With inflation reaching historic highs, the Biden administration is facing a challenging road ahead of the midterm elections in November. The lifting of some tariffs on China could ease inflation in the US and appease voters, bringing an end to the China-US trade war. However, views in the White House are mixed. Zaobao correspondent Edwin Ong speaks with academics to find out more.
China-US tech war
Technology
The recent conviction of former Harvard department head Charles Lieber has cast the spotlight once again on China’s Thousand Talents Plan to attract global scientific talent to contribute their expertise to China. The American scientific community is pushing back against some of the US government’s harsh reprisals, but Hu Hao says strong action is warranted as the threat of authoritarian regimes seeking to gain technical knowledge to threaten democratic and liberal values is real.
Technology
While the US and Japan would like TSMC to "spread the risk" of global tech supply chains being hit in the event of cross-strait tensions, TSMC is quite firm on keeping its advanced technologies in Taiwan while going through the motions of setting up some overseas outposts as recommended by its allies. It is well aware of its strategic value and will want to hold on to its upper hand.
Economy
The US government has seemingly pulled the rug from under the feet of SenseTime by putting it on a blacklist just a week before its planned IPO, effectively blocking US funding from the AI company. But while the official reason is human rights issues in Xinjiang, perhaps the real reason is the ongoing tech competition between the US and China. If so, it seems that the US has found another lever with which to pressure China — curtailing investment.
Technology
By certain indices, China seems to have surpassed the US in artificial intelligence development. But a closer look shows that the US is still a leader where it counts, even though China has its strengths and is pouring in significant investments to catch up. James Pang says that China still has to knuckle down and get its fundamentals right, if it is to truly surpass its rival.
Economy
Analyst Zheng Weibin says that while the China-US competition is a tussle for power that some would compare to the Cold War of the 20th century, digital technology is making all the difference in the 21st century. Today's competition is taking place amid changing definitions of national strength and economic power, and China needs to catch up in terms of growing its digital economy and meeting the challenges that come with it.
Technology
Though the Covid-19 pandemic has had an impact on many industries, annual global semiconductor sales still increased by 10.8% in 2020 to reach US$464 billion. The current global semiconductor supply chain is highly internationalised. While it is dominated by a small number of countries and regions, none of them has full control over every segment in the supply chain and geopolitics can be a risk factor. While the US has imposed sanctions and trade restrictions on China to hinder its development in chip making, academic James Pang says that given the nature of the industry, the current status quo will be maintained for some time.
Politics
In recent years, the US Congress has played a major role in America’s unprecedented turn against China. Will China prove to be the factor to bring both parties together in Congress?
Technology
Leaked data from one platform company may not pose a major national security threat, but data from multiple platforms combined might, warns technology specialist Yin Ruizhi. As countries become more wary of internet security risks, it will be increasingly difficult for platform companies to get listed overseas. What is the alternative then?