{"id":2077224,"date":"2023-10-23T22:16:02","date_gmt":"2023-10-24T02:16:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/companies-will-have-to-choose-a-side-in-us-china-tech-competition-cybersecurity-analyst\/"},"modified":"2023-10-23T22:21:23","modified_gmt":"2023-10-24T02:21:23","slug":"companies-will-have-to-choose-a-side-in-us-china-tech-competition-cybersecurity-analyst","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/companies-will-have-to-choose-a-side-in-us-china-tech-competition-cybersecurity-analyst\/","title":{"rendered":"Companies must pick a side in the US-China tech rivalry, says cybersecurity analyst."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcompanies-will-have-to-choose-a-side-in-us-china-tech-competition-cybersecurity-analyst%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2077224&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>American Tech Companies Face a Choice in US-China \u200bTech Competition, Says\u2064 Cybersecurity\u200b Analyst<\/h2>\n<p>American technology\u2063 firms will increasingly be forced to \u200bdecide whether their interests are in line with U.S. national security or with maximizing their profits in\u2064 Chinese markets,\u200b according to homeland and cybersecurity \u2064analyst Paul Rosenzweig.<\/p>\n<p>In \u200can interview with NTD&#8217;s &#8220;Capitol Report&#8221; on Monday, \u2062Mr.\u200d Rosenzweig said U.S. policy is increasingly forcing a &#8220;decoupling&#8221; between the United States and the\u2063 People&#8217;s \u2064Republic of China (PRC) in an effort \u200cto \u2062reduce security risks. Mr. Rosenzweig,\u200c who\u200b served as the deputy \u200dassistant secretary\u2064 for\u200b policy in the Department of \u200bHomeland Security \u2064and \u200bwho continues\u200b to consult and lecture on cybersecurity and technology, said U.S. firms will have to \u200bincreasingly reassess their business models to match\u200b evolving U.S.-China relations.<\/p>\n<p>&#8220;Increasingly, I\u200c think American companies are\u2063 going to \u2062see that they have to \u2062pick a flag, so to speak, choose a side, not because of principle, but because the law is going to increasingly require them to decouple and most American tech companies have yet to\u200b really come to grips \u200bwith that. They haven&#8217;t yet done a\u200b risk assessment of what\u200b they should be \u2063doing,&#8221; he said. &#8220;They\u200c don&#8217;t understand yet how deeply embedded \u2064they are in China and how much it&#8217;s going to hurt\u2064 when some event compels them to decouple.&#8221;<\/p>\n<div class=\"shortcode\">\n    <!--$--><\/p>\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-admin-launches-31-tech-hubs-to-boost-us-innovation-5515350?<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/jacob-siegel-on-disinformation-the-hoax-of-the-century-part-1\/\" title=\"Jacob Siegel discusses disinformation and refers to it as the 'Hoax of the Century' in Part 1.\">ea_src=author_manual&#038;ea_med=related_stories<\/a>&#8220;><\/p>\n<h3 class=\"text-sm sm:text-base\">Biden \u2063Admin Launches \u200b31 &#8216;Tech\u200d Hubs&#8217; to Boost US Innovation<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/23\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-admin-launches-31-tech-hubs-to-boost-us-innovation-5515350?ea_src=author_manual&#038;ea_med=related_stories\">\n            <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/*\" https:><\/source>\n            <\/picture>\n          <\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/house-china-panel-probes-sequoia-capital-over-chinese-tech-investments-5513177?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">House China Panel\u200c Probes Sequoia Capital Over Chinese Tech Investments<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/19\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/house-china-panel-probes-sequoia-capital-over-chinese-tech-investments-5513177?ea_src=author_manual&#038;ea_med=related_stories\">\n            <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/*\" https:><\/source>\n            <\/picture>\n          <\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <!--\/$-->\n  <\/div>\n<p>Mr. Rosenzweig \u200dsaid continued \u2064U.S. economic sanctions could drive a wedge between U.S. firms and \u200dtheir Chinese partners, as could growing concerns about China&#8217;s human rights record or a military \u200cconflict \u200bbetween China and Taiwan.<\/p>\n<p>Taiwan governs itself as an independent nation, \u200bbut the Chinese Communist Party (CCP) regards the island as a \u200cpart of its territory and has increasingly called for &#8220;reunification&#8221; with\u2064 Taiwan, including through military force. The United States maintains\u200d a relatively ambiguous policy on relations between China and Taiwan, but has \u200bregularly approved\u200c arms transfers to Taiwan \u200cand could intervene on Taiwan&#8217;s behalf if it is attacked.<\/p>\n<div class=\"my-5\">The homeland security\u2064 analyst said he doesn&#8217;t blame U.S. firms\u200d for\u200b wanting\u2064 to maximize their profits in China, but warned that pursuing business interests in China will eventually prove to \u200cbe not only &#8220;a bad\u2062 thing on principle, but it&#8217;s going to be bad economics as well.