How China's BigTech Regulation is a Competitive Advantage

This is an op-ed about what China's recent regulation on its BigTech companies actually means. It's not at all what analysts think. China's long-term strategy is much more coherent than simply political, policy or authoritarian tendencies Western pundits would have us think.

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China’s Golden Age of AI Is Coming

China has learned from the policy failures of Washington and the trajectory of Silicon Valley companies. By regulating its top technology companies and especially its IPO pipeline it’s strengthening its domestic innovation sector and also making Hong Kong and double listing of Chinese companies more common.

China’s BigData Advantage Leads to Supremacy in Artificial Intelligence

In a can’t miss IPO bubble market, China is also protecting its BigData advantage. Beijing is stepping up its oversight on the flood of Chinese listings in the U.S., which are overwhelmingly tech companies. China’s Ministry of Commerce plans to scrutinize foreign investment more closely on the basis of national security.

China is establishing the regulation that will allow for a greater moat and innovation ecosystem for its own technological dynasty. It’s short term pain for long term gain, and it’s doing what disrupted real innovation in Silicon Valley as a few companies became too powerful, suppressing real startup competitors.

China’s regulatory tightening on various segments of the economy won’t hurt the country’s credibility and ability to attract foreign investments. Its emphasis on regulation will create more free market competition and encourage domestic companies to be Beijing aligned in the way ByteDance is.

China’s Tech Dynasty Is Planned

ByteDance didn’t come out of nowhere just by accident. The emergence of companies like Huawei, ByteDance, Pinduoduo, Didi, Meitaun and others are part of a cohesive plan. If a founder leaves the company or gives up their CEO position in China, it essentially means the State has taken partial control of it.

It’s becoming clear China’s acceleration of its own BigTech dynasty is also much more intelligently thought out than America’s version of capitalism could implement. The regulation of mergers (e.g. Huya and Douya), IPOs (Ant Group) and data regulation (Didi) is showing a more cohesive framework for real innovation and competition to take place within China.

When Google acquired YouTube and Facebook acquired Instagram it essentially was game over for those sectors. Cloud, app store and retail duopolies exist in the form of AWS and Azure, Apple and Google, Amazon and Walmart that mean free market capitalism is over in the U.S.

In China, they have the benefit of learning from the mistakes of America. The corporate will does not follow an organized whole. Greed is not good if left unchecked. Very basic things.

Chinese regulators ordered app stores in the country to remove ride hailing service Didi?and stopped Ant Group’s IPO for very specific reasons. BigTech in China were overstepping their bounds in their greed to expand and disrupt traditional state controlled institutions.

Authorities are turning their heads toward data regulation because of its importance to the technology industry, a key driver of economic growth. For China to regulate means correcting its big picture trajectory as the most innovative technological country in the world.

China’s Tech Regulatory Centralization Is a Significant Advantage to Real Innovation

China is weirdly looking at a long term picture in a way America never did in a very strategic way. Its centralized government is thus far superior in terms of organizing its innovation sector as the growth engine of its future economic growth.

It’s truly an unfair advantage that the rest of the world could not replicate. While corporate espionage at scale took place with the Chinese infiltrating the top universities and companies abroad, the reverse could not occur.

China’s ability to self-regulate its BigTech dynasty is thus a competitive advantage too. Its ability to regulate its own form of surveillance capitalism will be decades ahead of other countries in just a few years.

Bloated duopolies of America aren’t programmed to act in an organized or ethical manner with respect to the future growth, economy, innovation ecosystem and health of the system as a whole. This means tech regulation is one of China’s superpowers. The ability of its emerging companies to double list in China itself and then also list in the U.S. is truly an unfair advantage.

China’s BigData advantage is substantial. The country passed a major data security law in June and is working on further regulation around individual data protection. China’s regulation of 2021 may be one of the most important events in the history of its young technological dynasty that just keeps adding more companies. Ironically U.S. wealth is underinvesting in Chinese firms. It’s a truly such a marvel to behold.

China’s Pace of AI-Centric Capitalism Is Nearly Double That of the Rest of the World

While there are clear concerns in the short run due to increased regulatory scrutiny and Chinse stocks have entered bear territory for China’s economic and technological ecosystem, it’s such an underestimated advantage in how they will compete in the future with American corporate giants.

America’s BigTech aren’t very well diversified compared to China’s newer companies — companies that the U.S. would be totally unable to clone. There’s no equivalent in America to Meitaun, Pinduoduo or ByteDance, to name just a few.

As the biotech and AI of healthcare, education and finance matures, China will have further advantages due to the State’s intelligent interventions. America has no such top-down strategy to guide it or its innovation ecosystem since greed rules American capitalism, not a sustainable future.

With the lack of antitrust regulation for the first two decades of the internet, it's mostly been greed and consolidation left unchecked that has permanently stunted American innovation.

China’s government has opened a new battlefront with the country’s technology giants, looking to target their collection and use of data. It’s something America could have done at any point in the last twenty years, but didn’t.

Now America is on a deterministic path to algorithmic deleveraging of its consumer based capitalism that’s probably a dead end for both its internet and its system of democracy and capitalism where duopolies have taken root. America has a duopolistic political system, app store, cloud winners, retail winners and the list goes on.

