The End of Free Market Capitalism
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
The Semiconductor Chip Cold Wars Begin
U.S. calls for new curbs on high-end tech, trying to slow China's A.I. and economy.
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Hey Everyone,
The new restrictions basically mean a global end to free-market capitalism and I'll explain why.
There’s been a significant change in the geopolitics around A.I., supercomputing and BigTech companies.
On Friday October 7th, the?Biden Administration of the U.S. took ?an unprecedented step in trying to contain China’s ability to compete in semiconductor chips?related to Artificial intelligence?and its military applications.
These are the times of A.I. Supremacy, a cold-war race and tension between the world’s two super-powers, the United States and China. The Biden administration announced new restrictions on China’s access to US semiconductor technology, escalating tensions between the two countries and adding fresh complications to an industry reeling from a slump in demand.?
AMD?-0.19%↓ ?has lost nearly 32% of it stock price and?NVDA?-1.23%↓ ?Nvidia has lost nearly 20% in just the last month since the beginning of the Chip sanctions were announced. The new restrictions are designed to limit China’s capacity since they do not have as mature of a semiconductor industry themselves.
Cold-War Tactics related to Taiwan
领英推荐
These sweeping new U.S. rules mean companies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China, the U.S. announced Friday.
It’s getting serious and complicated guys. Notably, the changes also mean foreign companies will need a license if they use American tools to produce specific high-end chips for sale to China. Tensions between Beijing and Washington have pushed China to be more self sufficient, and worries over China’s innovation machine have grown in recent years even with its own crackdown on its technology companies.
China has stepped up investment into its chip industry in a bid to be self-reliant in crucial technology needed for electric vehicles, smartphones and more. But these new sanctions and bans will be very difficult to get around.
China for all its wolf-warrior rhetoric sounds concerned or alarmed. “The U.S. has been abusing export control measures to wantonly block and hobble Chinese enterprises,” Chinese Ministry of Foreign Affairs Spokesperson said.
America is limiting China’s capacity for technological innovation directly with these sanctions. Effectively, companies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China,?the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) said in a release Friday.
China is enormously reliant on the global supply-chain including Taiwan’s SMIC. These updates will restrict the People’s Republic of China’s (PRC’s) ability to both purchase and manufacture certain high-end chips used in military applications, but also impact its own BigTech companies in ways that are difficult to extrapolate.
They include restrictions on the export of some types of chips used in artificial intelligence and supercomputing and also tighten rules on the sale of semiconductor manufacturing equipment to any Chinese company.
I don’t believe these restrictions are only intended for China’s military but amount to economic warfare as well.
You can read the 14-min article here.
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Intern at Scry AI
8 个月Well-crafted post. A common characteristic of the previous industrial revolutions is that governments played an active role in them. They incentivized inventors through patents, protected their commercial interests, defended against foreign competition, and provided funding for research and development (either directly or via their militaries). Also, in the Second Industrial Revolution, the U.S. government dismantled monopolies. And, in the third, it protected inventors' commercial interests, lowered tariffs to defend against communism, increased military spending to create new markets, and increased overall spending in research and development (via DARPA). During the Fourth Industrial Revolution, governments of various countries are currently adopting different approaches. Some are espousing a laissez-faire attitude whereas others are actively enacting statutes. The use of data and AI systems is also being approached differently, with some governments emphasizing individual privacy but others allowing the use of data for the collective good. Similarly, governments and non-governmental organizations worldwide are approaching ethics and fairness regarding AI systems differently. More about this topic: https://lnkd.in/gPjFMgy7
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
2 年ASML, one of the world’s most important semiconductor toolmakers, told U.S. employees to stop servicing Chinese customers, as Washington’s latest export restrictions begin to hit the global chip industry. This could clearly slow China's ability to even mature in the semiconductor industry.
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2 年The title really tells everything Michael. History as shown us that sanctions or extra taxation is not a good in medium to long term results, but maybe it's the only tool US has right now...serious issue one should be aware of. Thanks
A giver and proven Tech Entrepreneur, NED, Polymath, AI, GPT, ML, Digital Healthcare, Circular Economy, community wealth building and vertical food & energy hubs.
2 年Nothing new here on the part of US protectionism. It has always been one rule for the US and another for the challengers. They did it to Japan, Korea and now china. Remember 'anti dumping' tariffs of 59% and 39%?
Generalist
2 年I have no relations with USA, so speaking as independent (with even brain issues - so apologies if I step on toes!). I feel the actions re AI (and even more actions!) are appropriate, considering the global geopolitical profiles and scenarios: - China's hard AI push and existing actual progress; - China's ease to replicate anything from anywhere regardless; - China's stated and continued self-interest priorities; - China's threats to Taiwan re one system expectations; - China's absence from initiatives for regulating AI use; - China's history of human rights violations/ignorance; - China's secret activities & plans exposed but denied; - China's global expansion initiatives to "enslave" more countries; - China supporting Russia in the invasion of Ukraine; - China gathering and analyzing any/all personal information; - China's existing and growing sophisticated warfare; and more. Instead of exporting AI products and knowledge, USA can spend resources to substantially grow abilities and production for use by itself and partners. It seems to be the right approach. Just some thoughts.