The CHIPS and Science Act of 2022 allocated billions of dollars to manufacturing in the US, creating 15,000 semiconductor jobs and showing a positive impact on employment in this sector. The law aims to stimulate the industry and strengthen economic security.
Europe must implement risk mitigation strategies, adapting tools to a changing geopolitical context. It is recommended to reduce dependencies on critical materials and digital and financial sectors, identify critical points in supply chains and use the Anti-Coercion Instrument selectively. Additionally, it is suggested to use industrial policy tools and economic associations in a balanced way, avoiding penalizing partners in trade agreements.
Kyle Chan is a new researcher at the John L. Thornton China Center at the Brookings Institution, an expert in Chinese technology. He joined in 2025, and was a fellow at the Penn Project on the Future of US-China Relations. Previously, he researched at Princeton University and the RAND Corporation. He is interested in China’s technological development, highlighting learning, industrial policy and lessons for US technological competitiveness.
The competition for innovation exacerbates the global overcapacity in manufacturing, with China leading the market and creating imbalances. The excess of cheap goods generates trade tensions, especially between China and the US. This affects advanced economies such as the US and the EU, and industrial policies can exacerbate the problem with excessive subsidies.
