Philosophy and Money: Adam Smith Remains Flexible
March 6, 2024
This essay is the work of a dumb dinobaby. No smart software required.
In the early twenty-first century, China was slated to overtake the United States as the world’s top economy. Unfortunately for the “sleeping dragon,” China’s economy has tanked due to many factors. The country, however, still remains a strong spot for technology development such as AI and chips. The Register explains why China is still doing well in the tech sector: “How Did China Get So Good At Chips And AI? Congressional Investigation Blames American Venture Capitalists.”
Venture capitalists are always interested in increasing their wealth and subverting anything preventing that. While the US government has choked China’s semiconductor industry and denying it the use of tools to develop AI, venture capitalists are funding those sectors. The US’s House Select Committee on the China Communist Party (CCP) shared that five venture capitalists are funneling billions into these two industries: Walden International, Sequoia Capital, Qualcomm Ventures, GSR Ventures, and GGV Capital. Chinese semiconductor and AI businesses are linked to human rights abuses and the People’s Liberation Army. These five venture capitalist firms don’t appear interested in respecting human rights or preventing the spread of communism.
The House Select Committee on the CCP discovered that one $1.9 million went to AI companies that support China’s mega-surveillance state and aided in the Uyghur genocide. The US blacklisted these AI-related companies. The committee also found that $1.2 bullion was sent to 150 semiconductor companies.
The committee also accused of sharing more than funding with China:
“The committee also called out the VCs for "intangible" contributions – including consulting, talent acquisition, and market opportunities. In one example highlighted in the report, the committee singled out Walden International chairman Lip-Bu Tan, who previously served as the CEO of Cadence Design Systems. Cadence develops electronic design automation software which Chinese corporates, like Huawei, are actively trying to replicate. The committee alleges that Tan and other partners at Walden coordinated business opportunities and provided subject-matter expertise while holding board seats at SMIC and Advanced Micro-Fabrication Equipment Co. (AMEC).”
Sharing knowledge and business connections is equally bad (if not worse) than funding China’s tech sector. It’s like providing instructions and resources on how to build nuclear weapon. If China only had the resources it wouldn’t be as frightening.
Whitney Grace, March 6, 2024
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