6 March 2026

The Power of Innovation: The Strategic Value of China’s High-Tech Drive

Scott Kennedy

This report argues that China’s advancement across high-tech sectors has directly strengthened the country’s international power and influence, and that other governments need to respond pragmatically to reduce the downside costs and raise the upside opportunities to make the most of these developments. Based on several years of fieldwork and analysis of quantitative data and primary-source documents, the report first evaluates China’s high-tech drive in general and with respect to specific industries. It then analyzes the effect of these developments on China’s military capabilities as well as its role in shaping international technical standards. The study concludes by suggesting that the United States and like-minded countries should pursue a pragmatic strategy, which the report calls “calibrated coupling,” to maximize the opportunities and minimize the risks to themselves of China’s high-tech drive.

No comments: