INTERVIEW: DeepSeek has Embarrassed Silicon Valley

According to the New York Post, a t least four current DeepSeek employees previously worked at Microsoft Research Asia, three of whom spent at least five years as research interns at Microsoft. “If you’re working for Microsoft for five years at any other job, that’s enough time to climb into a mid-senior or senior position,” said Geoffrey Cain, policy director at the Tech Integrity Project, in a New York Post article about Microsoft’s AI research lab in China . “Your typical intern does not spend five years developing AI software with that title, only to go on and to help release one of the most successful AI releases of all time.” “This is a deeper problem,” Cain added. “It’s that Microsoft is handing the training and the technology to China. It’s not necessary for these software developers in Microsoft to literally hand the tech to the CCP. They don’t even need to do that because Microsoft does it for them." Of equal concern, according to experts, is the fact that Microsoft Research Asia serves as a proving ground for some of China’s best tech talent – many of whom later utilize their expertise to start or work at firms that directly compete with US interests with the backing of the Chinese Communist Party. You can read the full article HERE . ### Tech Integrity Project is dedicated to ending this collusion. Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate policymakers and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies.

Geoff Cain appeared on Bari Weiss's podcast Honestly to discuss what DeepSeek means for U.S.-China relations and the race for AI dominance. "And this isn't just about generative AI. There's lots of types of AI. I saw it when I was in China, when I was investigating surveillance AI. So, facial recognition technology, a lot of this being developed with the help of software developers who were trained by Microsoft and other American companies being sent out there to set up an AI system, which, by the way, the Chinese government literally called 'Skynet.' I mean, it's like right out of Terminator."  "You go to any Big Tech Company, almost all of them will say nothing bad about China or about the CCP or the human rights abuses there, the national security concerns there, because they've been bought off by market access. They want to be able to manufacture their EVs and their cars and whatever else it is that they're making in China." ### Tech Integrity Project is dedicated to ending this collusion. Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate policymakers and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies.

"China’s companies often take a systematic approach to transferring, even copying, foreign intellectual property," argues TIP Policy Director Geoffrey Cain in an op-ed The Free Press . *** "China’s companies often take a systematic approach to transferring, even copying, foreign intellectual property, a strategy of government-supported, industrial-scale espionage. This was exactly the dynamic of Apple’s failed ambitions to build a long-range electric vehicle (EV) battery in partnership with Chinese automaker BYD. The project had the potential to expand the life of EV batteries everywhere. But last October, after seven years of research and development, Apple abandoned the project, while its partner BYD surged ahead with similar technology. BYD has now overtaken Tesla as the world’s largest maker of electric vehicles." "Meanwhile, American companies’ presence in Chinese markets means we have given away technological secrets that have major national security implications. Microsoft, to name just one firm of many, has inadvertently accelerated China’s AI growth by providing the country with lucrative research partnerships, cloud computing services, and infrastructure." "Finally, the U.S. has to stop the damaging technology transfers by Big Tech companies too eager to do business with China. American innovations must remain American; American companies must show their allegiance to one flag rather than being doublehanded with enemies." ### Tech Integrity Project is dedicated to ending this collusion. Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate policymakers and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies.

Aside from the implications for Google and Apple, the Supreme Court’s decision adds fresh complications for Big Tech firms that have problematic “entanglements” with TikTok and ByteDance, according to Geoffrey Cain, policy director at the Tech Integrity Project and author of The Perfect Police State . “Given the unanimous ruling that these Chinese firms are national security threats, it is time for Microsoft, Apple, Amazon and others to cut ties,” Cain told The Post. You can read the full article HERE . ### Tech Integrity Project is dedicated to ending this collusion. Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate policymakers and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies.

“For years, Tim Cook insisted Apple could change China from the inside. Instead, China changed Apple.” This is the cautionary tale explained in a new op-ed from TIP Policy Director Geoffrey Cain. For years, Apple has complied with demands of the Chinese government, collaborated with Chinese companies in research ventures, and increased its reliance on Chinese manufacturing—all in pursuit of higher sales in the country’s market. But Apple’s strategy has backfired. Apple is now one of the most China-dependent major U.S. companies. China has leveraged Apple’s innovations to advance its geopolitical goals while using the company to perpetuate its authoritarian aims. As artificial intelligence reshapes the technological landscape, America’s leading tech companies face a choice between their stated values and their pursuit of profits. You can read the full op-ed HERE . ### About Tech Integrity Project: The Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate policymakers and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies.

