Економіка

At a gathering of current and former U.S. officials and private-sector executives Friday in Washington, concern was rampant that the United States has fallen behind China in the development of several key technologies, and that it faces an uncertain future in which other countries could challenge its historic dominance in the development of cutting-edge communications and computing technology.

The gathering was convened by the Special Competitive Studies Project, an effort spearheaded by former Google CEO Eric Schmidt, the stated purpose of which is “to ensure that America is positioned and organized to win the techno-economic competition between now and 2030, the critical window for shaping the future.”

Among attendees, the prevailing sentiment was that the nation’s ability to actually win that competition was under threat.

Dire predictions

A few days before the summit, the SCSP issued a report predicting what would happen if China became the global technological leader.

“Understanding the stakes requires imagining a world in which an authoritarian state controls the digital infrastructure, enjoys the dominant position in the world’s technology platforms, controls the means of production for critical technologies, and harnesses a new wave of general purpose technologies, like biotech and new energy technologies, to transform its society, economy and military,” the report said.

The report envisions a future where China, not the U.S., captures the trillions of dollars of income generated by the new technological advances and uses its leverage to make the case that autocracy, not democracy, is the superior form of government.

In the report’s grim vision, China promotes the concept of a “sovereign” internet, where individual countries limit the flow of information to their people, and where China develops and possibly controls the key technology supporting critical infrastructure in countries around the world.

Finally, the report warns that under such a scenario, the U.S. military would lose its technological lead over China and other competitors, and China might be in a position to cut off the supply of “microelectronics and other critical technology inputs.”

‘Nothing is inevitable’

In an address to the summit, White House national security adviser Jake Sullivan appeared to agree that the nation faces significant challenges in keeping pace with China in the development of new technology.

“We know that nothing is inevitable about maintaining America’s core strength and competitive advantage in the world,” Sullivan said. “And we know that it has to be renewed, revitalized and stewarded, and that is especially true when it comes to U.S. technological leadership.”

In China, he said, “we’re facing a competitor that is determined to overtake U.S. technology leadership and is willing to devote nearly limitless resources to do so.”

Sullivan also said, however, that President Joe Biden’s administration is aware of the threat and has been working to meet it. In particular, Sullivan noted the recent passage of the CHIPS Act, which directs more than $50 billion toward establishing advanced microchip fabrication facilities in the U.S.

“We’re making historically unprecedented investments, putting us back on track to lead the industries of the future,” Sullivan said. “We’re doubling down on our efforts to be a magnet for the world’s top technical talent. We’ve adapted our technology protection tools to new geopolitical realities. And most importantly, we’ve done this in a way that is inclusive, force multiplying and consistent with our values.”

Not ‘fast enough’

H.R. McMaster, a retired Army general who served as national security adviser during the Trump administration, appeared as a panelist at the conference. He said that while progress is being made, the pace needs to be quickened.

“It’s not going fast enough, because we’re so far behind, because there’s too many years of complacency based on flawed assumptions about the nature of the post-Cold War world,” McMaster said.

He called for a more active effort to block China’s technological advancement, saying, “We need export controls now, to prevent China from getting a differential advantage, [while] maintaining our competitive advantages.”

China has repeatedly criticized U.S. efforts to impede its technological advancement, an issue that Chinese Foreign Ministry spokesperson Mao Ning addressed this week when asked about U.S. export controls.

“What the U.S. is doing is purely ‘sci-tech hegemony,’ ” she said. “It seeks to use its technological prowess as an advantage to hobble and suppress the development of emerging markets and developing countries. While trumpeting a level playing field and a so-called ‘rules-based order,’ the U.S. cares only about ‘America first’ and believes might makes right. The U.S. probably hopes that China and the rest of the developing world will forever stay at the lower end of the industrial chain. This is not constructive.”

