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The USA goes full tech-paranoia

I have written recently about the USA and its plans to block certain tech-based imports from China such as DJI drones whilst also applying a 100 percent duty to Chinese EVs.

Well it seems that in the "land of the free, home of the brave" they've now got both paddles out of the water and are two sandwiches short of a picnic.

Yes, the USA has gone full-throttle in its paranoia over the potential risks that Chinese-made technology could have on the nation's safety and security.

In a story on the BBC website this morning it's reported that The US government now wants to ban all Sino automotive tech.

They really think the Chinese are out to get them and who knows, they may be right.

If this proposal becomes law it would come into effect in just three years' time, forcing some US manufacturers to find alternative suppliers for crucial electronic systems for their vehicles.

The risk of disruption has been downplayed by the alliance of large auto makers who claim that they're not actually using much Chinese-made tech in their vehicles anyway.

However, I suspect there are quite a few little subsystems such as car audio, GPS instrumentation displays (especially in EVs) that may have Chinese connections or origins.

According to the BBC report, US Commerce Secretary Gina Raimondo said the plans were "targeted, proactive" steps to protect the US.

"It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of US citizens."

Is this true?

Well I know full well that in the drone arena, the proposed bans have far less to do with security than they do with a total lack of competitiveness from US manufacturers. Although the "safety and security" drum is being struck with much emphasis, the reality is that China has stolen a lead in so many areas now that legislation is now being used as their only tool against innovation on the part of China.

Even US car maker Ford has admitted this recently.

The problem with taking a legislative approach to competition is that it further demotivates domestic industries to lift their game. Why should they bother, the risk of competition from offshore has been mitigated so they can carry on as before, selling substandard products at an inflated price. From the perspective of international competitiveness, this could spell long-term problems for the US econonmy.

China is surely the emerging superpower, already number three on the charts and rising with a bullet. The only way the USA can retain its current position at the top of the leader-board is to do better -- not to simply try and pretend they can solve the problem with bans and tariffs.

I wonder if I'll still be alive when the USA finally realises that this strategy is failing as it slumps to number two on the board?

Carpe Diem folks!

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