Category: Technology

In this article, first published in CGTN, Friends of Socialist China co-editor Danny Haiphong analyzes a report released by China’s cyber security investigators detailing US interference in China’s internal affairs. The report concluded that the Central Intelligence Agency (CIA) is conducting a cyber warfare campaign on key Chinese economic sectors and that this behavior is emblematic of the CIA’s role in overthrowing governments that challenge US hegemony.

U.S. political leaders and media analysts often hype “threats” from abroad in order to justify an increasingly aggressive foreign policy. China is now considered a top “threat” from significant elements of the U.S. political establishment and is regularly accused of conducting cyber espionage and other forms of snooping. Often, these accusations reflect the actual policies carried out by the U.S. government regardless of which political party holds majority power. On May 4, China’s National Computer Virus Emergency Response Center (NCVERC) and internet security company 360 offered verifiable proof of this in a joint report detailing the cyber weapons used by the U.S.’ Central Intelligence Agency (CIA) on other countries.

The report builds on earlier findings in 2020 that an unknown cyber organization hacked into China’s major petroleum, infrastructure, aviation, and several other industries using methods related to WikiLeaks’ “Vault 7” documents. These documents revealed that the CIA was able to infiltrate cyber technology and use it to spy on other countries as well as U.S. citizens.

Continue reading China’s report on US cyber attacks only scratches surface of Washington’s impunity

This article by Amanda Yee, which was first carried on Liberation News, provides a detailed analysis of the US’s attempt to suppress (or transfer ownership of) the Chinese-owned social media app TikTok.

Amanda writes that the attack on TikTok is merely the latest front in an ongoing tech war being waged by the US ruling class, seeking to demonize Chinese tech companies and restrict their access to US markets. The US is “weaponizing Red Scare tactics” in order to ensure its tech dominance. “Forcing the sale of TikTok to a US company, or banning it entirely, which would drive its users to US competitors like Meta, Instagram Reels (owned by Meta), Snapchat, or YouTube Shorts.”

The article notes that the targeting of TikTok over data privacy concerns is discriminatory. US firms including Google and Facebook are notorious for providing data to the state, to the extent that there is “a mutually beneficial relationship between tech companies and the US government: the state protects the interests of Silicon Valley capital, and in return, Big Tech complies with its data requests.” The problem of data privacy is not TikTok’s specific practises – or its alleged links with the Communist Party of China – but the lack of meaningful regulation of the tech sector by the US government.

The US ruling class is whipping up anti-communist and racist hysteria in order to suppress China’s rise and to protect US economic hegemony. All those on the left should oppose this abhorrent strategy.

On March 23, CEO of TikTok Shou Zi Chew testified before the House Energy and Commerce Committee addressing concerns over the popular social media app’s data collection practices and parent company ByteDance’s alleged links to the Chinese government. Though TikTok is a subsidiary of ByteDance, which is based in Beijing, it operates as an independent entity. Chew has maintained the company has never shared user data with the Chinese government, and would refuse if pressed to do so. Still, the Congressional hearings amounted to nothing more than racist political theater, a McCarthyite witch trial, in which members of Congress who demonstrated little understanding of how basic social media algorithms—or even home Wi–Fi networks—work attempted to spuriously link Chew, who was born, raised, and currently lives in Singapore, to the Communist Party of China.

At one point during the hearings, Rep. Debbie Lesko of Arizona asks Chew, “Do you agree that the Chinese government is persecuting the Uyghur population?” to which a perplexed Chew firmly responds, “Congresswoman, I’m here to describe TikTok and what we do as a platform.”

Make no mistake: the TikTok hearings had nothing to do with the baseless threat of Chinese surveillance and everything to do with maintaining the dominance of U.S. capitalism. TikTok is the most popular and most frequently downloaded social media app worldwide, boasting 150 million users in the United States alone. The overall time users spend on TikTok now far exceeds some of its U.S. competitors, and it has been rapidly pulling digital advertising away from these same companies. 

The hearings were just the latest in the U.S. tech war against China—a key front in the new Cold War—and Silicon Valley has found as its ally rising anti-Chinese sentiment and, through the arm of the capitalist state, is weaponizing such Red Scare tactics to ensure tech dominance. This explains why the U.S. government is trying to force the sale of TikTok to a U.S. company, or ban it entirely, which would drive its users to U.S. competitors like Meta, Instagram Reels (owned by Meta), Snapchat, or YouTube Shorts.

Either way, Silicon Valley stands to benefit. And even if the U.S. government doesn’t go through with a TikTok ban, the spectacle of the hearings and fearmongering over Chinese surveillance was enough to drive up stocks for Meta and Snapchat.

