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Friday, August 16, 2024

US tech export controls backfire, drive companies into ‘death spiral’

 

The restrictions on US technology exports to China are encountering mounting opposition due to the growing financial losses of American companies and the burgeoning independent innovation capabilities of Chinese companies, ultimately ruling out the possibility of the US being able to force allies into alignment on further export controls over China.

California Democrats are calling on the Biden administration to freeze reported plans to impose fresh restrictions on US technology exports to China, arguing that a further round of controls "could send longstanding US companies into a death spiral," Reuters reported on Wednesday.

To be clear, the US politicians' use of the term "death spiral" does not necessarily mean that they are opposed to the tech suppression of China, but rather highlights their deep concern about the potential harm that measures targeting China could inflict on US companies. 

Such concerns are not groundless. For example, a recent report by the Federal Reserve Bank of New York pointed out that US export control measures targeting China have had a negative impact on American companies, as they have caused supply chain disruptions, raised operating costs and reduced US companies' competitiveness. 

The total market value of all US companies affected by export controls on China has been reduced by an estimated $130 billion, the report noted.

There is a growing awareness within US political and business circles that Washington's technology export controls on China are encountering resistance and becoming increasingly ineffective. 

In a recent article published by The National Interest magazine, Brian J. Cavanaugh, who once served on the White House National Security Council, wrote that addressing China's rise as a global leader in electronics manufacturing requires a comprehensive strategy that encompasses economic policy, technological innovation and national security measures. He acknowledged that the US will not defeat China on its own, pointing out that "Washington must reconsider its approach to trade with Beijing, particularly in the electronics sector. Working with allies and partners to develop a coordinated response to China's market practices can help mitigate the risks."

However, regardless of the methods the US may choose to employ in order to enforce its unilateral strategy of stifling China's technology industry, it will be difficult to achieve its goals. This can be attributed to two primary factors. 

First, if US companies are unable to capitalize on the vast Chinese market, businesses in allied nations of the US will become less willing to cooperate with US companies. This is largely due to the fact that China boasts a massive market with a high demand for intermediate products and chips, making it a market that profit-driven companies simply cannot afford to overlook.

Second, the independent innovation of Chinese companies has posed a challenge to the unilateral technological blockade of the US. Washington's technology "iron curtain" has not stopped Chinese companies from developing. On the contrary, US export controls actually have promoted independent innovation in China, helping Chinese companies reduce their dependence on US technology products and enhancing their competitiveness in the global market. For instance, The Wall Street Journal recently reported that Huawei Technologies is close to introducing a new chip for artificial intelligence use. Continuous technological breakthroughs are the best response to US technology restrictions.

This is one of the consequences that US politicians should have anticipated. The reason they turn a blind eye to such possibilities and continue to push for technological "decoupling" from China is because they are reluctant to admit that their technological hegemony will eventually fail. Countries that get used to abusing their power often overestimate their own strength.

Washington also overestimates its influence on allies, as it seems to aim to defeat China through alliances. California Democrats wrote a letter urging the use of "all forms of leverage available to the US government to bring our allies along in aligning their export controls with ours." But this approach is unlikely to succeed. 

Washington's attempt to maintain technological hegemony at the expense of global efficiency and the profits of high-tech multinationals has already caused widespread dissatisfaction, because it not only affects China but also the interests of the global economy and world trade. More importantly, today's China has strong technological capabilities and can make independent breakthroughs. Therefore, the containment strategy of the US, left over from the Cold War era, is bound to fail.

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Thursday, August 15, 2024

Fighting misconduct, corruption in spirit of Merdeka



PUTRAJAYA: While the fluttering of the Jalur Gemilang and shouts of independence (Merdeka) grow louder as National Day approaches, this patriotic spirit would be more meaningful if it were translated into action by citizens joining the government to free the nation of corruption and abuse of power.

In the past, the people were willing to risk their lives to fight the colonisers to free the homeland. Today, citizens must be brave in taking action against those who give and receive bribes for the honour of the nation towards ensuring the country continues to progress and gain respect globally.

Indeed, fighting this "enemy within" is not easy, but it can be achieved through integrity and public participation, supporting the government's committed efforts to combat corruption and abuse of power.

