Chinese President Xi Jinping’s recent meetings with China’s leading tech executives suggest that Beijing may be easing off its notorious crackdowns on major firms. On the surface, the shift signals that Beijing realizes these companies are vital for innovation and securing a competitive global edge. If that’s the case, then it’s a strategically consequential pivot—the Chinese government may have recognized that stifling the private sector with regulatory crackdowns only sets the country back, especially amid an international race in fields like artificial intelligence. Meanwhile, in the United States, the conversation around Big Tech has become muddled by politics, overshadowing a much bigger truth: We need a strong tech industry to retain our global innovation leadership.

It’s no secret that China’s approach has often been heavy-handed. The antitrust actions against Alibaba, for example, appeared to be more about political control than a genuine concern for market fairness. Yet Beijing now seems to be adjusting its tactics. Rather than punishing its most prominent innovators, it’s harnessing their expertise for national goals. Meanwhile, in the United States, hostility toward Big Tech persists from both ends of the political spectrum: Former FTC chair Lina Khan pursued aggressive antitrust action throughout the Biden administration, and the Trump administration now contends that “lack of competition” on digital platforms has allowed conservatives to be censored. This should be a wake-up call for America: Repeated crackdowns on our tech sector—regardless of ideological motive—risk crippling an industry that plays an outsized role in keeping the United States globally competitive.

Historical Precedent for Public-Private Partnerships

During World War II and the Cold War, the U.S. government worked hand-in-hand with private industry—from aerospace to computing—to gain a strategic edge. For decades, these working relationships helped drive critical breakthroughs and established American dominance in emerging technologies. Collaboration between the public and private sectors remains critical today for any major national initiative to succeed, whether advancing AI, quantum computing, or advanced manufacturing. Instead of seeing Big Tech as an adversary, policymakers should look at history for guidance on turning companies into strong partners to advance the country’s broader strategic objectives.

Of course, regulation is necessary when addressing legitimate concerns such as unfair market practices or consumer harm. However, the goal must be to address specific concerns without demonizing an entire industry. Heavy-handed regulations, ill-considered market interventions, or ideologically driven crackdowns risk stifling innovation and therefore ceding ground to global competitors. The reality is, Big Tech companies fuel much of American innovation, from AI applications and data analytics to hardware breakthroughs. If the United States hamstrings these tech leaders, we risk losing our edge in an accelerating global race.

Investment in R&D and Talent

Investing in research and nurturing a robust talent pipeline is crucial to maintaining America’s competitive edge. The United States has long been a magnet for top-tier engineers, scientists, and entrepreneurs, but that might change if hostile regulatory environments push them to look elsewhere. Moreover, large tech firms invest billions in cutting-edge R&D, outpacing the budgets of many countries. Reinforcing rather than undercutting these investments will bolster the nation’s standing in critical areas like AI, next-generation semiconductors, and quantum computing.

Consider semiconductors, the building blocks of modern technology. A healthy domestic chip ecosystem is vital as global tensions flare up—particularly with China—and supply chain disruptions become more common. Rather than seeing tech giants as monolithic threats, the United States could forge strategic partnerships that encourage more onshore (and nearshored) production and R&D. This would strengthen national security and help reduce dependence on fragile international supply chains.

Mounting Global Pressure on American Tech

On the international stage, countries like South Korea, India, and Europe are also cracking down on U.S. tech companies to favor their own while Chinese tech companies largely avoid scrutiny. If the United States can’t work constructively with its industry leaders, it risks ceding ground to China and other nations that stand behind their tech industries. Simply put, continued friction between Washington and Silicon Valley could weaken America’s technological leadership and give its rivals the upper hand.

Learning From China’s Pivot

Yes, Chinese policies are still authoritarian at their core, and the CCP’s antitrust investigations into its Big Tech companies might be about maintaining political control. But Beijing’s apparent pivot reminds us that even authoritarian regimes know when to ease off to keep innovation alive. The United States, as a democracy and pioneer of free-market ideas, should do even better. We must address real concerns—whether they involve competitive abuses or consumer protections—through appropriately targeted solutions. But if Washington treats Big Tech as a perpetual villain, it risks undermining its own economic and strategic interests while handing America’s competitive advantages to rivals.

It’s time for the United States to adopt a more measured, forward-looking stance on technology policy. Our Big Tech companies are not just corporate behemoths but national assets in the race to stay ahead in AI, advanced manufacturing, and other fields. By learning from history—when public-private partnerships propelled America to global leadership—and by safeguarding crucial R&D and talent pipelines, the United States can remain the world’s premier hub for innovation.

Ultimately, making Big Tech a partner rather than an adversary isn’t a concession; it’s a strategic imperative. If we let ideological battles dominate the narrative, we’ll only weaken the nation’s most powerful engine of economic growth and global influence. It’s time to course-correct and get serious about leveraging the immense value these companies bring to America’s future.