Trump intensifies techno war against China17. October 2019
AI – Superpower Part 6
Who is ahead?
Trump intensifies techno war against China
From Horst Buchwald
US President Trump attacks the Chinese in just two areas: 1. with the 15-month trade war, which he pursues with the aim of disrupting for many years the positive economic development of the competitor, to slow down growth and as its Consequence to stir up social unrest. In the end, then, the one-party rule would be eliminated. 2. Where the Chinese can become dangerous to the Americans – namely, the area of AI that is crucial for the future – they are particularly keen to slow down those technologies in which the Chinese have deposed the Americans. That hit the 5G network supplier and smartphone maker Huawei first. It was enough that the Americans claimed that both the network technology and the smartphones contained espionage technology. Although evidence is missing and Huawei denies the charge vehemently, nevertheless, Europeans and Americans as well as Australians and New Zealanders have locked out Huawei or prohibited them from trading. But in most Arab countries, in Africa, Latin America and many Asian countries, Trump’s advice was disregarded. However, the most serious defeat has been inflicted on him by the Chancellor, who decided a few days ago that Huawei will not be subject to any restrictions in Germany.
But now Trump has ignited stage two of the techno war. The victim is called Megvii and it belongs with its face recognition software to the world top. Every business needs money for investment and expansion. The Beijing-based group now wants to conquer the European and American markets. This expansion costs money. If you believe the rumor mill, then Megvii is short of cash. The causes are discussed, but there is still no clarity. Against this background, the software company plans the IPO in Hong Kong.
But that’s exactly what the Trump administration wants to prevent. First step: Americans accuse the hi-tech company – and seven other Chinese companies – of violating Muslim minorities in the western region of Xinjiang. Second step: the Trump administration is intensively involved in the discussion in the state pension fund, because there is a decision on significant restrictions on investment in China on the agenda. 3. Megvii ends up blacklisted with the seven Chinese companies mentioned above. This means that every sale of an American company to Megvii requires a special license. A spokesman for Megvii explained the implications by saying, “We can not buy products that are subject to US export regulations, such as: x86 Serve and GPU’s (Graphics Processors) Made in the USA “.
Thus the IPO is seriously endangered. Because for investors, the risk is already very high. Megvii was already forced to point out the risks to potential investors. The corresponding passage now comprises 40 pages. Against this backdrop, Goldman Sachs – as one of three underwriters in this IPO – announced his commitment. It is expected that JP Morgan & Chase and Citigroup will act similarly.
Xiang Songzuo, a renowned economist at Renmin University of China, now demands that as the Trump administration’s activities reveal the weaknesses of China’s AI strategy, China must pay more attention to basic science and education in the future, so that it will not stop Dissolve plans of Chinese companies in the air because they are dependent on American hi-tech companies for strategically important products.
Xiang Songzuo says that Trump’s actions against China are already having an effect. The Chinese economy is in a downward cycle. He sees no recovery for the second half of the year. “We may have reached a point where stimulation is not working well.