print

U.S. – China rivalry in Latin America:
at the origins of technological decoupling

Degterev D.A.,

RUDN University, Moscow, Russia; MGIMO University, Moscow, Russia, degterev-da@rudn.ru

elibrary_id: 237630 | ORCID: 0000-0001-7426-1383 | RESEARCHER_ID: D-9134-2014

Piskunov D.A.,

RUDN University, Moscow, Russia, piskunov_da@mail.ru

elibrary_id: 1186771 | ORCID: 0000-0002-4321-3191 | RESEARCHER_ID: ACM-8657-2022

Eremin A.A.,

RUDN University, Moscow, Russia; RANEPA, Moscow, Russia, eremin-aa@rudn.ru

elibrary_id: 865122 | ORCID: 0000-0002-6217-6269 | RESEARCHER_ID: D-4242-2019

Article received: 2022.09.26. Accepted: 2023.01.18


DOI: 10.17976/jpps/2023.03.03
EDN: OPJLVI

Rubric: Theme of the issue: Strategic choices: dilemmas of the global transition

For citation:

Degterev D.A., Piskunov D.A., Eremin A.A. U.S. – China rivalry in Latin America: at the origins of technological decoupling. – Polis. Political Studies. 2023. No. 3. https://doi.org/10.17976/jpps/2023.03.03. EDN: OPJLVI

This article has been published in the framework of the RUDN University’s grant system for research projects.

Abstract

Increasing U.S. – China competition revealed the leading role of the technology sphere in the terms of global leadership. Ongoing rivalry between two states led to the appearance of decoupling process which results in severance of economic, technological, and political ties. This phenomenon was taken on a global scale, with the U.S. and China seeking to form techno-economic blocs (technological ecosystems). Based on this hypothesis, the authors investigates the processes of technological dissociation on the example of U.S. – China competition in Latin America. For this purpose, the paper uses the technology transfer theory by K. Krause, transnational relations theory by J. Nye, R. Keohane, and international political economy approaches, as well as comparative and network methods of analysis. The authors take economic statistics, including data on value added from the TiVA database and on high-tech trade from UNCTAD dataset, and consider the 5G market as a field of political competition. The authors investigate the region’s value-added structure and high-tech trade of LA countries. The article concludes that the U.S. and China form network structures in value chains that meet the needs of national security, and a “new bipolarity” in the network of high-tech trade. In the context of Krause’s theory, the authors propose a structural scheme of technological decoupling in which the spread of 5G technology plays a key role. It is the use of new telecommunication standards that is main reason to technological decoupling in the region. In this regard, the authors investigate the LA market and the individual cases of MNCs, which are the key drivers of competition in this field and thus influence the technological sovereignty of the states in the region.

Keywords

U.S., China, technological decoupling, information sovereignty, Latin America, competitive dissociation, 5G technologies.

 Full Text

Aguilar, D., Agüero, A., & Barrantes, R. (2020). Network effects in mobile telecommunications markets: a comparative analysis of consumers' preferences in five Latin American countries. Telecommunications Policy, 44(5), 7-15. https://doi.org/10.1016/j.telpol.2020.101972

Arias, F., Salado, A., Medina, C., & Zambrano, M. (2021). 5G technology deployment in Latin America: an analysis of public policy and regulation environment. World Journal of Advanced Research and Reviews, 11(3), 258-271. https://doi.org/10.30574/wjarr.2021.11.3.0457

Berg, R.C. (2021). China in Latin America and the Caribbean. Statement before the US–China Economic and Security Review Commission Hearing, Washington, DC, 1-13.

Cerdeiro, D.A., Mano, R., Eugster, J., Muir, M.D.V., & Peiris, M.S.J. (2021). Sizing up the effects of technological decoupling. International Monetary Fund.

Cha, H., Wu, J., & Kotabe, M. (2021). The vulnerability problem of business ecosystems under global decoupling. Management and Organization Review, 17(3), 617-623. https://doi.org/10.1017/mor.2021.30

Duan, D., & Du, D. (2020). Structural evolution of global high-tech trade system: products, networks and influencing factors. Acta Geographica Sinica, 75(12), 2759-2776. (In Chinese).

Ham, D.D., Yamamoto, K.N., & Lloyd, R.A. (2021). Global competitiveness by the Maquiladora manufacturing program in North America. International Management Review, 17(1), 18-87.

Han, P., Jiang, W., & Mei, D. (2020). Mapping US-China technology decoupling, innovation, and firm performance. Columbia Business School Research Paper Forthcoming. https://doi.org/10.2139/ssrn.3779452

Krause, K. (1990). The political economy of the international arms transfer system: the diffusion of military technique via arms transfers. International Journal, 45(3), 687-722. https://doi.org/10.1177/002070209004500309

Krause, K. (1995). Arms and the state: patterns of military production and trade (No. 22). Cambridge: Cambridge University Press.

Li, Zh. (2020). The deep motivations and long-term trends of the U.S. promoting the “decoupling” of Sino-U.S. science and technology. Modern International Relations, 1(1), 33-40. (In Chinese)

Mariscal, J. (2009). Market structure and penetration in the Latin American mobile sector. Digital Policy, Regulation and Governance, 11(2), 24-41. https://doi.org/10.1108/14636690910941867

Mori, S. (2019). US technological competition with China: the military, industrial and digital network dimensions. Asia-Pacific Review, 26(1), 77-120. https://doi.org/10.1080/13439006.2019.1622871

Nye Jr., J.S. (2020). Power and interdependence with China. The Washington Quarterly, 43(1), 7-21. https://doi.org/10.1080/0163660X.2020.1734303

Nye, J.S., & Keohane, R.O. (1971). Transnational relations and world politics: an introduction. International organization, 25(3), 329-349. https://doi.org/10.1017/S0020818300026187

Sheng, L., Zhao, H., & Zhao, J. (2019). Why will Trump lose the trade war? China Economic Journal, 12(2), 137-159. https://doi.org/10.1080/17538963.2019.1603634

Tugendhat, H., & Voo, J. (2021). China's digital Silk Road in Africa and the future of Internet governance (No. 2021/50). Working Paper.