5G as a warning

A recurring theme at the event was the development of 5G wireless internet technology, a field in which Western countries, including the U.S., fell far behind China. With the benefit of favorable treatment from Beijing, Chinese firms, specifically Huawei, developed a dominant global position in the provision of 5G networking equipment. 

Concerned that having Chinese-made equipment serve as the backbone of sensitive communications technology could create an espionage or security risk, the U.S. and some of its allies mounted a global campaign to block the installation of Huawei’s equipment, even if that meant significant delays in the rollout of 5G wireless service.

“The key message here is we need to make sure that what happened to us in 5G does not happen again,” said Schmidt. “I cannot say that more clearly. You do not want to work on platform technologies that you use every day that are dominated by nondemocratic, nonopen systems.”

Schmidt said that it would be difficult to stay ahead of China technologically, predicting that Beijing would “double down on competing in the areas that we care about,” including artificial intelligence, quantum computing, biotechnology and others.

Maintaining relations

Jon Huntsman, a former U.S. ambassador to China, said that Americans are generally uninformed about how far China is ahead of the United States in some technologies. Now the vice chairperson of Ford Motor Company, Huntsman said that in the development of electric vehicles, for example, China is at least five years ahead of the U.S.

He said that the U.S. must walk a fine line to catch up with China in some areas and to maintain its advantage in others. In particular, he stressed the need to retain person-to-person business and other relationships with the Chinese people.

“Decoupling our people is not a good thing,” he said. “We’ll wind up with China right where we are with Russia if we do that.” He added, “Decoupling is only going to create estrangement, misunderstandings and instability, globally, on the security side.”
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A U.N. report warns the right to privacy is under siege as an increasing number of governments are using spyware to keep tabs on their people.

The U.N. human rights office said urgent steps are needed to address the spread of spyware. It noted many governments are using modern digital networked technologies to monitor, control and oppress their populations. U.N. officials say the technologies must be reined in and regulated in accord with international human rights laws and standards.

Human rights spokeswoman Liz Throssell said the report details how surveillance tools such as the Pegasus software can turn most smartphones into 24-hour surveillance devices. She said the encroachment into peoples’ privacy is very concerning.

“For example, the smartphones that people have, they can be made into devices that actually offer people insights into what we do, where we go, who we meet with, what we say,” she said. “And that is a very, very powerful tool indeed, which is precisely why we are making these very strong calls in this report today.”

Human rights organizations have accused countries like China of building a vast surveillance and security system to keep close watch on their populations.

The U.N. report does not name the countries that use digital surveillance technologies. However, Throssell notes more than 500 companies reportedly have developed, marketed and sold such spyware to governments. She said governmental authorities often falsify their reasons for acquiring such digital technology.

“While such spyware tools are purportedly deployed to combat terrorism and crime, they have often been used for illegitimate reasons,” Throssell said. “For example, to clamp down on critical or dissenting views and on those who express them including journalists, opposition political figures and human rights defenders.”

U.N. officials are calling for a moratorium on the use and sale of hacking tools until adequate safeguards to protect human rights are in place. They warn the right to privacy is more at risk now than ever and action is needed now to stop the abuse.
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Major tech companies on Thursday committed to taking fresh steps to combat online extremism by removing more violent content and promoting media literacy with young users, as part of a White House summit on fighting hate-fueled violence.

Platforms such as Alphabet’s YouTube and Meta’s Facebook have come under fire for years from critics who say the companies have allowed hate speech, lies and violent rhetoric to flourish on their services.

U.S. President Joe Biden earlier Thursday called on Americans to combat racism and extremism during a summit at the White House that gathered experts and survivors and included bipartisan local leaders.

YouTube said it will expand its policies on violent extremism to remove content that glorifies violent acts, even if the creators of the videos are not related to a terrorist organization.

The video streaming site already prohibits violent incitement, but in at least some cases has not applied existing policies to videos promoting militia groups involved with the Jan. 6 storming of the U.S. Capitol.

