China's Stunning Chip Breakthrough Proves America Must Invest and Collaborate Globally

America must out-innovate China in tech with bold investments and global alliances, not isolation, to secure economic and security supremacy.

China's Stunning Chip Breakthrough Proves America Must Invest and Collaborate Globally FactArrow

Published: April 24, 2025

Written by Evan O'Donnell

The Race for Tomorrow

In the spring of 2025, a stark reality confronts the United States. China, with its relentless drive and state-backed ingenuity, has crafted 5-nanometer semiconductor chips without the advanced tools long monopolized by Western firms. This leap, achieved through sheer will and clever engineering, signals a truth we cannot ignore: the global race for technological supremacy is not a sprint but a marathon, and America risks falling behind if we cling to outdated strategies.

The stakes could not be higher. Semiconductors power everything from smartphones to stealth fighters, and the nation that leads in their design and production holds the keys to economic prosperity and military might. Yet, while some voices in Washington push for walls of isolation and restrictive policies, this approach misunderstands the challenge. To secure our future, America must double down on innovation, openness, and collaboration, harnessing the collective strength of our allies and the dynamism of our private sector.

China’s advance is a wake-up call, but not a death knell. The United States has faced technological rivals before, from the Soviet Union in the Cold War to Japan in the 1980s, and emerged stronger through bold investment and global partnerships. Today, the path forward demands a similar vision: a renewed commitment to science, education, and international cooperation that leverages our unique strengths rather than retreating into fear-driven protectionism.

This is not just about chips; it’s about the kind of world we want to build. A future where America leads through creativity and collaboration, or one where we cede ground to a rival that prioritizes state control over individual freedom. The choice is ours, but the clock is ticking.

China’s Playbook and America’s Response

China’s technological ascent is no accident. Through its Made in China 2025 plan, Beijing has poured billions into semiconductors, artificial intelligence, and robotics, aiming for self-reliance and global dominance. Local governments, state-owned enterprises, and private firms work in lockstep, fueled by subsidies and a clear national vision. Their ability to produce 5nm chips without extreme ultraviolet lithography, a feat once thought impossible, showcases a blend of ingenuity and industrial resolve that demands respect, if not emulation.

Contrast this with America’s approach, which, while dynamic, has often been fragmented. The CHIPS and Science Act, passed in 2022, marked a pivotal shift, funneling billions into domestic manufacturing and research. Yet, political gridlock and a lingering preference for short-term gains over long-term strategy threaten to undermine these efforts. Some policymakers, wary of government overreach, argue for letting markets alone dictate innovation. But markets, while powerful, cannot match the coordinated might of a state like China, which blends market forces with unflinching directive power.

The answer lies in a balanced strategy. Public investment in research, workforce training, and supply chain security can amplify the private sector’s ingenuity without stifling it. Programs like the National Science Foundation’s expanded funding for STEM education and the Department of Energy’s clean tech initiatives show what’s possible when government and industry align. These efforts must grow, not shrink, to keep pace with China’s marathon mentality.

Critics of this approach, often advocating for aggressive decoupling, claim that restricting China’s access to our technology is enough. They point to export controls and investment bans as proof of toughness. But this ignores a hard truth: isolation breeds complacency. By cutting ourselves off from global innovation networks, we risk slowing our own progress while China, undeterred, builds its own ecosystem. History shows that openness, not insularity, drives breakthroughs. The internet, GPS, even the semiconductor industry itself, emerged from collaborative ecosystems, not walled gardens.

The Power of Alliances

America’s greatest asset in this race is not just our talent or capital, but our ability to rally allies. The United States, alongside partners like Taiwan, South Korea, and the European Union, controls the most advanced nodes of the semiconductor supply chain. Firms like TSMC and Samsung, based in allied nations, produce the cutting-edge chips that China still struggles to match. Strengthening these partnerships through joint research, shared standards, and diversified supply chains is not just strategic; it’s essential.

China, by contrast, operates with fewer true allies, relying on its domestic market and strategic acquisitions. Its marathon strategy, while formidable, lacks the global reach of America’s sprint, which leverages alliances to amplify impact. Initiatives like the US-EU Trade and Technology Council and the Quad’s technology working group are steps toward a coordinated response, but they need more ambition. Joint investment funds, streamlined trade policies, and shared talent pipelines could turn our alliances into an unstoppable force.

Those who favor going it alone argue that allies complicate decision-making and dilute our edge. They fear technology leakage or overreliance on foreign partners. But this view underestimates the resilience of multilateral systems. During the Cold War, NATO’s technological collaboration outpaced the Soviet Union’s centralized model. Today, a similar coalition can ensure that democratic nations, not authoritarian ones, set the rules for the digital age.

A Vision for the Future

To win this race, America must rediscover its boldness. This means investing in the next generation of scientists, engineers, and technicians, ensuring that our workforce reflects the diversity and creativity of our nation. It means reforming immigration policies to attract and retain global talent, as Silicon Valley’s success has long depended on brilliant minds from abroad. It means prioritizing education, from community colleges to research universities, to build a pipeline of innovators.

Above all, it means rejecting the false choice between security and openness. We can protect our intellectual property and critical infrastructure without shutting out the world. We can compete fiercely with China while collaborating on shared challenges like climate change, where technology will play a pivotal role. A confident America does not hide behind tariffs or bans; it leads by building better, faster, and smarter.

China’s chip breakthrough is a reminder that complacency is not an option. But it’s also a chance to recommit to the principles that have always made America great: ingenuity, collaboration, and an unrelenting belief in progress. By investing in our people, our allies, and our ideas, we can ensure that the future of technology, and the world it shapes, remains in our hands.