While China Crushes Tech, AI Companies Plan IPOs

The goals set by the government are complex. Legally, it was designed to reduce anti-competitive practices, protect confidential information, and regulate monetary inequality or “capitalist growth.” But it also brings in powerful businesses to join the Communist Party.

“Alibaba, Tencent, and JD.com will be billions or billions but they are not under the control of the party, this is something new and unprecedented in China,” he said. Zhiwu Chen, professor of economics at the University of Hong Kong.

Many experts describe the move as a form of corporate punishment – an attempt to lead Chinese tech companies to areas that are seen as important for economic development and political opportunities. “Companies that are at the cutting edge of technology, such as high-tech manufacturing, computer chips, biotech, and security – industries that China is lagging behind – are not affected,” says Chen.

This could explain why AI companies have gone lightly so far. “AI is a very important economic phenomenon,” says MIT’s Beraja. “Chinese officials have repeatedly called them ‘good money.’

The belief that AI could contribute to the development of many industries was expressed in a a global system published by the China State Council in 2017. The plan generated significant funding in AI and local governments. Some AI companies have also benefited from government data, including images used to build and maintain face recognition systems.

Minyuan Zhao, assistant professor at the University of Washington at St. Louis. Chinese businessman Louis says the AI ​​industry is as big as anyone else’s, but it is already tied to the government. He said: “I have no problem with self-control.

Graham Webster, a Stanford-based researcher working in China, says the new country Personal Security Act will strengthen the rules of all companies that handle personal information, including AI companies that sell facial recognition technology.

SenseTime warns potential investors that data rules could cause headaches. “It is unknown at this time what he will do after leaving the post,” he said.

In other words, Beijing’s infringement on personal information can strengthen the relationship between the government and the companies it shares the most, if it helps people to believe that personal information is protected.

This will not block AI companies from certain restrictions or regulations forever, however.

“AI is a new phase,” he says Yun Sun, head of China Program at Stimson Center think tank. “It is possible that regulators do not fully understand the extent of data security,” he says. “There is a way for the government to deal with IPOs as mature, the actors are many, and regulating becomes a problem.”

Some of the Best WIRED Stories

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *