The trade war between the USA and China heated up last week as a House of Representatives select committee started hearing evidence of security problems with imported Chinese technology.

The House Select Committee on the Chinese Communist Party (CCP) held a hearing (www.youtube.com/watch?v=598JDFGj-oA) on combatting China’s strategy to dominate semiconductors, shipbuilding and drones.

In his opening remarks, committee chairman John Moolenaar said semiconductor chips powered everything from the guidance systems on missiles to satellites, mobile phones, computers and cars.

Ships, he said, could blockade global supply chains, including Taiwan, whose foundries produce many of the world’s semiconductors. And unmanned aerial vehicles (UAVs) or drones will play a key role in the future of civilian and military airpower.

“In all three, America’s industrial capacity has waned while China has gained dominance or is in the process of gaining dominance over each,” he said.

He said there was a need to install market access barriers in strategic sectors to prevent malign Chinese companies from taking over the US economy.

“We need to leverage and build upon crucial authorities to ensure the security of data and communications across our country,” he said. “We need to cut off access to the US technology and capital that helps fuel PRC national champions and critical sectors. And we need to coordinate with our allies to encourage them to mirror these steps.”

Adam Bry, CEO of American drone manufacture Skydio (www.skydio.com), said to be the largest maker of small drones outside China, accused Chinese companies of exerting outsized control, making impressive hardware and running extremely aggressive tactics, such as intimidating distributors out of selling competitive products and undercutting pricing with Chinese state support.

However, he said the only stable long-term path was to have superior products and technology made by US companies or trusted allies.

“We have raised and spent hundreds of millions of dollars of venture capital to accomplish this goal,” he said. “We’ve built world-leading AI and autonomy while furiously focusing on the different aspects of hardware it takes to have a great enterprise-grade drone from the camera sensors to the wireless system. I have never been more confident in our ability to meet the needs of the industry, together with a growing number of exceptional American and allied innovators. Public safety agencies, critical infrastructure owners and defence agencies using drones deserve choice, competition and trustworthy technology. That is exactly what we and allied peer companies are providing.”

He rejected though calls to fight subsidies with subsidies.

“We should not try to beat China at their own game,” he said. “We should let the market pick winners and losers, rather than the government.”

And he concluded by saying: I believe the best way to predict the future is to invent it. I have never been more confident in America’s ability to lead a new era of aviation and a new generation of AI-enabled robotics. Together with our peers across the industry, we will continue to prove that America can compete and win even in spaces contested by countries that play by different rules.”