The US-China rivalry is putting innovation at risk – is it worth it?

Back in January, we warned that an intensifying "Tech Cold War" between the US and China over technology and trade could plunge global innovation into a deep freeze as both countries impose fresh restrictions on the free flows of money, people, and information that (throughout history) have powered new ideas.

We're not at the winter solstice of innovation just yet, but the US's move last week to restrict Chinese networking equipment giant Huawei's access to US markets and technology sent an awfully chilly wind through the tech sector.

Here are two ways that a decoupling of the Chinese and American tech sectors could damage innovation in the US:

  • Less good money: Huawei spends roughly $10 billion a year buying hardware and software from US firms. Total Chinese tech industry purchases are many times greater than that. A portion of that money is reinvested by Silicon Valley in R&D to help develop the next generation of innovative tech products. If Chinese firms can't – or won't – buy from American companies, a lot of R&D cash will vanish.
  • Fewer good brains: US semiconductor companies are already struggling to hire highly coveted Chinese engineers as the Trump administration slow-rolls their visa applications over national security fears. But top tech talent is hard to come by, and there aren't always qualified workers from the US or other countries available to pick up the slack.

The upshot: The United States has plenty of well-founded grievances with how China runs its economy and its increasingly powerful tech sector. But the costs of Washington's more confrontational approach are already becoming apparent. Those costs will rise further if the US and China's deeply linked tech sectors decouple more fully and formally, as some China hawks in the US hope. At what point do the costs start to outweigh the benefits?

Howard University President Dr. Wayne A. I. Frederick joins That Made All the Difference podcast to discuss how his career as a surgeon influenced his work as an educator, administrator and champion of underserved communities, and why he believes we may be on the cusp of the next "golden generation."

Listen to the latest podcast now.

It's been a bad week at the office for President Trump. Not only have coronavirus cases in the US been soaring, but The New York Times' bombshell report alleging that Russia paid bounties to the Taliban to kill US troops in Afghanistan has continued to make headlines. While details about the extent of the Russian bounty program — and how long it's been going on for — remain murky, President Trump now finds himself in a massive bind on this issue.

Here are three key questions to consider.

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Nicholas Thompson, editor-in-chief of WIRED, discusses technology industry news today:

Do some of the Facebook's best features, like the newsfeed algorithm or groups, make removing hate speech from the platform impossible?

No, they do not. But what they do do is make it a lot easier for hate speech to spread. A fundamental problem with Facebook are the incentives in the newsfeed algorithm and the structure of groups make it harder for Facebook to remove hate speech.

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Ian Bremmer's Quick Take:

Yes, still in the middle of coronavirus, but thought I'd give you a couple of my thoughts on Russia. Part of the world that I cut my teeth on as a political scientist, way back in the eighties and nineties. And now Putin is a president for life, or at least he gets to be president until 2036, gets another couple of terms. The constitutional amendments that he reluctantly allowed to be voted on across Russia, passed easily, some 76% approval. And so now both in China and in Russia, term limits get left behind all for the good of the people, of course. So that they can have the leaders that they truly deserve. Yes, I'm being a little sarcastic here. It's sad to see. It's sad to see that the Americans won the Cold War in part, not just because we had a stronger economy and a stronger military, but actually because our ideas were better.

Because when those living in the former Soviet Union and the Eastern Block looked at the West, and looked at the United States, they saw that our liberties, they saw that our economy, was something that they aspired to and was actually a much better way of giving opportunities to the average citizen, than their own system afforded. And that helped them to rise up against it.

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Jon Lieber, managing director for the United States at Eurasia Group, provides his perspective on US politics:

How likely is bipartisan action against Russia in light of Taliban bounty reports?

I think it's probably unlikely. One of the challenges here is that there's some conflict of the intelligence and anything that touches on the issue of President Trump and Russia is extremely toxic for him. Republicans have so far been tolerant of that and willing to stop any new sanctions coming. I think unless the political situation or the allegations get much worse or more obvious, that stalemate probably remains.

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