lundi 19 mars 2018

Chinese Paranoia

China’s Distorted Vision of the World

China's Distorted Vision of the World
By Daniel Wagner

The emergence of any new global power often profoundly shifts the political and economic landscape and causes considerable discomfort among the established order. 
China’s resurgence is doing that, but apart from the inevitable uncertainty and tension associated with any shift in global power, much of the angst other nations in Asia and around the world are feeling with respect to Beijing’s rise is its failure to acknowledge a willingness or desire to play by many of the same rules that the rest of the world plays by.
China’s leaders nurse a profound grievance against perceived “colonialists” and “aggressors,” part of a well-conceived strategy to portray China as needing to constantly be on the defensive. 
On one hand, Beijing seeks to leverage benefits consistent with being a developing country, playing upon the West’s historical guilt over colonialism while exploiting its continued belief that economic development will inexorably lead to pluralism. 
On the other hand, it does not hesitate to attempt to parlay its growing power into influence whenever and wherever it can, in a Janus-like strategy that gives Beijing leeway and flexibility in crafting its international political and economic policy on its own terms.
At home the Chinese Communist Party (CCP) remains deeply paranoid that its rule could fall apart at any time, even though – given its vise-like control over the Chinese people, economy and information flow – it must realize that this is an extremely remote possibility; The CCP’s perpetuation of state capitalism ensures the political survival of the ruling class. 
As a government that now presides over the second largest (soon to be the largest) economy in the world — and one that depends intimately on flows of international goods and capital — the CCP no longer simply practices state capitalism at home, it applies it globally with great success.
Although the West has long played mercantilist games, it gradually migrated toward the belief that liberalization of international markets is mutually beneficial for all countries. 
But China continues to see international economics as a zero-sum game, finding its “developing” status a convenient cloak and justification for the application of global state capitalism. 
It engages in beggar-thy-neighbor policies it deems advantageous, and distorts the world’s markets according to the dictates of its political demands, while dismissing criticism of such behavior as unfair to a developing country. 
Similarly, on political issues, China portrays naked self interest as the reasonable demands of a developing country and displays this behavior in nearly every arena in which it interacts with the world, from foreign aid and investment to multilateral institutions and international relations.
The deliberate undervaluation of the yuan in the previous decade pointed to further distortions of international markets by China’s state capitalism. 
The Peterson Institute for International Economics estimated that the yuan was undervalued by between 20 and 40 percent at the time, amounting to a massive export subsidy. 
However, the yuan’s undervaluation was just the tip of the iceberg. 
As importantly, Chinese banks receive a hidden subsidy: a wide spread between the rates paid on household deposits and the rates banks charge for loans. 
Domestic bankers, who are in effect state employees (given that the banking system is largely government run) funnel the artificially cheap money to state-owned enterprises. 
Since households have no investment alternative to domestic banks, they in effect provide a huge subsidy to Chinese industry. 
The CCP’s state capitalism mandates growth and employment through exports and investment at all costs in order to ensure its political supremacy.
Politically, China is an irredentist power that arguably has done more to advance global nuclear proliferation than any other state, while routinely doing business with some of the world’s worst governments. 
Apart from the issues of Taiwan and the South China Sea, China lays claim to much of India’s state of Arunachal Pradesh and caused major jitters in 2009 with incursions into the territory combined with strident rhetoric. 
It has blocked Asian Development Bank projects approved for India over the issue. 
It helped Pakistan develop its nuclear arsenal and ballistic missile technology. 
The largest recipients of Chinese military aid have in the past been India’s neighbors, including Myanmar, Pakistan, Nepal, Bangladesh, and Sri Lanka. 
India fears that China remains engaged in a concerted campaign to undermine and contain it. 
In addition, China continues developing its “string of pearls” strategy in the Indian Ocean, investing significant resources to develop deep water ports in the Bay of Bengal, the Arabian Sea, Pakistan, Sri Lanka, and the Seychelles. 
These appear to be a basis for the projection of a powerful naval presence into what India considers its backyard.
Meanwhile, China blocks action against or actively supports a rogue’s gallery of nations, among them Iran, North Korea, Sudan, and Zimbabwe. 
It claims it has no influence over their actions, based on its policy of non-interference, but China’s support clearly requires a quid pro quo, be it natural resource wealth, business ties, or a geopolitically strategic use. 
China has avoided sanctions from the international community, partly due to the image it has cultivated of itself as a non-interfering developing country. 
While the West has also projected its power and dealt with equally noxious states, domestic political constraints make such “deals with the devil” increasingly difficult to sell to electorates attuned to human rights, ethics, and governance, and who are provided with the freedom of speech to object to their governments’ actions. 
No such freedom exists in China.
As long as the CCP continues to govern, China will continue to comport itself according to its zero-sum vision of the world. 
And wit Xi Jinping now president for life, the most the West can hope for is that the CCP’s interests converge toward those of the larger globalized world. 
Even as China speaks of a peaceful rise within the existing international structure, its impertinent behavior belies the West’s desire to have faith in its words.
Indeed, many nations around the world appear to be running out of patience with China’s uncompromising approach to the promotion of its own self-interest. 
Of course, other leading nations act in their own self-interest, but they do not have the same disdain for human rights, the same desire to control their own people, or to create their own set of rules to abide by.

