Decoupling solves IP theft and assures the allies.

Economic Decoupling and IP Protection The “CHIPS Act” has been a very strong move in the right direction to economically decouple from China and Taiwan on the most critical semiconductor manufacturing. However, more must be done, both to reduce China’s theft of US and allied IP, and increase the security posture in the Indo-Pacific to reassure Taiwan and other regional allies such as Japan and South Korea.34 On China’s IP theft there are several potential policy options. Bills like H.R. 1016, the “Stop China’s IP Theft Act,” would sanction CCP members and prevent most CCP officials from doing business with the US or entering the US until China stops stealing US IP.35 Bills like this are mostly symbolic and have a small chance of becoming law. However, the larger point remains that there needs to be additional pressure placed on China and the CCP to dissuade continued theft. The biggest policy alternative that provides the US with leverage is the concept of reciprocity. China unfairly targets US corporations and pressures companies to share trade secrets or submit blueprints for scrutiny.36 The US does not do that to Chinese firms. There are two playing fields, and one is rules based, the other is heavily tilted in the CCP’s favor. China knows this and actively exploits the US laws to its own advantage. The US can further place trade limitations on Chinese firms when China targets US firms, and it can place even more restrictive export controls on technology, not just sensitive dual use technology.37