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The US-China chip war is still escalating

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1 year ago

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The US-China chip war is still escalating


This story first appeared in China Report, MIT Technology Review’s newsletter about technology developments in China. Sign up to receive it in your inbox every Tuesday.

The temperature of the US-China tech conflict just keeps rising.

Last week, the Chinese Ministry of Commerce announced a new export license system for gallium and germanium, two elements that are used to make computer chips, fiber optics, solar cells, and other tech devices.

Most experts see the move as China’s most significant retaliation against the West’s semiconductor tech blockade, which expanded dramatically last October when the US limited the export to China of the most cutting-edge chips and the equipment capable of making them. 

Earlier this year, China responded by putting Raytheon and Lockheed Martin on a list of unreliable entities and banned domestic companies from buying chips from the American company Micron. Yet none of these moves could rival the global impact of the gallium/germanium export control. By putting a chokehold on these two raw materials, China is signaling that it, in turn, can cause pain for the Western tech system and push other countries to rethink the curbs they put on China.

But as I reported yesterday, China’s new export controls may not have much long-term impact. “Export control is not as effective if the technologies are available in other markets,” Sarah Bauerle Danzman, an associate professor of international studies at Indiana University Bloomington, told me. Since the technology to produce gallium and germanium is very mature, it won’t be too hard for mines in other countries to ramp up their production, although it will take time, investment, policy incentives, and maybe technological improvement to make the process more environmentally friendly.

So what happens now? Half of 2023 is now behind us, and even though there have been a few diplomatic events showing the US-China relationship warming up, like trips to China made by US officials Antony Blinken and Janet Yellen, the tensions on the technological front are only getting worse.

When the US instituted its chip-related export restrictions in October, it wasn’t clear how much of an impact they would have, because the US doesn’t control the entirety of the semiconductor supply chain. Analysts said one of the biggest outstanding questions was the extent to which the US could persuade its allies to join the blockade. 

Now the US has managed to get the key players on board. In May, Japan announced that it is limiting the export of 23 types of equipment used in a variety of chipmaking processes. It even went further than the original US rules. The US limited the export of tools for making the most cutting-edge chips—those of the 14-nanometer generation and under. Japan’s restrictions extend to older, less-advanced chip generations (all the way to the 45-nanometer level), which has the Chinese semiconductor industry worried that production of basic chips used in everyday products, like cars, will also be affected.

At the end of June, the Netherlands followed suit and announced that it will limit the export to China of deep ultraviolet (DUV) lithography machines used to pattern chips. That’s also an escalation of the previous rules, which since 2019 had only limited export of the most advanced extreme ultraviolet (EUV) lithography machines.

These expanding restrictions likely prompted China to take a page from its enemies’ playbook by instituting the controls on gallium and germanium. 

Yellen’s visit last week shows that this back-and-forth retaliation between China and the US-led bloc is not ending anytime soon. Both Yellen and the Chinese leaders expressed their concern at the meeting about the other side’s export controls, yet neither said anything about backing down. 

If more aggressive actions are taken soon, we may see the tech war expand out of the semiconductor field to involve things like battery technologies. As I explained in my piece on Monday, that’s where China would have a larger advantage.

Do you believe the technological tensions between the US and China will worsen from here? Let me know your thoughts at zeyi@technologyreview.com.

Catch up with China

1. Tesla is laying off some battery manufacturing workers in China as a result of the cutthroat electric-vehicle price competition in the country. (Bloomberg $)

2. China’s top EV maker, BYD, is building three new factories in Brazil to make batteries, EVs, and hybrid cars. They will be built at the location of an old Ford plant. (Quartz)

3. Shenzhen, the city often seen as the Silicon Valley of China, is facing population decline for the first time in decades. (Nikkei Asia $)

4. Five people were arrested by the Hong Kong police for involvement in creating an online shopping app to map out local businesses that support the pro-democracy movement. (Hong Kong Free Press)

5. There’s now an official app for learning how to do journalism in China—with online courses taught about the Marxist view of journalism, why the party needs to control the press, and how to be an “influencer-style journalist.” (China Media Project)

6. During her visit, Yellen sat down for dinner with six female Chinese economists. Then they were called traitors online. (Bloomberg $)

7. A new study says a rapidly growing number of scientists of Chinese descent have left the US since 2018, the year the US Department of Justice launched its “China Initiative.” (Inside Higher Ed). An investigation of the initiative by MIT Technology Review published in late 2021 showed it had shifted its focus from economic espionage to “research integrity.” The initiative was officially shut down in 2022.

