Silicon Valley Can Still Beat China
But to do so, the U.S. must recognize and reclaim the things that made the hotbed of technology thrive in the first place.
Distinctive strains of company culture have flourished in the Valley.
Photographer: Robyn Beck/AFP/Getty ImagesIn May 1980, Chinese leader Deng Xiaoping proclaimed coastal Shenzhen his nation’s first special economic zone, open to foreign investment and international trade. Halfway around the globe, Silicon Valley was just then becoming a household name. Apple IIs sprouted on desktops and American living rooms were filled with kids playing Space Invaders on their Atari 2600s. The biggest overseas threat to U.S. technological dominance was Japan.
Four decades, many more SEZs and trillions of dollars’ worth of investment later, China’s tech sector is a colossus. Chinese funds are buying large stakes in U.S. venture-backed companies despite intensified scrutiny, while Chinese tech giants have opened research centers in Silicon Valley itself. The Chinese government is directing massive subsidies to key industries from semiconductors to electric vehicles and artificial intelligence. Shenzhen is now home to globally renowned brands such as Huawei Technologies Co. and Tencent Holdings Ltd.