Our So-Called Foreign Policy: Shocking New Findings on How Corporate America Keeps Strengthening China’s Military

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AI, artificial intelligence, Biden adminisration, Center for Security and Emerging Technology, China, export controls, Georgetown University, innovation, Intel, investment, national security, Nvidia, Orbcomm, Our So-Called Foreign Policy, semiconductors, Silicon Valley, software, tech, venture capital, Xilinx

Recent weeks have seen an impressive burst of new information about how U.S.-owned businesses are fueling the technological and military strength of China, a country whose armed forces American soldiers, sailors, and airmen and women could be fighting on the battlefield before too long.

The first source of this information comes from Georgetown University’s Center for Security and Emerging Technology (CSET) in an October report called Harnessed Lightning: How the Chinese Military is Adopting Artificial Intelligence.

The study focuses on China’s own efforts to develop artificial intelligence (AI) capabilities and incorporate them into its military operations and systems, and goes into fascinating detail about how much money is spent on these efforts, and how many Chinese entities of all kinds are involved in the campaign. The authors also make clear – just in case it wasn’t screamingly obvious already – how widespread these applications can be, and their incredible potential to revolutionize warfare and hand victory to the power possessing the best knowhow.

But as one of the team explained in a summary magazine article two days ago:

“Our research also highlights that U.S. companies are inadvertently powering Chinese military advances in AI. The overwhelming majority of advanced computer chips at the heart of China’s military AI systems are designed by U.S. firms like Intel, NVIDIA and Xilinx, and manufactured in Taiwan. We found that suppliers actually depicted NVIDIA-branded processors in photos of their products, providing clear evidence of the role U.S. technology plays in powering China’s advances. One company, which won a contract to supply chips for the PLA Strategic Support Force, even bought the domain ‘nvidiagpu.com.'”

Moreover, much more than simply semiconductors are involved. So is machine-learning and intelligent text-processing software, along with systems for “real-time monitoring” of “millions of global shipping and related users” with the help of 108 satellites from the American company Orbcomm.

My only objection: It’s inconceivable that these U.S. firms don’t fully understand the national security implications of their activities. The report itself notes that

“Because most institutions that supply AI-related equipment are new and not subject to end-use controls, the Chinese military is frequently able to access or acquire technology from abroad, including from the United States. Some Chinese suppliers make a business out of sourcing foreign data or components and reselling them to sanctioned Chinese defense companies or PLA [People’s Liberation Army] units.”

But the U.S. businesses must be aware that any of their products sold to any Chinese entity are going to be made available to the Chinese military simply because that’s the way China has operated since the Communists have been running the place. So this rationale can be easily laughed off.

The same cynical reaction is justified for claims that U.S.-owned firms don’t know that the capital they’re steering into the Chinese tech sector will also benefit the Chinese military. And these capital flows are both impressive and coming both from finance companies and from the huge semiconductor manufacturer Intel – which is hoping to receive billions in U.S. government subsidies and tax breaks to help restore its competitiveness in microchip production largely (of course) to bolster national security.

As reported by The Wall Street Journal this morning, Intel is “is among the active investors, backing a Chinese company now called Primarius Technologies Co., which specializes in chip-design tools that U.S. companies currently lead in making.” RealityChek regulars, moreover, know that Intel has been investing in other defense-related Chinese entities for years.

Not that American investment firms aren’t also doing their part to strengthen China’s tech prowess and therefore military capability and potential. Including the Intel deal, the Journal found, American companies “participated in 58 investment deals in China’s semiconductor industry from 2017 through 2020, more than double the number from the prior four years….”

And on top of these transactions, according to the Journal, “the China-based affiliates of Silicon Valley venture firms Sequoia Capital, Lightspeed Venture Partners, Matrix Partners and Redpoint Ventures have made at least 67 investments in Chinese chip-sector companies since the start of 2020….” In all, the sums involve run into the billions.

And in case you still doubt that these U.S. firms fully understand how valuable their investments are to a country that’s increasingly hostile to America, the Journal article quotes the head of one of these Chinese recipients as saying that his operation is working with the Chinese regime and other partners “to help our country get rid of its dependence on foreign high-performance chips.” Since the United States is still ahead in this sector, a China that no longer relies on American high tech products is going to be a China that’s caught up – and possibly grabbed the lead.

What’s the U.S. government doing about this dangerously unacceptable situation? It’s true that Washington has long maintained a system of export controls aimed at preventing China and other worrisome countries access to critical, militarily relevant goods and knowhow. But as the CSET study documents, this system is being completely overwhelmed – in part because of sorely inadequate funding and staffing, and in part because it’s never switched from a case-by-case approach to the kind of much broader denial strategy that’s clearly needed for a systemic threat like that posed by China.

There’s legislation in the works to plug some of the holes, and according to the Journal, the Biden administration seems supportive. Let’s just hope that the government gets its act together sometime before weapons powered by American technology and funded by American investors start killing American servicemen and women somewhere in East Asia.

BTW, thanks to friend Bill Holstein for calling my attention to these two items. 

