The clash between the United States and China over big data could impact for decades – economy



[ad_1]

US President Donald Trump’s measures to prevent some of China’s largest companies from accessing private data of Americans, restrictions that take effect this month, are part of a broader effort than the Party to create clean nets. The communist cannot touch. This initiative, which involves several fronts, such as 5G networks, cloud services and submarine cables, already has an impact at the level of corporate and geopolitical agreements, with countries and companies under pressure to choose a side.

As measures intensify in the middle of an election campaign, the question of whether Chinese companies can access American data, if any, crosses partisan lines. Trump and his rival, Democrat Joe Biden, are trying to attract voters frustrated by the COVID-19 pandemic as the toughest candidate on China.

Markets are realizing long-term risk. News that China intends to reform the national computer chip industry helped trigger a slide in stocks last week, which rose about $ 100 billion from a weight index that tracks the semiconductor industry.

The United States is now debating whether to restrict China’s access to data on everything from smart refrigerators to exercise monitors – decisions that business leaders from Silicon Valley to Shenzhen say could lead to a decoupling of the entire global economy.

All of this is fundamentally an attack on the Internet itself, said Andrew Sullivan, president of the Internet Society, which advocates for open networks around the world. This is an attempt to destroy the entire economy that has developed around network applications.

Chinese tech billionaire Jack Ma sees data as more important than oil in powering the 21st century economy. And the battle for data control threatens to divide the world into competing fields, especially as artificial intelligence and the Internet of Things mean that products like toasters and yoga pants transmit data.

US officials say they have reflected on the far-reaching consequences of the impact that a true cleannet policy would have. And although the approach was initially ridiculed, it gained a following.

The Internet is now a new field for geopolitical competition, said Geoffrey Gertz, a member of the policy group at the Brookings Institution in Washington. I don’t see those tensions dissipating. This is something that we have to live with and manage for a long time.

Led by the US, Rede Limpa already lists nearly 30 companies from more than a dozen countries. So far, it is strictly applied to US diplomatic facilities, which must have an end-to-end communication path that does not use any transmission, control, computing, or storage equipment from untrustworthy IT providers such as those in China. .

We’re trying to stay out of geopolitics as much as we can, Michael Beckerman, TikTok’s head of US policy, said in an interview Tuesday with Bloomberg TV. But certainly the macroeconomic and macropolitical climate is challenging right now.



[ad_2]