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Science-Technology Title: How This Silicon Valley Giant is BacKing China's Tech Ambitions As the Chinese government develops drones, the American technology giant Qualcomm is helping. The same goes for artificial intelligence, mobile technology and supercomputers. Qualcomm is also working to help Chinese companies like Huawei break into overseas markets in support of China’s “go global” campaign to develop big multinational brands. Qualcomm is providing money, expertise and engineering for Beijing’s master plan to create its own technology superpowers. Big American companies fiercely protect their intellectual property and trade secrets, fearful of giving an edge to rivals. But they have little choice in China — and Washington is looking on with alarm. To gain access to the Chinese market, American companies are being forced to transfer technology, create joint ventures, lower prices and aid homegrown players. Those efforts form the backbone of President Xi Jinping’s ambitious plan to ensure that China’s companies, military and government dominate core areas of technology like artificial intelligence and semiconductors. As concerns mount about Beijing’s industrial policy, the Trump administration is preparing a broad investigation into potential violations of American intellectual property, according to people with knowledge of the matter. Congress is also considering ways to restrict China’s ability to acquire advanced technology by toughening rules to prevent the purchase of American assets and limit technology transfers. In this arena, America’s economic interests are aligned with its national security needs. The worry is that by teaming up with China, American companies could be sowing the seeds of their own destruction, as well as handing over critical technology that the United States relies on for its military, space and defense programs. Advanced Micro Devices and Hewlett Packard Enterprise are working with Chinese companies to develop server chips, creating rivals to their own product. Intel is working with the Chinese to build high-end mobile chips, in competition with Qualcomm. IBM has agreed to transfer valuable technology that could enable China to break into the lucrative mainframe banking business. “There’s a great deal of unease in Washington,” said James Lewis, an analyst at the Center for Strategic and International Studies, a Washington-based think tank. “The defense, intelligence agencies and others are concerned that advanced chip-making capabilities are going to China.” Qualcomm declined to comment, as did Intel. Qualcomm is caught in the middle. The world’s dominant mobile phone chip maker, Qualcomm ran afoul of the Chinese government, getting hit in 2015 with a record $ 975 million fine for anticompetitive behavior. To get back in Beijing’s good graces, the company agreed to lower its prices in China, promised to shift more of its high-end manufacturing to partners in China, and pledged to upgrade the country’s technology capabilities. The extent of Qualcomm’s involvement with the Chinese government — and the complications for American tech giants — is seen in a low-slung office building in the southwest part of the country. There, a team of engineers is developing leading-edge microchips to compete with the finest made by Intel. The chips will help power a huge data and cloud center with the potential to strengthen the country’s computing capabilities. No longer content to rely on buying the chips that go into cellphones, computers and cars, China now wants to design and build the brains that drive much of the digital world. The government is providing land and financing to the start-up formed with Qualcomm, called Huaxintong Semiconductor. Qualcomm has provided the technology and about $ 140 million in initial funding. “Qualcomm has a balancing act,” said Willy Shih, who teaches at Harvard Business School. “Most of the world’s PCs are made in China, and most of the world’s smartphones too, so they have to play along. It’s a fact of life.” Qualcomm was early to break into China. In the mid-1990s, as China’s economy began to boom, President Bill Clinton pressed the country’s leaders to open to American technology companies. Members of the Clinton administration, including Charlene Barshefsky, the United States trade representative, and William M. Daley, the secretary of commerce, were dispatched to Beijing to hammer out the details. They pushed for one company by name: Qualcomm. “At the time, they were the only U.S. show in town,” Ms. Barshefsky said. “Bill Daley and I pushed the Chinese hard on accepting the U.S. standard for wireless technology,” she added, “and that was Qualcomm.” Mobile phone adoption was taking off globally, largely backed by a European wireless standard called G.S.M., or global system for mobile communications. Qualcomm had a competing American standard called C.D.M.A., or Code Division Multiple Access. Irwin M. Jacobs, a founder of Qualcomm, spearheaded an aggressive lobbying campaign in Washington and Beijing, promoting the technology’s potential to transform wireless communication markets. “We knew China would be important, and they didn’t have their own system,” said Perry LaForge, a former Qualcomm executive. “We also told them this system would give them an opportunity to manufacture their own handsets, and not rely on buying them from other countries.” http://idubainews.com/?p=106500 Continued at link Poster Comment: The fact that our own politicians and government would essentially give (in exchange for bags of cash left on their doorsteps) the Chinese the tools they need to destroy our economy is shocking,but not as shocking as the fact that it seems NONE of the mainstream media outlets have reported it. Folks,read this whole story. This is nothing less than giving the Chinese economic as well as military supremacy over America. WHY is this being allowed to happen? It is no secret that what China does historically is to suck companies in and once they set up factories and teach the Chinese how to run them and manufacture products,the Chinese kick them out and take over full control. Aren't we already too dependent on China for our electronic devices? The computer I am posting this from was essentially made in China. All the components were,even if it was assembled in the US. The same can be said for the computers you use,regardless of the name on the box. If we keep this up,America will be a 2nd or 3rd world country within 20 years as we sell off not only our manufacturing,but our designs to a hostile foreign nation whose ultimate goal is control over all of Asia,and then the whole world. All for a temporary profit. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: sneakypete (#0)
It is a cause for some concern. However, we have been through this before. For instance, when the last of the RAM manufacturers moved to Japan and Korea. It was argued these are crucial chip technologies for consumer, industrial and military uses. And they are. Of course, Japan and SKorea and Taiwan are nestled in the U.S. empire but China is a potential rival, even a military opponent. As for the tech transfers, no way Qualcomm or Intel is giving up their latest designs to Chinese chip makers. But they are probably willing to give up designs that are 3-5 years old. The Chinese are very suspicious that we are putting backdoors into our chips. And they are right. That they seek advanced chipmaking means we should be suspicious of what their chips might contain. I'm not sure what is odder, that a Dubai-based news site (written in English) is interested in this story or that you are reading that Dubai-based news site.
If you want to fool yourself,nothing works better than only listening to people who you know agree with you. In the entire history of the world,the only nations that had to build walls to keep their own citizens from leaving were those with leftist governments.
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