Economic Security and Sino-American Relations
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Economic Security and Sino-American Relations

Progress Under Pressure

Kenneth Boutin

China and the United States have reached a crossroads where their economic relationship is concerned, as the shared interest in economic prosperity and complementary economic strengths that provide the common ground of industrial collaboration are threatened by increasing attention to economic facets of national security. This trend is encouraging policies which potentially undermine the basis of Sino-American industrial integration. This book explores the basis, nature and impact of evolving economic security agendas in the United States and China.
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Chapter 7: Structuring economic security: Sino-American industrial integration

Kenneth Boutin

Abstract

Sino-American structural emerged relatively recently and is developing more slowly than the other facets of the industrial relationship but has far-reaching implications. Structural integration is transforming the basis for production relations and technology ties. Structural integration is generating considerable concern in both the United States and China, but in distinct terms. American concern centres around the implications of this for the national defence-industrial base. The American response is to seek to limit mergers and acquisitions of American high-technology firms by Chinese industry. American authorities also are promoting structural transformation within China in the interest of comprehensive economic security. The Chinese government strives to retain as much scope for Chinese industry to invest in established American high-technology firms while limiting the potential of structural reform within China to underline the integrity of the national defence-industrial base.

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