This vigilance is being strengthened underneath US President Joe Biden who revealed a paper in 2020 emphasising that the principles of the international economic system shouldn’t be rigged in opposition to the United States. The paper argues that the United States should continue its ‘70-year’ position in writing the rules of commerce and know-how. The Biden administration’s 100-day review of provide chains for products of strategic significance ‘identifies key areas where authorities may play a extra lively function in setting requirements and incentivising high-road business practices’. Standards are one of many pillars of world rule-setting.
The Upside to EU
As 5G standards are adopted, important-patent homeowners will earn more income and exert growing power over the path of standardisation and innovation in related applied sciences. This is why the United Statestakes China’s increasing affect over worldwide standardisation so significantly. The recurrence of a technical time period in a prime-stage White House (www.pipihosa.com) strategic document reveals that Washington is suspicious of China’s standardisation drive. The word ‘standards’ seems 10 instances within the Trump administration’s 2020 report on the ‘United States Strategic Approach to the People’s Republic of China’. By selling ‘a set of common standards for secure, resilient and trusted communications platforms’, the United States aims to work with allies and partners to push back against ‘discriminatory’ industrial requirements made by China.
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The decoupling of worldwide supply chains is commonly identified as a consequence of the US-China know-how rivalry. If the US-China battle over know-how and technical standards results in the decoupling of worldwide requirements, firms might should handle two separate global provide chains – every governed by its own independent system of requirements. A current report by the European Union Chamber of Commerce in China notes ‘growing concern’ concerning the decoupling of technical requirements and information governance. The politicisation of standard-setting – ‘an important device to facilitate trade and interoperability’ – risks fragmenting world requirements and disrupting trade and innovation.