China’s AI-Centric Regulated Capitalism Is the Future of Global Capitalism

In the last few years the U.S. has increased its scrutiny of Chinese investment in the country, but that’s more about consumer protection. Chinese companies have several advantages including a bigger market, the opportunity to expand in higher population density regions and more regulatory clarity where they?now will know their boundaries?and must work coherently with the state.

This kind of efficiency also means better funding opportunities, less biased venture capital systems and less innovation bottlenecks than in America. While consolidation and automation in America will fuel considerable wealth inequality, China can engineer a regulatory framework that avoids some of the same pitfalls as its technological ecosystem matures.

China’s regulatory prowess is actually an indication its AI-centric capitalism will have superior rule of law in terms of coherence with the whole, a basic principle of collectivistic cultures. The unity of China’s innovation sector can therefore demonstrate cultural differences which actually make one party rule a more harmonious ordered acceleration of its economy into AI supremacy.

Irrespective of challenges, this kind of organization will easily enable Chinese tech to disrupt American tech in the decades to come and it would have been impossible without stricter regulatory frameworks.

China's Regulation of Technology Suggests a Sophisticated Strategy for the Future

China has released draft rules on various areas from antitrust to data protection as it aims to regulate its biggest technology firms. The European Union meanwhile has introduced the Digital Markets Act and Digital Services Act while wide-sweeping tech regulation in the U.S. is missing.

America is years behind now in AI ethics, technological regulation and oversight bodies on algorithmic leverage and profiteering by the gross greed capitalism that has infiltrated its innovation sectors. It’s. in short, no longer the ‘good guy’ of innovation.

Silicon Valley created wealth distribution to many white men in Silicon Valley successfully, but didn’t achieve much for the common people. In China they have to try to avoid the same mistakes and the epic consequences of that greed-is-good chain of events.

Beijing has been cracking down on domestic technology giants over the last few months and it’s not just about Alibaba, Ant Group, Didi or any one name. It’s a broad planning of a tech dynasty that with ByteDance and an EV startup ecosystem already show signs of a new retail with JD.com and Pinduoduo maturing rapidly.

China’s digital yuan could be more disruptive than many analysts appear to recognize. In terms of artificial intelligence, China is integrating it faster in all of its industries than any other country.

While America props up new BigTech entries like Tesla or Nvidia, China knows in what areas it needs to catch up including Cloud, chip supply chains, digital advertising at scale and so forth and of course AI recommendation engines. In terms of consumer AI, China will have caught up by 2025. By 2030 it will be markedly ahead.

The Last Years of American Duopoly Dominance

China’s ascent in AI isn’t just about skill, it’s about planning and a cohesive long term vision American greed-is-good capitalism is unable to emulate. This suggests the duopolistic internet American has created could actually be short lived in terms of the scope of history. Even the streaming duopoly of Netflix and Disney isn’t that great.

China is thus an incredible hedge against the failure of American capitalism, because it is also inevitable. In terms of leadership, both in technology and government, America is making too many wrong decisions to remain competitive.

China and its AI advantages have too many features going for them. China’s regulatory scrutiny in a sign of their superiority of leadership, to be honest. That’s not a political statement, simply a fact of how AI is unfolding today.

China’s moves will improve the country’s economic structure, capital markets and governance in the longer term and this bolsters its ability to be the next AI giant of the 21st century even as its economy, tech ecosystem and urban transformation projects mature at an incredible rate.

This regulation will enable China to enter a technological and AI golden age circa 2025 to 2045 that will truly stun the world and reshape human history. Even the human rights atrocities of China will appear minor in the sheer scope of China’s golden age of AI.

China Could Lead a World State Government Decades from Now with AI Surveillance Optimization

When you contrast America’s future in AI with China’s artificial intelligence supremacy, the verdict is already clear. China’s regulatory prowess will also mean adequate allocation for projects such as space tech supremacy, Mars colonization, global retail dominance, the infiltration and enhancement of Africa and South America and the potential for a global world state. China must not abuse its future power in artificial intelligence but lead it for human welfare.

China’s Personal Information Protection Law (PIPL) lays down for the first time a comprehensive set of rules around data collection and protection. It’s a sign China is more serious about tech, data and AI regulation than the United States and it’s also indicative of who is playing for the long term, the end game and the result of all of this economic momentum.?China is also creating a regulatory model for the next-generation quantum internet that it will invent later in this century.

China’s ability to utilize artificial intelligence for the greater good and not just for a ruling financial elite will distinguish it from the United States. China, for all its diplomatic wolf-grin bravado, should not be underestimated. Its cohesion of AI regulation is a pivotal difference compared to the U.S. in its future ability to innovate.

China’s planned technological dynasty is centered on being an AI-centric version of capitalism that points to the future of economically developed nations, smart cities and the future of BigData optimization.

To call it simply a form of Google-like surveillance capitalism would be na?ve. Beijing is developing something else with its own distinct characteristics. China is leveraging both AI and regulation the best, and that means it will win. You cannot just let AI leading corporations do what they please, that doesn’t lead to good outcomes.

What will China’s golden age of AI truly spawn? This is, to me at the?Last Futurist, the central question of the 21st century for humanity. You can follow my Newsletter?AI Supremacy?for more articles like this.