 

Making News: China Policy Blueprints Critique Re-Posted in The National Interest

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alliances, allies, Asia, Biden, CCP, China, China Strategy Group, Chinese Communist Party, decoupling, Donald Trump, Making News, multilateralism, NationalInterest.org, sanctions, semiconductors, Silicon Valley, supply chain, tariffs, Trade, trade war, XiJinping

I’m pleased to announce that The National Interest has republished as a single article my recent blog posts detailing the major flaws of two blueprints for China policy that have just been offered to the Biden administration from establishment thinkers. In case you missed them the first time around, or want to re-read, here’s the link.

And keep checking in with RealityChek for news of upcoming media appearances and other developments.

Our So-Called Foreign Policy: Why Scalpels Won’t Cut it Against China

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Biden, China, China Strategy Group, decoupling, Donald Trump, Eric Schmidt, EU, European Union, FDI, foreign direct investment, Germany, Google, health security, Made in America, manufacturing, multilateralism, national security, Our So-Called Foreign Policy, semiconductors, Silicon Valley, supply chain, Taiwan, technology

Yesterday’s RealityChek post argued made clear that one of the two recent blueprints for China policy offered to President Biden from the foreign policy and technology establishments suffered from crippling internal contradictions.

The second effort, from the Silicon Valley-dominated “China Strategy Group,” can be read more profitably by the President, because popping up here and there are some insights that are genuinely valuable especially since they come from analysts once strongly supportive of what they themselves call the pre-Trump strategy of “near-unbounded integration.”

Principally, the group, which notably is co-chaired by Google co-founder Eric Schmidt, calls for recognizing that “some degree of [U.S.-China] disentangling is both inevitable and preferable. In fact, trends in both countries—and many of the tools at our disposal—inherently and necessarily push toward some degree of bifurcation.” In other words, it’s endorsed a limited version of what’s now commonly called economic and technological decoupling.

In addition, it argues that both this decoupling, along with tariffs that it acknowledges may be needed to push back against certain Chinese offenses and provocations, should be pursued even though they will entail costs – a refreshing and crucially important departure from the long-time pre- and post-Trump consensus in the mainstream American political, business and policy communities that any increased consumer or producer price, or loss of even a smidgeon of market share in China resulting from retaliation from Beijing, proves conclusively the folly of placin any significant curbs on doing business with the People’s Republic.

Finally, the group points out that efforts to rebuild domestic supply chains to reduce reliance on China for critical goods must involve “more than a focus on the end products. Safeguarding key technologies requires the United States to define and secure the entire ecosystem of production, from fabrication to supply to talent to cutting-edge innovation.” In other words, Washington can’t simply seek to become self-sufficient, or largely so, in face masks or ventilators or semiconductors. It needs to become self-sufficient or largely so in all the materials, parts, and components required to make these products.

Yet many of these important insights (and useful recommendations for restructuring the U.S. government to foster the competition with China more effectively) are kneecapped by equivocation and a resulting failure to understand that sometimes policy scalpels cut too finely, and some policy needles are too small to be threaded – especially considering the “all of society” drive China’s totalitarian system is making to gain global technology leadership, and the dangers to America’s “security, prosperity, and way of life” Chinese success would create.

For example, the group emphasizes that decoupling policy mustn’t invite “escalatory cycles of confrontation, retaliation, or unintended conflict” or overlook those areas “where cooperation, collaboration, and exchange with China is in our interest, as severing ties and closing off the United States to the ideas, people, technologies, and supply chains necessary to compete effectively will undermine U.S. innovation.” At the same time, the authors acknowledge that China will respond to any further U.S. decoupling moves “more aggressively” precisely because “China’s leaders understand U.S. dependency as an important source of leverage.”

So although in principle, this omelet can be made without breaking many eggs, Beijing won’t be cooperating in fact. And the circle can’t be squared with clever phrase-making like “navigating the asymmetric competition” that look satisfactorily reassuring on paper and in speeches to conferences but that need to survive the body blows that will inevitably be delivered by reality.

The group’s approach to Chinese investment in the United States (whether in the form of creating new businesses or taking over or contributing capital to existing firms) illustrates the other big drawback of granular approaches when it comes to China: They ignore how any Chinese entity big enough to play in any foreign market, and especially America’s, is under Beijing’s thumb in every important respect.

As a result, there’s no point in taking the time and expending the resources to follow the group’s recommendations to figure out which Chinese tech platforms (whose importance it emphasizes) are and are not violating American privacy standards or conducting misinformation campaigns dangerous to democracy, or censoring content Chinese authorities don’t like, or helping suppress human rights in China or anywherer else, or stealing valuable data, or helping terrorists and criminals launder money; or whether these activities matter enough to merit official U.S. attention, or whether troublesome practices can be negotiated away through talks with Beijing on technical and other fixes.

In this instance, Washington should stay out of the black holes of setting priorities and especially monitoring and enforcing agreements, and assume that by simply banning these platforms from operating in the United States and in fact prohibiting all Chinese entities from owning U.S. hard assets. The latter step would add the benefit of shielding participants in America’s economy from competition with subsidized, market-distorting outfits from China. At the very least, Chinese entities should be required to prove that they’re not controlled or subsidized in any way by Beijing, or engaged in the above malign activities, before gaining entry.

