"Israel's flourishing semiconductor industry is illustrative. Intel has found a workaround to U.S.-China trade tariffs by increasing direct sales from its Israeli plant, thus boosting semiconductor trade between Israel and China by 80 percent in 2018. In parallel, China is increasing investments in Israeli semiconductor companies and driving up demand for locally-designed chips. China's demand for alternative commercial technology trade partners in light of tightening American trade restrictions is an unexpected economic boon to Israel, but the importance of chips for technological advancement and military use means Israel's position in this technology triangle is bound to attract Washington's attention."The U.S.-China-Israel Technology Triangle
Exclusive: Israel's chip sales to China jump as Intel expands
Israel's Intel Computer Chip Sales to China Jump by 80 Percent
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Source: admingovexec (PDF file)
China's Technology Transfer Strategy:
How Chinese Investments in Emerging Technology Enable A Strategic Competitor to Access the Crown Jewels of U.S. Innovation
Updated with 2016 and 2017 Data | Michael Brown and Pavneet Singh | January 2018
Executive Summary
This report explores China's participation in venture deals1 financing early-stage technology companies to assess: how large the overall investment is, whether it is growing, and what technologies are the focus of investment. Chinese participation in venture-backed startups is at a record level of 10-16% of all venture deals (2015-2017) and has grown quite rapidly in the past seven years. The technologies where China is investing are the same ones where U.S. firms are investing and that will be foundational to future innovation: artificial intelligence, autonomous vehicles, augmented/virtual reality, robotics and blockchain technology. Moreover, these are some of the same technologies of interest to the U.S. Defense Department to build on the technological superiority of the U.S. military today. The rapidity at which dual-use technologies are developed in the commercial sector has significant impact on the nature of warfare; mastering them ahead of competitors will "ensure that we will be able win the wars of the future." 2
Because the U.S. economy is open, foreign investors, including those from China, are able to invest in the newest and most relevant technologies gaining experience with those technologies at the same rate as the U.S. does. The U.S. government does not currently monitor or restrict venture investing nor the potential transfer of early-stage technology. The primary tool the government has to block or mitigate foreign investment is the Committee on Foreign Investment in the United States (CFIUS); however, since CFIUS reviews specific deals on a case-by-case basis (rather than systematic assessments of acquisitions or acquirers) and only deals that involve a controlling interest by foreign investors (usually mergers and acquisitions), CFIUS is only partially effective in protecting national security since its jurisdiction is limited. The other principal tool to inhibit technology transfer is the U.S. export control regime. Export controls are effective at deterring exports of products to undesirable countries and can be used to prevent the loss of advanced technologies but controls were not designed to govern early-stage technologies or investment activity. Importantly, to be effective, export controls require collaboration with international allies, a long process where cooperation is not assured.
Further, venture investing is only a small part of China's investment in the U.S.--which includes all forms of investment and investor types. Investing is itself only a piece of a larger story of massive technology transfer from the U.S. to China which has been ongoing for decades. This report places venture investing within the larger context of China's long-term, systematic effort to attain global leadership in many industries, partly by transferring leading edge technologies from around the world.
U.S. military superiority since World War II has relied on both U.S. economic scale and technological superiority. U.S. technological pre-eminence enabled the series of offset strategies which included being first with nuclear weapons (the First Offset) and the electronics-enabled weapons of night vision, laser-guided bombs, stealth and jamming technologies as well as spaced-based military communications and navigation enabling the U.S. to dominate the battlefield (the Second Offset). Much of this technology came from research sponsored by the U.S. government and
1 A venture deal is a financing that provides startup or growth equity capital provided by private investors, usually venture capitalists.the Defense Department specifically. However, the technologies which will create the Third Offset are to a large extent being developed by early-stage technology companies with significant commercial markets. If we allow China access to these same technologies concurrently, then not only may we lose our technological superiority but we may even be facilitating China's technological superiority.
2 The 2018 National Defense Strategy recognizes the critical role of technology development in the commercial sector for national security purposes: "The drive to develop new technologies is relentless, expanding to more actors with lower barriers of entry, and moving at accelerating speed. New technologies include advanced computing, "big data" analytics, artificial intelligence, autonomy, robotics, directed energy, hypersonics, and biotechnology—the very technologies that ensure we will be able to fight and win the wars of the future. The fact that many technological developments will come from the commercial sector means that state competitors and non-state actors will also have access to them, a fact that risks eroding the conventional overmatch to which our nation has grown accustomed. Maintaining the department’s technological advantage will require changes to industry culture, investment sources, and protection across the National Security Innovation Base."
That China will grow to be an economy as large as ours may be inevitable; that we aid their mercantilist strategy through free trade and open investment in our technology sector is a choice. As a result, while strategic competition3 with China is a long-term threat rather than a short-term crisis, preserving our technological superiority and economic capacity are important issues for national focus today.
Please go to admingovexec to read the critical assessment.
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Ed.'s note: Did you fall for the biblical narrative? The biblical revival and "loyal friend" of America against the evil Muslim hordes? There are actually US military people in the Pentagon who accept this version in their military calculations. The Pentagon is so confused it has no idea where half the microprocessors it uses in its systems come from. It can't even keep track of where hundreds of millions of dollars worth of weapons are ending up. Then it hands over cloud computing in a $10 billion contract to Microsoft with Microsoft relying on Israel for its R&D. Here is our problem in America: Americans are now engaged in a Bolshevik revolution watching it daily through the Democratic Party and many American institutions. This is going to be the fight of their lives in the literal sense of the word. This has been the long term plan for many long years and now the technology is in place for them to succeed. Harvest America. Who has the "kill switch?"
How $21 Trillion in U.S. Tax Money Disappeared. "Full Scope Audit" of the Pentagon
It's the real patriots of America who will change things. Free America, free the world. Americans have to be made to feel good about themselves. Any "America bad" rhetoric plays into the hands of the people who are right now trying to collapse the US petrodollar and the US economy. Everything should center on Israel's key role in the events of 9/11. It was their show; their operation having all the technology at their disposal to pull it off. It then follows that Israel controls the high technology sector in the US. You name it, they own it or they have their people in the top positions to direct the flow of private equity investments to Israel-based technology companies. Therefore, Israel and Rothschild's East India Trading Company run the United States along with Kissinger & Associates.
Why Does Israel Have So Many Startups?
The City of London East India Trading Company private banking intelligence network is the enemy and have been infiltrating to bring the US completely back under "The Crown" and the industrial Zionist power that occupies it since the deal struck by Queen Victoria (breeding rights) with The House of Rothschild to expand the British Empire. Even the British MI5 and MI6 are pulling up Rothschild and his love of Russian oligarch drug money bank accounts. If Rothschild is so powerful as so many think and are confused about, why are the British intelligence services giving him such a hard time? Prince Charles despises Rothschild - hence why the British Royal Family is always front and center along with the Jesuits on the large conspiracy sites. These sites don't have anything to say about Israel, Israel's control over high tech and China's Belt & Road Initiative relationship. This reality is going to sink in very deeply for Americans over the coming months into the summer of 2020. Have you ever looked at a picture worth a thousand words? Here it is...
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