Skip to main content

The future of U.S.-China tech fiefdoms

Axios.com

Illustration: Sarah Grillo/Axios

The U.S. and China often seem to be in a cutthroat technological race, but their rivalry may ultimately produce two geographically separate commercial fiefdoms where they rarely if ever cross swords directly, according to Beijing venture capitalist Kai-Fu Lee.

The big picture: In a scenario that conflicts with what most experts foresee, Lee, a former executive at Microsoft, Apple and Google, paints a largely bloodless future:

American and Chinese tech titans remain thoroughly entrenched at home, retaining the loyalty of their consumer base.In terms of business abroad, they carve out their own geographical spheres of technological influence that mostly do not overlap.

Show less

"China and the U.S. are in parallel universes," said Lee, speaking at the O’Reilly AI Conference in San Francisco.

What's next: Commercial and tech history suggest that U.S. and China's giants will fight for business. But Lee argues that each country’s tech companies will expand to dominate separate chunks of the world. American tech is likely to rule in Europe, while China captures big market shares in Southeast Asia, Africa and the Middle East.

But competition over artificial intelligence might look different. Both countries are attempting to amass the brightest AI researchers and biggest investments, and from there, they plan to build military superiority.

Although Chinese tech companies started from behind, by copying American products, their technology is often now equivalent or better.

WeChat’s features outstrip Facebook Messenger and WhatsApp, forming what Lee describes in his forthcoming book, "AI Superpowers," as a "digital Swiss Army knife for modern life" — and Weibo has similarly leapfrogged Twitter.Amazon can't hope to compete with Alibaba or JD.com on their turf, either.The only way for a foreign company to break in is to somehow identify a space that Chinese companies haven’t filled yet. For instance, if Waymo could wedge itself into the Chinese market — a leap made difficult by local rules for foreign companies — it might have an advantage over younger, homegrown self-driving ventures, Lee said.

Despite a more permissive U.S. business environment, Chinese companies can’t easily slip in there, either, says Lee — in part because probable American wariness of how a Chinese business would handle their personal data.

Few of Amazon's U.S. customers are likely to flock to Alibaba, for instance.


https://www.axios.com/china-and-the-us-parallel-tech-universes-1536282008-fb9d4c46-88c0-4acb-a992-511a1fd9e286.html

Comments

Popular posts from this blog

Balochistan to establish first medical university

https://www.dawn.com/news/1366135

The Newspaper's Staff CorrespondentOctober 25, 2017QUETTA: The provincial cabinet on Tuesday approved the draft for establishing a medical university in Balochistan.Health minister Mir Rehmat Saleh Baloch made the announcement while speaking at a press conference after a cabinet meeting.“The cabinet has approved the draft of the medical university which would be presented in the current session of the Balochistan Assembly,” he said, adding with the assembly’s approval the Bolan Medical College would be converted into a medical university.Published in Dawn, October 25th, 2017

China’s 'Digital Silk Road': Pitfalls Among High Hopes

https://thediplomat.com/2017/11/chinas-digital-silk-road-pitfalls-among-high-hopes/


Will information and communication technologies help China realize its Digital Silk Road?By Wenyuan WuNovember 03, 2017In his speech at the opening ceremony of China’s 19th Party Congress, President Xi Jinping depicted China as a model of scientific and harmonious development for developing nations. Xi’s China wants to engage the world through commerce but also through environmental protection and technological advancement. This includes Beijing’s efforts to fight climate change with information and communication technologies (ICTs) that it plans to export along its “One Belt One Road” initiative (OBOR). Xi may have ambitious plans, but could China be throwing up obstacles in its own way?In his speech, the Chinese president emphasized the need to modernize the country’s environmental protections. The Chinese state is taking an “ecological civilization” approach to development and diplomacy, with a natio…

Germany’s Siemens sets up Belt and Road office in Beijing

https://gbtimes.com/germanys-siemens-sets-up-belt-and-road-office-in-beijing
Germany’s Siemens sets up Belt and Road office in Beijingby Janne Suokas Mar 23, 2018 15:20 TRADEINVESTMENTBELT AND ROAD INITIATIVEGerman industrial and engineering group Siemens will set up a Belt and Road office in Beijing. surberFlickrCC BY 2.0
German industrial and engineering group Siemens will set up an office in Beijing to boost international cooperation under China’s Belt and Road initiative, the company said on Friday.The move will help strengthen Siemens’ cooperation with Chinese and international companies and expand business opportunities brought about by the Belt and Road initiative, according to the company’s statement.The Belt and Road initiative is China’s ambitious project to boost trade and infrastructure investment in more than 65 countries along the ancient Silk Road trade routes from Asia to Europe and Africa.Siemens said it had already partnered with hundreds of Chinese companies in overse…