In addition, despite the group’s understanding that entire manufacturing eco-systems, not just final products, need to be rebuilt and nurtured to ensure supply chain security, it appears to underestimate just how widely these relationships extend. After all, most of the numerous inputs to goods like mechanical ventilators (like its controls, power sources, monitors, and alarm systems) depend on big and complex supply chain and manufacturing eco-systems themselves.

Further, just as before the pandemic, few expected face masks and surgical gloves to become products vitally important to the nation’s well-being, the list of critical goods is likely to change and grow over time as new threats emerge. Therefore, the group is correct in warning that “any product or service could be termed essential to national security in an extreme hypothetical.” But what’s the basis for confidence that many products or services can safely be ruled out, and that such hypotheticals will always remain extreme?

At least as important, like the Biden administration, the group’s determination not to ruffle too many international feathers has also clearly led it to back the notion that the definition of “Made in America” for supply chain purposes should actually mean, “Also Made in Lots of Other Countries” that it considers trusted suppliers. Unfortunately, many of the countries so classified imposed export controls on critical medical goods during the pandemic’s first wave last spring. That is, when cooperation was most needed, they built walls – meaning that their trustworthiness isn’t exactly ironclad.

And as then President-elect Biden learned when the European Union rebuffed his entreaty to consult with Washington before signing an investment agreement with China, the allies remain determined to fence sit in the U.S.-China technology competition. The group acknowledges that the list of anti-China partners “may include all of the [European Union], though in some cases EU position/member states’ positions are too ambiguous today with respect to China for inclusion in all instances, and members may need to be considered on an individual basis.” But simply stating this position and its EU-splitting ambitions is enough to make clear its absurdity – especially since the EU country most reluctant to cooperate against China is economic kingpin Germany.

None of this is to say that all trade with (as opposed to investment in hard assets from) China should be cut off completely, or that international cooperation can be of no use to the United States in its struggle versus the People’s Republic. In particular, (and due largely to recklessly indiscriminate free trade policies), America urgently needs products and knowhow now dominated by foreign producers (notably Taiwan’s semiconductor manufacturing industry, and Japanese and Dutch suppliers of key microchip production equipment and materials). And if other countries are willing to cooperate with Washington on various China containing initiatives at acceptable prices, more help is indeed better than less. But the United States will never safeguard its interests adequately without realizing that multilateralism can’t be an end in and of itself, and that against monumental threats, axes are usually more effective than scalpels.

Making News: New Article on Why I Voted for Trump

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Big Tech, Black Lives Matter, censorship, China, Conservative Populism, conservatives, Democrats, economic nationalism, election 2020, entertainment, environment, freedom of expression, freedom of speech, George Floyd, Hollywood, Hunter Biden, Immigration, industrial policy, Joe Biden, Josh Hawley, journalism, Mainstream Media, Making News, Marco Rubio, police killings, regulation, Republicans, Robert Reich, Russia-Gate, sanctions, Silicon Valley, social media, supply chains, tariffs, taxes, technology, The National Interest, Trade, trade war, Trump, Truth and Reconciliation Commission, Ukraine, Wall Street, wokeness

I’m pleased to announce that The National Interest journal has just published a modified version of my recent RealityChek post explaining my support for President Trump’s reelection. Here’s the link.

The main differences? The new item is somewhat shorter, it abandons the first-person voice and, perhaps most important, adds some points to the conclusion.

Of course, keep checking in with RealityChek for news of upcoming media appearances and other developments.

Im-Politic: Why I Voted for Trump

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Big Tech, Black Lives Matter, censorship, China, Conservative Populism, conservatives, Democrats, economic nationalism, election 2020, entertainment, environment, free expression, freedom of speech, George Floyd, Hollywood, Hunter Biden, Immigration, impeachment, industrial policy, Joe Biden, Josh Hawley, journalism, Mainstream Media, Marco Rubio, police killings, Populism, progressives, regulations, Republicans, Robert Reich, Russia-Gate, sanctions, Silicon Valley, social media, supply chains, tariffs, taxes, technology, Trade, trade war, Trump, Truth and Reconciliation Commission, Ukraine Scandal, Wall Street, wokeness

Given what 2020 has been like for most of the world (although I personally have little cause for complaint), and especially Washington Post coverage of endless early voting lines throughout the Maryland surburbs of the District of Columbia, I was expecting to wait for hours in bad weather to cast my ballot for President Trump. Still, I was certain that Election Day circumstances would be a complete mess, so hitting the polling place this week seemed the least bad option.

Hence my amazement that the worst case didn’t pan out – and that in fact, I was able to kill two birds with one stone. My plan was to check out the situation, including parking, at the University of Maryland site closest to my home on my way to the supermarket. But the scene was so quiet that I seized the day, masked up, and was able to feed my paper ballot into the recording machine within about ten minutes.

My Trump vote won’t be surprising to any RealityChek regulars or others who have been in touch with on or off social media in recent years. Still, it seems appropriate to explain why, especially since I haven’t yet spelled out some of the most important reasons.

Of course, the President’s positions on trade (including a China challenge that extends to technology and national security) and immigration have loomed large in my thinking, as has Mr. Trump’s America First-oriented (however unevenly) approach to foreign policy. (For newbies, see all the posts here under “[What’s Left of] Our Economy,” and “Our So-Called Foreign Policy,” and various freelance articles that are easily found on-line.). The Biden nomination has only strengthened my convictions on all these fronts, and not solely or mainly because of charges that the former Vice President has been on Beijing’s payroll, via his family, for years.

As I’ve reported, for decades he’s been a strong supporter of bipartisan policies that have greatly enriched and therefore strengthened this increasingly aggressive thug-ocracy. It’s true that he’s proposed to bring back stateside supply chains for critical products, like healthcare and defense-related goods, and has danced around the issue of lifting the Trump tariffs. But the Silicon Valley and Wall Street tycoons who have opened their wallets so wide for him are staunchly opposed to anything remotely resembling a decoupling of the U.S. and Chinese economies and especially technology bases

Therefore, I can easily imagine Biden soon starting to ease up on sanctions against Chinese tech companies – largely in response to tech industry executives who are happy to clamor for subsidies to bolster national competitiveness, but who fear losing markets and the huge sunk costs of their investments in China. I can just as easily imagine a Biden administration freeing up bilateral trade again for numerous reasons: in exchange for an empty promise by Beijing to get serious about fighting climate change; for a deal that would help keep progressive Democrats in line; or for an equally empty pledge to dial back its aggression in East Asia; or as an incentive to China to launch a new round of comprehensive negotiations aimed at reductions or elimination of Chinese trade barriers that can’t possibly be adequately verified. And a major reversion to dangerous pre-Trump China-coddling can by no means be ruled out.

Today, however, I’d like to focus on three subjects I haven’t dealt with as much that have reinforced my political choice.

First, and related to my views on trade and immigration, it’s occurred to me for several years now that between the Trump measures in these fields, and his tax and regulatory cuts, that the President has hit upon a combination of policies that could both ensure improved national economic and technological competitiveness, and build the bipartisan political support needed to achieve these goals.

No one has been more surprised than me about this possibility – which may be why I’ve-hesitated to write about it. For years before the Trump Era, I viewed more realistic trade policies in particular as the key to ensuring that U.S.-based businesses – and manufacturers in particular – could contribute the needed growth and jobs to the economy overall even under stringent (but necessary) regulatory regimes for the environment, workplace safety, and the like by removing the need for these companies to compete with imports from countries that ignored all these concerns (including imports coming from U.S.-owned factories in cheap labor pollution havens like China and Mexico).

I still think that this approach would work. Moreover, it contains lots for folks on the Left to like. But the Trump administration has chosen a different economic policy mix – high tariffs, tax and regulatory relief for business, and immigration restrictions that have tightened the labor market. And the strength of the pre-CCP Virus economy – including low unemployment and wage growth for lower-income workers and minorities – attests to its success.

A Trump victory, as I see it, would result in a continuation of this approach. Even better, the President’s renewed political strength, buoyed by support from more economically forward-looking Republicans and conservatives like Senators Marco Rubio of Florida and Josh Hawley of Missouri, could bring needed additions to this approach – notably, more family-friendly tax and regulatory policies (including childcare expense breaks and more generous mandatory family leave), and more ambitious industrial policies that would work in tandem with tariffs and sanctions to beat back the China technology and national security threat.

Moreover, a big obstacle to this type of right-of-center (or centrist) conservative populism and economic nationalism would be removed – the President’s need throughout the last four years to support the stances of the conventional conservatives that are still numerous in Congress in order to ensure their support against impeachment efforts.

My second generally undisclosed (here) reason for voting Trump has to do with Democrats and other Trump opponents (although I’ve made this point repeatedly on Facebook to Never Trumper friends and others). Since Mr. Trump first announced his candidacy for the White House back in 2015, I’ve argued that Americans seeking to defeat him for whatever reason needed to come up with viable responses to the economic and social grievances that gave him a platform and a huge political base. Once he won the presidency, it became even more important for his adversaries to learn the right lessons.

Nothing could be clearer, however, than their refusal to get with a fundamentally new substantive program with nationally unifying appeal. As just indicated, conventional Republicans and conservatives capitalized on their role in impeachment politics to push their longstanding but ever more obsolete (given the President’s overwhelming popularity among Republican voters) quasi-libertarian agenda, at least on domestic policy.

As for Democrats and liberals, in conjunction with the outgoing Obama administration, the countless haters in the intelligence community and elsewhere in the permanent bureaucracy, and the establishment conservatives Mr. Trump needed to staff much of his administration, they concentrated on ousting an elected President they considered illegitimate, and wasted more than three precious years of the nation’s time. And when they weren’t pushing a series of charges that deserve the titles “Russia Hoax” and “Ukraine Hoax,” the Democrats and liberals were embracing ever more extreme Left stances as scornful of working class priorities as their defeated 2016 candidate’s description of many Trump voters as “deplorables.”

I see no reason to expect any of these factions to change if they defeat the President this time around. And this forecast leads me to my third and perhaps most important reason for voting Trump. As has been painfully obvious especially since George Floyd’s unacceptable death at the hands of Minneapolis police officers, the type of arrogance, sanctimony and – more crucially – intolerance that has come to permeate Democratic, liberal, and progressive ranks has now spread widely into Wall Street and the Big Business Sector.

To all Americans genuinely devoted to representative and accountable government, and to the individual liberties and vigorous competition of ideas and that’s their fundamental foundation, the results have been (or should be) nothing less than terrifying. Along with higher education, the Mainstream Media, Big Tech, and the entertainment and sports industries, the nation’s corporate establishment now lines up squarely behind the idea that pushing particular political, economic, social, and cultural ideas and suppressing others has become so paramount that schooling should turn into propaganda, that news reporting should abandon even the goal of objectivity, that companies should enforce party lines in the workplace and agitate for them in advertising and sponsorship practices, and that free expression itself needed a major rethink.

And oh yes: Bring on a government-run “Truth and Reconciliation Commission” to investigate – and maybe prosecute – crimes and other instances of “wrongdoing” by the President, by (any?) officials in his administration. For good measure, add every “politician, executive, and media mogul whose greed and cowardice enabled” the Trump “catastrophe,” as former Clinton administration Labor Secretary Robert Reich has demanded. Along with a Scarlet Letter, or worse, for everyone who’s expressed any contrary opinion in the conventional or new media? Or in conversation with vigilant friends or family?

That Truth Commission idea is still pretty fringe-y. So far. But not too long ago, many of the developments described above were, too. And my chief worry is that if Mr. Trump loses, there will be no major national institution with any inclination or power to resist this authoritarian tide.

It’s reasonable to suppose that more traditional beliefs about free expression are so deeply ingrained in the national character that eventually they’ll reassert themselves. Pure self-interest will probably help, too. In this vein, it was interesting to note that Walmart, which has not only proclaimed its belief that “Black Lives Matter,” but promised to spend $100 million on a “center for racial equality” just saw one of its Philadelphia stores ransacked by looters during the unrest that has followed a controversial police shooting.

But at best, tremendous damage can be done between now and “eventually.” At worst, the active backing of or acquiescence in this Woke agenda by America’s wealthiest, most influential forces for any significant timespan could produce lasting harm to the nation’s life.

As I’ve often said, if you asked me in 2015, “Of all the 300-plus million Americans, who would you like to become President?” my first answer wouldn’t have been “Donald J. Trump.” But no other national politician at that point displayed the gut-level awareness that nothing less than policy disruption was needed on many fronts, combined with the willingness to enter the arena and the ability to inspire mass support.

Nowadays, and possibly more important, he’s the only national leader willing and able to generate the kind of countervailing force needed not only to push back against Woke-ism, but to provide some semblance of the political pluralism – indeed, diversity – required by representative, accountable government. And so although much about the President’s personality led me to mentally held my nose at the polling place, I darkened the little circle next to his name on the ballot with no hesitation. And the case for Mr. Trump I just made of course means that I hope many of you either have done or will do the same.

Those Stubborn Facts: Innovation Machine?

Tags

Bell Labs, IBM, innovation, National Affairs, Oren Cass, Silicon Valley, tech, Those Stubborn Facts

Number of Nobel prizes won by researchers at Bell Labs: 8

Number of Nobel prizes won by researchers at IBM: 5

Number of Nobel prizes won by researchers funded by a Silicon          Valley firm: 0

 

(Source: “Putting Dynamism in Its Place,” by Oren Cass, National Affairs, No. 39, Spring, 2019, https://www.nationalaffairs.com/publications/detail/putting-dynamism-in-its-place)

(What’s Left of) Our Economy: More Evidence of the Crucial U.S. Role in China’s Tech Rise

Tags

Broadcom, China, Daniel Strumpf, Huawei, Intel, Qualcomm, Silicon Valley, tech, tech transfer, The Wall Street Journal, Trade, Trump, {What's Left of) Our Economy

If you need any further evidence that American technology firms have played vital roles in China’s transformation into a major technology power capable of threatening U.S. national security as well as economic interests, check out Dan Strumpf’s article in The Wall Street Journal today. In the process, he inevitably exposes gaping holes in President Trump’s China strategy that need to be closed up pronto if the President is serious about checking China’s dangerous rise.

Here are just some of the highlights of Strumpf’s piece – which is limited to U.S. tech firms’ contributions to the emergence of Huawei, whose CFO (and founder’s daughter) was arrested in Canada a week ago on charges of helping the entity use fraud to evade U.S. sanctions on Iran. (As always, I refuse to use words like “company” or “business” in describing Chinese economic actors, since they have nothing in common with corporate organizations in free market economies.)

>”Silicon Valley giants from Intel Corp. to Broadcom Inc. and Qualcomm Inc. are top suppliers of Huawei, which buys their components to make equipment such as base stations and routers and Huawei mobile phones.”

>”Qualcomm and Intel are also working with Huawei on its development of next-generation 5G technologies, a field in which the Chinese company’s aim to be a global leader has alarmed some in Washington.”