Witt, M.A., Li, P.P., Välikangas, L., & Lewin, A.Y. (2021). De-globalization and decoupling: game changing consequences? Management and Organization Review, 17(1), 6-15. https://doi.org/10.1017/mor.2021.9

Xingdong, F., & Lei, D. (2019). Study on the future trends of Sino-U.S. technological competition-industrial advantage transfer, conflict and rebalancing driven by global technological innovation. People's Forum Academic Frontiers, 4(24), 46-59. (In Chinese) https://doi.org/10.16619/j.cnki.rmltxsqy.2019.24.004

Xu, Q. (2021). Global industrial chain reshaping and China's choice. Financial Forum, 26(8), 3-7. (In Chinese) https://doi.org/10.16529/j.cnki.11-4613/f.2021.08.002

Xuetong, Y. (2020). Bipolar rivalry in the early digital age. The Chinese Journal of International Politics, 13(3), 313-341. https://doi.org/10.1093/cjip/poaa007

Zeng, X. (2021). U.S. and Taiwan's enhanced supply chain security alliance brings new risks to cross-strait relations. Unification Forum, 4(12), 37-42. (In Chinese) https://doi.org/10.13503/j.cnki.reunification.forum.2021.04.012

Zhang, Y., Zheng, T., & Wang, H. (2021). The innovation challenges faced by China under the new situation of Sino-US science and technology competition. Macroeconomic Management, 7(15), 79-84. (In Chinese) https://doi.org/10.19709/j.cnki.11-3199/f.2021.07.015

Zhao, M. (2019). Is a new Cold War inevitable? Chinese perspectives on US–China strategic competition. The Chinese Journal of International Politics, 12(3), 371-394. https://doi.org/10.1093/cjip/poz010

Zhipei, C. (2020). The US technology containment policy against China: implementation and constraints. Pacific Journal, 28(6), 27-42. (In Chinese) https://doi.org/10.14015/j.cnki.1004-8049.2020.06.003  

Bezrukov, A., Mamonov, M., Rebro, O., & Sushentsov, A. (2021). Realpolitik v «tsifre»: suverenitet, soyuzy i neprisoedinenie XXI veka. Doklad Mezhdunarodnogo diskussionnogo kluba «Valdai» [Realpolitik in “digital”: sovereignty, alliances, and non-alignment in the 21st century. Report of the Valdai International Discussion Club]. Moscow. (In Russ.)

Danilin, I.V. (2020). The U.S.-China technology war: risks and opportunities for P.R.C. and global tech sector. Comparative Politics Russia, 11(4), 160-176. (In Russ.) https://doi.org/10.24411/2221-3279-2020-10056

Danilin, I.V. (2020b). Conceptualizing American strategy in the technology war Against China: economy, geopolitics, techno-nationalism. Journal of International Analytics, 11(4), 21-38. (In Russ.) https://doi.org/10.46272/2587-8476-2020-11-4-21-38

Degterev, D.A. (2015). Network analysis of international relations. Vestnik SPbSU. Political Science. International Relations, 4, 119-138. (In Russ.)

Degterev, D.A. (2022). Value sovereignty in the era of global convergent media. Vestnik RUDN. International Relations, 22(2), 352-371. (In Russ.) https://doi.org/10.22363/2313-0660-2022-22-2-352-371

Degterev, D.A., Ramich, M.S., & Tsvyk, A.V. (2021). US-China: “Power Transition” and the Outlines of “Conflict Bipolarity”. Vestnik RUDN. International Relations, 21(2), 210-231. (In Russ.) https://doi.org/10.22363/2313-0660-2021-21-2-210-231

Eremin, A.A., Dubrovsky, I.R., & Petrovich-Belkin, O.K. (2021). Latin American vector of China’s foreign policy from 1991 to 2020. Voprosy istorii, 11(3), 256-267. (In Russ.)  https://doi.org/10.31166/VoprosyIstorii202111Statyi91

Maltsev, А. (2020). Network dynamics of technology diffusion in international arms transfers. International Trends, 18(4), 36-61. (In Russ.) https://doi.org/10.17994/IT.2020.18.4.63.5

Ponka, T.I., Ramich, M.S., & Wu, Y. (2020). Information policy and information security of PRC: development, approaches and implementation. Vestnik RUDN. International Relations, 20(2), 382-394. (In Russ.) https://doi.org/10.22363/2313-0660-2020-20-2-382-394

Ramich, M.S., & Piskunov, D.A. (2022). The securitization of cyberspace: from rulemaking to establishing legal regimes. Vestnik RUDN. International Relations, 22(2), 238-255. (In Russ.) https://doi.org/10.22363/2313-0660-2022-22-2-238-255

Yakovlev, P.P. (2020). Global'nye golovolomki: Iberoamerika v menyayushchemsya mire [Global puzzles: Ibero-America in the changing world]. Moscow: ILA RAS. (In Russ.)

Zhdanov, P.A. (2013). Network-based approach to G20. International Organisations Research Journal, 8(3), 61-72. (In Russ.) 

See also: