The Information Technology and Innovation Foundation on Monday urged American technology companies to keep operating in China, saying the market offers revenue potential, market access and intelligence on rivals and trends [1].
In a report titled “US Technology Companies Should Keep Operating in China,” the Washington-based think tank said sales made in China can be reinvested into research and development in the United States [1]. It also said China serves as a strategic “listening post” for US firms to track consumer demand, technological changes, competitors and talent [1].
Rodrigo Balbontin, who authored the report, said forcing companies out of the Chinese market would be “an overreaction” and would fail to account for how a US presence in China serves the national interest [1]. He said having a foothold in China helps US companies boost revenue and win market share that would otherwise go to Chinese firms [1].
The report argued that keeping US companies in China can also help curb local competition, while the earnings those firms generate abroad can support innovation at home [1]. It said a retreat from the market could weaken US innovation leadership rather than protect it [1].
ITIF released the report on 2026-05-04 [1].