>”Huawei still relies on imports from U.S. chip companies such as Broadcom, Xilinx Inc. and Analog Devices Inc. for components used in its telecom equipment…Huawei buys equipment from data-storage equipment maker Seagate Technology PLC for use in its enterprise business, and uses memory chips made by Micron Technology Inc. in its smartphones….”

>”Intel and Qualcomm, which draw huge revenue from China, are seen by Huawei as more than suppliers. In Huawei’s annual report, Intel is described as a ‘strategic partner,’ and the companies work together in a range of areas, including next-generation 5G technology.”

>”In 2015, Qualcomm, Huawei and China’s largest chip maker, Semiconductor Manufacturing International Corp., launched a joint venture in Shanghai to work on next-generation chip technology.”

And lest you think it’s just Huawei, click here and here for numerous examples of similar assistance rendered by such American corporations to other Chinese entities and industries.

Strumpf’s article also makes clear the flip side of these American companies’ operations: Chinese entities like Huawei have become major customers and sources of revenue for the U.S. tech sector.

Nonetheless, it’s inconceivable that any Trump administration policy to address the China tech threat can succeed if these sales and partnerships are allowed to continue. Silicon Valley will of course cite these earnings in its inevitable campaign to any attempted curbs on its China activities (while simultaneously urging Washington to “do something” about the Chinese intellectual property theft- and extortion-fueled tech ambitions that has these companies scared silly for their own selfish reasons). And that’s why the President urgently needs to get on TV from the Oval Office, explain comprehensively how the tech firms’ massive giveaway of critical knowhow has undermined their country’s future, how his globalist predecessors’ indulgence has enabled this risky business, why the course change he’s engineering in China policy is so essential, and what his end-game is.

Trade wars may not be easy to win, contrary to the President’s recent boast. But can anyone reasonably doubt that this message will be easy to sell?

Im-Politic: Why Washington’s Latest Think Tank Scandal Should Matter – but May Not

Tags

corporations, corruption, democracy, Google, idea laundering, Im-Politic, Mainstream Media, New America Foundation, Silicon Valley, special interests, think tanks

Slowly, and not so surely, the American media is waking up to the pervasiveness of corporate corruption of the nation’s think tank complex. I say “slowly” because revelations of the way these special interests – which include foreign governments – have used these supposedly quasi-academic institutions to promote and defend their own selfish agendas has tended to drip out in individual exposes usually separated by years (literally). And I say “not so surely” because these reports rarely connect any of the important dots. Worse, it’s ever clearer that the Mainstream Media itself is a big part of the problem.

The latest example: the uproar set off by revelations that the New America Foundation (NAF) recently fired a team of analysts because it started goring the ox of one of the organization’s main funders, Google.

It’s been gratifying to see that nearly everyone who has commented on this incident considers NAF and Google to be in the wrong, and no one whose work I’ve seen has given the slightest credence to the organization’s insistence that the team was canned because he wasn’t sufficiently collegial in his work habits.

Much less gratifying has been the almost equally widespread tendency to interpret the incident as a sign that Google itself has become way too powerful on America’s policy and intellectual scenes, and in underhanded ways. Or that Silicon Valley itself is now exerting way too much of this power just as sneakily, and without adequate checks.

That’s all true, and important. What’s been almost completely missed, however, is that Google’s muscle-flexing is anything but limited to Google or to the tech sector or to the New America Foundation. It is now Standard Operating Procedure in the think tank world, which has become what I’ve called an idea-laundering racket. That is, donors use the tanks they support to dress up various self-serving ideas in respectable-looking scholarly raiment that can be sold to policy-makers as the products of disinterested truth-seeking.

Not that special interests lack the right to bring their concerns to official-dom. But they should be correspondingly obligated to display some transparency – and where they’re determined to be secretive, or to capitalize on the general public’s understandable unwillingness to investigate the information they do need to disclose, the press needs to step in. Sadly, it’s almost unheard of for journalists to link think tank staff quoted in news articles as scholarly experts to the donors that pay them and the agendas they’re pushing.

Indeed, as I’ve documented, there’s a strong tendency on the part even of news organizations that have reported on think tanks’ corporate and other special interest connections to ignore their own findings and permit idea laundering as usual.

One big reason that’s become clearer to me than ever as I’ve been looking into the NAF scandal is the remarkable extent that journalists have formally been part of its operations and structure. The informal connections between journalists and think tankers have always been important, however neglected. Think tank staff and establishment journalists tend to come from the same kinds of fairly affluent backgrounds, have attended the same kinds of schools, graduate with the same kinds of ideas, and – since so many are clustered in Washington, D.C. – live in the same kinds of neighborhoods, send their kids to the same schools, and generally move in the same social circles.

Moreover, it’s been routine for media figures to take sabbaticals at think tanks to write books or just get some relief from the day-to-day grind and study subjects in depth. How realistic is it to expect any of them to turn around and then bite the hand that literally fed them?

The inevitable result is downright scary if you believe (as you should) that a robustly functioning democracy depends in large measure on individuals and institutions playing distinct roles that enable them to function as balancers and watchdogs or simply reinforcers of needed degrees of political and social pluralism. When they interact too closely and especially too systematically, temptations to scratch each other’s backs inevitably mushroom.

