Simington Warns of Global Dependency on China

Any incoming presidential administration must “be ready to implement a reindustrialization plan" and change financial rules to resurrect American manufacturing and compete with China, FCC Commissioner Nathan Simington wrote in China is Winning, Now What?, an essay in the fall issue of the journal American Affairs. The essay doesn’t mention the FCC, and it only touches on tech policy. Instead, it focuses on China’s superior manufacturing capacity and on the global dependency on Chinese products. “It would have been unthinkable for Cold War America to source key components in logistics and telecommunications from the Warsaw Pact,” Simington wrote. “And yet, our long history of peaceful relations with the PRC [People’s Republic of China] has led us to sleepwalk into exactly this unacceptable state of dependency.” Simington noted that the rise of electric vehicles has positioned China as a global competitor to the U.S. auto industry and said a collapse of American carmakers would deeply injure America. Should China become the dominant international automaker, it could “normalize the presence of hundreds of millions of vehicles packed with sensors, radios, and firmware on every road in the world,” Simington added. “The intelligence benefits alone are incalculable, but control of such markets will in addition weaken countries that the PRC routinely calls its geopolitical adversaries.” To address the matter, the U.S. should “use tariffs and waivers as precision tools for strategic products and industries” but it must also “address larger questions of tax, accounting, and finance rules that have contributed to an anti-industry investment environment,” Simington wrote. Federal spending should be reallocated “to promote world peace through American strength.” He added, “The social costs of failure, here and abroad, will blight the lives of generations yet unborn.”