Is Washington prepared for a geopolitical ‘tech race’?
As Biden passes 100 days in office, how is the administration’s thinking shaping up on China?
When Secretary of State Antony Blinken and National Security Advisor Jake Sullivan sat down with Chinese officials in Anchorage, Alaska for the first high-level bilateral summit of the new administration, it was not a typical diplomatic meeting. Instead of a polite but restrained diplomatic exchange, the two sides traded pointed barbs for almost two hours. “There is growing consensus that the era of engagement with China has come to an unceremonious close,” wrote Sullivan and Kurt Campbell, the Administration’s Asia czar also in attendance, back in 2019. How apt that they were present for that moment’s arrival.
Data is now at the center of global trade. For decades, international trade in goods and services set the pace of globalization. After the global financial crisis, however, growth in trade plateaued, and in its place came an explosion of cross-border data flows. Measured by bandwidth, cross-border data flows grew roughly 112 times over from 2008 to 2020.
The global economy has become a perpetual motion machine of data: it consumes it, processes it, and produces ever more quantities of it. Digital technologies trafficking in data now enable, and in some cases have replaced, traditional trade in goods and services. Movies, once sold primarily as DVDs, now stream on digital platforms, and news, books, and research papers are consumed online. Even physical goods come laden with digital components. Cars are no longer merely chassis built around internal combustion engines; they also house complex electronics and software capturing massive amounts of data. Trade in physical goods also com
The government’s decision to water down new foreign investment rules designed to protect national security casts serious doubt about its resolve to keep China out of the most sensitive parts of the British economy. Raising the threshold above which an overseas stake must be examined from 15 per cent to 25 per cent will sharply reduce the number of deals facing scrutiny.
The amendment to the National Security and Investment Bill, now wending its way through parliament, was presented by business secretary Kwasi Kwarteng as necessary to show Britain is still ‘open for business’. It follows intense lobbying by the Confederation of British Industry, which fears the new rules will deprive industry of investment just as it is emerging battered and bruised from the Covid pandemic.
Who can take on China in the tech arms race? spectator.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from spectator.co.uk Daily Mail and Mail on Sunday newspapers.