USA VS CHINA
October 16, 2023

The technology ecosystem is undoubtedly owned by the world’s two biggest economic champions, the US and China. For the other countries, it is about which side they pick and they need to do that diplomatically, as well as by observing who seems to be faring well. However, this is putting a considerable amount of pressure on the two big guns because they will be reviewed and assessed based on their performances. Therefore, they will always keep their best foot forward to prove their technological prowess and in doing so also look for ways in which they can crush the other. The latest episode in this drama is China’s ban on state officials using iPhones at workplaces. 

While there is no black-and-white indication as to who fired the first shot, a date from 2022, 7 October stands out. That’s when the United States of America implemented a series of export control measures aimed at hindering China’s advancement in AI. 

Reports suggest that this was fuelled by  Xi Jinping’s 2015 Made in China Plan, which aims to outdo the global powers who had the upper hand in major parts of the economy, particularly cutting-edge technology. China wanted to speed towards its goal of being 70% independent in technology that defines the world by 2025. Thus began the race for inventions that triumphed over them as ‘the’ technological leader. At the same time, the US also made sure that they surveilled the advancements of China. In doing so, instead of imposing a direct restriction on AI software, they used controls to target China’s access to cutting-edge computer chip hardware, which is largely designed and produced by American companies and is of utmost importance for AI applications. 

Over the past decade, numerous significant advancements in AI have led policymakers in both Beijing and Washington to believe that spearheading the world of AI makes you as powerful as wearing the six infinity stones on a gauntlet. This means that once you are on the throne of AI you have the power to establish dominance in the economic and military fields. This is why the US committed itself to keep creating roadblocks to prevent China from becoming a powerful authoritarian with advanced AI capabilities. But China is already a nation with advanced AI capabilities and it is not really possible to put a lid on them. Both countries are equally competent, especially when it comes to technology. And every card that China pulls is an indication of how they are not playing defence on tech anymore. They are now on the offence and trying to walk parallel to the US and not behind them. 

China’s latest strike ‘chips’ away at US efforts

The US commerce secretary; Gina M. Raimondo visited China during the final week of August. In the midst of the visit, Huawei, the telecommunication goliath that is currently under a strict trade restriction imposed by the US, introduced a new smartphone that underscored the challenges the US has encountered in attempting to limit China’s technological journey. 

The interesting part about this story however is that this new phone is powered by a chip that appears to be the most advanced version of China’s homegrown technology to date, where it wields the power of turbocharge as well. Manufactured by China’s largest chipmaker, SMIC, the novel design is considered a technological breakthrough, globally. Many are of the opinion that this is a testament to China’s ability to function extremely well, even independently.  And of course, as expected, there is scepticism that is webbed around this invention where some are in doubt as to whether the chip is actually a technological marvel or a mere marketing stunt that was put up to make the Americans break a sweat. 

Interestingly and unsurprisingly, the timing of the phone’s release may not be coincidental. The US Commerce Department has been leading efforts to restrict Beijing’s access to advanced computer chips.  During a visit to China, US Commerce Secretary Gina M. Raimondo had to engage in a discussion defending the US crackdown with Chinese officials, who were urging her to relax some of the restrictions. 

The backstory to the restrictions on Huawei tells us that it was the Trump administration that blacklisted the phone company in 2019 on the grounds that they were guilty of spying. And this extreme reaction made the Chinese company’s global smartphone business almost extinct. Despite the roadblock, the Chinese government made sure to have their backs against all odds and brought it up to a level where it has become the centre of efforts to emerge as an independent nation in the world of technology. However, this is an AI era that is tailored to propel societal transformation. Technologies are no longer simply programmed for disruption. AI requires a novel way of collaborating, especially across technological pioneers like the US and China. 

What is at the epicentre of this digital war?

Undoubtedly, AI with its potential to restructure and transform the world that we live in, will be the target area of not just the two powerhouses but of every nation that is planning to make themselves visible in the narratives of geopolitics. In the realm of AI, there are two distinct, isolated and air-tight ecosystems, one that promotes open systems and is associated with democratic values, privacy and individual rights and another which is in favour of state control, restrictions on information flow, and the imposition of political constraints on openness. And we know which nation is a disciple of which. 

Currently, the US is leading the realm of AI. However, lately, the Beijing Government has granted approvals for AI chatbots manufactured by Chinese tech giants Baidu, SenseTime, and ByteDance; TikTok’s parent company to be opened to the general public following months of testing and very close monitoring. Despite such attempts, tech aficionados remind the world that China’s current trends do not align with democracy but are rather in compliance with extensive curtailments around online speech and free access to data. It is no secret that the power of AI relies fundamentally on the amount of accumulated data that is entered into it. These restrictions will have a huge impact on deciding the data that China’s generative AI models can access and thus restrict the capabilities of these models. But even in the face of such limitations, China is ready to make a bargain. 

Evidently, the current status of the world has been boiled down to two camps. It is officially a showdown between China and the US and who will be the leading superpower in the world of technology. In the process of trying to outsmart one another by bringing unrivalled innovations to the table, by hook or crook, they forget that AI thrives better in environments that are not isolated but rather integrated and interlinked with each other. 

(Sandunlekha Ekanayake)

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