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1. Competing in Artificial Intelligence Chips: China’s Challenge amid Technology War

Author:
Dieter Ernst
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This special report assesses the challenges that China is facing in developing its artificial intelligence (AI) industry due to unprecedented US technology export restrictions. A central proposition is that China’s achievements in AI lack a robust foundation in leading-edge AI chips, and thus the country is vulnerable to externally imposed supply disruptions. The COVID-19 pandemic has further decoupled China from international trade and technology flows. Success in AI requires mastery of data, algorithms and computing power, which, in turn, is determined by the performance of AI chips. Increasing computing power that is cost-effective and energy-saving is the indispensable third component of this magic AI triangle. Research on China’s AI strategy has emphasized China’s huge data sets as a primary advantage. It was assumed that China could always purchase the necessary AI chips from global semiconductor industry leaders. Until recently, AI applications run by leading-edge major Chinese technology firms were powered by foreign chips, mostly designed by a small group of top US semiconductor firms. The outbreak of the technology war, however, is disrupting China’s access to advanced AI chips from the United States. Drawing on field research conducted in 2019, this report contributes to the literature by addressing China’s arguably most immediate and difficult AI challenges. The report highlights China’s challenge of competing in AI, and contrasts America’s and China’s different AI development trajectories. Capabilities and challenges are assessed, both for the large players (Huawei, Alibaba and Baidu) and for a small group of AI chip “unicorns.” The report concludes with implications for China’s future AI chip development.
Topic:
Energy Policy, Science and Technology, Sanctions, and Artificial Intelligence
Political Geography:
United States, China, Asia, and North America

2. Toward Greater Pragmatism? China\'s Approach to Innovation and Standardization

Author:
Dieter Ernst
Publication Date:
08-2011
Content Type:
Policy Brief
Institution:
University of California Institute on Global Conflict and Cooperation (IGCC)
Abstract:
China\'s innovation policy and its perceived threat to American innovation and competitiveness is a hot topic in U.S.-China economic relations. The role of standardization, together with intellectual property rights and government procurement, are at the center of this conflict. Fundamental differences in their levels of development and economic institutions lead to quite different approaches to standards and innovation policy by the two countries. China\'s strategy of pursuing indigenous innovation based on local standards faces internal challenges in trying to bring together a diverse group of stakeholders with conflicting interests, as well as external pressures to adopt international standards. Enhanced cooperation on standards and innovation policies should be possible, once the United States and China accept that, while their economic and innovation systems are different, they are deeply interdependent. Both sides would benefit, creating new Chinese markets for American firms and easing technology licensing restrictions for Chinese firms.
Topic:
Economics, International Trade and Finance, Science and Technology, and Bilateral Relations
Political Geography:
United States, China, America, Asia, and North America

3. From Partial to Systemic Globalization

Author:
Dieter Ernst
Publication Date:
04-1997
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Far-reaching changes are currently occurring in the organization and location of the production of industrial goods and services, changes which are bound to have important implications for the welfare, the development potential, and the competitive position of different countries and regions. As competition cuts across national and sectoral boundaries and becomes increasingly global, firms everywhere are forced to shift from exports to international production. Today, dominance in a domestic market—even one as large as the U.S.—is no longer enough. Mutual raiding of established customer and supply bases has become an established business practice, with the result that firms are now forced to compete simultaneously in all major markets, notably in Europe, North America and Asia.
Topic:
Globalization and Industrial Policy
Political Geography:
Europe, Asia, and North America