But perhaps more subtly, and therefore more importantly, these actors (especially the individuals) just as inevitably begin to know and understand each other too well, to like and admire each other too much, to recognize each other’s wants and needs too willingly, to agree with their legitimacy too thoroughly, to avoid any potential awkwardness or unpleasantness, and to cut them considerable slack when any kinds of trouble arise. And as these patterns emerge and consolidate, the lines separating these actors blur, their independent outlooks start dissolving, and they begin to merge into a genuine establishment (or “swamp,” if you will) with a common mindset, a consequent tendency toward group-think, and an increasing dedication to promoting and protecting its position – which tends to be pretty privileged.

In this vein, NAF’s journalistic connections are truly eye-opening. Its first board chairman was The Atlantic‘s James Fallows. An early president was Steve Coll, formerly with the Washington Post and The New Yorker. One of its board chairs today is National Review Executive Editor Reihan Salam, and he’s joined on this body by Fallows (still with The Atlantic), Steven Rattner (a New York Times columnist and financier), David Brooks (another New York Times columnist), and Washington Post columnist and CNN host Fareed Zakaria.

NAF also has developed a network of “media partners” that regularly publish its material via syndication deals. These news organizations include The Atlantic, Quartz.com (which is owned by The Atlantic‘s parent company), Slate, National Review (Salam’s publication), and TIME.  

The organization’s governmental connections are extensive as well. Like more and more think tanks, NAF also gets funding from the U.S. and foreign governments and international organizations. These official donors include the U.S. State Department and Agency for International Development, the U.S. government-funded U.S. Institute of Peace, the European Union, the European Commission, Norway’s foreign ministry, the Organization for Economic Cooperation and Development, and Germany’s Embassy to the United States. (See NAF’s latest Annual Report for documentation of current Board members and donors.)

Again, it’s been encouraging to see NAF take its lumps. But real progress toward breaking up the Washington swamp won’t be made until journalists and policymakers start treating the think tanks with the skepticism they deserve, and if not ignoring the information they generate, at least considering the source much more exactingly before internalizing and further propagating it.

And all RealityChek readers will easily be able to tell whether the NAF scandal brings genuine change. Check your favorite news sources to see whether NAF staff keep appearing as founts of scholarly wisdom – and when they are used, if the reporters or anchors in question tell you whose signing their paychecks, and what stakes these donors have in the issue in question. And look for the same treatment for all the other major think tanks. Even better? Start giving them heck in their comment sections and on social media when they don’t.

Following Up: Mercury News Treats H1B Debate as Non-News

Tags

Following Up, H1B, immigrants, Immigration, journalism, Mercury News, Neil Chase, Norman Matloff, Ro Khanna, Silicon Valley, tech, tech workers, workers

The story of the video of a major debate on U.S. immigrant tech worker policies that earlier this week looked like it was being kept under wraps now looks like the story of a video that never was – due to some astonishingly unenterprising journalism from the Mercury News, Silicon Valley’s main newspaper and therefore a leading source of information on the technology industry.

As RealityChek regulars know, the story began with a June 1 debate in Silicon Valley centering on the controversial H1B immigrant visas. Squaring off were the Valley’s new Democratic Member of Congress, Ro Khanna and Norman Matloff, a professor of computer science at the University of California, Davis. (A tech entrepreneur took part in the event, too, but in a minor way.)

Technology companies claim that the H1B and similar programs are crucial to accessing the world’s best talent. Critics charge that they’ve overwhelmingly been used to cut their costs by replacing native-born U.S. workers with much cheaper foreign counterparts. Khanna favors relatively modest changes to H1B policies; Matloff believes major surgery is needed.

Matloff, who’s become a valued friend of mine, has written that the event marked  the first time a debate has been held between an elected official and a researcher on the topic, a major event in that sense. (Khanna has not disagreed.) Matloff also noted that a videographer from the Mercury News was present and apparently recording the proceedings.

Yet the Mercury News failed to cover the debate and never posted a recording on its website. Matloff asked a reporter on the paper to find out why, and was told that a recording existed, but that “it was essentially scrapped as a standalone report, but there’s apparently a possibility that parts of it will be used in coverage of Rep. Khanna. Not sure the reason(s) for this…” Matloff then speculated that the paper failed to make the video public because Khanna performed poorly – leading the Mercury News, which editorially has sided with the tech industry on H1B and related issues, to consign it to non-event status.

I emphatically agreed that the video’s import deserved to see the light of day, and last Sunday urged the Mercury News to post it both to perform a public service on a major technology policy area and to affirm its journalistic chops. Gratifyingly, the post and follow-up tweets prompted Khanna readily to agree, and to call openly for the video’s posting. (For the record, he contends that it was Matloff who was highly ineffective.)

Two days later, Matloff and I got answers from Mercury News editor Neil Chase. In the version he sent Matloff, he wrote, “We had a photographer there who captured some still photos and some video for use with a future story, but we didn’t attend with the intention of taping the full debate and did not.”

