The loss of technological competition with China could cost the US trillions.

A new report from the Special Competitiveness Research Project (SCSP) led by Eric Schmidt suggests that the United States could lose trillions of dollars in economic growth if it fails to counter China’s growing technological threat.

Why is it important? American failure to challenge China not only costs American economic growth and jobs; It allows for the creation of an authoritarian government for the world’s digital infrastructure.

What they say: “Imagine a world in which China dominates the global digital infrastructure, dominates tech platforms, dominates the production of critical technologies, and uses biotech and new energy to dominate society, its economy and its military,” the group said in a statement. Statement to Axios. “If we lose in these areas, it will be very difficult to regain the advantages.”

• According to SCSP, the future of geopolitics, technology and ideology are intertwined: “At the end of this decade, we know that we will live in a world shaped or censored by free expression, tolerance and self-determination. and coercion.

Key receivers:

• The period between 2025 and 2030 It can be important. “China’s political, economic, demographic, military, and technological landscape will be reshaped in dangerous ways within a decade,” according to the report’s conclusion, with Xi’s third term officially ending in 2027.
• Chips, 5g and AI They are among the most important battlefields.
• Recent measures are not enough. Although there has been some progress: “The US government came to the rescue: $52 billion for chips, a diplomatic campaign to disrupt Huawei’s (and) millions in AI investments,” the summary said. “However, this reactive approach is not a recipe for long-term success.”

Yes, but: While the group’s 186-page report shows China taking the technological lead, it also outlines what it sees as key steps to prevent its fate.

• Among these are the government’s continued military and commercial investment, cooperation with other democracies, and striking a balance between regulation and encouraging innovation.

What’s next?: SCSP is holding a Summit of Government and Technology Leaders Friday in Washington, DC.