Tech supremacy: Collaboration or protectionism?
This article is authored by Ananya Raj Kakoti, scholar, international relations, Jawaharlal Nehru University, New Delhi.
Technology has always been at the heart of global power struggles, shaping economies, national security policies, and geopolitical landscapes. Today, with China leading the charge in Artificial Intelligence (AI), quantum computing, and semiconductor production, the competition for tech supremacy has intensified. The rise of AI models such as DeepSeek and advancements in semiconductors showcase China’s ambition to become the world’s technological leader. Given these developments, a crucial question arises: should the world move toward technological collaboration, or will the race for supremacy lead to greater protectionism?
Over the past two decades, China has emerged as a formidable player in the global technology arena. Investments in AI, 5G networks, and semiconductor manufacturing have placed the country in direct competition with the United States (US) and its allies. Chinese tech firms, backed by strong state policies, have made significant strides in AI, exemplified by models such as DeepSeek, which rival western counterparts like OpenAI’s GPT series. Furthermore, China’s dominance in rare earth minerals, essential for semiconductor production, gives it leverage over global supply chains.
China’s "Made in China 2025" policy underscores its ambition to lead in high-tech industries, reducing dependence on foreign technology by fostering domestic innovation. The government has pledged billions in subsidies and grants to boost semiconductor production, with major investments in firms like Semiconductor Manufacturing International Corporation (SMIC). The push for self-sufficiency is further evidenced by the rapid rise of Huawei’s HarmonyOS, designed to compete with western operating systems.
The country’s technological advancements are not limited to AI. It has developed its chip industry, led by companies such as SMIC, to reduce reliance on western suppliers like Taiwan’s TSMC or the U.S.-based Intel. China’s focus on quantum computing and cybersecurity further underscores its long-term vision of technological self-reliance.
Given China’s rapid progress, western nations, particularly the US, have adopted protectionist measures to maintain their competitive edge. US sanctions on Chinese tech firms, including restrictions on semiconductor exports and bans on companies like Huawei, highlight the growing mistrust between global powers. These measures are intended to prevent China from gaining access to advanced semiconductor technologies, which are crucial for AI development and military applications.
The US has implemented the CHIPS and Science Act, allocating $52 billion in subsidies for domestic semiconductor manufacturing to reduce dependence on foreign sources. Similarly, the European Union launched the European Chips Act, aiming to bolster Europe’s share of global semiconductor production from 10% to 20% by 2030. Japan has also joined the race, investing $6.8 billion into domestic semiconductor initiatives to strengthen its national security.
The fear of technology theft and cybersecurity risks has further fueled protectionist policies. Many western governments argue that collaboration with Chinese tech firms could expose sensitive data and intellectual property to State-sponsored cyber activities. This concern has led to increased scrutiny of Chinese investments in western technology firms and stricter regulations on foreign collaborations.
Moreover, technological supremacy has become a matter of national security. Countries are wary of allowing foreign influence over critical infrastructure such as telecommunications networks, energy grids, and defence systems. The competition over 5G technology is a prime example, with the US and its allies excluding Chinese firms like Huawei from their networks due to concerns over potential security threats. The United Kingdom, Australia, and Canada have all placed bans or restrictions on Chinese telecom firms to mitigate risks.
Despite the push for protectionism, there is a strong argument for international collaboration in technology. The global nature of technological advancements makes it nearly impossible for any single country to operate in isolation. AI, quantum computing, and semiconductor development require vast resources, expertise, and innovation that can benefit from international partnerships.
One of the strongest cases of collaboration is the potential for technological advancements to address global challenges. AI and quantum computing have applications in climate crisis mitigation, healthcare, and cybersecurity—areas that transcend national borders. By fostering collaboration rather than competition, countries can pool resources and accelerate technological breakthroughs for the greater good.
Additionally, global supply chains are deeply interconnected. Even with efforts to achieve self-reliance, no country can entirely sever its dependence on foreign technologies. For instance, while China has made progress in semiconductor manufacturing, it still relies on advanced chip-making equipment from the Netherlands (ASML) and software from the US. Similarly, western companies depend on China for rare earth minerals and manufacturing capabilities. A purely protectionist approach could disrupt global supply chains and lead to economic inefficiencies.
Another consideration is the role of multilateral agreements and technology-sharing frameworks. International organisations and regulatory bodies, such as the World Trade Organization (WTO) and the World Intellectual Property Organization (WIPO), provide platforms for countries to negotiate fair trade practices and protect intellectual property rights. A balanced approach that combines strategic cooperation with regulatory oversight can mitigate the risks associated with collaboration while maximising its benefits.
The reality is that neither full-scale collaboration nor complete protectionism is feasible in the current geopolitical climate. A middle ground must be found—one that encourages innovation through controlled cooperation while safeguarding national interests.
One approach is to establish ‘trusted technology partnerships’ between like-minded nations. The US, the European Union, Japan, South Korea, and India have already begun forming alliances to counterbalance China’s influence in the tech sector. The Quadrilateral Security Dialogue (Quad) and the Indo-Pacific Economic Framework (IPEF) reflect efforts to create resilient supply chains and technological cooperation while excluding potential security threats.
Another potential solution is to develop transparent and enforceable global technology standards. Countries can work together to set ethical AI guidelines, cybersecurity norms, and data privacy regulations that ensure responsible technological development. International cooperation in setting these standards can reduce risks while promoting fair competition.
Finally, diplomatic engagement remains crucial. Even amid rising tensions, dialogue between the US and China on technology-related issues should continue. Areas such as climate technology, medical AI, and cybersecurity present opportunities for collaboration without compromising national security. By focusing on non-military applications of emerging technologies, both sides can build trust and reduce the risks associated with an all-out tech war.
The race for tech supremacy is at a critical juncture. While China’s rapid advancements in AI and semiconductors pose a challenge to western dominance, the response should not be one of complete protectionism. A balanced approach that fosters strategic collaboration while safeguarding national interests is the most viable path forward. International cooperation in setting technology standards, forming trusted alliances, and engaging in diplomatic dialogue can help prevent a fragmented technological landscape.
Ultimately, the goal should be to harness technological progress for the benefit of all, rather than allowing competition to escalate into conflict.
This article is authored by Ananya Raj Kakoti, scholar, international relations, Jawaharlal Nehru University, New Delhi.