25 April 2024

Tech, Not Farmland, Will Secure the U.S. Economy From China

Sam Raus

Numerous states recently passed laws prohibiting foreign entities’ ownership of American farmland, citing concerns about CCP control over United States (U.S.) agriculture and critical resources. After a failed attempt at federal legislation last year, conservative political organizations such as the America First Policy Institute (AFPI) shifted their focus to lobbying for state policy change. While well-intentioned, Republican state lawmakers and political groups are focused on the wrong problem. If they want to effectively protect us from Chinese meddling in domestic affairs, they should address the real threat from Beijing: tech interference.

The bills proposed using AFPI model legislation extend beyond currently enacted restrictions in various states, tightening loopholes for U.S.-based subsidiary companies created by the targeted foreign entities. After a Chinese food manufacturer purchased farmland in North Dakota near the Grand Forks Air Force Base, national security concerns sparked lawmakers across the country to introduce laws blocking foreign entity land ownership. POLITICO reports over two-thirds of US states have passed or considered similar restrictions.

Rooting out espionage by the Chinese Communist Party (CCP) seems to be a real priority for US lawmakers these days, demonstrated most prominently in the recent TikTok ban-or-divest legislation. Discussions about the ownership of agricultural resources particularly emphasize America’s food security and public health needs. But farming is not our biggest conflict with China.

Rather, countless reports and analyses highlight China’s rapid development and pervasive use of advanced technology. While governors tackle cybersecurity concerns with state government devices, little state action focuses on building up the US microchip, artificial intelligence (AI), quantum computing and defense technology industry. Maintaining a competitive edge over China’s tech sector requires leadership focused on innovation, market growth and coordinated preventative defense.

Looking beyond data protection concerns about CCP-aligned companies like Huawei and TikTok, policymakers need to empower American industry to maintain its dominance in the AI sector while resolving a reliance on Taiwanese microchips. As our allies abroad seek military support to combat adversarial powers and terrorism, the U.S. defense industrial base remains shaky. With China and the US neck-in-neck in the quantum computing race, our politicians should prioritize cybersecurity over corn on the cob.

Additionally, the Biden Administration and Congress should stop pouring stimulus spending into solar and wind subsidies or earmarked pet projects. Instead, they should be investing in state university STEM research and expanding government grants for science and engineering projects. Investment in research & development will be critical to staying ahead of China in defense technology, cybersecurity and general competition in international trade.

Maintaining a growth market, with rapid technological advancement, requires economic policy built for enduring success. Deregulation of tech markets, whether through tax exemptions or streamlined product requirements, will allow new businesses in AI, defense and quantum computing to scale. The U.S. can beat the hierarchical, state-controlled Chinese model by building a startup-friendly market.

Central to concerns about Chinese tech competition is America’s supply chain reliance on Chinese manufacturers. From Apple devices made in China to Taiwanese microchips, the US heavily imports tech from Southeast Asian countries. As demonstrated by the pandemic auto chip shortage, the future of the US supply chain depends on friend-shoring and reinvigorated domestic manufacturing. State governments should assess citizens’ resource needs and purchasing habits to target critical industries through private-public partnerships and other commercial diplomacy.

The path toward true economic security against the heavy-handed CCP government hinges on free market solutions. While China experiences a population decline, a swelling national debt and an excess of uninhabited real estate, the CCP continues investing in tech and defense advancement. The Pentagon’s National Defense Industrial Strategy report said China “vastly exceeds” the U.S. in shipbuilding, critical minerals and advanced weapons.

Protecting ourselves from Chinese meddling must be a top priority for politicians and businesspeople alike. A majority of states have either passed or are considering banning foreign entities from owning land in the states. While that’s fine news for US food security, it won’t protect us from the larger threat of cyber warfare. It’s time for states to roll up their sleeves and tackle tech competitiveness.

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