China’s New Frontiers in Dystopian Tech

Facial-recognition technologies are proliferating, from airports to bathrooms.
By Rene Chun

Dystopia starts with 23.6 inches of toilet paper. 
That’s how much the dispensers at the entrance of the public restrooms at Beijing’s Temple of Heaven dole out in a program involving facial-recognition scanners—part of the president’s “Toilet Revolution,” which seeks to modernize public toilets. 
Want more? 
Forget it. 
If you go back to the scanner before nine minutes are up, it will recognize you and issue this terse refusal: “Please try again later.”
China is rife with face-scanning technology worthy of Black Mirror
Don’t even think about jaywalking in Jinan, the capital of Shandong province. 
Last year, traffic-management authorities there started using facial recognition to crack down. 
When a camera mounted above one of 50 of the city’s busiest intersections detects a jaywalker, it snaps several photos and records a video of the violation. 
The photos appear on an overhead screen so the offender can see that he or she has been busted, then are cross-checked with the images in a regional police database. 
Within 20 minutes, snippets of the perp’s ID number and home address are displayed on the crosswalk screen. 
The offender can choose among three options: a 20-yuan fine (about $3), a half-hour course in traffic rules, or 20 minutes spent assisting police in controlling traffic. 
Police have also been known to post names and photos of jaywalkers on social media.
The system seems to be working: Since last May, the number of jaywalking violations at one of Jinan’s major intersections has plummeted from 200 a day to 20. 
Cities in the provinces of Fujian, Jiangsu, and Guangdong are also using facial-recognition software to catch and shame jaywalkers.
Across the country, other applications of the technology are proliferating. 
Many exist somewhere in the range between helpful and unsettling: A “smart boarding system” from the tech giant Baidu reduces airport check-in to a one-second face scan; at KFC China’s “smart restaurant” in Beijing, customers stand in front of a screen, have their face scanned (again, Baidu is part of the joint endeavor), and receive menu suggestions based on their age, sex, and facial expression (“crispy chicken hamburger,” roasted chicken wings, and a Coke for a 20-something male’s lunch; porridge and soy milk for a middle-aged woman’s breakfast). 
A female-only university dormitory has even employed facial recognition to keep nonresidents out.
The technology’s veneer of convenience conceals a dark truth: Quietly and very rapidly, facial recognition has enabled China to become the world’s most advanced surveillance state. 
A hugely ambitious new government program called the “social credit system” aims to compile unprecedented data sets, including everything from bank-account numbers to court records to internet-search histories, for all Chinese citizens. 
Based on this information, each person could be assigned a numerical score, to which points might be added for good behavior like winning a community award, and deducted for bad actions like failure to pay a traffic fine. 
The goal of the program, as stated in government documents, is to “allow the trustworthy to roam everywhere under heaven while making it hard for the discredited to take a single step.”
All sorts of data will feed into this new program, but facial recognition (along with gait analysis and voice recognition, also enabled by rapid advances in machine learning and cloud computing) has the potential to one day give it something like omniscience
China’s government and commercial sectors make available to each other the endless streams of personal information they gather. 
Because companies have access to vast amounts of consumer data, industry experts predict that in the coming months Chinese facial-recognition software will become even more accurate. 
Western companies may be exploiting the same machine-learning technology, but nobody is rolling it out like the Chinese.
According to Maya Wang, a senior researcher for Human Rights Watch’s Asia division, China’s domestic surveillance is far more advanced than most Chinese citizens realize. 
“People in China don’t know 99.99 percent of what’s going on in terms of state surveillance,” she says. 
“Most people think they can say what they want and live freely without being monitored, but that’s largely an illusion.”