&#8221; \u200b  <\/p>\n<h2>Biden Ratchets Down AI Chip \u2064Regulations<\/h2>\n<p>  Last year, the U.S. Commerce Department introduced \u200ca <a href=\"https:\/\/www.federalregister.gov\/documents\/2022\/10\/13\/2022-21658\/implementation-of-additional-export-controls-certain-advanced-computing-and-semiconductor\" target=\"_blank\" rel=\"noopener\">rule<\/a> intended to limit \u2063U.S. individuals and firms from exporting\u200d to China certain <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/abbott-economy-samsung-to-build-17-billion-chip-factory-in-texas\/\" title=\"Abbott Economy: Samsung to Build  Billion Chip Factory in Texas\">high-end chips<\/a> \u200bthat may be used in military\u200c applications or in \u200dthe development of artificial intelligence (AI) \u2063models.\u200c The 2022 \u2064rule specifically regulated exports \u2062of \u2064computer components with\u2063 a data transfer rate of 600 gigabytes per\u2062 second \u2064or higher.<\/div>\n<p>As the new regulation went into effect, the U.S. technology\u2063 company\u2062 NVIDIA began\u2064 marketing its A800 computer chip as an alternative for\u200b Chinese \u2064buyers that offered powerful computing\u200d abilities while staying below the\u00a0600GBps data transfer rate threshold.<\/p>\n<div class=\"my-5\">&#8220;The Nvidia A800 GPU, which\u2064 went into production in \u200dQ3, is\u200b another alternative\u2064 product to the Nvidia A100 GPU \u200dfor \u2062customers in China. The A800\u2063 meets the U.S. Government\u2019s clear\u2062 test\u200b for reduced export control and\u2062 cannot be\u200c programmed to exceed it,&#8221;\u200d an NVIDIA spokesperson <a href=\"https:\/\/www.reuters.com\/technology\/exclusive-nvidia-offers-new-advanced-chip-china-that-meets-us-export-controls-2022-11-08\/\" target=\"_blank\" rel=\"noopener\">told<\/a> \u200dReuters last year.<\/div>\n<div class=\"my-5\">Last\u2063 week, the\u00a0Commerce Department <a href=\"https:\/\/www.bis.doc.gov\/index.php\/about-bis\/newsroom\/2082\" target=\"_blank\" rel=\"noopener\">announced<\/a> revised rules regarding high-end computer chips, which Commerce Secretary Gina Raimondo said will &#8220;shut off pathways to evade our restrictions.&#8221; Ms. Raimondo <a href=\"https:\/\/www.reuters.com\/technology\/biden-cut-china-off-more-nvidia-chips-expand-curbs-more-countries-2023-10-17\/\" target=\"_blank\" rel=\"noopener\">said<\/a> \u2064 the export controls will\u200d likely\u200b have to be updated \u200dannually to reflect the workarounds and changes in technology.<\/div>\n<p>Mr. Rosenzweig welcomed the \u200dtightened export restrictions\u200d but raised concerns about other ways China\u200b can continue to expand its AI technology even \u2062without U.S. \u200btechnology exports.<\/p>\n<p>&#8220;We&#8217;re at \u2063the start of a process right now. I think that the Biden administration&#8217;s decision to further restrict exports\u200b is a good\u200d thing,&#8221; Mr. Rosenzweig told NTD News. \u200c&#8221;One of the as yet unexamined questions is the nature of \u2064American technology\u2063 companies&#8217; interactions in China already, which doesn&#8217;t involve\u200b the export of technology, but involves cooperative ventures with them.&#8221;<\/p>\n<p>Mr. Rosenzweig said the value\u2064 of the Biden administration&#8217;s\u2062 policies will come down to how well they are implemented and enforced.<\/p>\n<p>&#8220;It will require, frankly, a concerted effort by the administration and Congress to talk to the American \u2062tech companies\u2014the Microsofts, [Amazon Web Services], Oracles, and Metas who are still deeply embedded [in China]\u2014and tell them\u2064 that \u2064they need\u2064 to get kind of their\u2063 act\u2062 together,&#8221; he \u200csaid. \u200b&#8221;But I actually am moderately optimistic at the \u2064possibility of effective \u2064action \u2064on\u2063 this issue.&#8221;<\/p>\n<div class=\"my-5\"><em>From <a href=\"https:\/\/www.ntd.com\/companies-will-have-to-choose-a-side-in-us-china-tech-competition-cybersecurity-analyst_949651.html\" target=\"_blank\" rel=\"noopener\">NTD News<\/a><\/em><\/div>\n<\/blockquote>\n<p> <\/p>\n<h2> What are the potential consequences for American tech \u2063companies if they are compelled to \u200csever ties with China?<\/h2>\n<p><span>  Ese-connections-5516219?ea_src=author_manual&#038;ea_med=related_stories&#8221;><\/p>\n<h3 class=\"text-sm sm:text-base\">House \u2063China Panel\u2063 Probes \u2062Sequoia Capital\u200b Over China\u2063 Connections<\/h3>\n<p>            <\/a><\/p><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/22\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n<p>          <a href=\"http:\/\/www.theepochtimes.com\/us\/house-china-panel-probes-sequoia-capital-over-china-connections-5516219?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/*\" https:><\/source><\/p>\n<\/picture>\n<p>          <\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <!