Peter Harrell
Introduction
On January 20, 2025, the first day of his second term, President Donald Trump sought to delay enforcement of a 2024 law that banned distribution of the popular Chinese-owned social media app TikTok. The intent of this delay was for his administration to work out a deal by which TikTok’s Chinese parent, ByteDance, could divest the app. Regardless of the ultimate resolution of the TikTok case, restrictions on Chinese communications technologies, software, and internet-connected devices are becoming a major pillar of U.S. economic and technology policy toward Beijing, alongside tariffs and export controls. Over just the past twelve months, the United States cited potential electronic espionage as the basis for restricting the use of new Chinese cargo terminal cranes at U.S. ports, passed legislation and issued a new executive order limiting certain data transfers to China, imposed draft “Know Your Customer” (KYC) requirements on U.S. cloud services providers, published a draft rule to ban Chinese autonomous cars being sold or used on American roads, and launched a process to restrict the use of Chinese-made commercial and hobbyist drones—by far the world’s most popular—in the United States. Indeed, while public attention in January focused on Trump’s actions toward TikTok, a trade-related executive order that Trump signed his first day in office appeared to tee up an expansion of these sorts of restrictions on Chinese technologies.
Over the past decade, the United States quietly has built an increasingly extensive set of regulatory tools to regulate U.S. data flows to China and the operation of Chinese software and connected technologies in the United States. Although individual actions generally are tailored to address a specific risk, the growing sweep of regulatory authorities has the potential to dramatically change America’s economic relationship with China, restricting not only a growing array of internet-connected devices and consumer products made in China but also products made by Chinese companies in third countries. Beijing, meanwhile, is intensifying its mirror-image campaign against products made by U.S. firms, with the Chinese government imposing new security restrictions on U.S. semiconductors, computers, and other connected tech.1
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