The US administration has used connections between private businesses in China and the Chinese government as a reason for banning Chinese companies from operating within the country. They argued that data collected by these businesses may end up in the hands of foreign governments. When some European governments joined the US government and put restrictions or bans on China-based businesses, it made this problem a global one. At the same time, it brought to the forefront the relationship between the private sector and governments. The media coverage may suggest that the problem with governmental use of data, information, or technology owned by businesses applies only to businesses operating out of China, implying that Western governments do not use tools from businesses or collaborate with businesses to achieve national political and economic advantages. The Recent and ongoing events around the world, however, are confirming that there is not a divide between private and government entities. All governments end up leaning on companies and businesses operating from their territory to use their resources and assets to protect and further what they see as their national interest. The connections and relations between business-government was revealed clearly during the pandemic and the war in Ukraine.
During the pandemic, drug companies received government funds to develop vaccines and anti-viral drugs. And that private-government partnership extended to the control of the production and distribution of drugs according to government priorities, not market forces or public good conditions. For example, EU governments prohibited European vaccine makers from selling their products outside Europe to prioritize the vaccination of Europeans over the rest of the world.
Also, with the start of the war in Ukraine, US-based social media,
Internet companies, and media outlets all fell in line with policies and
guidelines developed by Western governments to control the narrative about the
war, which consisted of filtering out any coverage or information that may
appear to be sympathetic to the Russian point of view.
Also, with the start of the war in Ukraine in February 2022,
the then-richest person on earth and the majority owner of SpaceX, the company
behind the Starlink project which deliverers high-speed internet from space, Elon
Musk, announced that he will allow the government of Ukraine to use the
service. Similarly, when demonstrations broke out in Iran the fall of 2022,
Musk told Iranians that he will make Starlink services available to the
anti-government protesters.
With China facing similar pressure related to its claim over Taiwan, the ban on Chinese technology companies and the willingness of US-based companies to support US positions on global conflicts, it was not hard for the Chinese leaders to build or strengthen alternative to US- and EU-based companies so that they cannot be used against them the way they have been used against Russia and Iran. We also anticipate Russia and Iran to allocate resources to developing similar structures to address these issues. The recent revelation about the emergence of a Chinese competitor to Starlink and SpaceX bolster this conclusion. The media coverage, blow, should provide more context.
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