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> Soon, every big country is likely to use “national security” as a pretext to fracture international tech companies. And ironically, it’s the US companies like
by diego_moita 6y ago
> Soon, every big country is likely to use “national security” as a pretext to fracture international tech companies. And ironically, it’s the US companies like Facebook or Google that are likely to lose the most from the fallout.
He is 200% right: this isn't an isolated event, it is the end of an era.
There was a time, starting in the Clinton administration when conservatives and liberals all over the world wanted open borders markets (with lots of trade agreements and China entering the WTO), democracy (in Latin America, Eastern Europe and Asia), migrants and open internet across borders.
Then, little by little people soured on all of that openness and globalization. Now many of the places that sought democracy are returning to authoritarian rulers (e.g: Hungary, Turkey, Russia, Brazil, China). Protectionism and closed borders are on the rise (Trump's wall, tariffs and withdraw from Trans Pacific Partnership, Brexit, EU crackdown on immigrants and staled new trade deals).
Tech will be the next victim. All over the world governments will begin restricting foreign companies, for economic, ethical, military or authoritarian reasons. China, Russia, Turkey and Iran always did it. Now the EU is getting sour on Google, Apple and Amazon. Trump is in full war against Huawei and now takes on TikTok.
Businesses will need to find ways to navigate these hostilities. Those that aren't cautious will pay an heavy price.
How do businesses handle that? I see two ways. Microsoft and IBM are two veterans on navigating regulations. Their secret has been a careful mix of compliance and heavy and expensive lobbying. Google seems to be learning this lesson. It seems to work. Huawei will need to learn it with them.
Another way would be to make tech that is immune to regulation either by design (Bitcoin, Signal) or by it's scale and how deeply is supported by local communities (WhatsApp). I don't believe this is effective in the long run. China, Russia and Turkey have shown that they can simply block these technologies when they become a nuisance.
- dirtyid 6y agoLast 12 months: Wielding entity list against Huawei, IC industry talking about "deamericanizing", Barr lowkey suggesting getting US company to acquire controlling share in SE or Nokia to compete in 5G (Cisco said no), TSMC coerced into US plant, Google + Apple controlling contact tracing standards during a pandemic while rebuffing nation state request for more fine grain collection, an now forced sale of TikTok. Nvidia / ARM purchase in conjunction with reshoring IC production and containing Chinese IC industry smells like Barr too. Every line that could have been crossed has already been crossed. US done everything it accused China would do, which China has yet to. Even prior, many countries were moving towards data sovereignty and local warehousing laws. Not