vendredi 16 mars 2018

Chinese Hackers Hit U.S. Firms Linked to South China Sea Dispute

Victims are in maritime industries with South China Sea ties
By David Tweed

Chinese hackers have launched a wave of attacks on mainly U.S. engineering and defense companies linked to the disputed South China Sea, the cybersecurity firm FireEye Inc. said.
The suspected Chinese cyber-espionage group dubbed TEMP.Periscope appeared to be seeking information that would benefit the Chinese government, said FireEye, a U.S.-based provider network protection systems. 
The hackers have focused on U.S. maritime entities that were either linked to -- or have clients operating in -- the South China Sea, said Fred Plan, senior analyst at FireEye in Los Angeles.
“They are going after data that can be used strategically, so it is line with state espionage,” said Plan, whose firm has tracked the group since 2013. 
“A private entity probably wouldn’t benefit from the sort of data that is being stolen.”
The TEMP.Periscope hackers were seeking information in areas like radar range or how precisely a system in development could detect activity at sea, Plan said. 
The surge in attacks picked up pace last month and was ongoing.

Increased Attacks
FireEye declined to name any targets. 
Although most were based in the U.S., organizations in Europe and at least one in Hong Kong were also affected, the firm said.
Plan said Chinese cyber-attacks on U.S. targets has picked up in recent months, after both sides agreed not to attack civilian entities. 
The 2015 deal to tamp down economic espionage was hammered out between then-U.S. President Barack Obama and Xi Jinping.
The U.S. indicted five Chinese military officials in 2014 on charges that they stole trade secrets from companies including Westinghouse Electric Co. and United States Steel Corp. after hacks were detected by Mandiant, a unit of FireEye. 

Strategic Data
Data sought in the latest incidents could be used, for instance, to determine how closely a vessel could sail to a geographical feature, Plan said. 
It is definitely the case that they can use this information for strategic decision-making,” he said.
The U.S. Navy sometimes conducts so-called freedom of navigation operations to challenge Chinese claims to more than 80 percent of the South China Sea -- one of the world’s busiest trading routes. China has reclaimed some 3,200 acres (1,290 hectares) of land in the waters and built ports, runways and other military infrastructure on seven artificial features it has created.
China has been involved in other attacks related to the South China Sea. 
In 2015, during a week-long hearing on a territorial dispute in the water, Chinese malware attacked the website of the Permanent Court of Arbitration in the Hague, taking it offline.
The latest attacks were carried out using a variety of techniques including “spear-phishing,” in which emails with links and attachments containing malware are used to open back doors into computer networks. 
In some examples, the emails were made to look as if they originated from a “big international maritime company,” Plan said.
FireEye said in a separate report that government offices, media and academic institutions have been attacked, along with engineering and defense companies. 
Plan declined to comment when asked whether the U.S. Navy was among the targets.
“Given the type of organizations that have been targeted -- the organizations and government offices -- it is most likely the case that TEMP.Periscope is operating on behalf of a government office,” Plan said.

Chinese Peril

'Methodical and strategic': Incoming US ambassador warns of China influence
By Fergus Hunter

Admiral Harry Harris in Canberra earlier this month.

The incoming United States ambassador to Australia, Admiral Harry Harris, has issued a stark warning about China's intentions in the Asia-Pacific, accusing the resurgent power of bullying regional neighbours by economic, political and military means.
Admiral Harris, a well-known defence hawk who President Donald Trump picked last month to be the next US envoy in Canberra, also said there were lessons to be learnt from Chinese Communist Party-linked influence in Australia.
"China is leveraging military modernisation, influence operations and predatory economics to coerce neighbouring countries to reorder the Indo-Pacific to their advantage," Admiral Harris, the commander of US forces in the Pacific, told a Senate Armed Services Committee hearing in Washington, DC.

"While some view China's actions in the East and South China Seas as opportunistic, I do not. I view them as co-ordinated, methodical and strategic, using their military and economic power to erode the free and open international order."
In recent years, China has made ambitious claims over disputed waters in Asia, building and militarising artificial islands in the South China Sea and antagonising neighbouring countries that also claim sovereignty over the territory.
Asked about Chinese influence in other countries, Admiral Harris said "it is real in Australia".
"I believe there are lessons to be learnt in the Australian case that are applicable to our situation," he said.
The Australian debate about China-linked influence in politics, academia and media has been closely watched in the US and other Western countries, in particular the fate of former Labor senator Sam Dastyari, who resigned following revelations concerning his links to a CCP-linked political donor.
Admiral Harris labelled Australia "one of the keys to a rules-based international order" and also warned that the US would have to keep pace with China's rapid military build-up or it would "struggle to compete with the People's Liberation Army on future battlefields"
He is well-respected in Australia's political, defence and foreign policy communities but his years of criticism of China have irritated Xi Jinping's authoritarian government.
Chinese state-owned media have accused the commander of being the "most prejudiced" figure in the US military since World War II, "sowing discord", and being a publicity seeker. 
They have also noted his mother is Japanese and suggested this fuels his hostility towards China.
Admiral Harris' imminent arrival in Canberra will see the post filled for the first time since September 2016, when the Obama-appointed John Berry stepped down.
The Harris appointment is a strong signal of the Trump administration's intentions in the region. 
Over recent months, the US has made clear that confronting China's growing economic and military power is a top priority in its defence and national security strategies.

East Turkestan

Uighurs Around the World Protest China's Aggressive Security Crackdown

BEIJING — Members of the Uighur Muslim ethnic group held demonstrations in cities around the world to protest a sweeping Chinese surveillance and security campaign that has sent thousands of their people into detention and political indoctrination centers.
Overseas Uighur activists said they planned demonstrations Thursday in 14 countries in total, including the U.S., Australia and Turkey.
More than a hundred Uighur protesters gathered at a plaza near the United Nations in New York to call on the body to protect their culture against Chinese government efforts to assimilate the Turkic-speaking people. 
Elsewhere, hundreds of Uighur women on Istanbul’s Istiklal Street and in front of Sydney Town Hall chanted and waved blue flags, the symbol for East Turkistan.
China has rolled out one of the world’s most aggressive policing programs in the Uighurs’ homeland of East Turkestan, a vast region in the country’s northwest. 
Chinese officials say the crackdown is necessary to stamp out a decades-long separatist movement and, more recently, Islamic extremism seeping into the region. 
Hundreds have died in violent clashes in recent years that the government blames on "separatist" militants.
Growing resentment against authorities in China, and the call of Islamist Uighur militant groups, has also attracted thousands of Uighurs to travel to Syria in recent years. 
But Uighur activists and international rights groups say the far-reaching security campaign, which has accelerated markedly since 2016, exacerbates tensions and unfairly targets the entire Uighur population of more than 10 million.
“The Chinese government is using the war against terrorism very effectively, using that to portray the Uighur as a terrorist,” said Rushan Abbas, the organizer of the New York protest who showed up with her children. 
“In actuality, the Chinese government is the one who’s acting the terrorist against the Uighur.”
Many overseas Uighurs say that their relatives in China have been sent to an extrajudicial network of political indoctrination centers for months at a time without formal charges or for reasons unrelated to separatist activity — such as communicating with relatives abroad.
“Can you imagine a place where millions are taken into camps without the involvement of courts?” said Seyit Tumturk, who helped organize the Istanbul rally.
Allegations of widespread abuse in the centers, including unexplained deaths, have been rife but are almost impossible to confirm, given the extreme level of surveillance and government obstruction of independent reporting trips by foreign media. 
Associated Press reporters were detained for 11 hours by police in East Turkestan in November while investigating the reported death of a 26-year-old in an indoctrination center.
Tumturk, a Turkey-based activist who is backed by some Turkish political parties, has been meeting with various governments including Japan and Australia in recent months to seek support for a new overseas Uighur political group.
His movement would call for the establishment of an independent Uighur state allied with Turkey and Central Asian states and distance itself from the World Uighur Congress, the historically dominant, U.S.-funded Uighur lobby that advocates worldwide for greater autonomy for East Turkestan but not outright independence from China.
Tumturk said he was motivated by a sense of urgency.
“We have received a lot of bad news that the situation in China is getting worse and worse,” he said.
China has tightened restrictions over the instruction of Islam and the Uighur language and even what Uighurs are allowed to name their babies in an effort to swiftly assimilate the minority group into the Chinese mainstream, which is dominated by the Han ethnic group.
Government officials say the assimilation process will bring economic benefits to poor parts of East Turkestan, promote secularism and reinforce a sense of “patriotism” among Uighurs. 
Uighur activists warn that the heavy-handed methods could render traditional Uighur culture practically extinct in a matter of a few decades.
Uighurs face a raft of other hurdles not imposed upon the Han: they have difficulty procuring passports and those who have them are required to leave them with the police. 
In East Turkestan, frequent road blocks and checkpoints enable authorities to stop people and check their mobile phones for content that might be deemed suspicious.
International groups including Human Rights Watch and Amnesty International have called East Turkestan, an area half the size of India, one of the most tightly policed regions in the world.

The End of Complacency

President Trump Readies Sweeping Tariffs and Investment Restrictions on China

A factory for the smartphone maker Oppo in Dongguan, China. The tariffs could extend to more mundane products, including consumer electronics, apparel and even shoes. 