Moreover, Prime Minister Datuk Seri Anwar Ibrahim has repeatedly emphasised the need to fight those who steal or rob the nation's wealth, regardless of rank or age.

Therefore, Enforcement Agency Integrity Commission (EAIC) chairman, Tan Sri Dr. Ismail Bakar urges all Malaysians, whether in the public or private sector, to embody the spirit of independence in conjunction with the 67th National Day by courageously opposing misconduct and corruption to uphold the dignity of the nation.

He said the government's aspiration is for civil servants to have high integrity, ensuring that there is no more leakages in the management of government finances, thus improving the delivery system of services to the people.

"There should be no more injustice in public service delivery, no more favouritism. This is the spirit of independence from the perspective of integrity. It means that if we have a free spirit, we are free to receive government services fairly and equitably without the need to participate in government project tenders that require middlemen," he told Bernama in an interview recently.

Ismail said that if the public service delivery system is transparent, the government's allocations will be fully utilised for projects without any leakage, thus ensuring that the people fully benefit from the allocations.

"Government projects are funded by the people; if there is leakage, the people have to pay back, the lifespan of the project becomes shorter, and the quality declines. Eventually, the project requires additional maintenance costs. There is no funding due to leakage, so the government has to borrow and raise taxes. Therefore, corruption and integrity issues need to be viewed from a broader perspective," he said.

He added that significant losses of national revenue can occur due to negligence in government agencies, such as at ports and entry points, and the presence of elements providing protection to illegal activities and the underground economy.

"In line with the National Day theme, 'Malaysia Madani - Jiwa Merdeka,' EAIC appeals to all government agencies with power to engage in self-reflection.

"We need to reflect on whether what we have been doing is right, especially for agencies with the power to act but instead protect activities that harm society and the nation by losing opportunities to generate revenue by protecting illegal activities. I believe this is a serious betrayal of the King," he said.

He said that every civil servant is appointed by the King through the Constitution, and if they lack integrity by protecting illegal activities such as gambling, prostitution, and drugs, they are betraying their appointment and the current government.

"If there are those involved, whether department heads or others, please embrace the principles of the National Day spirit towards a clean and progressive Malaysia. Reflect and ask yourself if you are satisfied with the issues of leakage, corruption, and integrity," he said.

He stressed that fighting corruption and misconduct is everyone's responsibility, whether department heads, politicians, or all branches of government, including the executive, legislative, and judiciary, in upholding the spirit of integrity and refraining from corruption.

Ismail underscored that efforts to enhance the level of integrity among civil servants begin with the appointment process and that if the appointment to a position is done correctly and in accordance with the law, it ensures that integrity is better instilled at the public service level.

He also said that the role of schools in providing knowledge and exposure on integrity needs to be strengthened, and parents should educate their children about not taking what doesn't belong to them, mutual respect, and not encouraging the culture of paying bribes to get tasks done.

Ismail emphasised that achieving a respected nation requires more than economic progress and development as it is also essential for civil servants to be respected for their high level of integrity, setting an example for other countries.

"Foreigners look at Malaysia based on the strength of its civil servants. Good civil servants reflect the country's development. I'm sure that if the civil servants are not up to the mark, the country will not progress.

"I want to see Malaysian civil servants known worldwide as individuals with integrity who can contribute to the nation's development," he said. -- BERNAMA


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Sunday, August 11, 2024

Entire doping ecosystem formed in US under government indulgence: investigation report

 

While the US has ramped up efforts to discredit Chinese athletes with doping allegations, a media investigation report revealed on Saturday that a deeply entrenched doping industry has taken root in the US over recent decades, from athletes to coaches and agents, and from pharmaceutical companies to government bodies.
 
With the US indulging doping practices meanwhile struggling with domestic drug abuse, Chinese experts said Washington is throwing mud at others with its “polluted culture,” warning that global sport industry should remain vigilant against its ill intentions particularly in the next Olympics to be held on its soil.
 
The revelation by Yuyuantantian, a media arm of China Media Group, comes from a comprehensive review of US doping scandals in the past 20 years. 
 
From the outset, most US professional leagues and the National Collegiate Athletic Association have not signed the World Anti-Doping Code, leaving them beyond its control and creating a foundation for internal doping cover-up in the country. And thus from a young age, American athletes are exposed to the allure of doping, often encouraged by their coaches, agents, and sports institutions, Yuyuantantian said in the report.   
 