8. Threads, the new Twitter competitor released by Meta, hit the top five on Apple’s China app store even though Chinese users have to access the platform with a VPN. (TechCrunch)

Lost in translation

On July 5, the famous Hong Kong singer CoCo Lee died by suicide after having battled depression for several years. The tragic incident again highlighted the importance of depression treatment, which is often inaccessible in China. As the Chinese publication Xin Kuai Bao reported, fewer than 10% of patients diagnosed with depression in China have received any kind of medical treatment. 

But in recent years, as several patents for popular Western brand-name depression drugs have expired, Chinese pharmaceutical companies have ramped up their production of local generic alternatives. There’s also a fierce race to invent home-grown treatments. Last November, the first domestically designed depression drug was approved for sale in China, marking a new era for the industry. There are 17 more domestic treatments in trials right now.

One more thing

Every time high-profile US visitors come to China, Chinese social media always fixates on one thing: what they ate. Apparently, Janet Yellen is a fan of the wild mushrooms from China’s southwest border, which her group ordered four times in one dinner. The specific mushroom, called Jian Shou Qing in China, is also known for having psychedelic effects if not cooked properly. Now the restaurant is cashing in by offering Yellen’s dinner choices as a set, branded the “God of Money” menu, according to Quartz.

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Why I became a TechTrekker

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1 year ago

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22 August 2023

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group jumps into the air with snowy mountains in the background


My senior spring in high school, I decided to defer my MIT enrollment by a year. I had always planned to take a gap year, but after receiving the silver tube in the mail and seeing all my college-bound friends plan out their classes and dorm decor, I got cold feet. Every time I mentioned my plans, I was met with questions like “But what about school?” and “MIT is cool with this?”

Yeah. MIT totally is. Postponing your MIT start date is as simple as clicking a checkbox. 

Sofia Pronina (right) was among those who hiked to the Katla Glacier during this year’s TechTrek to Iceland.

COURTESY PHOTO

Now, having finished my first year of classes, I’m really grateful that I stuck with my decision to delay MIT, as I realized that having a full year of unstructured time is a gift. I could let my creative juices run. Pick up hobbies for fun. Do cool things like work at an AI startup and teach myself how to create latte art. My favorite part of the year, however, was backpacking across Europe. I traveled through Austria, Slovakia, Russia, Spain, France, the UK, Greece, Italy, Germany, Poland, Romania, and Hungary. 

Moreover, despite my fear that I’d be losing a valuable year, traveling turned out to be the most productive thing I could have done with my time. I got to explore different cultures, meet new people from all over the world, and gain unique perspectives that I couldn’t have gotten otherwise. My travels throughout Europe allowed me to leave my comfort zone and expand my understanding of the greater human experience. 

“In Iceland there’s less focus on hustle culture, and this relaxed approach to work-life balance ends up fostering creativity. This was a wild revelation to a bunch of MIT students.”

When I became a full-time student last fall, I realized that StartLabs, the premier undergraduate entrepreneurship club on campus, gives MIT undergrads a similar opportunity to expand their horizons and experience new things. I immediately signed up. At StartLabs, we host fireside chats and ideathons throughout the year. But our flagship event is our annual TechTrek over spring break. In previous years, StartLabs has gone on TechTrek trips to Germany, Switzerland, and Israel. On these fully funded trips, StartLabs members have visited and collaborated with industry leaders, incubators, startups, and academic institutions. They take these treks both to connect with the global startup sphere and to build closer relationships within the club itself.

