"Ultimately, the Chinese are competing to become the world’s leading innovators, and the United States is not playing to win."
"Silicon Valley may just lose to China." So could banks and the US dollar.
In my own small way, I've been warning from my perch in Shanghai that China's advances in CBDCs, Fintech, blockchain, and AI are a marvel and represent a path forward for Western financial institutions.
This year China will mount a direct assault on the dollar with its CBDC, now delayed due to coronavirus. I don't make exaggerated claims that it will topple the US's financial dominance, but its a warning not to be complacent.
"The government needs to get back in the game in a serious way."
Yes and in fintech getting initiatives off the ground like instant payment, the OCC's fintech charter and CBDCs would help, yet little changes and the US continues to fall behind while protecting incumbents.
In 1960s America the US government was "in the game" in a very serious way with the "space race."
The US has been there, seen that and done it but seems ill-prepared to do it again.
China has a strong sense of destiny as it carries on transforming itself. This includes dominating key areas such as technology. For China's major superpower rival, the USA, this is both a threat and an opportunity, and it really depends on the US which aspect is felt most strongly. Anais Nin famously said, "We don't see things as they are, we see them as we are." When the U.S. looks at China, it sees it through the U.S. mindset of winning at all costs. While a small part of that is true, there is also a strong desire to collaborate and peacefully create a better world.