“
Far from the political limelight, however, on the National Security Council, a handful of discreet officials led by Matt Pottinger, a former journalist and Marine, who eventually rose to become Trump’s deputy national security advisor, were transforming America’s policy toward China, casting off several decades of technology policy in the process. Rather than tariffs, the China hawks on the NSC were fixated on Beijing’s geopolitical agenda and its technological foundation. They thought America’s position had weakened dangerously and Washington’s inaction was to blame. “This is really important,” one Trump appointee reported an Obama official telling him during the presidential transition, regarding China’s technological advances, “but there’s nothing you can do.” The new administration’s China team didn’t agree. They concluded, as one senior official put it, “that everything we’re competing on in the twenty-first century… all of it rests on the cornerstone of semiconductor mastery.” Inaction wasn’t a viable option, they believed. Nor was “running faster”—which they saw as code for inaction. “It would be great for us to run faster,” one NSC official put it, but the strategy didn’t work because of China’s “enormous leverage in forcing the turnover of technology.” The new NSC adopted a much more combative, zero-sum approach to technology policy. From the officials in the Treasury Department’s investment screening unit to those managing the Pentagon’s supply chains for military systems, key elements of the government began focusing on semiconductors as part of their strategy for dealing with China.
”
”