Editor’s note: In February, The National Interest organized a symposium on the U.S.-China technology race amidst the emergence of DeepSeek and ongoing legal battles over TikTok. We asked a variety of experts the following question: “What are the three most important technology policies that the U.S. should pursue or avoid to compete adequately with China?“ The following article is one of their responses.

In today’s fast-paced global technological landscape, where geopolitics and innovation intersect in increasingly complex and new ways, relying solely on sanctions and export controls is no longer sufficient to outpace an adversary’s techno-political advances. While these measures can temporarily slow a competitor’s progress, put differently, they are unlikely to reshape the underlying dynamics or create lasting competitive advantages. Drawing inspiration from Antonio Gramsci’s observations on power dynamics and socio-political coalitions, it becomes evident that when sanctions target the elites of a nation like China, they often have the opposite of the intended effect. Instead of coercing change and/or halting progress, these measures tend to unite domestic technological and economic leaders around a shared goal: reducing dependency on American technologies which is perhaps best exemplified by initiatives such as Deepseek. 

The lesson here is clear: the United States should abandon its ‘sanction addiction’ and instead gear towards initiatives that build long-term strength. Put bluntly, what the United States needs is a comprehensive grand strategy that not only spurs innovation but also builds robust production capabilities and attracts the world’s brightest minds. 

Much like the principles of eccentric training in athletics, where controlled weight lowering builds muscle strength and prepares the body for explosive power, the United States needs to adopt a measured approach that focuses on building internal capacity before expecting rapid breakthroughs. In the context of technology policy, this means that American efforts should concentrate on nurturing innovation in a sustainable way, ensuring that breakthrough ideas are not confined to laboratories but are also scalable for mass production and global deployment. Without this balance between groundbreaking research and the ability to scale innovations – that is, having adequate production capacity that moves in tandem with the innovation capacity of the nation – America risks having some of the best ideas remaining theoretical.

Revitalization of America’s talent and education systems should constitute another critical pillar of this grand strategy. Even the most promising technologies will falter without the human capital to drive and sustain them. The United States must reform its immigration policies to welcome world-class scientists, engineers, and entrepreneurs, creating a vibrant melting pot of ideas and expertise. Simultaneously, there is a need for a significant boost in STEM education; from enhancing university research programs to developing vocational training that bridges the gap between academic theory and practical application. Moreover, forging stronger ties between academic institutions and industry leaders will ensure that emerging research quickly translates into real-world innovations. This comprehensive approach to talent development will secure the intellectual horsepower necessary to propel American technology and maintain its competitive edge.

Moreover,  integrating emerging technologies into a broader national (security) grand strategy is essential for reinforcing America’s economic security, military strength, and diplomatic influence. Technologies such as artificial intelligence serve as accelerators; it enhances capabilities across diverse fields from manufacturing to defense. However, the focus should not be solely on AI as an end in itself but on its integration into a larger framework that supports scalable production and effective regulation. Among the technological areas deserving focused attention is green mining; a field that could revolutionize the extraction of (critical) minerals in environmentally sensitive regions like the Arctic. By developing sustainable mining methods, the U.S. can reduce, albeit only partially, its reliance on China for critical materials and set new global standards that marry economic interests with environmental stewardship. In other words, mastery of green mining not only enhances energy and resource security but also positions the United States as a leader in establishing regulations that balance industrial progress with ecological responsibility.

Wireless power transfer technology represents another frontier with transformative potential. Traditionally, radio frequency (RF) signals have been used for data transmission. However, recent advancements have unlocked their capacity to transfer energy wirelessly. This innovation could transfigure both military and civilian sectors by powering vast networks of devices without the constraints of physical connections. For instance, the ability to wirelessly charge unmanned vehicles, including maritime vessels, holds the promise of greater operational flexibility as well as enhanced safety and efficiency in environments that demand resilience. What is more, the development of reliable RF-based wireless power transfer systems would not only boost the effectiveness of modern military strategies but also offer significant commercial advantages by reducing the logistical challenges associated with traditional power supply methods.

Lastly, in the realm of global finance, blockchain and cryptocurrency technologies are reshaping the very foundations of monetary systems. By enabling direct, peer-to-peer transactions without the need for traditional banking intermediaries, these technologies offer an alternative to the US-dominated financial system. While current blockchain systems are still in their infancy, they signal a long-term challenge to American financial primacy. U.S. Adversaries are already experimenting with blockchain as a means to circumvent U.S. sanctions and reduce Washington’s leverage in the global economy.

To effectively compete with China, the United States must transition from a reactive reliance on short-term sanctions to a comprehensive, multifaceted grand strategy. By building a resilient technology ecosystem that harmonizes innovation with scalable production, revitalizing talent and educational systems, and integrating AI-assisted emerging technologies such as green mining, wireless power transfer, and blockchain into broader strategic objectives, America can secure a sustainable competitive edge. Such measured undertakings in long-term strength would in turn lay the foundation for American technological leadership, and therefore better equip the United States to reshape both the geopolitical and economic landscapes of the future.

About the Author: Nima Khorrami

Nima Khorrami is a Stockholm based research associate at the Arctic Institute and an Analyst at NSSG.

Image: Shutterstock

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