Continue reading TikTok on trial: The latest front in the US tech war on China

In the following article, which originally appeared on the CODEPINK Medium blog, Wei Yu, Nuvpreet Kalra and Melissa Garriga of CODEPINK and its China is Not Our Enemy campaign, counter the hypocrisy of the United States’ campaign against TikTok, whose CEO Shou Zi Chew, was recently subjected to a five-hour grilling in a Congressional hearing that often bore more resemblance to a racist and anti-communist lynching than a dispassionate enquiry by professional politicians. Drawing a stark comparison, the authors note:

“Ten years ago, Edward Snowden told the whole world the truth about the US global surveillance programs. If Congress cares about our digital privacy, it should first begin by investigating the surveillance policies of its own US agencies. The campaign against TikTok is a fear-mongering tactic to wage war on China.”

They further detail how the FBI, the Department of Homeland Security and the Immigration and Customs Enforcement (ICE) use social media to spy on Black Lives Matter protestors and a range of others, including the Muslim, Arab and South Asian communities. ” Unlike China,” they note, “as well as other Western countries, such as the EU, the US does not have any digital privacy laws on the federal level…

“The ongoing effort to investigate and ban TikTok is not about our privacy, but about fuelling more aggression against China. Fearmongering about China has also caused the rise of anti-Asian racism in the US.”

Last Thursday, a Congressional hearing took place where the TikTok CEO was grilled for five hours on the grounds of “security concerns.” This was days after the FBI and DOJ launched an investigation on the Chinese-owned American company. Isn’t it ironic that while the US government is putting TikTok under the magnifying glass, it’s turning a blind eye to its own surveillance programs on the American people?

Ten years ago, Edward Snowden told the whole world the truth about the US global surveillance programs. If Congress cares about our digital privacy, it should first begin by investigating the surveillance policies of its own US agencies. The campaign against TikTok is a fear-mongering tactic to wage war on China.

In 2020, the FBI used social media to monitor racial justice protesters who were targeted for arrests. For example, activist Mike Avery was arrested after posting about protests on Facebook, and his charges were dropped without explanation a few weeks later. An FBI official was so frustrated with the extensive social media surveillance that he told the Intercept, “Man, I don’t even know what’s legal anymore.”

The dissonance between accusing TikTok of security concerns and working with other companies to invade people’s privacy rings loudly in our ears.

Social media has long been a tool used by federal agencies to target individuals and communities designated as “threat.” The Department of Homeland Security and the Immigration and Customs Enforcement have monitored the social media activities of immigrant rights activists. The State Department used social media screening to discriminate against the Muslim, Arab, Middle Eastern, and South Asian communities under the Trump administration’s “Muslim ban.”

Only last year that the post-9/11 NSA phone surveillance program was reported to have shut down. Major telecom companies like Verizon gave the government access to hundreds of millions of calls and texts. Dataminr, a startup Twitter partner, provided police with data about BLM protests. One focus on ‘potential gang members’ targeted Black and Latinx people, including school-aged children.

Meta’s subsidiary WhatsApp was reportedly used by the Saudi government to hack journalist Jamal Khashoggi’s phone. Meanwhile, Meta itself used a VPN to spy on users’ smartphones for market research in exchange for bribes. Yet WhatsApp is not banned on government devices.

If our lawmakers are concerned about protecting digital privacy, then Congress should start with investigating American federal agencies. Unlike China as well as other Western countries, such as the EU, the US does not have any digital privacy laws on the federal level. The US could cooperate with China to better ensure people’s privacy is protected, instead of driving fear to target one single social media platform.

The ongoing effort to investigate and ban TikTok is not about our privacy, but about fueling more aggression against China. Fear-mongering about China has also caused the rise of anti-Asian racism in the US. In banning TikTok, the US is projecting its invasive policies onto another government. Warmongers are using the issue to create paranoia and justify even more aggression towards China.

It is not a coincidence that these recent bans have come about shortly after a Chinese weather balloon was shot down over the US. Privacy concerns are being used to wage war on China. The US should focus on passing federal data privacy laws instead of targeting one app. Double standards and warmongering against China need to stop. China is not our enemy.

Tell Congress to stop using TikTok to drive fear and war towards China!

This article by Italian social theorist Marco d’Eramo, which originally appeared in Sidecar (a blog published by New Left Review), provides a detailed and insightful analysis of the “chip war” being waged by the US as part of its broader New Cold War on China. D’Eramo explains the profound importance of the semiconductor industry to the overall trajectory of modern technology, and describes the extent to which semiconductor supply chains are today dominated by the US. While China uses more than 70 percent of the world’s semiconductor products, it only produces 15 percent – and these are not of the latest generation of chip design.

