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Responding to the China Challenge in Techno‐nationalism: Divergence between Germany and the United States

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  • Sean Kenji Starrs
  • Julian Germann

Abstract

President Xi Jinping has made clear that the ‘Great Rejuvenation of the Chinese Nation’ will involve world‐leading competitiveness: his ‘Made in China 2025’ plan identifies 10 core sectors of advanced technology. This article investigates how elites in the United States and Germany have responded to this ‘China challenge’, a burgeoning ‘techno‐nationalist’ phase of globalization. First, the article explores the divergent state responses of the USA and Germany: while both national elites are concerned, the reaction of the US has been far more confrontational. It then tries to explain this striking contrast in terms of the disparate domestic constituents. The US since Trump has aligned electoral grievances around manufacturing job losses with the interests of the national security establishment. In contrast, German labour has fared better in globalization, and the German state has not been able to override the interests of German capital in the way that the US has. Thus, the authors offer an account of how Germany and the US have responded differently to the China challenge, as well as explaining why with reference to the divergent structural conditions and class interests. The article ends by speculating that ‘techno‐nationalism’ will only accelerate in the face of the COVID‐19 pandemic.

Suggested Citation

  • Sean Kenji Starrs & Julian Germann, 2021. "Responding to the China Challenge in Techno‐nationalism: Divergence between Germany and the United States," Development and Change, International Institute of Social Studies, vol. 52(5), pages 1122-1146, September.
    • Handle: RePEc:bla:devchg:v:52:y:2021:i:5:p:1122-1146
    DOI: 10.1111/dech.12683
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    References listed on IDEAS

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    1. Jacob Funk Kirkegaard, 2019. "Chinese Investments in the US and EU Are Declining—for Similar Reasons," Policy Briefs PB19-12, Peterson Institute for International Economics.
    2. Fuller, Douglas B., 2016. "Paper Tigers, Hidden Dragons: Firms and the Political Economy of China's Technological Development," OUP Catalogue, Oxford University Press, number 9780198777205.
    3. Yongding Yu, 2018. "A Trade War That is Unwarranted," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 26(5), pages 38-61, September.
    4. Paul J. J. Welfens, 2019. "The Global Trump," Springer Books, Springer, number 978-3-030-21784-6, September.
    5. Jeromin Zettelmeyer, 2019. "The Return of Economic Nationalism in Germany," Policy Briefs PB19-4, Peterson Institute for International Economics.
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    Cited by:

    1. Zhang, Ling Eleanor & Zhao, Shasha & Kern, Philipp & Edwards, Tony & Zhang, Zhi-Xue, 2023. "The pursuit of indigenous innovation amid the Tech Cold War: The case of a Chinese high-tech firm," International Business Review, Elsevier, vol. 32(6).
    2. Yu-Han Cai & Charalampos Efstathopoulos, 2023. "Between economic openness and strategic caution: Germany’s response to China’s investment," Asia Europe Journal, Springer, vol. 21(3), pages 291-309, September.
    3. Sergio Mariotti, 2023. "Competition policy in the new wave of global protectionism. Prospects for preserving a fdi-friendly institutional environment," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(2), pages 227-241, June.
    4. Schmalz, Stefan & Gräf, Helena & Köncke, Philipp & Schneidemesser, Lea, 2022. "Umkämpfte Globalisierung: Amerikanische und europäische Reaktionen auf Chinas Aufstieg im Hochtechnologiebereich [Contested globalization: US and EU responses to China’s rise as a high-tech power]," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(3), pages 427-454.

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