U.S. Takes Action Against China’s Tech Growth: Blocks Open Source Exports, Pressures Microsoft’s Move

House China Task Force Recommends Government Control of Open Source RISC-V Technology
Authorities Question Microsoft About Relocating or Closing Beijing Research Institute
Executive Order Banning Investment in China Signed Last August to Take Effect Soon
Huawei Ends Lobbying Efforts in the U.S.

The U.S. is making strenuous efforts to curb China’s ‘technology dominance.’ The U.S. government and Congress are considering controlling the export of ‘RISC-V,’ an open-source technology related to semiconductor design, and reportedly pressuring Microsoft (MS) to relocate or close its Beijing Research Institute.

The New York Times (NYT) reported on the 10th (local time) that the U.S. House China Special Committee recommended last month that the government include the semiconductor instruction set known as RISC-V in the list of items under control for export to China.

RISC-V is an open-source technology developed by the University of California, Berkeley (UC Berkeley), designed to enable semiconductors to perform specific operations according to instructions. It is particularly used in designing processors for devices such as smartphones, disk drives, Wi-Fi routers, and tablets.

Democratic Representative Raja Krishnamoorthi, a member of the China Task Force, pointed out, “The Chinese Communist Party is already trying to use RISC-V to circumvent export controls,” and added, “RISC-V stakeholders should focus on China’s technological development.”

However, there are negative views on controlling open source, as there is no precedent. Dave Ditzel, Chief Technology Officer (CTO) of semiconductor startup Esperanto Technologies, criticized it as “a foolish thing,” comparing it to “banning the alphabet because Chinese people can read books on nuclear weapons written in English.”

In addition, the U.S. is pressuring Microsoft to relocate or close its Beijing Research Institute. Since last year, executives, including CEO Satya Nadella, have been fielding inquiries from current and former government officials about the feasibility of maintaining the research institute.

The advanced research institute that Microsoft opened in Beijing in 1998 is considered one of the most important artificial intelligence (AI) research institutes in the world. At the time, Microsoft’s founder Bill Gates saw it as an “opportunity to leverage China’s deep talent pool.” However, as the U.S. raises the level of semiconductor control against China, Microsoft also finds itself in a less-than-ideal position.

In response, Dr. Peter Lee of Microsoft Research, which oversees eight research institutes worldwide, stated, “We are committed to world-class research,” and added, “We expect to continue our research.”

Meanwhile, an executive order banning U.S. investment in China signed by President Biden last August, is expected to take effect in a few months. At the time, President Biden ordered the Treasury Department to establish regulations banning U.S. investment in companies suspected of aiding China’s next-generation weapons development through the executive order. This is expected to result in unprecedented strict restrictions on overseas investment flows.

In the face of these circumstances China’s Huawei Technologies, which had been striving to escape U.S. regulations, has finally decided to halt its lobbying efforts in the U.S. Bloomberg reported that the last two lobbyists remaining at Huawei resigned in recent months.

During its heyday, Huawei spent more than $13 million (about 172 billion won) on lobbying activities over ten years, employing nine lobbying firms and PR representatives, but eventually surrendered to the strengthening U.S. regulations.

Chris Pereira, founder of consulting firm Impact, which previously handled Huawei’s PR, diagnosed, “The U.S. market is not a place where Huawei will find a breakthrough shortly.”

By. Dae Young Ko