Investing in Innovation: The Power of Science and Technology

The United States is currently facing a significant challenge to its global leadership in science and technology, a position it has held since World War II. Over the past two decades, China has emerged as a serious rival, making efforts to dominate technology-intensive sectors and matching or even surpassing the United States in resources dedicated to these areas.

The rivalry between the United States and China is not fully appreciated, as evidenced by the recent failure of the U.S. Congress to allocate funds for the CHIPS and Science Act of 2022. At the same time, key federal science and technology agencies saw their budgets cut for the fiscal year 2024. This is particularly concerning given that China announced a 10 percent increase in its already substantial investment in research and development during the same week.

The U.S.-China technology rivalry has strategic implications that could impact the outcome of any potential military conflict between the two nations. As the United States’ technology leadership wanes, the risks of economic and military challenges increase.

This report was made possible thanks to general support for CSIS, and no direct sponsorships contributed to its findings.