The Biden administration has announced wide-ranging and unprecedented restrictions on the export of semiconductors, with a view to protecting its dominance of the industry at all costs. D’Eramo quotes Martin Wolf in the Financial Times saying that the chip war launched by the Biden administration is “far more threatening to Beijing than anything Donald Trump did. The aim is clearly to slow China’s economic development. That is an act of economic warfare… It will have huge geopolitical consequences.”

The author however observes that Biden’s chip war will not be plain sailing, as it relies on the cooperation both of major US technology companies – which earn handsome profits from exporting to China – but also the US’s allies abroad, including for example Germany, which “has grounded its economic – and therefore political – fortunes in its relationship with China, its principal commercial partner (with $264 billion worth of annual trade).” In this context, Chancellor Scholz’s recent trip to Beijing “seems like a major act of insubordination.”

Another factor, not directly addressed by the article, is the record of Chinese socialism in overcoming this sort of difficulty. For example, very few would have thought that China could develop its own nuclear deterrent, carrying out its first successful test of an atomic bomb in 1964, at a time when it was still a poor and backward country, blockaded by the US and without the support of the Soviet Union, with which it was engaged in a bitter ideological dispute. Even with the seemingly unbreachable gap between the US and China in terms of semiconductor technology, the likely effect of these new US restrictions will be to accelerate China’s own research and investment in the sector. A decade ago, China wasn’t the global leader in renewable energy technology; today it is. We shouldn’t be surprised if China is able to catch up with the US in the coming years.

A world war was declared on 7 October. No news station reported on it, even though we will all have to suffer its effects. That day, the Biden administration launched a technological offensive against China, placing stringent limits and extensive controls on the export not only of integrated circuits, but also their designs, the machines used to ‘write’ them on silicon and the tools these machines produce. Henceforth, if a Chinese factory requires any of these components to produce goods – like Apple’s mobile phones, or GM’s cars – other firms must request a special licence to export them.

Why has the US implemented these sanctions? And why are they so severe? Because, as Chris Miller writes in his recent book Chip War: The Fight for the World’s Most Critical Technology (2022), ‘the semiconductor industry produces more transistors every day than there are cells in the human body’. Integrated circuits (‘chips’) are part of every product we consume – that is to say, everything China makes – from cars to phones, washing machines, toasters, televisions and microwaves. That’s why China uses more than 70% of the world’s semiconductor products, although contrary to common perception it only produces 15%. In fact, this latter figure is misleading, as China doesn’t produce any of the latest chips, those used in artificial intelligence or advanced weapons systems.

Continue reading Circuits of War: on Biden’s technological offensive against China

The following article, by Marc Vandepitte and Jan Jonckheere, was originally published in Dutch on De Wereld Morgen. It explains the crucial significance of semiconductor chips to advances in modern technology, and goes on to describe the “chip war” currently being waged by the US government against China. The authors note that this is not the first time the US has attempted to suppress another country’s technological development, but they express significant doubt about the chances of success in this case. “In the past, the US has often succeeded in bringing countries to order and keeping them in line. However, whether it will succeed with China is highly questionable.”

Keith Lamb’s article Blocking China’s semiconductor industry is an attempt to impede the construction of socialism provides useful supplementary reading.

Recently, the US has identified China as its main enemy and is trying to thwart its economic and technological rise. Chips play a key role in this as they are the backbone of economic and military performance in the digital age. Whether the U.S. will succeed in its endeavour is highly questionable.

The key to the future

Technology is the key to the future. It is the basis for military might on the one hand, and economic productivity and a competitive position in the world market on the other.

Until recently, the US had an unassailable, dominant position on both fronts. The White House wants to maintain that hegemony at all costs, but the rise of China threatens to put an end to that.

According to US Presidential Security Adviser Sullivan, “we are facing a competitor that is determined to overtake US technological leadership and willing to devote nearly limitless resources to that goal”.

That is why the US has identified the People’s Republic of China as its main enemy and is trying to thwart the economic and technological ascent of this Asian giant.

Chip War

Semiconductors and chips[1] are particularly targeted. This makes sense, because in the future geopolitical supremacy may increasingly depend on computer chips. Chips are integrated circuits that are pretty much the nervous system of electronic devices.

Until last century, military strength was based on firearms, warships, fighter jets or (nuclear) missiles. In the digital age, chips are the backbone of economic as well as military performance.

According to James Mulvenon, an expert on Chinese cybersecurity, “the Pentagon has decided that semiconductors is the hill that they are willing to die on. The sector of semiconductors is the last industry in which the US is leading, and it is the one on which everything else is built”.

