alt Hacker NewsIt's fascinating to watch the US government paint China as the new bogeyman and utterly fail in it's policy of containment.
The first obvious conclusion is that China has been utterly vindicated to keep US tech giants out of China. Some have a token presence but it's clear that the Chinese government will never let a US tech government "win" in any domestic market. It will always be a Chinese company. Obligatory Silicon Valley [1].
The second is that, to that end, IMHO the US government made an error blocking the sale of high-end chips (particularly NVidia) to China. Why? Because it's created a captive market for Chinese chip manufacturing. Huawei now has billions in potential sales that might've otherwise gone to chips produced in Taiwan and South Korea.
Third, the US can somehow ban a Dutch company (ASML) from selling EUV to China. This has forced China to replicate it and they will within a few years. The interesting part of this is that all it really takes is throwing money at a few key researchers and engineers who worked for ASML. It really is using the mechanics of the Western economic system against itself.
Last, the US government will try and make US tech giants "own" or "win" AI. And they will fail because the Chinese government will make sure they fail. How? By releasing ever-better open models for free. I believe China considers this a matter of national security to not be beholden to US tech giants (and thus the US government).
The ironic thing to me is that the US is doing what the West accuses China of doing with corporate control. I'd say the actual difference is that Chinese companies are beholden to the state whereas the US government is basically 5 companies in a trenchcoat. The US wants to mint trillionaires at the expense of literally everybody else. China believes society should benefit from something they collectively make possible.
Anyway, we've been here before. Remember the crypto export ban of the 1990s and 2000s? Did that prevent higher-quality encryption from being used overseas? No. This won't help either.