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US government intervention in markets extends far beyond TikTok

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US government intervention in markets extends far beyond TikTok

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Congress is considering forcing the Chinese owners of TikTok to sell the social media platform to prevent communist influence over U.S. teenagers. However, this is not the only effort being made by federal authorities to mitigate the influence of foreign threats in technology.

In the United Arab Emirates, the U.S. government collaborated with Microsoft to acquire a minority stake in G42, the country’s leading artificial intelligence company. The deal required G42 to eliminate Chinese hardware from its operations.

Recently, the U.S. government has provided grants to domestic and foreign semiconductor manufacturers to counter the dominance of Taiwan-based TSMC, which is seen as under Chinese influence. These grants have been well-received, with Senate Majority Leader Chuck Schumer praising the investment in companies like Micron Technology.

The U.S. government’s intervention in key technology industries is aimed at safeguarding national security interests. This includes supporting AI and cybersecurity to protect critical systems from foreign interference. Other countries, such as China and Russia, have also prioritized technological dominance in their national security strategies.

However, not everyone supports the government’s involvement in markets through grants and partnerships with private companies. Critics argue that such interventions may lead to inefficiency and bloating in recipient companies. They suggest that the focus should be on tracking threats and preventing foreign access to advanced technologies.

Despite the debate, the U.S. government’s actions mirror historical trends of intervening in private business for national security reasons. The escalating tech arms race with countries like China highlights the need to protect sensitive industries from espionage and theft. As security concerns mount, there is a growing recognition that relying solely on free markets may not be sufficient to address these challenges.

Commerce Secretary Gina Raimondo has emphasized the need to prioritize national security over profit in manufacturing decisions. As the landscape of security threats evolves, continued vigilance and strategic action are essential to safeguard vital industries and technologies.

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