WASHINGTON — The dust has yet to settle on President Trump’s decision to impose sweeping tariffs on steel and aluminum imports, but the White House is preparing another major trade measure, this time aimed squarely at China.
Mr. Trump and his top trade advisers are readying a raft of actions to penalize China’s theft of American intellectual property, including tariffs on at least $30 billion of annual Chinese imports, people familiar with the discussions said.
The measures, which could be announced as early as next week, may also include investment restrictions, caps on visas for Chinese researchers and challenges to China’s predatory trade practices at the World Trade Organization. 
Those familiar with the planning cautioned that the timing could be delayed, and that such measures are likely to be introduced in stages.
The rapid pace of White House trade measures is no accident and comes at the president’s request. 
At a White House meeting last week, Robert Lighthizer, the United States trade representative, presented Mr. Trump with a plan to target $30 billion a year in Chinese imports.
That amount is equal to the cost that Mr. Lighthizer’s office estimates Chinese policies aimed at acquiring American technology impose on American companies annually. 
In August, Mr. Lighthizer officially began an investigation into those practices, which include digital warfare as well as requiring companies to hand over trade secrets and form joint ventures with Chinese partners to gain access to certain markets.
Mr. Trump — surrounded by his commerce secretary, Wilbur Ross, his trade adviser Peter Navarro and others — asked for a figure beyond $30 billion and for the plan to be officially announced in the coming weeks, according to two people familiar with the exchange.
The administration is devising the measure to broadly counter a Chinese strategy known as the Made in China 2025 plan
China introduced a comprehensive initiative in 2015 to upgrade Chinese industry over the next decade and dominate sectors of the future, including advanced information technology, new energy vehicles and aerospace equipment.
Unlike the steel and aluminum measure, which divided the president’s advisers and his own party, the idea of targeting China has broad support among officials who believe China is cheating in global trade.
Gary D. Cohn, a top economic adviser who resigned over the steel and aluminum tariffs, had approved of action against China, the people familiar with the discussions said. 
Orrin G. Hatch, the chairman of the powerful Senate Finance Committee, and Senator Marco Rubio of Florida, Republicans who criticized those tariffs, have also endorsed a tough approach toward China.
Congress is also weighing legislation that would strengthen national security checks on Chinese investment. 
In a House hearing on Thursday, Heath P. Tarbert, an assistant secretary of the Treasury Department, said the current system for assessing investment is riddled with loopholes that allowed Chinese companies to evade such checks.
Concern over China’s practices picked up speed at the end of the Obama administration and has only increased since. 
Last year, a technology-focused unit in the Defense Department issued a report arguing that rising Chinese investment in Silicon Valley was giving China unprecedented access to the military technologies of the future, and increasing Chinese ownership of supply chains that service the United States military.
In recent months, China’s political apparatus has exerted even greater control over the nation’s economy. 
Business leaders and politicians of both parties now widely say that Washington’s past strategy of offering Beijing economic incentives to liberalize its market has failed. 
On Sunday, China officially ended term limits on the presidency, clearing the way for its dictator to stay in power indefinitely.
Administration officials say that past failure to rein in China warrants a much tougher approach. 
Mr. Trump took one step toward this in his national security strategy, which identified China as an economic aggressor. 
When a top Chinese economic envoy visited in late February, the administration asked China to shave $100 billion off its $375.2 billion trade surplus with the United States, two people close to the talks said. 
And while the steel and aluminum tariffs will hit many countries, they are primarily aimed at combating overcapacity in Chinese metals, including those that are routed through other nations.
The next step, advisers say, is to more aggressively focus on trade with China.
The United States is expected to impose tariffs on Chinese imports of high-technology goods specified in the Made in China 2025 plan, including semiconductors and new energy vehicles. 
But they could go beyond that to target more mundane products, including consumer electronics, apparel and even shoes. 
The breadth of the tariffs remains a contentious topic in the business sector and the White House, with some industries fretting about retaliation and increased costs to American companies and consumers.
Thomas J. Donohue, the president of the U.S. Chamber of Commerce, said on Wednesday that while the administration was right to focus on China’s unfair trade practices, his group strongly disagreed with sweeping tariffs.
Although there is wide support for taking action against unfair trade practices by China, business groups and economists still say the tariffs could easily provoke a backlash.
“They know our system inside out,” said Jim McGregor, the chairman of the greater China region for APCO Worldwide. 
He added, referring to the House speaker and the Senate majority leader: “They know what companies are important to Paul Ryan. They know what companies are important to Mitch McConnell. They know which trade associations and political groups have a big voice in Washington.”
Scott Kennedy, a China expert at the Center for Strategic and International Studies, said that while China deserved a tough response, he feared the consequences of the administration’s actions had not been well considered
“You really have to be smart,” he said. 
“The Chinese aren’t just going to fold over on this.”
Mr. Kennedy compared China to a bully that had stolen America’s lunch money. 
"You want to teach them a lesson,” he said. 
“But it’s not as simple as going up in the playground and punching them on the nose.”