Most important, however, the process of organizing the TechTrek is itself an expedited introduction to entrepreneurship. The trip is entirely planned by StartLabs members; we figure out travel logistics, find sponsors, and then discover ways to optimize our funding. 

two students soaking in a hot spring in Iceland

COURTESY PHOTO

In organizing this year’s trip to Iceland, we had to learn how to delegate roles to all the planners and how to maintain morale when making this trip a reality seemed to be an impossible task. We woke up extra early to take 6 a.m. calls with Icelandic founders and sponsors. We came up with options for different levels of sponsorship, used pattern recognition to deduce the email addresses of hundreds of potential contacts at organizations we wanted to visit, and all got scrappy with utilizing our LinkedIn connections.

And as any good entrepreneur must, we had to learn how to be lean and maximize our resources. To stretch our food budget, we planned all our incubator and company visits around lunchtime in hopes of getting fed, played human Tetris as we fit 16 people into a six-person Airbnb, and emailed grocery stores to get their nearly expired foods for a discount. We even made a deal with the local bus company to give us free tickets in exchange for a story post on our Instagram account. 

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The Download: spying keyboard software, and why boring AI is best

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1 year ago

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22 August 2023

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🧠


This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology.

How ubiquitous keyboard software puts hundreds of millions of Chinese users at risk

For millions of Chinese people, the first software they download onto devices is always the same: a keyboard app. Yet few of them are aware that it may make everything they type vulnerable to spying eyes. 

QWERTY keyboards are inefficient as many Chinese characters share the same latinized spelling. As a result, many switch to smart, localized keyboard apps to save time and frustration. Today, over 800 million Chinese people use third-party keyboard apps on their PCs, laptops, and mobile phones. 

But a recent report by the Citizen Lab, a University of Toronto–affiliated research group, revealed that Sogou, one of the most popular Chinese keyboard apps, had a massive security loophole. Read the full story. 

—Zeyi Yang

Why we should all be rooting for boring AI

Earlier this month, the US Department of Defense announced it is setting up a Generative AI Task Force, aimed at “analyzing and integrating” AI tools such as large language models across the department. It hopes they could improve intelligence and operational planning. 

But those might not be the right use cases, writes our senior AI reporter Melissa Heikkila. Generative AI tools, such as language models, are glitchy and unpredictable, and they make things up. They also have massive security vulnerabilities, privacy problems, and deeply ingrained biases. 

Applying these technologies in high-stakes settings could lead to deadly accidents where it’s unclear who or what should be held responsible, or even why the problem occurred. The DoD’s best bet is to apply generative AI to more mundane things like Excel, email, or word processing. Read the full story. 

This story is from The Algorithm, Melissa’s weekly newsletter giving you the inside track on all things AI. Sign up to receive it in your inbox every Monday.

The ice cores that will let us look 1.5 million years into the past

To better understand the role atmospheric carbon dioxide plays in Earth’s climate cycles, scientists have long turned to ice cores drilled in Antarctica, where snow layers accumulate and compact over hundreds of thousands of years, trapping samples of ancient air in a lattice of bubbles that serve as tiny time capsules. 

By analyzing those cores, scientists can connect greenhouse-gas concentrations with temperatures going back 800,000 years. Now, a new European-led initiative hopes to eventually retrieve the oldest core yet, dating back 1.5 million years. But that impressive feat is still only the first step. Once they’ve done that, they’ll have to figure out how they’re going to extract the air from the ice. Read the full story.

—Christian Elliott

This story is from the latest edition of our print magazine, set to go live tomorrow. Subscribe today for as low as $8/month to ensure you receive full access to the new Ethics issue and in-depth stories on experimental drugs, AI assisted warfare, microfinance, and more.

