Washington looks on in fear, as China’s grip on the world tightens. 

The one-up that Western countries hold over China is technology secrets, but that is changing, as China continues to use increasingly ambitious tactics to get critical top-of-the-heap Western companies to cave and work with China.

Says James Lewis, “There’s a great deal of unease in Washington…The defense, intelligence agencies and others are concerned that advanced chip-making capabilities are going to China.”

China is accomplishing this, by charging non-Chinese companies who don’t comply, with antitrust suits and accusations of operating a monopoly. Evidence of this is Qualcomm being slapped with a $975 million fine in 2015 by China’s National Development and Reform Commission (NDRC).

Fast forward to 2016, and instead of fighting the tide, Qualcomm is sharing their technology and investing $140 million in a joint business venture with the Chinese government and Huaxintong Semiconductor. Qualcomm holds the minority stake in this venture. Additionally, Qualcomm will be moving its own manufacturing, from Taiwan and South Korea to China.

What does China hold that influences these tech giants to comply? A huge portion of the world’s consumers. And, if foreign companies do not comply, they simply fine them and apply prohibitive taxing to products containing their technologies. To continue their access to China’s market, Western corporations are forced to give up technology, forge alliances with Chinese companies and reduce prices.

“This is what China does better than anyone else,” said Robert D. Atkinson, president of the Information Technology and Innovation Foundation. “They have a large carrot and a large stick,” he said. “And they have a market no C.E.O. can walk away from.”

All part of President Xi Jinping’s master plan to make sure China becomes and remains the dominate force in technologies such as artificial intelligence, semiconductors, drones, virtual reality, internet of things (IOT) and servers. In turn, this guarantees their dominance over the world in general.

Qualcomm is not alone in going with the China flow. Advanced Micro Devices (AMD) and Hewlett Packard Enterprise (HP) are also working with Chinese companies to make server chips, creating competition to their very own products. Intel is cooperating with China to build high-end mobile chips which will compete with Qualcomm. IBM will be transferring technology which will allow China to enter the mainframe banking business.

Western tech giants continue to cooperate with China, ensuring their own downfallhttp://www.gizbeat.com/wp-content/uploads/Xi_Jinping_March_2017-450x614.jpghttp://www.gizbeat.com/wp-content/uploads/Xi_Jinping_March_2017-150x150.jpg Damian Parsons AMDQualcommTech
Washington looks on in fear, as China's grip on the world tightens.  The one-up that Western countries hold over China is technology secrets, but that is changing, as China continues to use increasingly ambitious tactics to get critical top-of-the-heap Western companies to cave and work with China. Says James Lewis, 'There's...
Washington looks on in fear, as China's grip on the world tightens. <span id="more-11965"></span> The one-up that Western countries hold over China is technology secrets, but that is changing, as China continues to use increasingly ambitious tactics to get critical top-of-the-heap Western companies to cave and work with China. <blockquote>Says James Lewis, "There's a great deal of unease in Washington...The defense, intelligence agencies and others are concerned that advanced chip-making capabilities are going to China."</blockquote> China is accomplishing this, by charging non-Chinese companies who don't comply, with antitrust suits and accusations of operating a monopoly. Evidence of this is Qualcomm being slapped with a $975 million fine in 2015 by China's National Development and Reform Commission (NDRC). Fast forward to 2016, and instead of fighting the tide, Qualcomm is sharing their technology and investing $140 million in a joint business venture with the Chinese government and Huaxintong Semiconductor. Qualcomm holds the minority stake in this venture. Additionally, Qualcomm will be moving its own manufacturing, from Taiwan and South Korea to China. What does China hold that influences these tech giants to comply? A huge portion of the world's consumers. And, if foreign companies do not comply, they simply fine them and apply prohibitive taxing to products containing their technologies. To continue their access to China's market, Western corporations are forced to give up technology, forge alliances with Chinese companies and reduce prices. <blockquote>"This is what China does better than anyone else," said Robert D. Atkinson, president of the Information Technology and Innovation Foundation. "They have a large carrot and a large stick," he said. "And they have a market no C.E.O. can walk away from."</blockquote> All part of President Xi Jinping's master plan to make sure China becomes and remains the dominate force in technologies such as artificial intelligence, semiconductors, drones, virtual reality, internet of things (IOT) and servers. In turn, this guarantees their dominance over the world in general. Qualcomm is not alone in going with the China flow. Advanced Micro Devices (AMD) and Hewlett Packard Enterprise (HP) are also working with Chinese companies to make server chips, creating competition to their very own products. Intel is cooperating with China to build high-end mobile chips which will compete with Qualcomm. IBM will be transferring technology which will allow China to enter the mainframe banking business.



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