Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Digital Silk Road: Battle Between US and China Hi-Tech Firms Will Remain Fierce, Author Says

Digital Silk Road: Battle Between US and China Hi-Tech Firms Will Remain Fierce, Author Says

The Fourth Digital China Summit in Fuzhou scheduled for 25-26 April will promote global cooperation in the field of e-governance, digital economy, and the ambitious Digital Silk Road project. Those who hesitate to jump on Beijing's hi-tech bandwagon or even throw sand in its gears may soon regret it, says Beijing-based author Thomas Weir Pauken II.

China has doubled down on implementing its Digital Silk Road (DSR) project with special focus on the technological development of the world's emerging economies and provision of cutting edge digital services. The DSR's backbone is a network of 15,000 km-long (9,300 mile) subsea cables designed to bring Asia, Africa, and Europe together.

However, the Biden administration appears to want to keep Donald Trump's pressure on China's hi-tech sector. Earlier this month, Washington added three companies and four branches of China's National Supercomputing Centre to its black list. In March, the White House further restricted companies from supplying items to China’s Huawei Technologies Co Ltd.

"The battle between US and China hi-tech firms – was, is and will be – fierce," says Thomas Weir Pauken II, a Beijing-based Asia-Pacific Affairs commentator and author of US vs. China: From Trade War to Reciprocal Deal. "Right now, California’s Silicon Valley companies are major donors to the Democrat Party and Biden’s campaign treasury, so this explains why Biden continues to act like Trump and Pompeo by taking a tough stand against Beijing."

According to Pauken, Washington has weaponised "human rights" to impose economic sanctions on China's hi-tech companies in a bid to upend the industry's rise.

"The foreign governments banning a number of Chinese tech firms connected to Xinjiang issues was a simple case of stopping a business rival while using diversionary tactics to fool the public," he says.

On 20 April, American economist Jeffrey D. Sachs and Canadian human rights lawyer William Schabas recently argued that "the US government needlessly escalated its rhetoric against China," especially criticising the Biden administration for accusing Beijing of "genocide" of the Uighur people.

Tencent Headquarters in Shenzhen


US Big Tech Monopoly is Facing Decline

Washington's unfair competition practices should be seen in the context of the American hi-tech industry's slow but imminent decline, Pauken believes: "The US hi-tech sector reached its peak when Apple’s former CEO Steve Jobs was alive, but ever since his death US hi-tech firms lost their cutting edge and zest for pursuing innovations."

Currently, Big Tech appears to be more interested in accumulating wealth, becoming influential in politics, and promoting "woke values," than in creating amazing companies that will continue to dominate in their specific tech sectors, according to the Beijing-based commentator.

For their part, China’s hi-tech pioneers and companies stand eager to surpass their American rivals, he notes. To that end, the Chinese government has set up what’s commonly known as "Public-Private-Partnerships (PPP)" which brings together officials, academia, grassroots citizens, investors, and private enterprises in order to promote an "innovation culture" and boost the domestic science and hi-tech sectors.

"It’s a winning strategy because government can provide subsidies and support to encourage scientists and developers to focus on what they are best at, which is being scientists and investors," Pauken says.

China’s major universities have established research and development (R&D) hubs so that professors, students, companies, scientists, and inventors can be provided with sufficient funding and be surrounded by necessary testing equipment and space to brainstorm and create new technologies, the author elaborates. After the development phase these hubs host special seminars inviting fintech investors, companies and government officials to introduce new ideas and gadgets to the marketplace.

"Shenzhen is China’s Silicon Valley and Beijing has launched the ‘Greater Bay Region’ to accelerate PPPs," Pauken explains. "Additionally, the rise of China and other countries’ hi-tech sectors will be good for global consumers. In recent years, US hi-tech firms were acting like bully monopolists and if they get dethroned many countries will benefit from America’s hi-tech downfall."

In this Aug. 19, 2019, photo, a guide is silhouetted in an exhibition promoting Huawei's 5G technologies at the Huawei Campus in Shenzhen in Southern China's Guangdong province


DSR: Emerging Markets Will be the Biggest Winners


Washington and London are shooting themselves in the foot by blocking Chinese companies from supporting 5G networks and by fuelling a negative narrative about Beijing's DSR, argues the author.

"By enforcing decoupling that will mean US and UK companies will fall behind in the global race for 6G," Pauken argues.

Similarly, China will surge ahead with its DSR even if the US and UK refuse to join in, he stresses.

"Truth be told, Beijing has long known Washington and London would oppose China’s DSR and as such they just don’t care about that issue anymore," he says. "They will focus their attention on China’s economy, the EU and the emerging markets in efforts to expand the DSR footprint."

Emerging markets are set to become the biggest beneficiaries of China's DSR, according to the Beijing-based commentator. In addition to this, China's new digital currency will allow foreign enterprises from Southeast Asia (ASEAN), the Middle East, and Africa to speed up their financial transactions, trade operations, and investment activities, he adds. They will be able to make foreign currency exchanges via their mobile devices and store Big Data and all their financial transactions with digital record-keeping.

"Developing nations require deeper support in technology partnerships to move forward on nationwide industrialisation, urbanisation and modernisation drives," Pauken notes. "The DSR will make it much cheaper and convenient to enhance cross-border trade and investments… For DSR to succeed from a tech standpoint that requires full development of 5G telecom networks to boost Wifi speeds and memory storage, which can pave the path for tremendous advancements in AI, robotics, internet of things (IoT), blockchain, serverless computing and so much more."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×