Last September, The The Pentagon's chief software officer, Nicholas Chilen, has resigned to describe the Department of Defense's poor track record on technological adoption and innovation. In the run-up to the development of dual-use technologies such as artificial intelligence (AI), quantum computing and cyber capabilities, Chilean later suggested that the United States “has no chance to compete with China.”
Chilan's resignation signals a greater frenzy within the US national security community, which sees China as a “technology-dominated” superpower seeking to change global technology standards, export digital surveillance equipment and dominate advanced industries that will change the future. Of governance, economics and military conflict. William J. Burns, director of the Central Intelligence Agency, recently identified technology as “a major area of competition and rivalry with China.”
Concerns about China's technological development are nowhere near as clear as the debate over whether US technology companies should be subjected to data and antitrust regulation. Currently, several bills are paving their way through Congress aimed at strengthening antitrust enforcement, improving data interoperability, and preventing influential platforms from picking winners and losers in online marketplaces. A team of former U.S. national security officials has lobbied against the bills, saying they would “transfer US technical leadership to China.” Former National Security Adviser Robert O'Brien recently wrote that such legislation would be “a gift to China.”
Yet at a time when the national security community is concerned about changes in US technical controls, the Chinese government is hurting the short-term competition of many of its influential companies বাই Baidu, Alibaba, Tencent, and others এবং and its technological innovation. In 2021, the market value of publicly listed technology companies in China fell by more than $ 1.5 trillion, as aggressive and unpredictable regulations frightened investors. While China's consumer technology champions may not be able to regain their former market position, there is reason to believe that, in the long run, Beijing's regulatory measures could create more space for smaller firms to outperform their larger competitors. In other words, the national security community is right to be concerned about threats from China's technology sector, but not from its giants.
In this context, the United States should revitalize the competitive markets that have made it a global technology leader in the first place. Instead of imitating Beijing's costly and ridiculous regulatory strategy, Congress should pass a standard no-confidence motion. The two bills, introduced by the House Judiciary Committee, the American Choice and Innovation Online Act and the Ending Platform Monopolis Act, will help discourage competitive acquisitions and prevent online market owners from favoring their own products. In addition, the U.S. government would be wise to pass legislation that would support technology startups, encourage applied R&D investment, and promote creative destruction in strategically important sectors.
After the past Over the years, there has been a remarkable difference between the trajectories of mega-cap technology companies in China and the United States. At a time when China's tech industry is on fire, US technology companies are making record profits.
Following Chinese President Xi Jinping's personal intervention in Ant Financial's IPO in October 2020, the Cybersecurity Administration of China (CAC) and the State Administration for Market Regulation began stepping up their surveillance of online platforms and consumer Internet companies. Some well-known software companies in China have faced no-confidence fines, forced separations and IPO delays. In the wake of regulatory transparency and predictability, many private businesses are ignoring long-term investments, and others have impacted employment, revenue growth and profits. Last month, Didi, the popular ride-hailing app, suspended preparations for public listing in Hong Kong after regulators complained that proposals to prevent data leaks under China's new data protection law were inadequate.