9 November 2025

The Coming US-China Thaw

JAMES K. GALBRAITH

AUSTIN – Last year, Texas banned professional contact by state employees (including university professors) with mainland China, to “harden” itself against the influence of the Communist Party of China – an entity that has governed the country since 1949, and whose then-leader, Deng Xiaoping, attended a Texas rodeo in 1979.

Defending the policy, the new provost of the University of Texas, my colleague Will Inboden, writes in National Affairs that “the US government estimates that the CPC has purloined up to $600 billion worth of American technology each year – some of it from American companies but much of it from American universities.” US GDP is currently around $30 trillion, so $600 billion would represent 2% of that sum, or roughly 70% of the US defense budget ($880 billion). It also amounts to about one-third of all spending ($1.8 trillion) by all US colleges and universities, on all subjects and activities, every year. Make that 30 cents of every tuition dollar and a third of every federal research grant.

Moreover, it seems the Chinese made better use of the purloined knowledge than we would have. Compare their growth rate to America’s, or look at Chinese cities, their high-speed railroads, and advanced industries. Then there’s the elimination of mass poverty and the 3.5 million engineers and scientists the country mints every year. Such theft must be akin to stealing emeralds from the Louvre – a zero-sum game. Not only did the Chinese get the good stuff, but they somehow prevented America from using it. How very diabolical.

Of course, the figure that Inboden cites is absurd, though I don’t doubt that the US government said it somewhere. Such claims about China (and not only China) have become routine in recent years. The tactic is straightforward. By saturating the information space with far-fetched assertions too numerous and too pervasive to rebut, disagreement, let alone dissent, becomes tantamount to disloyalty, even treason.

Yet universities obviously cannot be the secret laboratories of a national-security state. We are, by our nature, open. To the extent that we produce useful knowledge or new technologies, these naturally become the common property of the whole world. That is what “publication” is about. As for American companies, they went to China to make money. Many succeeded. That China got something out of it – at the expense of American workers, we can admit – was part of the deal. It’s called capitalism.

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