In early October 2022, the White House put its money where its mouth is. The Biden administration introduced sweeping export controls that will severely hamper Chinese companies’ attempts to obtain or manufacture advanced computer chips.

Under Trump, US companies were no longer allowed to sell chips to Huawei. Biden has now extended those trade restrictions to more than 40 Chinese companies, including several chip makers. The new measure effectively prohibits any US or non-US company from supplying those Chinese companies with hardware or software whose supply chain includes US technology.

The export restrictions not only target military applications but seek to block the development of China’s technological power by all means available. The strategy is to cut China off from the rest of the world in chip supply chains in order to deny it the opportunity to indigenise its semiconductor industry.

Paul Triolo, China and technology expert describes the new measure as a “major watershed” in US-China relations. “The US has essentially declared war on China’s ability to advance the country’s use of high-performance computing for economic and security gains.”

Conversely, the US is doing all it can to further increase its technological lead. For example, the White House’s National Science and Technology Council has just published a 47-page ‘National Strategy for Advanced Manufacturing’ that includes 11 strategic goals to increase US competitiveness in chips.

Geopolitics aside, the chip industry is also big business. The market capitalization of the largest listed chip firms now exceeds $4,000 billion. China spends more on computer chip imports than on oil.

Quest for allies

Although Biden claims to be eager to work with allies, this chip war is only initiated by the US. Experts admit that if other countries continue to supply China, the restrictions will have little effect. The only consequence then is that US chip companies will miss out on the large Chinese market.

In the past, the US already pressured other countries and regions to stop supplying high-tech products to China. In the case of chips, this mainly involves South Korea, Japan, the Netherlands and the de facto autonomous Chinese province of Taiwan. With the new measure, foreign companies working with US technology are now supposed to act following US restrictions. They must seek US permission on a case-by-case basis.

Of course, foreign countries are not eager to comply with that, because China is a very important if not the most important customer. Samsung, for example, is the world’s largest builder of memory chips. Partly as a result of the new measure, this South Korean company expects 32 percent less revenue. It remains to be seen whether and to what extent these countries will seek and find possible loopholes.

Washington especially wants to bring Taiwan along in its isolation strategy. Taiwan accounts for 92 percent of the world’s high-value chips. For China, imports from Taiwan are economically and technologically vital. 

It is in the context of this chip war that the provocative visit by Pelosi and other US politicians to the separatist leadership of Taiwan must be viewed. Mid-September, the US Senate approved a bill providing $6.5 billion in direct military aid to the island. Washington is putting pressure on China on several fronts.

Chances of success?

Chips are the main engine of electronics. China itself manufactures about 12 percent of global production. That is by no means enough for its own use. Only one-sixth of what it needs in chips is produced domestically. Moreover, for the time being, it is still unable to produce the most advanced chips.

In other words, in terms of chips, the country is highly dependent on imports. Annually they account for about $400 billion. If that supply were compromised, it would not only mean a very large economic loss, but it would also seriously undermine technological progress. In this sense, chips are considered the Achilles heel of Chinese industry.

To overcome that dependency and catch up with the technological backlog, China is investing more than any other country in this strategic industry. The country has already made serious progress in a number of areas. For example, it has successfully produced a 7 nanometre chip.[2] This puts it only one or two ‘generations’ behind industry leaders in Taiwan and South Korea.  

But with these breakthroughs, it will remain dependent on imports of parts from other countries for the time being.[3] It doesn’t have to stay that way. Analysys Mason, a leading consulting firm, says in a recent report that China could be self-sufficient in chips within three to four years.

In any case, the US restrictive strategy will motivate the Chinese government to allocate even more resources and make breakthroughs. Asia Times gives the example of the 2015 blocking of the supply of Intel’s high-end Xeon Phi processors to Chinese supercomputer makers. A year later, Chinese researchers developed those processors themselves.

In the past, the US has often succeeded in bringing countries to order and keeping them in line. However, whether it will succeed with China is highly questionable. By the end of this decade, we will know whether the US attempt to wreck China’s chip industry has succeeded or failed.

Notes:

[1] Semiconductors are electronic components based on semiconductor material. A diode and a transistor are examples of semiconductors. In a sense you can think of semiconductors as the building blocks of chips. Chips are integrated circuits, small in size. They are part of a computer or other electronic devices. In the mainstream media, there is usually no distinction between semiconductors and chips.

[2] The company in question, SMCI, is reportedly now working on even more advanced 5 nanometer chips.

