The US and China are creating two technological worlds together

President Xi Jinping and other leaders of the Chinese Communist Party and state, as well as two… [+] Laureates of the National Supreme Scientific and Technological Award present certificates to representatives of winners of the National Natural Science Award, National Technological Invention Award, National Scientific and Technological Progress Award and International Scientific and Technological Cooperation Award at the Great Hall of the People in Beijing, capital of China, June 24, 2024. (Photo by Ju Peng/Xinhua via Getty Images)

Xinhua News Agency via Getty Images

Recent developments highlight the shared interest of the United States and China in divvying up technological developments, an area that has long benefited from globalization.

Leaders in both Beijing and Washington have come to two conclusions. The first is simple: innovation is the best and only key to economic growth and geopolitical leadership. The second is that to gain scientific and technological advantage, countries must take strong measures in the public and private sectors to compete with (and differentiate from) others.

These dynamics existed before the rise of artificial intelligence, but AI's now-ubiquitous importance has added a new dimension to the technology wars: The Chinese threat and the risks and opportunities that AI poses have combined to create an opportunity for American technology companies to curry favor with their own government and, in the process, curtail AI capabilities in countries where their main competitors live.

For example, Chinese media reported that OpenAI will take additional steps to restrict API traffic from countries where its services are not supported, such as China. Domestic competitors such as Zhipu AI are looking to fill the gap, but another U.S.-made restriction stands in their way: chip restrictions. This is because U.S. semiconductor export controls aimed at China would limit China's access to the computing power that domestic companies need to fully replace OpenAI.

Recent moves by the US government have further solidified the strategic direction of creating two separate, and apparently unequal, technological environments: American and Chinese.

For example, on June 21, the Treasury Department released proposed rules to implement last year's executive order restricting Americans from making high-tech investments in China. According to Paul Rosen, Under Secretary of the Treasury for Investment Security, President Biden and Secretary Yellen are committed to taking clear, targeted steps to prevent countries of concern from making advances in key technologies, such as artificial intelligence, that threaten U.S. national security.

Specifically regarding AI, the proposed rule proposes a prohibition on covered transactions related to the development of AI systems that are designed or intended to be used exclusively for a specific end use. This wordy language suggests a military application, but its vagueness could allow for restrictions aimed at more benign end uses in practice.

While the U.S. is accelerating the widening of the technology gap, leaders in Beijing are accelerating plans to domesticate innovation that predate but have been accelerated by punitive U.S. measures against China's technology sector. As Xi Jinping said at last week's National Science and Technology Prize ceremony, “the scientific and technological revolution and the great power game are intertwined.”

Xi's diagnosis of how China should compete in this context was broad, but light on policy details. He called for integrating science, technology and industry, and pouring resources into key areas and weaknesses. According to Xi, research and development should be done in direct response to the bottlenecks China faces in areas such as semiconductors to ensure autonomy, security and control of critical supply chains.

He advocated for companies to collaborate with universities and research institutes (to ensure that innovative breakthroughs are commercially viable and, conversely, that marketable products result in technological breakthroughs).

Xi also stressed the importance of nurturing talented people, a resource for which China has great hopes and perhaps the most control. He called for building an internationally competitive talent job market and ecosystem, and giving science and technology researchers the trust and freedom they need to succeed.

Xi's speech merely reiterated that China is taking an all-out approach to promoting innovation, both for its own economic success and to compete with the U.S. Washington's recent move toward integrating government and industry is rather unorthodox in the U.S. policy context. Its continuation also depends on the next presidential election.

But it makes sense. Whatever you think about the determined goal (beating China in every domain), achieving it will require public-private coordination. For now, the U.S. tech and policy communities seem aligned enough to work on, and perhaps achieve, a common goal.

But it won't be long before this alliance of convenience dissolves. The party, state, and industry unity that China enjoys, while not perfect, is far more important to the leadership's overall ability to remain in power. Coordination will therefore be a higher priority and more likely to have long-term consequences for the two-tech world future that the two nations' leaders seem prepared to realize.

Sources 1/ https://Google.com/ 2/ https://www.forbes.com/sites/johannacostigan/2024/07/01/the-us-and-china-are-making-two-tech-worlds-together/ The mention sources can contact us to remove/changing this article

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