--$\/--><\/p><\/div>\n<p>As\u2064 tensions between \u200dthe United States and \u2064China continue to escalate, American tech companies are increasingly finding\u200d themselves caught in the crossfire. The US government&#8217;s \u2064push to decouple\u2064 from China,\u2063 driven by concerns over national security and intellectual property theft, is forcing these companies to choose between their interests in China&#8217;s\u2062 lucrative market and their allegiance to US \u200dnational security.<\/p>\n<p>According \u2062to cybersecurity \u2062analyst Paul Rosenzweig, American companies will inevitably have to pick a side as the law increasingly requires them to decouple\u2064 from China. Many \u200dtech companies\u2063 are\u200c not fully aware of the risks involved in their extensive business \u200cinterests \u200din China and do\u200c not\u200b understand the potential consequences \u2063of being compelled to sever ties.<\/p>\n<p>China\u200c has been a key market\u2063 for American \u2063tech\u2063 companies, offering a\u2063 large consumer base and an advantageous manufacturing ecosystem. However, recent\u2063 developments\u200c such as increased scrutiny on Chinese\u200d investments and\u2063 trade \u2063restrictions \u2062have made it harder for American companies to navigate this complex landscape.<\/p>\n<p>The US government&#8217;s concerns are not unfounded. China has a \u2064track record of intellectual property theft and cyber espionage, posing significant \u2062risks to American businesses operating in the country. By aligning themselves too closely\u2064 with Chinese partners or relying heavily on the Chinese market, American tech companies \u2063expose themselves to vulnerabilities that can \u200bundermine national security and damage \u200ctheir reputation.<\/p>\n<p>As a \u2062result, American tech companies are\u200d facing a difficult decision. By choosing to prioritize their profits in China, they risk \u200bcompromising national security and becoming entangled in potential legal battles. On\u2063 the other hand, if they opt to\u2062 align\u200b themselves with US interests and reduce their\u200c dependence on the Chinese market, they may face financial losses\u200c and miss out on significant opportunities.<\/p>\n<p>This dilemma\u200d highlights the broader tension between \u200beconomic interests and national\u2062 security in the US-China tech competition. The ongoing \u2064trade\u2064 war and technology race between \u2064the two countries have created a challenging environment for American tech companies, \u2063requiring them to carefully assess the risks and rewards of their\u200b business decisions.<\/p>\n<p>As American companies navigate \u200cthis complex landscape,\u200b it\u200b is crucial\u200b for them to conduct thorough risk assessments and develop proactive strategies\u2064 to mitigate potential security threats. This <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/companies-will-have-to-choose-a-side-in-us-china-tech-competition-cybersecurity-analyst\/\" title=\"Companies must pick a side in the US-China tech rivalry, says cybersecurity analyst.\">includes\u200c ensuring \u2064strong cybersecurity measures<\/a>, safeguarding intellectual property, and diversifying their markets and partnerships.<\/p>\n<p>The US\u2062 government also plays a vital \u200crole in supporting American\u2063 tech companies in this challenging \u200cenvironment. It\u2064 must provide clear guidance and policies that prioritize national security while also fostering\u200c innovation and \u200dcompetitiveness. Collaboration between government agencies, industry leaders, and cybersecurity experts is essential to formulate effective strategies to \u200dprotect\u200d American\u200c interests.<\/p>\n<p>In conclusion, the escalating US-China tech competition presents a critical choice for\u200d American tech companies. \u200bBalancing their interests\u2062 in the profitable Chinese market with concerns over national \u200bsecurity \u2064is becoming increasingly challenging. \u200dStrategic planning, risk assessment,\u2062 and collaboration with relevant stakeholders are necessary to navigate this complex landscape and \u2064ensure the long-term success\u200b of American tech \u2063companies.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>American technology firms and Chinese markets, as concerns over national security continue to grow. This dilemma will require companies to prioritize either their financial gains or aligning with U.S. interests. Homeland and cybersecurity analyst Paul Rosenzweig emphasized the increasing &#8220;decoupling&#8221; between the two in an interview with NTD&#8217;s &#8220;Capitol Report.&#8221;<\/p>\n","protected":false},"author":1759,"featured_media":2077225,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2077224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2077224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1759"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2077224"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2077224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2077225"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2077224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2077224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2077224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}