STRATEGIC DIGITAL RIVALRY BETWEEN USA AND CHINA

Alexander Mechitov, University of Montevallo, Montevallo, AL, U.S.A.
Helen Moshkovich, University of Montevallo, Montevallo, AL, U.S.A.

Published in

JOURNAL OF ACADEMY OF BUSINESS AND ECONOMICS
Volume 25, Issue 3, p42-52, October 2025

ABSTRACT

The digital transformation is profoundly reshaping all aspects of social life and driving global economic development. In this context, the technological race for supremacy has emerged as one of the most important rivalries between the world’s two leading economic powers: the United States and China. This paper examines key domains of this competition, with a focus on 5G, artificial intelligence (AI), and the semiconductor industry. It also explores the strategic roles of big data and social media in advancing AI capabilities and influencing political narratives. Another critical dimension is the competition for top global talent, which depends on the quality of national STEM education systems and the effectiveness of "brain gain" strategies. Additionally, the control of rare earth elements, essential for IT hardware manufacturing, is identified as another important factor in this high-tech contest. The authors argue that while both nations possess distinct advantages, long-term and sustained state support may play a big role. Moreover, they highlight that although the primary rivalry exists between the U.S. and China, other nations have the opportunity to engage with and benefit from participation in this global technological race.

Keywords

IT industry, digital rivalry, USA vs China, 5G, AI, microchips, rare earth elements, STEM


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