China wants to be free of US technology
China, the world’s second largest economy, wants to free itself from dependence on the US technology sector. For that reason, like many other things, various government authorities of the country no longer want to use foreign hardware.
But Chinese government authorities still use Western hardware and software. The country is giving importance to these replacements with Chinese products. But why?
Antonia Hamaidi, a China expert at Merix, said China has been seeking to replace Western technology for a long time. Especially because of Edward Snowden’s leaks and what Snowden revealed about US spying using US technology.
But is it technically possible? Hamaidi said the United States has imposed restrictions on exports to China, especially graphics processing units. These are areas where there may still be problems. Besides, of course, Chinese companies can choose Chinese products. Even if they are not of the same quality as foreign products. You can do what you want to do.
How is the US responding? In one word, TikTok. The US government demands that it be sold to an American company. Otherwise, they are threatening to ban the app in the US. The United States does not want information about Americans to go to Chinese authorities.
Then there’s Nvidia. The latest chips made by US manufacturers are banned from being sold in China. US authorities do not want this latest technology to reach China. Anyone who violates this directive may be subject to sanctions by US authorities. China expert Daniel Newman of Futurerum Group said, “If China can take even a handful of percent from US-based semiconductors, that is, can build semiconductors that can be made in China, it will mean billions of dollars in revenue (lost) to US-based companies.”
No company wants to lose the lucrative market in China. “Certainly you see, US companies are consistently playing cat and mouse with the US government and China so that they can get around regulatory loopholes and export goods to China,” Newman said. It must also be said that due to constant pressure, the matter is becoming increasingly complicated.
As a result, China wants to rapidly advance technologically. The country is giving billions to its startups, especially in China’s Silicon Valley north of Beijing. Because, whoever has the strongest IT will have the strongest military in the future.
“What we see is that China is improving,” said Daniel Newman. As we know, they are willing to invest almost limitlessly for this. Because, this is not a matter of little geopolitical tension. It is about taking global economic leadership in technology and artificial intelligence. In the next two or three decades, different economies will fight with artificial intelligence to gain global influence.
China is still behind in this regard. But if the country wants to take a leading role in the artificial intelligence sector, it must also be able to export its IT products abroad. Alicia García-Herrero, a China expert at the Bruegel Institute, said: “I am convinced that we are moving towards two ecosystems, and the question is, is China’s enormous forgetfulness of its own economy, the size of the country, and can it apply its standards and methods elsewhere?” I think this is a big fight.
Source: Deutsche Welle