The report argues that public procurement is a useful, yet bounded, governance instrument for middle powers dependent on foreign frontier AI. By embedding contractual guarantees—such as model access for evaluation and termination clauses—into state contracts, governments can mitigate risks like vendor lock-in and data sovereignty vulnerabilities. However, the analysis finds that individual state demand provides limited leverage; therefore, the key strategic recommendation is that middle powers must coordinate their procurement efforts. This collective action is necessary to aggregate demand, share evaluation capabilities, and strengthen their collective bargaining position against dominant AI providers.
The Case for Letting China In
English Summary
The article argues that the U.S. is undermining its industrial policy by adopting an overly hostile stance toward foreign investment, particularly from China. To achieve global competitiveness in critical sectors like chips and EVs, the U.S. must selectively welcome foreign capital and know-how, recognizing that foreign expertise has historically been vital for American industrial growth. Current regulatory bodies, such as CFIUS, are too restrictive, focusing on blocking perceived risk rather than assessing overall national security benefit. Policy recommendations include reforming these screening mechanisms to weigh risks and rewards, treating allied capital differently, and developing a framework that allows strategic partnerships with countries of concern like China.
中文摘要
本文論述美國透過對外國投資（特別是來自中國的投資）採取過度敵對的立場，正在削弱其自身的產業政策。為在晶片和電動車等關鍵產業實現全球競爭力，美國必須有選擇性地接納外國資本和專業知識，並認識到外國專業技術在美國產業發展史上一直至關重要。目前，諸如外國投資審查委員會（CFIUS）等監管機構過於限制，其重點是阻止所謂的風險，而非評估整體國家安全效益。政策建議包括改革這些審查機制，使其能夠權衡風險與回報，區分盟友資本，並建立一個框架，允許與中國等潛在風險國家進行戰略夥伴關係。
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