5 Chinese Supercomputers outlawed: A shielded step by US.
Last Friday, the US blacklisted five Chinese organisations calling them national security threats and cutting them off from critical U.S. technology. Also in May, we came across a big announcement of US commerce department adding Chinese telecom giant Huawei to the defamed 'Entity List' as a result of US-China trade war. Over this Google also suspended access to its service of using playstore or other Google-run services.
The five Chinese companies include supercomputer maker Sugon, Wuxi Jiangnan Institute of Computing and three Sugon affiliates. Sugon and the Wuxi Institute, which the US said is owned by an army research institute, are intricated in developing next-gen “exascale” to assist with military modernisation. This technology involves tasks such as running nuclear simulations, calculating missile trajectories and hypersonic algorithms.
This blacklisting bars US firms from selling Chinese companies technology without government approval. Their activities are “contrary to the national security and foreign policy interests of the United States” as told by the Commerce Department. These blacklisted companies are heavily relying on US suppliers including chipmakers Intel, Nvidia and advanced Microdevices.
And now, it is susceptible that these organisations are spying along with Chinese government and creating a potential risk. But banning isn’t a one-way loss, Google is also suffering. Since a long time, Google has done a lot of investment in Chinese market for making reach in growing market like AI research facility, project Dragon Fly, censored version of Google search in China which is a growing market and there is a lot of investment done, all those would be a waste after these bans. Heavy investment is going to fail, most of the manufacturing market is in China, and this would result in making a new market for manufacturing which would require large costs.
The US is squeezing off access to its technology for major elements of China's next-generation supercomputing. Donald Trump has imposed 25% tariffs in Chinese imports and is planning to extend taxes on virtually everything China ships to the US. Blacklisting is going to complicate things between President Donald Trump and his Chinese counterpart Xi Jinping who are seeking to solve a trade dispute between two largest economies at G20 summit in Osaka.
If the US takes these organisations off the Entity list then everything would be normal, if not so China will certainly diminish its dependency on others, which it’s already working on. A large revenue loss will occur for Chinese business. Somehow, China has long denied any wrongdoing and let us see what happens next.
Blog by: Annu Priya
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