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Lawmakers look to China’s competitive future in tech, media meetings


Prominent media and technology executives shared their experiences of working and competing with China with lawmakers who visited California this week.

A delegation of about 10 members of the House Committee on Strategic Competition between the United States and the Communist Party of China made the trip west to meet with industry leaders and experts on the topic. on key areas of concern in dealing with China.

During the three-day trip that begins Wednesday, lawmakers were scheduled to meet with Disney CEO Bob Iger and Apple CEO Tim Cook, as well as senior executives from Google, Microsoft, Palantir and AI Scale. Also on the agenda are events with a group of producers, screenwriters and former studio executives with experience working with China, as well as with venture capitalists and experts from the University of California. Stanford University, according to a source close to the committee.

The trip highlights the important role the technology and media industries play in America’s increasingly complex relationship with China. While these industries often rely on the huge audience and workforce available in China, this reliance on the country raises concerns about human rights and freedom of expression issues due to the lack of access to China. government censorship controls, as well as supply chain risks.

Trip comes on one’s heel historic meeting in California between House Speaker Kevin McCarthy, R-Calif., and Taiwan President Tsai Ing-wen on Wednesday. That meeting, which former House Speaker Nancy Pelosi, D-Calif., also praised, angered China’s Communist Party leadership. The Chinese government called the meeting a “provocation” and promised “resolute actions.”

In Hollywood, a group of lawmakers from the selection committee explored a range of topics related to competition with China. During a meeting with Disney’s Iger and later at a dinner with unnamed studio executives, censorship of creative content was a big focus, according to the source familiar with the operations. of the committee. Executives discussed dealing with self-censorship to try to ensure a film wouldn’t offend the Chinese government even before filming began, as well as the editing requirements they requested. received from the government to screen movies in this country.

In Silicon Valley on Thursday, according to sources, Microsoft President Brad Smith gave a presentation on artificial intelligence, warning that there is a narrow gap between the US and China in the development of artificial intelligence. , which was popularized by tools like ChatGPT. He also discussed the mining and processing of rare earth minerals, which are important components in some technological equipment. Smith and executives from Google, Palantir and ScaleAI attended a luncheon with committee members.

Steve Blank, a founding member of the center, said the lawmakers also met with experts from Stanford University, including those from the Gordian Knot Center for National Security Innovation. In a phone call following Thursday’s discussion, Blank said he was briefed on the need for a defense strategy involving more public-private partnerships across various industries to help the US get up to speed with China. Blank said he was impressed by the bipartisan spirit and concern he saw from lawmakers in attendance.

“In general, the questions they ask, you would be proud to be an American sitting in that room,” Blank said. “They’re bipartisan, they’re straight to the point and they’re very smart. These people understand the problem and they’re trying to make the country better.”

Rep. Ro Khanna, D-Calif., a committee member representing Silicon Valley, told CNBC in a phone interview ahead of Tuesday’s trip that he’s thrilled his colleagues have visit his home district. It is always valuable for lawmakers to spend time learning about cutting-edge technologies like AI, quantum computing and climate technology to better understand how to regulate and promote it, Khanna said.

“I think it would be wise for every member of Congress to spend a week in Silicon Valley,” Khanna said. “Technology will define so many areas from the economy to our national security to our civil rights issues, and we need people to immerse themselves in it, at least understand it.”

Khanna and others have described the purpose of the trip as primarily a fact-finding mission. While the conversations are likely to inform future hearings and policymaking, legislators participated in the meetings aimed at learning from executives in the field. branch.

The group is also scheduled to meet with venture capitalists on Thursday, including Andreessen Horowitz, Khosla Ventures and SV Angel. Khanna expects VCs to discuss how the government can “better partner with the private sector” to stay ahead of China in emerging technology areas.

On Friday, lawmakers were set to discuss crypto with experts at Stanford before traveling to Cupertino to meet Cook at Apple headquarters, according to sources familiar with the committee’s plans.

Khanna said he anticipates business leaders will inform policymakers of any progress they make in diversifying their supply chains out of China and how they use the revenue. exports from China to invest in the US. When it came to meeting with Apple’s CEO, Khanna said he expected Cook to “talk candidly about supply chain issues,” including the complexity and progress of diversifying outside production. outside China.

In a mid-trip phone interview Thursday, Representative Haley Stevens, D-Mich., said she sees common themes between the types of challenges facing the tech and media industries. when it comes to China and the challenges the auto industry faces in her. government.

“In my opinion, every meeting that we’re in is concerned with Michigan’s economy and our manufacturing capabilities as a nation,” Stevens said. “One of the topics on which I sit on the committee as a champion in manufacturing and someone who understands the interrelationship between manufacturing and technology is: What else do we need to do to encourage and industrial policy development in the United States of America?” Stevens said. She pointed to the path of Chips and Science Act as an example of encouraging domestic semiconductor production.

“Now, we’re looking at other areas specifically in terms of supply chain vulnerabilities and weaknesses that will affect our economy, and beyond chips, we want to compete on artificial intelligence and quantum,” says Stevens.

— Steve Kovach of CNBC contributed to this report.

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