The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 How AI got dragged into the culture wars
Fears about ‘woke’ AI fundamentally misunderstand how it works. Yet they’re gaining traction. (The Guardian) 
+ Why it’s impossible to build an unbiased AI language model. (MIT Technology Review)
 
2 Researchers are racing to understand a new coronavirus variant 
It’s unlikely to be cause for concern, but it shows this virus still has plenty of tricks up its sleeve. (Nature)
+ Covid hasn’t entirely gone away—here’s where we stand. (MIT Technology Review)
+ Why we can’t afford to stop monitoring it. (Ars Technica)
 
3 How Hilary became such a monster storm
Much of it is down to unusually hot sea surface temperatures. (Wired $)
+ The era of simultaneous climate disasters is here to stay. (Axios)
+ People are donning cooling vests so they can work through the heat. (Wired $)
 
4 Brain privacy is set to become important 
Scientists are getting better at decoding our brain data. It’s surely only a matter of time before others want a peek. (The Atlantic $)
+ How your brain data could be used against you. (MIT Technology Review)
 
5 How Nvidia built such a big competitive advantage in AI chips
Today it accounts for 70% of all AI chip sales—and an even greater share for training generative models. (NYT $)
+ The chips it’s selling to China are less effective due to US export controls. (Ars Technica)
+ These simple design rules could turn the chip industry on its head. (MIT Technology Review)
 
6 Inside the complex world of dissociative identity disorder on TikTok 
Reducing stigma is great, but doctors fear people are self-diagnosing or even imitating the disorder. (The Verge)
 
7 What TikTok might have to give up to keep operating in the US
This shows just how hollow the authorities’ purported data-collection concerns really are. (Forbes)
 
8 Soldiers in Ukraine are playing World of Tanks on their phones
It’s eerily similar to the war they are themselves fighting, but they say it helps them to dissociate from the horror. (NYT $)
 
9 Conspiracy theorists are sharing mad ideas on what causes wildfires
But it’s all just a convoluted way to try to avoid having to tackle climate change. (Slate $)
 
10 Christie’s accidentally leaked the location of tons of valuable art 🖼📍
Seemingly thanks to the metadata that often automatically attaches to smartphone photos. (WP $)

Quote of the day

“Is it going to take people dying for something to move forward?”

—An anonymous air traffic controller warns that staffing shortages in their industry, plus other factors, are starting to threaten passenger safety, the New York Times reports.

The big story

Inside effective altruism, where the far future counts a lot more than the present

" "

VICTOR KERLOW

October 2022

Since its birth in the late 2000s, effective altruism has aimed to answer the question “How can those with means have the most impact on the world in a quantifiable way?”—and supplied methods for calculating the answer.

It’s no surprise that effective altruisms’ ideas have long faced criticism for reflecting white Western saviorism, alongside an avoidance of structural problems in favor of abstract math. And as believers pour even greater amounts of money into the movement’s increasingly sci-fi ideals, such charges are only intensifying. Read the full story.

—Rebecca Ackermann

We can still have nice things

A place for comfort, fun and distraction in these weird times. (Got any ideas? Drop me a line or tweet ’em at me.)

+ Watch Andrew Scott’s electrifying reading of the 1965 commencement address ‘Choose One of Five’ by Edith Sampson.
+ Here’s how Metallica makes sure its live performances ROCK. ($)
+ Cannot deal with this utterly ludicrous wooden vehicle. 
+ Learn about a weird and wonderful new instrument called a harpejji.



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Why we should all be rooting for boring AI

Published

1 year ago

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22 August 2023

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Why we should all be rooting for boring AI


This story originally appeared in The Algorithm, our weekly newsletter on AI. To get stories like this in your inbox first, sign up here.

I’m back from a wholesome week off picking blueberries in a forest. So this story we published last week about the messy ethics of AI in warfare is just the antidote, bringing my blood pressure right back up again. 

Arthur Holland Michel does a great job looking at the complicated and nuanced ethical questions around warfare and the military’s increasing use of artificial-intelligence tools. There are myriad ways AI could fail catastrophically or be abused in conflict situations, and there don’t seem to be any real rules constraining it yet. Holland Michel’s story illustrates how little there is to hold people accountable when things go wrong.  

Last year I wrote about how the war in Ukraine kick-started a new boom in business for defense AI startups. The latest hype cycle has only added to that, as companies—and now the military too—race to embed generative AI in products and services. 

Earlier this month, the US Department of Defense announced it is setting up a Generative AI Task Force, aimed at “analyzing and integrating” AI tools such as large language models across the department. 