Earlier this week, the U.S.–China Economic and Security Review Commission released their Annual Report to Congress. The report highlights how the United States and China are in strategic competition to dominate the global technological landscape and how American companies are helping China progress in key emerging technologies. Technological dominance is a priority for the Chinese government. One of the Commission’s key findings is that “The CCP is prioritizing research in key emerging technology areas such as AI, quantum technology, biotechnology, and batteries with the goal of becoming a world leader in science and technology,” and that President Xi is betting that such dominance will achieve China’s goal of becoming a superpower in the 21 st century. Technological leadership is key to global leadership. The commission found that “[China’s] rapid technological progress threatens U.S. economic and military leadership and may erode deterrence and stability in the Pacific, as well as tip the global balance of power.” American leadership is under threat. The Commission finds that the United States can claim leadership in artificial intelligence, for now, but China is making rapid progress. The Commission also finds that China is an “early leader” in quantum computing and is significantly ahead in advanced battery technology. TIP Policy Director Geoff Cain recently wrote an op-ed in The Hill on how Apple handed over key battery technology to Chinese electric vehicle champion BYD. American companies should play no role in China’s advancement with emerging technologies. The report unfortunately highlights some examples of how China has been able to advance in key emerging technologies thanks to cooperation with American firms: “Currently, both Microsoft and Amazon AWS operate cloud services in China, with Microsoft offering services under a wholly owned subsidiary of local company 21Vianet and AWS China partnering with local companies Sinnet and NWCD to offer data center services.” “An Amazon executive for Greater China reportedly stated in June 2024 that AWS “is committed to long-term investments in China, and will focus on offering generative artificial intelligence technology and helping Chinese enterprises in their digital transformation.” “Early gains in China’s AI models have been built on the foundations of U.S. technology” “A survey from Biotechnology Innovation Organization, a trade association, found that of 124 U.S. biotech companies that responded, 79 percent had at least one contract or product agreement with firms based in China or owned by China for services such as gene sequencing, data management, and conducting clinical trials” These are just a handful of examples where American corporate cooperation with China has supported their objective for technological superiority. TIP recently covered how Apple engaged in a billion dollar research endeavor with Chinese automaker BYD, advanced their battery technology. The Commission describes BYD as now being “a major player in the global EV market, dominating domestic and foreign firms in China’s EV market while surpassing Tesla in global sales of battery EVs in the last quarter of 2023.” ### Tech Integrity Project is dedicated to ending this collusion. Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate policymakers and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies. 

Yesterday, the Senate Judiciary Committee held a hearing entitled “Big Hacks & Big Tech: China’s Cybersecurity Threat” that underscored the risks to American security directly caused by Big Tech’s cozy relationship with China. Tech Integrity Project lauds the Committee for creating a bipartisan venue to examine this important issue. Below are some highlights: There is bipartisan recognition that American Big Tech Companies are sacrificing American security for profit. Senator Richard Blumenthal: “Even as Chinese companies undermine our national security, American ones often do the same. China has used economic coercion to enlist American companies for its own agenda. And we have given them a free pass far too often. Companies like Apple have acted as partners of the Chinese government to censor ideas and information in China. They blocked independent media, and they've helped the CCP crackdown on dissent, human rights and democratic values. But also our national and economic security are at stake as a result of China's leverage, its economic leverage, and these conflicts of interest involving American companies.” Senator Josh Hawley: “We face with China, a peer competitor of a kind that we frankly haven't seen in any of our lifetimes. And I hope it's also a wakeup call for these American corporations that, for too long, had been willing to sell out American jobs and America’s security interest in order to make a quick buck and, in so doing, have threatened all of us.” Big Tech is invested in and dependent on China . Big Tech is reliant on China for manufacturing and sales. Senators asked what risks this creates for America. Senator Josh Hawley: “Mr. Stone Fish, let me come to you and pick up a line of questioning that I was starting to discuss with Mr. Bresnick. Here, we’ve got these companies, Apple, Amazon, Microsoft, Tesla, hugely, hugely invested in China and hugely dependent on China. And it would be one thing if they were run-of-the-mill, no-name companies. But Apple, and Amazon, Microsoft, these are arguably—each of those three are—monopoly size companies that have significant control of vast sections of our consumer economy. So I guess my question is, how concerned should we be that 80% of Apple suppliers have a base in China, 95% of Apple’s key consumer products are manufactured in China, a third of Amazon’s suppliers are in China … Microsoft’s-China based research lab produces 10% of the company’s research output? Those are massive numbers. Should we be concerned about this? Or is this not relevant? I mean, are we panicking unnecessarily?” Isaac Stone Fish: “Thank you for bringing these issues up. I think this is incredibly important. And I think there’s this perception in DC that, ‘oh, everyone’s talking about China.’ We’re talking about it too much. I don’t think we’re talking about this nearly enough. I am really appreciative that you brought up the potential for a Chinese invasion of Taiwan and a war with Taiwan. It’s our very strong belief that the businesses you mentioned have constantly underpriced the risk of a Chinese invasion of Taiwan, and they’ve long underpriced the risk of their very heavy China exposure. There’s massive national security implications of the figures that you just described. And I think US government agencies need to be really aware of the various different interests and influences inside these corporations. You know, we’re in an era of shareholder capitalism. And if it’s in Apple’s best financial interest to double down on China, where does that leave us? And where does it leave Apple consumers who’s using an Apple laptop right here, but also the US government? I think this is especially the case with Microsoft and the US government’s relationship with Microsoft. And understanding that the depth of Microsoft’s entanglement with China and with the Chinese Communist Party poses very real supply chain and security risks. And these are things that big US companies absolutely need to disclose.” *** Senator Richard Blumenthal: “Apple complies with China's censorship and surveillance demands, because 20% of its sales, and 80% of its suppliers are based in China. When forced to choose between American security and hugely profitable access to the Chinese market, Americans may doubt that SpaceX, Mr. Musk, Tim Cook, and other technology leaders will side with America.” *** Senator Richard Blumenthal: “Do you think it's more the practical difficulty of relocating the supply provider? Or is it as Mr. Stone Fish suggested the fear of reprisals? You understand the question? In other words, Is it the logistical difficulty of moving a supplier or a source of supply out of China? Or is it the fear that there will be some kind of revenge from the Chinese government?” Sam Bresnick: “I think you could credibly argue it's both. I think it's very hard to logistically do this. And you see companies like Apple, for example, which has made an effort to make more of its iPhones in India, generally through Foxconn, a Taiwanese electronics manufacturing company, at the same time they're doing that, Tim Cook is going to China, and he's announcing new investments in China. So I think these things go hand-in-hand. There's a desire to stay in the good graces of the Chinese Communist Party, and there's a desire to actually make moves to reduce exposure.” ### Tech Integrity Project is dedicated to ending this collusion. Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate policymakers and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies.