The battle for digital supremacy

America’s technological hegemony is under threat from China
The Economist

“DESIGNED by Apple in California. Assembled in China”.
For the past decade the words embossed on the back of iPhones have served as shorthand for the technological bargain between the world’s two biggest economies: America supplies the brains and China the brawn.
Not any more.
China’s world-class tech giants, Alibaba and Tencent, have market values of around $500bn, rivalling Facebook’s.
China has the largest online-payments market.
Its equipment is being exported across the world.
It has the fastest supercomputer.
It is building the world’s most lavish quantum-computing research centre.
Its forthcoming satellite-navigation system will compete with America’s GPS by 2020.
America is rattled.
An investigation is under way that is expected to conclude that China’s theft of intellectual property has cost American companies around $1trn; stinging tariffs may follow.
Earlier this year Congress introduced a bill to stop the government doing business with two Chinese telecoms firms, Huawei and ZTE.
Eric Schmidt, the former chairman of Alphabet, Google’s parent, has warned that China will overtake America in artificial intelligence (AI) by 2025.
This week President Donald Trump abruptly blocked a $142bn hostile takeover of Qualcomm, an American chipmaker, by Broadcom, a Singapore-domiciled rival, citing national-security fears over Chinese leadership in 5G, a new wireless technology.
As so often, Mr Trump has identified a genuine challenge, but is bungling the response.
China’s technological rise requires a strategic answer, not a knee-jerk one.

The motherboard of all wars
To understand what America’s strategy should be, first define the problem.
It is entirely natural for a continent-sized, rapidly growing economy with a culture of scientific inquiry to enjoy a technological renaissance.
Already, China has one of the biggest clusters of AI scientists.
It has over 800m internet users, more than any other country, which means more data on which to hone its new AI.
The technological advances this brings will benefit countless people, Americans among them.
For the United States to seek to keep China down merely to preserve its place in the pecking order by, say, further balkanising the internet, is a recipe for a poorer, discordant world.
Yet it is one thing for a country to dominate televisions and toys, another the core information technologies.
They are the basis for the manufacture, networking and destructive power of advanced weapons systems. 
More generally, they are often subject to extreme network effects, in which one winner establishes an unassailable position in each market.
This means that a country may be squeezed out of vital technologies by foreign rivals pumped up by state support. 
In the case of China, those rivals answer to an oppressive authoritarian regime that increasingly holds itself up as an alternative to liberal democracy—particularly in its part of Asia.
China insists that it wants a win-win world.
America has no choice but to see Chinese technology as a means to an unwelcome end.
The question is how to respond.
The most important part of the answer is to remember the reasons for America’s success in the 1950s and 1960s.
Government programmes, intended to surpass the Soviet Union in space and weapons systems, galvanised investment in education, research and engineering across a broad range of technologies. 
This ultimately gave rise to Silicon Valley, where it was infused by a spirit of free inquiry, vigorous competition and a healthy capitalist incentive to make money.
It was supercharged by an immigration system that welcomed promising minds from every corner of the planet.
Sixty years after the Sputnik moment, America needs the same combination of public investment and private enterprise in pursuit of a national project.
The other part of the answer is to update national-security safeguards for the realities of China’s potential digital threats.
The remit of the Committee on Foreign Investment in the US (CFIUS), a multi-agency body charged with screening deals that affect national security, should be expanded so that minority investments in AI, say, can be scrutinised as well as outright acquisitions.
Mr Trump’s approach is defined only by what he can do to stifle China, not by what he can do to improve America’s prospects.
His record on that score is abysmal.
America’s federal-government spending on R&D was 0.6% of GDP in 2015, a third of what it was in 1964. 
Yet the president’s budget proposal for 2019 includes a 42.3% cut in non-defence discretionary spending by 2028, which is where funding for scientific research sits.
He has made it harder for skilled immigrants to get visas to enter America.
He and some of his party treat scientific evidence with contempt.
America is right to worry about Chinese tech.
But for America to turn its back on the things that made it great is no answer.