U.S. Already 0-1 in Tech War with China.

• Author: Magnuson, Stew
• Position: Editor's Notes

Chinese President Xi Jinping told the United Nations General Assembly recently that his nation has "no intention to fight either a cold war or a hot one with any country."

That may be. But what is really happening is a "technology war." There is little awareness among the American public about this undeclared war, but it's well understood in Beijing. The term "Tech War" may one day describe the age we are living in as "the Cold War" did after World War II.

The U.S. record in this rivalry stands at 0-1, or possibly 0-2. The United States lost a major battle that it didn't even realize it was fighting when China over the past decades established monopolies on several critical rare earth elements and a few other strategic minerals--a topic that this magazine has touched upon several times over the years.

This will prove to be a major strategic defeat as these elements are the building blocks for many of this century's emerging technologies. Smartphones--and even some U.S. weapon systems--don't work without them.

Then there is the battle for 5G dominance.

"Despite the growing importance of high-speed connectivity, the United States--which paced the world in developing and deploying so many other transformative technologies--is falling behind in the 5G race, while China is sprinting ahead," says a report, "America's 5G Moment of Truth," released by The New Center think tank.

Exactly how did the country of Alexander Graham Bell, the iPhone and a handful of telecom companies that rake in billions of dollars from consumers each year allow China to eat its lunch in this crucial technology? Why weren't the crucial research-and-development investments made in the United States when they needed to be last decade?

This nine-page report gives us non-telecom professionals a primer on how we got in this mess. Note: those TV commercials touting 5G are mostly hype. Most Americans are not getting those crazy high data rates advertised anytime soon.

If U.S. companies don't want to buy Chinese-made 5G tech, the alternative isn't "Buy American," but to go to higher-priced European companies instead.

Is the Tech War record already 0-2, factoring in 5G? Some experts say "no," but they would also say it's pretty late in the game and we have a lot of catching up to do.

The report offers a suggestion on how the United States can gain a 5G edge. Namely, have the federal government invest $100 billion in R&D. It sounds like a lot until one reads the projections of 5G...