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The Guardian view on Donald Trump’s industrial policy: inward turn by ultimatum | Editorial

gLow-vising is occurring. Reshoring is a new realism. Intel’s Half Build Ohio Campus and Nvidia’s US Supercomputer Plan It demonstrates a very different route that Joe Biden and Donald Trump filmed in search of homemade technological advantages. Biden relied on subsidies, land and investment. Incentives. That approach stagnated after last year’s election, bringing Intel plants to idle. Trump likes court politics: flattering, pressure, tariff threats. Nvidia’s movement appears to be less driven by design than Executive Aritaum. Industrial strategy lives on, but this is a concern, increasingly through the threat of the president rather than policy.

There is another important message in Nvidia’s announcement. In an age where ideas are free to spread, inventions are not at inventions, but at choke points such as the manufacturing of artificial intelligence supercomputers, determining who can expand those ideas to a global platform. Don’t forget that the US is writing Repulsion About the breakdown of old trade orders.

Harvard Economist Ricardo Houseman Trump’s miscalculation focuses on commodity trade, ignoring bigger games, services, intellectual property (IP) and investments. Boeing’s most profitable division is servicenot manufacturing, but both suffer from China’s decision to block further delivery of jets. Professor Hausman warned that developing countries could retaliate by undermining global trade-related aspects of intellectual property contracts. The IP regime, known as travel, stands behind $632 billion in US foreign profits.

If Trump has a plan, it’s well hidden. But perhaps this is his strategy. If others want to copy yesterday’s technology or challenge IP norms, then allow them. By this logic, the United States invents and bills to access the following essentials: America is a leader in AI, biotechnology and platform services. However, recent developments complicate this picture. Open source AIs such as China’s Deepseek have shown that Frontier Tech does not require an address in Silicon Valley.

A similar contradiction takes place in Pharmaceuticals. Eli Lilly’s huge hit weight loss pill Munjaro It was publicly available under Food and Drug Administration regulations, namely market access prices. That transparency has driven a global flood of generics Fake. That is a travel dilemma. Innovation requires openness, but imitation thrives in places where enforcement is slow. Now, with a sharp escalation, the Trump administration has launched national security probe For importing pharma. China, India and the EU, all major exporters are located in the US crosshairs.

Ironically, since 1945, the United States has established its global position by defending openness in science, trade and finance, but now evokes the doctrine of security to surround the supply chain and protect the market. Meanwhile, the very IP regime that helped to extract “rent” from the global economy is tense. The US may still dominate, but it lies in defensive production and chokepoint protection. Trump in January I was threatened Country 100% tariffs and therefore strong US financial sanctions are boldly attempting to avoid the dollar.

If developing countries begin to rely on travel – if the value is not lost by implementing patents in exchange for access to increasingly closed markets, the results will reach far beyond US companies. India 2023 I paid $14 billion Foreign companies using IP from $19 billion in 2009 have no significant profit in return. For now, the United States may still invent the future. But it remains uncertain whether America owns it, whether it will monetize it, or remove others from it. The era of innovation may be global. The age of power is less and less.

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