Recently, the head of antitrust for the Trump administration’s Department of Justice, Gail Slater, resigned from her post. Per reports, this stemmed in large part from tension with Attorney General Pam Bondi, who grew frustrated with Slater’s insistence on blocking a merger between Hewlett Packard Enterprises, or HPE, and Juniper Networks that the CIA Director John Ratcliffe insisted was necessary to keep us competitive with China. 

Talk about the technology rivalry between the United States and China usually centers on dramatic topics such as artificial intelligence, hypersonic missiles, drone swarms and nuclear weapons. The competition is often described as a battle over computer chips and software. But this narrow focus misses something essential. Technological power is not just about inventions or weapons. It is also about money, corporate strategy and a government’s ability to direct resources toward national goals. In this broader contest, China holds a clear advantage. As Washington struggles to respond, the merger between HPE and Juniper shows how American companies are stepping forward to fill a growing gap.

China’s strength comes from the close relationship between its government and its corporations. Chinese companies operating overseas do not rely only on private investors. They can also draw on major financial support from the Chinese state. This support flows through a complex and often secretive network of subsidies and financial institutions. The China Development Bank and the Export-Import Bank of China function not only as lenders but also as tools of foreign policy. When Beijing decides that a certain industry or region is strategically important, funding quickly follows.

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