The department sees tons of potential to “improve intelligence, operational planning, and administrative and business processes.” 

But Holland Michel’s story highlights why the first two use cases might be a bad idea. Generative AI tools, such as language models, are glitchy and unpredictable, and they make things up. They also have massive security vulnerabilities, privacy problems, and deeply ingrained biases.  

Applying these technologies in high-stakes settings could lead to deadly accidents where it’s unclear who or what should be held responsible, or even why the problem occurred. Everyone agrees that humans should make the final call, but that is made harder by technology that acts unpredictably, especially in fast-moving conflict situations. 

Some worry that the people lowest on the hierarchy will pay the highest price when things go wrong: “In the event of an accident—regardless of whether the human was wrong, the computer was wrong, or they were wrong together—the person who made the ‘decision’ will absorb the blame and protect everyone else along the chain of command from the full impact of accountability,” Holland Michel writes. 

The only ones who seem likely to face no consequences when AI fails in war are the companies supplying the technology.

It helps companies when the rules the US has set to govern AI in warfare are mere recommendations, not laws. That makes it really hard to hold anyone accountable. Even the AI Act, the EU’s sweeping upcoming regulation for high-risk AI systems, exempts military uses, which arguably are the highest-risk applications of them all. 

While everyone is looking for exciting new uses for generative AI, I personally can’t wait for it to become boring. 

Amid early signs that people are starting to lose interest in the technology, companies might find that these sorts of tools are better suited for mundane, low-risk applications than solving humanity’s biggest problems.

Applying AI in, for example, productivity software such as Excel, email, or word processing might not be the sexiest idea, but compared to warfare it’s a relatively low-stakes application, and simple enough to have the potential to actually work as advertised. It could help us do the tedious bits of our jobs faster and better.

Boring AI is unlikely to break as easily and, most important, won’t kill anyone. Hopefully, soon we’ll forget we’re interacting with AI at all. (It wasn’t that long ago when machine translation was an exciting new thing in AI. Now most people don’t even think about its role in powering Google Translate.) 

That’s why I’m more confident that organizations like the DoD will find success applying generative AI in administrative and business processes. 

Boring AI is not morally complex. It’s not magic. But it works. 

Deeper Learning

AI isn’t great at decoding human emotions. So why are regulators targeting the tech?

Amid all the chatter about ChatGPT, artificial general intelligence, and the prospect of robots taking people’s jobs, regulators in the EU and the US have been ramping up warnings against AI and emotion recognition. Emotion recognition is the attempt to identify a person’s feelings or state of mind using AI analysis of video, facial images, or audio recordings. 

But why is this a top concern? Western regulators are particularly concerned about China’s use of the technology, and its potential to enable social control. And there’s also evidence that it simply does not work properly. Tate Ryan-Mosley dissected the thorny questions around the technology in last week’s edition of The Technocrat, our weekly newsletter on tech policy.

Bits and Bytes

Meta is preparing to launch free code-generating software
A version of its new LLaMA 2 language model that is able to generate programming code will pose a stiff challenge to similar proprietary code-generating programs from rivals such as OpenAI, Microsoft, and Google. The open-source program is called Code Llama, and its launch is imminent, according to The Information. (The Information) 

OpenAI is testing GPT-4 for content moderation
Using the language model to moderate online content could really help alleviate the mental toll content moderation takes on humans. OpenAI says it’s seen some promising first results, although the tech does not outperform highly trained humans. A lot of big, open questions remain, such as whether the tool can be attuned to different cultures and pick up context and nuance. (OpenAI)

Google is working on an AI assistant that offers life advice
The generative AI tools could function as a life coach, offering up ideas, planning instructions, and tutoring tips. (The New York Times)

Two tech luminaries have quit their jobs to build AI systems inspired by bees
Sakana, a new AI research lab, draws inspiration from the animal kingdom. Founded by two prominent industry researchers and former Googlers, the company plans to make multiple smaller AI models that work together, the idea being that a “swarm” of programs could be as powerful as a single large AI model. (Bloomberg)

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