A Crucial Link: Using Intellectual Property to Inform Global Supply Chain Policy

The COVID-19 pandemic, coupled with trade tensions and technological competition between the United States and China, have severely disrupted global supply chains. As businesses and policymakers grapple with “building back better” in a tense trade environment, they face the dilemma of balancing the traditional benefits of global production with the security demands of new geopolitical realities. This policy brief, part of a series on great power competition, highlights the productive role that intellectual property (IP) can play in navigating supply chain disruptions resulting from great power competition in a post-pandemic world. Rather than reinforcing the vicious cycle of techno-nationalist confrontation, it is possible for businesses and policymakers to promote virtuous cycles of competition with a more robust focus on intellectual property. Specifically, businesses and policymakers can look to IP licensing and allocation of rights to play a key role in tariff mitigation strategies and supply chain restructuring. At the same time, competitive pressures can lead to enhanced IP regimes in China and other economies, which argues for a more nuanced discussion of supply chains beyond physical relocation and economic decoupling.