will prove irresistible to key companies and countries.82 Indeed, despite recent market volatility from China’s crackdown on its domestic tech firms, in 2021, BlackRock, Goldman Sachs, JP Morgan, and Invesco have taken steps to establish joint or wholly owned mutual fund products in China.83 Even at the height of the Trump Administration’s trade war in 2019, U.S. FDI into China increased.84
Research & Development
Source : OECD, 2021
In its landmark 2020 report, “The Perils of Complacency,” the American Academy of Arts and Sciences sounded an alarm. Documenting China’s rapidly increasing R&D expenditures that are slated to soon overtake the U.S., it warns that “the future of the nation depends on taking action to assure a vibrant and productive R&D enterprise.”85
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82
Thomas Hale, Siobhan Riding, Wang Xueqiao, “Wall Street brushes off political tensions to dig deeper into China,” Financial Times, September 9, 2020, https://www.ft.com/content/01f92c8b-11dc-431c-adaf-c299e3964ff1.
83
Aaron Back and Telis Demos, “American Banks Have What They Want in China. Their Fate Is Still Out of Their Hands.” Wall Street Journal, October 29, 2021, https://www.wsj.com/articles/american-banks-have-what-theywant-in-china-their-fate-is-still-out-of-their-hands-11635499841.
84
Michael Schuman, “How to Get U.S. Companies to Leave China,” Bloomberg, December 28, 2020, https:// www.bloomberg.com/opinion/articles/2020-12-29/u-s-should-give-manufacturers-incentive-to-leavechina?sref=H0KmZ7Wk.
85
American Academy of Arts and Sciences, “The Perils of Complacency: America at a Tipping Point in Science & Engineering,” AMACAD, 2020, https://www.amacad.org/sites/default/files/publication/downloads/Perils-ofComplacency_Report-Brief_1.pdf.
The Great Economic Rivalry: China vs the U.S.