Based on information Matloff had shared with me and my own journalistic experience, yesterday, I sent Chase the following email. I had hoped to get a response from him in time to prepare this post, but no such luck yet:

Dear Neil,

Many thanks for your comment to my blog and my apologies for the short delay in responding.  

I must confess, though, that the response leaves me somewhat mystified on two counts.

First, the statement that the Mercury News videographer did not “record the whole event” doesn’t track with an email from one of your reporters, Ethan Baron, to Matloff.  Baron said, in response to the latter’s query re the video’s availability, “it looks like the video was essentially scrapped as a standalone report, but there’s apparently a possibility that parts of it will be used in coverage of Rep. Khanna.”  Granted he’s conveying some uncertainty here. But Matloff also has written in his blog that “the videographer seemed to be taping continuously.”  In addition, Matloff noted that “the video cam [was] on a high tripod, seemingly much for an occasional clip.”

Similarly, it sounds odd, as your email indicates, to give the videographer the responsibility for choosing the portions of the debate to be shot.  Was this the case?  If so, what were the criteria used to determine what was captured?  Or were they simply taken to get a bit of file footage of each participant, irrespective of what they were saying at the time?  

Second, I certainly don’t mean to tell you how to do your job.  But as someone with a journalistic background, I’m hard pressed to understand the paper’s seemingly offhand attitude toward this event.  After all, the H1B issue has been described as crucial by the dominant industry in the region served by the Mercury News, and it’s surely of comparable importance to all your tech worker subscribers.  The new Congressman from your area, Rep. Khanna, has been touted by several national publications as a rising star in the Democratic party, and possibly all of national politics.  To his credit, he was willing to appear in public with an outspoken, prominent critic of the H1B and related programs – a rare event at the very least, according to Matloff.  And of course, H1B and other immigration issues have become even greater controversies nationwide since the last presidential campaign heated up.  So from all appearances, the leading paper of Silicon Valley would be expected to view the debate was highly newsworthy from the get-go.  And yet it seems from your email that no coverage was ever planned.  

Now it’s clear that some fur was flying at the event, and that Rep. Khanna and Matloff are begun feuding in public over what was said and over their qualifications to claim expert status on the issue.  I.e., because of this aftermath, their debate has become by any reasonable definition even more newsworthy.     

So I respectfully make the two following requests:

1. Would you check whatever video archive you have – including whatever the videographer might possess – to determine conclusively whether a full recording of the debate is indeed available?  (If not, I would hope to find out how it was disposed of, and why.)

2. Would you assign a reporter to cover this emerging Khanna-Matloff dispute — in which a local Congressman who’s increasingly prominent nationally has publicly gone after a critic on an issue that’s one of his top legislative priorities, and a major national concern?  The Mercury News would get an excellent scoop, and perform a valuable public service at the same time.  

Thanks for your consideration, and I look forward to your reply.

Sincerely,

Alan

As per the email, I’m still hoping that the Mercury News finds a recording and shares it, and that it reports on the differences between Khanna and Matloff, which cut to the heart of the debate on H1B and broader questions and arguments concerning the future of the domestic workforce in an age of rapid innovation. At a time when Fake News abounds, it would amount for welcome coverage of some real news.

Following Up: Progress in Freeing the Mercury News H1B Debate Video

Tags

Following Up, H1B, Immigration, Mercury News, Norman Matloff, Ro Khanna, Silicon Valley, social media, tech workers, Twitter

What a day it’s been for RealityChek on Twitter today! Yesterday, I posted on the peculiar failure of the Mercury News, the top newspaper in technology industry center Silicon Valley, to post a video it made of a landmark and apparently heated recent debate on the H1B visa program. Under this controversial feature of U.S. immigration policy, American employers can secure foreign workers they can demonstrate are needed because they boast special talents that generally can’t be found in the U.S. workforce.  

Thanks to this item, and to some tweets today, I seem to have persuaded the most prominent participant, Rep. Ro Khanna (D.-Cal.) to ask the paper to release the full version.

Another participant in the event, University of California, Davis computer science professor Norman Matloff, had already made such a request, but got a “Thanks, but no thanks”-type answer.

So this morning, I decided, via Twitter, to ask Khanna to join the campaign. It was great to see him respond, and after a few tweets back and forth, at about 1:45 PM EST, he declared, “I have told them [the Mercury News] I would welcome the release of the tape if they have one. I would love for this to be public. I’m all for transparency.” So let’s hope that a request from a Member of Congress will do the trick. And let’s also hope that the paper still has the video!

I’ve asked Khanna to let me know the Mercury News‘ answer as soon as he can, and of course, I’ll pass the word on to you – ideally with a link – right away. And FYI, you can get in on this kind of action first-hand yourself by following me at @AlanTonelson. As with RealityChek, feedback is always welcome, and that includes heavy doses of snark!

P.S. Just for a bit of context, a major point of contention between Khanna and Matloff is a bill sponsored by Democratic Senator Dick Durbin of Illinois and Republican Senator Chuck Grassley of Iowa that attempts to address H1B-related problems.  Khanna is another sponsor of the legislation; Matloff considers its remedies inadequate.