China's restrictions on technology exports a move to counter digital rouges

By Shen Yi Source: Global Times Published: 2020/9/2 17:28:40

Photo: VCG

 
Talks for TikTok's US operations have hit a snag due to China's newly issued restrictions on the export of artificial-intelligence (AI) technology, the Wall Street Journal reported on Tuesday. 

As China on Friday issued adjustments to its 2008 version catalog of technologies that are prohibited or restricted from exports, some people are inclined to think that the revision is designed to give ByteDance - TikTok's parent company - a better bargaining chip and prevent it from being forced to "have a fire sale" under adverse conditions. Although such analysis is somewhat reasonable, this is a narrow-minded interpretation of the intention of the adjustment.

On the whole, the Chinese government naturally bears the responsibility for safeguarding Chinese enterprises' legitimate overseas interests. This is inherent to China's national sovereignty. Legitimate overseas interests of any Chinese company, including ByteDance, are naturally under effective protection by China's national sovereignty.

Given the specific case of TikTok, people have become aware that the US, and the West, won't warmly open their arms to welcome China as it integrates into world stage while complying with the international rules. This is contrary to the ideal situation that many people previously imaged. When Chinese companies gain a leading advantage in a particular field, the typical response of the US, and the West, is cynical and short-sighted - they will bully, suppress, and even rob without hesitation. 

As some Chinese internet analysts have pointed out, the current US administration has abused national security concerns to squeeze TikTok in all directions. Meanwhile, European and US enterprises and capital groups - such as Facebook - are coveting the "blue ocean" of short video sharing. They are unabashedly colluding with the US government to loot TikTok. In the first place, they portrayed TikTok as a concrete manifestation of a so-called Chinese security threat to the US. Then they forced TikTok to rush "a fire sale" of assets under unfavorable conditions. They even intended to snatch the strategic assets of ByteDance whose core is unique algorithms. 

This very ugly looting is what the US and the West will really do in the face of outside competitors. For most foreign companies, especially those going global from a recently modernizing country like China, this is an utterly shocking short-term challenge. The essence of this challenge is a "dimension reduction attack," through which the Western governments - in cooperation with capital groups - plunder non-Western countries with non-market-oriented methods. 

The only thing that can withstand this kind of shock is another sovereign state that dares and is capable of competing with the sovereignty of the US and the West. The Chinese government's catalog revision at this juncture is a very low-key but substantial move to step in this battleground - as it will inevitably defend its own legitimate overseas rights and interests.

It is worth noting that China's catalog revision is a natural, defensive move. It is a continuation of China's reform and opening-up in the context of the country's deepening openness to global actors, including the US and the West. 

In short, China wants its companies to be treated with equal protection, respect and courtesy, and to have the same quality of operating environment as that China assures for foreign firms. Besides, any bullying against Chinese enterprises that is based on malicious economic and political considerations should be stopped.

China's revision of the catalog  can be seen as an important move to improve the Chinese government's managerial prowess. This indicates that China will adopt a more confident and powerful posture with a more effective manner to protect and promote Chinese enterprises to turn global. This will bring better products and services to the world. Ultimately, this will increase the well-being of the world's people, and make greater contributions to the global community of shared future for mankind.

The author is director at the Research Center for Cyberspace Governance of Fudan University. opinion@globaltimes.com.cn



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