Nandini Roy Choudhury, writer
Brief news
- Microsoft’s Brad Smith warns against underestimating China’s technological advancements, suggesting they may be catching up to the U.S. and Europe.
- Tensions over technology competition have led to export restrictions, yet China continues to innovate, as seen with Huawei’s recent smartphone launch.
- Smith emphasizes the need for U.S. and European collaboration to foster global technological growth, particularly in artificial intelligence.
Detailed news
Microsoft’s president and vice-chairman issued a warning to the West, stating that they should not assume that China is falling behind the United States and Europe in terms of technological advancements.
Over the course of the last several years, tensions between the United States and China have been concentrated on the competition between the two countries for technological superiority, which has culminated in a number of export prohibitions on essential technology. Huawei, a Chinese company, stunned the market with the introduction of a smartphone in the latter part of the previous year. The evaluations of the smartphone showed download speeds associated with 5G, which sparked conjecture of an apparent semiconductor breakthrough that defied the United States’ technology sanctions.
Microsoft’s Brad Smith told CNBC on Tuesday that “in many ways,” China is close to or is perhaps catching up on technology. Smith was speaking at the Web Summit technology conference, which was held in Lisbon, Portugal.
“I think one of the dangers, frankly, is that people who don’t go to China too often assume that they’re behind,” he said in an interview with Karen Tso from CNBC. “However, when you go there, you are overwhelmed by the amount of work that they are doing.”
He projected that American and Chinese businesses will continue battling with one another in the field of technology well into the distant future. He also urged businesses from the United States and Europe to work together in order to expand economies and deliver new technological developments, such as artificial intelligence, to the rest of the globe.
According to the website of the corporation, Microsoft has been conducting business in China since 1992. This includes the establishment of its largest research and development facility located outside of the United States. The Chief Executive Officer of Microsoft, Satya Nadella, stated in the previous year that the company was not concentrating on China as a domestic market. However, the company does provide its services to Chinese businesses and has a more prominent presence in the country than many other technology giants in the United States.
When asked if trade and technology transfers with China will become more difficult as Washington transitions between the administrations of U.S. incumbent leader Joe Biden and President-elect Donald Trump, Smith responded that it was too early to know. Trade and technology transfers refer to the flow of data, designs, or ideas.
He stated, “The truth is that as an American technology company, we are only able to conduct business in China when we are providing a service that the Chinese government wants to have there, and the United States government wants us to bring there.” He went on to say, “And in some cases, they look at, say, a data center to support a Mercedes or a Siemens or a Starbucks or a General Motors — there seems to be a level of comfort.” It’s not actually the case with consumer services.”
It was his prediction that we will live in a future in which certain technology will be moved to China, and that the decision would not be made by the technology companies themselves.
Source : CNBC news
