seminar in the series titled "Prospects for U.S.-South Korea Cooperation in an Era of U.S.-China Strategic Competition." In Session 2: Economy, Energy, and Environment, YoungJa Bae stated that it would be desirable to restrict technologies with clear national security implications. The challenge lies in the fact that since many technologies are civilian in nature, specifying which technologies and products pose such threats and thus should be regulated from a national security perspective is ambiguous. The relationship between national security and trade and investment needs to be discussed within a multilateral framework. This is also where the leadership role of the United States is crucial, as it must help establish multilateral norms concerning trade, investment, and national security.

Quotes from the Paper

US-China Technology Rivalry

Amid the recent trade conflict between the US and China during the Trump administration, high-tech sectors such as semiconductors, 5G, and AI have been central. China has been challenging the US's advantage in the high-tech sector, and the US has attempted to deter this through various means, including trade sanctions, export controls, investment regulations, restrictions on researcher exchanges, and intellectual property lawsuits. Semiconductors, 5G, and AI are recognized as the primary drivers of a new economic paradigm related to the Fourth Industrial Revolution, and these technologies are expected to be key to economic competitiveness in the 21st century. Furthermore, these technologies are typical dual-use technologies that can determine the performance of various advanced weapons.

Implications for US-Korea Technology Cooperation

The US-China technology rivalry and the decoupling of the US and China within the global ICT supply chain have presented significant challenges to many countries, including Korea, which is entangled in a complex and interdependent global economic network. In this highly integrated global economy, it is difficult for a country to restrict economic and technological relationships on national security grounds. While many countries share some of the US's concerns regarding China, most also wish to maintain appropriate relations with both China and the US and avoid being forced to choose between them. Under the Biden administration, pressure against China is expected to continue, perhaps in a somewhat moderated form, and the formation of a technology alliance aligned with a grand multilateral strategy against China may be discussed in detail.

Author's Biography

■ YoungJa Bae is a Professor in the Department of Political Science and Diplomacy at Konkuk University. Dr. Bae received her PhD in political science from the University of North Carolina at Chapel Hill in the United States and serves on the policy advisory committee to the South Korean Ministry of Foreign Affairs and as vice chairman of the Korean Association of International Studies. She was a visiting scholar at National Taiwan University under the Taiwan Fellowship. Her main research interests include international politics and S&T, science diplomacy, and international political economy. Her major papers include "Regulations on Foreign Direct Investment and National Security," "US-China Competition and Science and Technology Innovation," and "S&T Diplomacy as Public Diplomacy: Theoretical Understanding."