Xi,Biden’s duel on Semi-conductors

By Qamar Bashir

During an interactive session hosted by the Chinese embassy, Mr. Victor Zhikai Gao, Vice President of the Centre for China and Globalization (CCG), covered several significant Chinese initiatives and projects. He discussed the Belt and Road initiative’s impact on partner countries, emphasizing its benefits. Additionally, he highlighted China's rapid progress and development, particularly focusing on the crucial role of the China-Pakistan Economic Corridor (CPEC) in infrastructure, energy, fiber optics, Gwadar port, and airport development.

Moreover, Mr. Gao emphasized the futility of traditional warfare between China and the USA. He underscored that despite both countries’ military strengths, the crucial battlefronts of this post-modern era would likely unfold in economic domains.
He particularly highlighted the significance of the anticipated summit between US
President Mr. Biden and Chinese President Mr. Xi Jinping, slated to occur during
the Asia Pacific Economic Cooperation meetings (APEC) in San Francisco,
California, on Wednesday, November 15th, 2023. This summit holds immense
importance as it marks a pivotal moment where key discussions between the two
nations’ leaders are expected to transpire.
The upcoming meeting of these influential leaders won’t solely revolve around
specific contentious issues such as the Taiwan matter, substantial military
hardware sales to Taiwan, recent incidents like the downing of a Chinese balloon
by US forces, or the efforts to avert potential military confrontations. Instead, the
discussions are expected to encompass broader and critical topics, notably the trade
embargo imposed by the US on Chinese companies and the limitations on
semiconductor sales to China.

Mr. Xi Ping may try to alleviate the concerns with regards US’s suspicion that
Chinese companies might engage in espionage, potentially spying on American
citizens or businesses and apprehensions, about intellectual property theft from
American and European companies which are however seen by China as an
attempt to impede China’s ascent.
During his hour-long address, Mr. Victor Gao primarily emphasized that Mr. Xi
has in his pocket a lot of bargaining chips; the Chinese supremacy in ideology,
economics, trade, and military prowess and its commitment to global peace and
development through capital-intensive initiatives launched in collaboration with
partner countries worldwide.
Gao noted that undeterred by the embargoes and combined USA, Europe
opposition China has embarked on a mission to reduce its dependence on critical
and sensitive technologies, notably semiconductor chips.
He added that the US's actions, using its influence to block approximately $30
billion worth of semiconductor chip exports to China annually, aimed to hinder
China's advancements in high-tech domains such as space and military
technologies, artificial intelligence, big data management, and quantum computing
will eventually fail and underscored the need for collaboration and partnerships in
these emerging fields which could potentially propel the world into an
unprecedented era of rapid development and prosperity unmatched in history.
Mr. Gao highlighted China's resilience against embargoes, citing the development
of their own versions of cell phones and iPhones capable of satellite
communication in the highest orbits. He emphasized the revolutionary potential of
this technology, envisioning a transformation in global communication and
information access. If fully realized, this innovation could expand cell phone
coverage to unreachable areas, enhance reliability in emergencies, boost internet
speeds, and introduce new services like global roaming and direct device-to-device
communication. This advancement promises increased accessibility, reliability,
and speed in communication, significantly impacting both lives and the global
economy.

As of now, according to Mr. Gao, only Huawei, a Chinese company, has achieved
direct communication capability with high-orbit satellites. In contrast, the US and
Russia, despite heavy investments in research and development, have focused on
different satellite technologies. The US is directing efforts towards "non-
geostationary satellites" (NGS), closer to Earth than traditional geostationary ones,
while Russia concentrates on "medium Earth orbit" (MEO) satellites, positioned
between NGS and low Earth orbits (LEO). Mr. Gao argued that these approaches
are inferior to the Chinese strategy on several fronts.
China's cell phone market already holds the global top spot, and the capacity to
communicate with high-orbit satellites would provide Chinese cell phone
companies a significant edge.
This advantage lies in their ability to offer services worldwide, irrespective of
existing cellular networks. Satellites boast higher resilience than cellular towers,
ensuring more dependable services, particularly in remote or disaster-prone areas.
Moreover, this technology promises faster internet speeds, enabling Chinese cell
phone companies to deliver swifter data rates and improved access to online
content. Additionally, it opens avenues for novel services like global roaming and
direct device-to-device communication, granting these companies a competitive
edge over their rivals.
Beyond the economic advantages, advancing cell phone technology for direct
satellite communication would significantly decrease China's reliance on foreign
tech, fostering greater self-sufficiency. It offers a new avenue for communication
within China's military and security apparatus, amplifying its global influence and
providing an alternative method to assert power and influence worldwide, yielding
numerous economic, strategic, and security benefits.
Moreover, China's mesmerizing strides in research and development transcend
conventional boundaries. Their pursuit is poised to revolutionize human endeavors,
catapulting humanity into an era of unimaginable progress and development. These
efforts hold the potential to entirely transform current practices and methodologies.
In particular, China's substantial investment in quantum computing, leveraging
semiconductor technology, is noteworthy. Their focus spans from creating qubits
(the fundamental units of information for quantum computers) to developing the

intricate circuits linking these qubits and the software essential for quantum
computer operations. This commitment signifies an acceleration toward a
technological frontier that could redefine the very fabric of human innovation and
achievement.
China's robust investment in quantum computing is driven by the belief that it will
revolutionize diverse industries like medicine, finance, and artificial intelligence.
The potential applications span from developing groundbreaking drugs to refining
financial algorithms and enhancing AI systems. Despite the complexity and
challenges inherent in developing quantum computers, China's heavy investment
stems from the immense rewards it foresees, positioning itself to lead in this realm
for years to come.
Semiconductors and quantum computing stand as pivotal technologies crucial for
the future global economy and military capabilities. As a result, both the US and
China are significantly investing in their development, leading to strained relations
between the two nations.
The US expresses concerns about China's alleged intellectual property theft and
potential military utilization of these technologies. Conversely, China is
apprehensive about the US's attempts to constrain its ascendancy and maintain its
technological edge.
China perceives these actions as hindrances to its economic growth and aspirations
of becoming a global technology leader. This mutual unease has contributed to
strained relations between the two countries in these critical technological
domains.
To reconcile their disparities in semiconductors and quantum computers, the US
and China could initiate collaborative measures. Establishing a joint working group
to define shared standards and regulations is a key starting point.
Transparency in research and development is vital, necessitating enhanced public
disclosure of programs. Implementing a hotline to report intellectual property theft
and agreeing on a moratorium for military use of these technologies could mitigate
conflicts. Cooperation requires joint efforts despite challenges, offering substantial
benefits compelling both nations to pursue collaboration.

Resolving differences and moving away from antagonistic stances between the US
and China holds immense global significance. Their partnership has the potential
to drive innovation, propel technological advancements, and foster progress across
industries, benefiting not just their populations but also advancing global
development.
Collaboration could effectively address critical global challenges like climate
change, public health crises, and sustainable development.
Moreover, a cooperative stance could ease geopolitical tensions, reducing broader
repercussions across regions. This collaboration will also set a precedent for other
countries which will help in promoting a more unified global community founded on shared interests and mutual respect.

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