A report by the Tech Transparency Project in May found 435 pro-militia videos on YouTube, including 85 posted since Jan. 6. Some of the videos gave training advice, like how to carry out guerilla-style ambushes.

YouTube spokesperson Jack Malon declined to say whether the service would change its approach to that content under the new policy but said the update enables it to go further with enforcement than it had previously.

YouTube also said it will launch a media literacy campaign to teach younger users how to spot the manipulation tactics that are used to spread misinformation.

Microsoft said it will make a basic and more affordable version of its artificial intelligence and machine learning tools available to schools and smaller organizations in order to help them detect and prevent violence.

Facebook owner Meta announced it will partner with researchers from the Middlebury Institute of International Studies’ Center on Terrorism, Extremism and Counterterrorism.

Last year, lawmakers grilled the chief executives of Alphabet and Facebook, as well as Twitter, on whether their companies bore some responsibility for the Jan. 6 attack.
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India’s ambitions to create a domestic semiconductor manufacturing capability got a boost with this week’s announcement of a $ 19.5 billion investment by Taiwanese electronic company Foxconn and local conglomerate Vedanta.

The companies will set up manufacturing facilities for producing the chips in Prime Minister Narendra Modi’s home state, Gujarat. The plants are expected to be operational by 2024.

Modi called the agreement an important step in “accelerating India’s semi-conductor manufacturing ambitions” in a tweet Tuesday following the announcement.

India has joined the global race to make the chips at the heart of modern electronic devices from smartphones to cars, but for which there have been global shortages since the COVID-19 pandemic caused supply chain constraints.

India announced a $10 billion economic package in December to attract semiconductor makers as it looks to become a production hub for the critical components. It has also promised to expand incentives.

So far manufacturers in a small number of East Asian countries, led by China, Taiwan and South Korea, have supplied most of the world’s semiconductors. Several countries now want to reduce their dependence on global supply chains in critical technologies after the pandemic as well as Russia’s war in Ukraine and growing tensions between Western countries and China highlighted the risks of relying on limited sources of production.

“There are growing concerns of economic wars in the future and overdependence on China, especially for crucial components. So, India is trying to emerge as a production hub for semiconductors,” Sreeram Chaulia, dean of the Jindal School of International Affairs.

“The government believes that India can fill a niche as some countries and companies look to alternatives to China,” he told VOA.

While India has forged ahead in the software technology sector, which does not require physical infrastructure, it has lagged behind in electronic manufacturing partly due to poor infrastructure. The most difficult issue facing manufacturers is the unavailability of large tracts of land.

India also offers some advantages, though, such as the the thousands of semiconductor design engineers working for global companies with research and development offices in the country.

“I can confidently say that within the next five to six years, we will become a great semiconductor design capital of the world. We will use that capability to feed into our semiconductor manufacturing also,” Ashwini Vaishnav, India’s information technology and electronics minister, told a business conference last month.

The Foxconn and Vedanta announcement is the biggest announced in the sector so far.

“India’s own Silicon Valley is a step closer now,” Vedanta group chairman Anil Agarwal tweeted Tuesday. The project is expected to create 100,000 jobs in India.

“The improving infrastructure and the government’s active and strong support increases confidence in setting up a semiconductor factory,” Foxconn Vice President Brian Ho said in a statement.

Singaporean group IGSS Ventures has also signed a memorandum of understanding for a semiconductor plant in Tamil Nadu state.

“Many countries will be a lot more comfortable relying on India, so that gives the government a sense that this could just be the beginning of a flow of foreign funds to promote chip manufacturing,” Chaulia said.

“There also have been discussions at the level of the Quad and other forums for finding reliable sources for some of these components,”  he said, referring to the grouping of India, the United States, Japan and Australia.

The push to make semiconductors is also part of a “Make in India” campaign promoted by Modi since he took office eight years ago.

His aim to emulate China’s success in manufacturing had met with a tepid response according to business experts.

New Delhi hopes that will change as companies look at diversifying production bases especially in areas of critical technologies.
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