Comments Recommend Ways to Mitigate AI Supply Chain Risks from Big Tech Firms Operating in China subtitle for your new post

Washington, DC – Earlier this week, the Inspector General for the U.S. Department of Commerce announced it was initiating an audit of the Bureau of Industry Security’s (BIS) efforts to combat China’s Military-Civil Fusion (MCF) program. Tech Integrity Project strongly supports this initiative. BIS’s role is critical to national security, and we must ensure that the agency is successfully combatting China’s attempts to steal U.S. innovations for their own military gain. China’s MCF is a systematic initiative by the government of China to build a “world class” military by 2049 by integrating key private industries (artificial intelligence, 5G, biotechnology, big data, private universities, semiconductors, energy) with military objectives and needs. It further blends private industry and government in China. The Department of Defense releases annually a list of Chinese companies that it identifies as participating in MCF. The Bureau of Industry and Security is an agency under the Department of Commerce that is responsible for issuing and enforcing export controls on dual-use technologies—technologies that are civilian in purpose but could have a potential military application, such as materials used for nuclear energy or advanced semiconductors. BIS’s imposition and enforcement of export restrictions is critical to ensure these technologies do not flow into adversarial countries for their misuse. It is imperative that American companies and the federal government are on the same page with combatting China’s ambitions. Some American Big Tech companies have an unfortunate record of contracting with Chinese companies in support of PRC government objectives and even working to undermine U.S. export control policy: Microsoft actively lobbied against upcoming regulations from BIS that would close a loophole in export controls, whereby otherwise restricted technologies through the cloud. Microsoft just recently announced that it would let Chinese companies exploit these loopholes. Amazon provided cloud service to sanctioned Chinese surveillance technology firms. Apple planned to use YTMC made semiconductors, despite evidence of military connections, for their next generation iPhones. YMTC was later designated as a MCF participant. While it may take possibly years for the Inspector General to complete its audit, we appreciate their recognition of BIS and its important role to prevent American technology from ending up in the hands of the Chinese military. ### About Tech Integrity Project: The Tech Integrity Project works to protect the national security and economic competitiveness of the United States by preventing Big Tech companies from aiding America’s adversaries. The organization works to educate presidential candidates and the public about the problematic business activities of U.S. tech companies in China and other adversarial nations, including capital investment, overseas research, transfer of trade secrets, and selling access to sensitive technologies. We’re calling on elected officials and candidates to sign our pledge . To stay updated and join our cause, click HERE .