Coaches play a crucial role in this area, particularly in youth swimming teams, where they have been known to secretly administer painkillers and other prescription drugs under the guise of treating injuries. Many of these drugs are banned by WADA, alongside performance-enhancing steroids, the investigation report said. 
 
An earlier study by the AP found that among 61,000 US college athletes, thousands exhibited unnatural weight gain — an indication of steroid use, the report noted. “The widespread doping practices are sustained by collusion between coaches and pharmaceutical companies, forming a critical link in the doping ecosystem,” it said.
 
By the time American athletes reach the international stage, many are already addicted, the investigation has noted. The report cited American cyclist Lance Armstrong, a seven-time Tour de France champion, as a prime example. 
 
He admitted that doping helped him for each of his seven Tour de France wins, by using EPO, human growth hormone, and diuretics. He also admitted to falsifying documents saying he passed drug tests, according to media reports. 
 
The Yuyuantantian report disclosed that his team manager and doctor were complicit in the scheme, and team doctors fabricated his illnesses to justify the “legal” use of drugs.
 
The US government is the most influential manipulator behind the scenes, the investigation report said.  
 
On the global stage, it leveraged its power to protect US athletes, often ensuring they avoid testing to gain an unfair advantage. In addition, the US Olympic Committee frequently “overlooks” such actions, leading to widespread abuse of substances like testosterone, it revealed. 
 
According to media reports, US athletes applied for Therapeutic Use Exemptions (TUEs) at a rate more than ten times that of other countries. 
 
As international anti-doping efforts expanded, countries established independent agencies outside the IOC. In response, the US government enacted legislation granting its anti-doping agencies "long-arm jurisdiction," enabling them to investigate and harass athletes from other nations – in this case, the Chinese swimmers, the report said.  
 
“This stems from an arrogant sense of exceptionalism of the US, which regards itself unique and superior to others. Thus, it tries to disrupt international norms by imposing its domestic rules on the global stage, not only in sports but in almost all arenas,” Li Haidong, a professor from the China Foreign Affairs University, told the Global Times on Saturday.
 
Industry insiders have revealed that in the lead-up to the Paris Olympic Games, the US deliberately sought to stir up controversy around Chinese doping allegation by rehashing unsubstantiated reports from three years ago. This move is intended to disrupt Chinese team’s preparations for the Paris Games and even attempt to disqualify Chinese athletes.
 
The International Testing Agency (ITA) confirmed on Friday that related reports from the US have led to the excessive anti-doping tests on the Chinese Olympic swimming team.
 
The smearing of Chinese athletes is also a result of jealousy, as the US cannot bear to see their traditionally-dominant sports like swimming being surpassed by China, observers noted. This approach again mirrors the zero-sum logic that characterizes US policy in other areas.
 
What’s more, Li noted that as the US struggles with widespread issues like marijuana, doping, and prescription drug abuse, it is exporting this same “polluted culture” to the global stage. “This is an attempt to throw mud at the whole world,” Li said. 
 
Sports also are, in the mind-set of US politicians, a geopolitical tool to undermine its rivals’ soft power, the expert added, warning that the world should be vigilant against the weaponization of sports in the Paris Games as well as the Los Angeles Olympics in 2028.
 
International Olympic Committee (IOC) president Thomas Bach on Friday called on the US Anti-Doping Agency (USADA) to respect the supreme authority of the World Anti-Doping Agency (WADA), while emphasized the IOC's full confidence in WADA.

Bach made the remarks during a press conference while responding to a controversy that stems from allegations by WADA that USADA allowed athletes who violated anti-doping rules to continue competing without sanctions. In exchange for their cooperation in providing information on other doping violations, these athletes were reportedly shielded from public exposure and penalties.
 
WADA recently came under US attack, as the agency confirmed China was blameless after US media hyped a 2021 incident in which 23 Chinese swimmers tested positive for trimetazidine (TMZ) due to inadvertent contamination.

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International pressure mounts on US over its anti-doping practices

After smearing Chinese athletes in recent months over so-called doping problems, the US is now facing mounting pressure over its ...

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