The risks to U.S. tech companies from Chinese cyberespionage have accelerated. Tech companies from both countries have been pitted against one another, as an enormous amount of American technology is produced in China due to the cheap costs, Ives said, and competition over who will cash in on the technology of tomorrow -- in particular, artificial intelligence -- is extremely fierce. Security concerns are virtually promised to be an issue for many years to come.
An explosive report published by Bloomberg Businessweek on Thursday claimed the Chinese military sabotaged circuit boards used by dozens of major American companies and government contractors by implanting a tiny chip that gave the People’s Liberation Army backdoor access to supposedly secure systems. The report cited a U.S. investigation long in progress but only now revealed to the public.
Michael Brown, the former Symantec CEO who just became the new head of the Defense Innovation Unit, believes that the United States must act now to avoid further falling behind China in a tech race. In a recent interview, several of his goals and recommendations struck a very un-Trumpian tone.
U.S. tariffs that hit some $200 billion worth of Chinese products on Monday spare many high-profile consumer technology items such as “smart” watches and speakers, but the less flashy home modems, routers and internet gateways that make them work weren’t so lucky.
This movement from discovery to implementation marks a significant shift in A.I.’s center of gravity -- away from the United States and toward China. The age of discovery relied heavily on innovation coming out of the United States, which excels at visionary research and moonshot projects. A.I. implementation, however, plays to a different set of strengths, many of which are manifested in China...
“I think the most likely scenario now is not a splintering, but rather a bifurcation into a Chinese-led internet and a non-Chinese internet led by America. If you look at China, and I was just there, the scale of the companies that are being built, the services being built, the wealth that is being created is phenomenal.
China could target U.S. tech stocks as part of the ongoing trade war, according to the top equity strategist at Goldman Sachs. Peter Oppenheimer told CNBC’s “Street Signs” on Tuesday that China may impose tariffs on industry components that could have an effect on supply chains.
“It does seem like it’s a fairly good initiative overall,” said Elsa Kania, adjunct fellow of the Technology and National Security Program at the Center for New American Security, or CNAS, and co-author of a report released the same day calling for greater focus on the quantum race against China. “It generally hits a lot of the right points.” But Kania also argued that the U.S. needs more specific guidance from Congress.
The New York Times offered a breathless take on China’s Navy, noting that its two-carrier fleet is now larger than the United States’ and poised to project power globally. This naval prowess, plus a new generation of accurate land-based anti-ship missiles, create a robust anti-access/area denial capability, which, the Times suggests, means China may “prevail” in a fight with the United States off its coast.
A report published on Thursday by the Foundation for Defense of Democracies warns Chinese cyberespionage is the “single greatest threat to U.S. technology,” siphoning over $300 billion per year from the U.S. economy.