THE US PUTS RESTRICTIONS ON TECHNOLOGY-BASED FIRMS IN VARIOUS COUNTRIES AS A COERCION TOOL

Exercising its old practice, when the US was the only superpower in the unipolar world after the disintegration of the former USSR, the US Commerce Department has added eight Chinese-based technology firms to the so-called “Entity List”. This entity list has often been used for national security reasons coercion of political rivals since the previous Trump administration.

A total of 27 new entities were added to the list from China, Japan, Pakistan, and Singapore. Separately, the Moscow Institute of Physics and Technology was added to the department’s military end-user list, although the listing gave no more details other than it had produced military equipment.

The new listings will help prevent American technology from supporting the development of Chinese and Russian “military advancement and activities of non-proliferation concern like Pakistan’s nuclear activities or ballistic missile program,” Commerce Secretary Gina Raimondo said in a statement.

Potential suppliers to firms on the list will now need to apply for a license before they can sell to them, with applications likely to be denied. Chinese telecoms giant Huawei was added to the list in 2019 over claims that it posed a risk to US national security. The move cut it off from some of its key suppliers and made it difficult for the company to produce mobile phones.

The Chinese government has previously denied that it takes part in industrial espionage. China strongly opposes the sanctions on the Chinese companies, and will lodge solemn representations with the United States, Shu Jueting, a spokesperson for the Chinese commerce ministry, said at a news conference.

It is observed that the US is still following the cold war mentality and using old tools. Restrictions and sanctions were never effective in the past and will never produce the desired results. Especially, when the world has transformed into multipolar and the American influence has reduced tremendously. In some of the case, it was witnessed that some close ally of the US has not followed American sanctions or restriction on some of the cases. Each country has the right to look after its own interest, without any influence from other countries. Sensible nations may not follow American restrictions and the US may face more embarrassment. In fact, sanctions and restrictions were counter-productive in the past and will remain counter production in the future too.

On the other hand, China has surpassed the stage where it was dependent on the US. Today, China has developed to a stage, where it is capable to protect its interest without any difficulty. China can meet it=s technological needs through its own resources. The R&D budget in China has crossed many developed countries. The Innovations of China are much more compatible with the Western world. The nublet of patent and re4search publication reveals that China is sound the are of Science, Technology, and innovation.

Economically, China is in the second position currently, but, the growth rate of China is quite higher than the US or any other country in the World, it is expected that the Chinese economy will surpass the American economy and become the world’s largest economy within a few years.

The recent report published by Bloomberg is very much encouraging and reflects the superiority of the Chinese economy.

Alternatively, if the US accepts the ground realities, and extends cooperation and collaboration, it might help not only both, China and the US, but also the rest of the world to develop on a much faster track. Anyhow China and the US possess the potential to reform the declining global economy and can save from further deterioration. If the US behaves sensibly and smartly, can save its face as well as the global order. It is desired that the politicization, researchers, intellectuals, and scholars around the globe promote cooperation, harmony, and development. Must avoid coercion, tension, wars, hate, and negativism.

Reference Link:- https://www.geopolitika.ru/en/article/us-puts-restrictions-technology-based-firms-various-countries-coercion-tool