[3] For example, China cannot make advanced semiconductor devices without EUV lithography equipment from ASML (Netherlands) and electronic design automation (EDA) tools from Synopsis and Cadence (US) or Siemens (Germany).

This interesting article by Chris Fry, writing in Fighting Words, analyzes the escalating tech war initiated by the Trump administration and being carried forward under Biden. Desperate to slow down China’s economic and technological rise, the US is spreading all manner of lies in order to impose sanctions on China.

In dealing with China, the primary goal of each successive administration is to successfully maintain U.S. hegemony, to assert the power of the U.S. ruling class to profit from exploiting Chinese workers as well as the rest of the global working class and oppressed nations without restrictions.

These sanctions will inevitably fail to prevent China’s development, but in the meantime are already impacting the livelihood of the working class in the West. As Mao Zedong famously remarked in 1957: “‘Lifting a rock only to drop it on one’s own feet’ is a Chinese folk saying to describe the behavior of certain fools. The reactionaries in all countries are fools of this kind.”

The leadership of the People’s Republic of China (PRC) likes to describe its social and economic structure as “Socialism with Chinese characteristics.” But we can describe the U.S. system, driven by its insatiable greed for profits and global hegemony, as “Imperialism with imperialist characteristics”.

A July 5th Bloomberg article revealed that the Biden administration is pressuring the Netherlands to force Dutch companies to stop selling computer chip manufacturing equipment to China:

The US is pushing the Netherlands to ban ASML Holding NV from selling to China mainstream technology essential in making a large chunk of the world’s chips, expanding its campaign to curb the country’s rise, according to people familiar with the matter.

A computer chip ploy for a vast subsidy for Big Tech

Since the 1970s, U.S. Big Business has closed thousands of plants and factories across the country, while finance capital has invested trillions in overseas facilities to exploit low wage workers. Currently, the predominant manufacturer of the leading edge 5nm computer chip is the Taiwan based TSMC Corporation in Taiwan.

Senator Sanders stated in a July 14th  editorial for the Guardian describing a current piece of chip-industry pushed legislation for $52 billion in subsidies to build a TSMC chip facility in the U.S.:

Let’s review some recent history. Over the last 20 years, the microchip industry has shut down more than 780 manufacturing plants in the United States and eliminated 150,000 American jobs while moving most of its production overseas – after receiving over $9.5bn in government subsidies and loans.

In other words, in order to make more profits, these companies took government money and used it to ship good-paying jobs abroad. Now, as a reward for that bad behavior, these same companies are in line to receive a giant taxpayer handout to undo the damage that they did.

Continue reading China: COVID, computer chips, airliners, and US imperialism

The undersigned chapters and members of the Democratic Socialists of America and other allied organizations and individuals strongly condemn Congress’s use of industrial policy and other elements of the proposed US Innovation and Competition Act (USICA) to counter China as part of a new Cold War fueled by US imperialist interests, which further destabilizes geopolitical relations and jeopardizes efforts toward greater global cooperation on issues affecting everyone worldwide.

We call on members of Congress to oppose this aggressive escalation and push back on the narratives that have fueled rising anti-Chinese sentiment in the US, marked by increased anti-Asian racism and violence. We oppose the USICA and other legislation that calls for increased military budgets, further militarization of the Indo-Pacific region, and fosters anti-Chinese propaganda efforts, all based on nothing more than perceived threats to US geopolitical interests. Elected members of the US Congress have the duty to prioritize the needs and concerns of their working class constituents instead of those of arms manufacturers and defense contractors who have fueled decades of endless war at the expense of genuine global cooperation and common prosperity for working class people everywhere.

We believe that US industrial policy should not be built upon imperialist ambitions that serve only to drag the world into a new Cold War. We believe that working people in the US and elsewhere deserve policies that invest in public works programs, climate resilience, infrastructure, healthcare, and more. The US Innovation and Competition Act is not created for those purposes, instead it is overwhelmingly focused on preserving US global hegemony by fabricating narratives aimed at painting China as a threat and riling up global conflict in an effort to undermine an increasingly multipolar world. If enacted, the bill would ramp up interference in the sovereignty of nations throughout the world, establish an anti-Chinese federal bureaucracy, intensify the militarization of US global policies, and continue the legacy of US industrial policy being weaponized against socialist movements globally. This legislation will promote confrontation and conflict with China, escalate the potential for military conflict between nuclear powers, and hinder global cooperation needed to address critical issues like climate change.

For these reasons, we strongly condemn the USICA and urge members of Congress to oppose the bill and call for an end to US policies that threaten hundreds of millions of people in the Indo-Pacific region and could spiral into worldwide conflict.