This illustration photo shows clouding computing technologies. (PHOTO: VCG)

By LIANG Yilian

The U.S. is making another geopolitical move following its ban on semiconductor exports to China last year. It looks to restrict China's access to cloud computing to "close loophole in chip-export controls," The Wall Street Journal reported.

While national security concerns are important, it is essential to take a broader perspective and consider the potential benefits of maintaining an open approach to global technology collaboration.

Cooperation brings benefits

Business ties between the two countries remain deep. "The one thing that hasn't changed (after the pandemic) is that the level of economic interdependence between the United States and China is still quite deep," Ken Jarrett, former President of the American Chamber of Commerce in Shanghai and U.S. Deputy Consul General in Hong Kong, said in an interview.

China and the U.S. have a deeply integrated global supply chain and rely on each other for various products and services. Restricting China's access to cloud computing and semiconductors could trigger a domino effect, causing disruptions and adverse consequences for American businesses and consumers. Maintaining a collaborative approach ensures stability and the continued growth of both economies.

More than economic benefits and cooperation, as well as competition, drive technological innovation. China has emerged as a global technical leader in several domains, including cloud computing and semiconductors. By restricting China's access to cloud computing and semiconductors, the U.S. could stifle the exchange of ideas and hinder technological advancements. Collaboration between nations leads to a healthy exchange of knowledge, expertise and resources, resulting in more robust and cutting-edge technologies.

Tech hegemony doesn't work

The U.S. semiconductor export ban on China has already shown negative consequences. U.S. allies faced detrimental effects on their chip-making industries as they heavily rely on the Chinese market. Facing the strong opposition of chip manufacturers in these regions, the U.S. is set to allow semiconductor manufacturers from there to maintain and expand chip-making operations in China, according to The Wall Street Journal. This reversal demonstrates the flawed nature of attempting to exert tech hegemony.

Moreover, the U.S. crackdown on the Chinese AI industry by restricting cloud services may not yield the desired results. China's dominant players in the cloud computing market, including Alibaba, Tencent and Huawei, have already secured significant market shares. Since Amazon and Microsoft have smaller market shares in China, the effect of the crackdown by restricting cloud services to Chinese companies may not be substantial, Xiang Ligang, Director-General of the Information Consumption Alliance, a telecom industry association, told Global Times. Therefore, isolating China through restrictions would be ineffective and counterproductive.

Addressing security concerns

Addressing cybersecurity and intellectual property concerns should not be overlooked, but a blanket restriction on China's access to cloud computing and semiconductors may not be an effective solution. Instead, the focus should be on implementing robust security protocols, fostering collaboration to develop secure systems, and enhancing bilateral agreements to protect intellectual property rights. By working together, the U.S. and China can establish frameworks that address security issues of common concern to both sides, while facilitating technological advancements.

Instead of pursuing restrictive measures, the U.S. should prioritize global collaboration in the cloud computing and semiconductor industry. Recognizing the deep economic interdependence between China and the U.S., and the importance of cooperation in driving innovation, stability and economic growth,  an open approach is the logical choice.

In an increasingly interconnected world, isolating and restricting China's access to cloud computing and semiconductors goes against the prevailing technological trends. It is imperative for the U.S. to carefully reconsider its goals.