US vs. China Carries Complications, Shortcomings, TPI Forum Hears
Tension in relations on technology issues between the U.S. and China over data security, privacy and telecom gear are making life complicated for some American companies, experts told the Technology Policy Institute Aspen Forum. They generally agreed that aspects of the current U.S. approach may be unique to this administration and may have shortcomings. Neither the White House nor China's embassy in Washington commented Oct. 21, when the TPI video was released as part of its ongoing conference.
At least since 2000, “we’ve always been in a digital cold war” involving the two countries, said Fiona Alexander, American University Internet Governance Lab distinguished fellow. “It’s just not always been as obvious.” The conflict between China and the U.S. “has become more public” and increasingly “direct,” she said. “There’s a lot more transparency in the negotiations.” What's different now versus past administrations is how this White House approaches these issues, Alexander and other academics said. Now, “national security is at the heart of things” with the U.S., which is taking a “go-it-alone approach,” Alexander said.
U.S. companies seeking to expand their business in China are “kind of caught” in the middle between the two nations, said Aynne Kokas, University of Virginia associate professor of media studies. “Interests of U.S. [multinational] firms are diverging” from this country, she said. “The U.S. has frankly not been stepping up to this challenge.” America needs “to think about other solutions to handle this challenge,” beyond the Executive Orders and entity lists, she said.
“Blocking certain companies doesn't get at the core of the problem,” the professor said in a later email. “Without clear rationale this approach is subject to legal challenges.” Because of the ownership structure of many U.S. firms and lack of government tech oversight, it's “hard to know precisely how data is being used or stored,” she noted. Data localization has been an issue in foreign countries, including China. “Oversight over all US firms with regard to data storage and security” such as via SEC filings “would provide more transparency,” Kokas wrote. “It would also allow for more effective challenges to corporate behavior based on facts.”
Some U.S. approaches on tech “are beginning to mirror some of the things we have complained about” from other countries, such as with “clean networks,” said New America Cybersecurity Policy and China Digital Economy Fellow Samm Sacks during the virtual conference. She worried this country is setting a precedent that would “legitimize” some of the same frameworks through which China views technology. The Trump administration's strategy on TikTok was cited by Sacks and others. “Now we have a precedent requiring sale of a stake” of a company to a domestic business, Sacks said. She hopes that the U.S. recognizes that “not every type of data is sensitive to national security” and that it will “carve out” such data in order “to work more with partners and allies.”