HUAWEI FUNDS USA RESEARCH to bypass SANCTIONS - china laughs at biden...

Summary

In this episode of The Daily Blob, the host discusses the contrasting approaches to intellectual property between the US and China, using Huawei's strategy as a case study. While the US values patenting and monopolizing ideas for economic growth, China prioritizes execution and rapid product development. The video highlights how Huawei, despite being blacklisted, funds US research to gain access to publicly available information that can be integrated into their products. This raises questions about the effectiveness of sanctions and the future dynamics of technology and business between these two economic powerhouses.

Takeaways

• 📣 The video discusses the disconnect between American and Chinese perspectives on intellectual property and business practices.
• 🏛️ The United States values intellectual property as a cornerstone of its wealth and innovation, with a focus on patenting and owning ideas.
• 🌏 In contrast, China prioritizes execution over the concept of intellectual property ownership, valuing those who can produce and ship products quickly.
• 🚫 The US has imposed sanctions to contain China's development in areas like AI, restricting the export of high-power AI chips.
• 💡 Huawei, a Chinese tech giant, has been secretly funding open-source American research to bypass intellectual property restrictions.
• 🤔 The video raises concerns about the effectiveness of sanctions when different cultures have different views on intellectual property.
• 🔍 It highlights a case where Huawei funded a research competition through a Washington-based foundation, without direct affiliation.
• 🏫 The research funded by Huawei is happening at prestigious universities, including Harvard, and could impact both defense and commercial interests.
• 📈 The video suggests that as China grows economically, its business paradigms will increasingly influence global practices.
• 🤝 It encourages viewers to consider how different societies view the world and the implications for international business and politics.
• 🔑 The script ponders the future of technology and business, questioning whether the American model of intellectual property ownership will remain dominant.

Q & A

What is the main topic of discussion in the video script?

The main topic of discussion in the video script is the difference in approaches to intellectual property between the United States and China, and how this impacts the technology industry, particularly in the context of Huawei funding American research.

Why does the speaker believe that intellectual property is a cornerstone of the United States' wealth?

The speaker believes that intellectual property is a cornerstone of the United States' wealth because it allows individuals and companies to patent ideas, own them, and then monopolize and profit from them, which in turn drives innovation and investment in new ideas.

What is the speaker's view on the Chinese approach to intellectual property?

The speaker suggests that China focuses more on execution rather than the idea of owning intellectual property. In China, the emphasis is on who can build and ship products the fastest, rather than on who can monopolize an idea.

What is the issue with the current sanctions against China, according to the speaker?

The issue with the current sanctions against China, as per the speaker, is that they might not be effective because they are based on the assumption that China values intellectual property in the same way the United States does. The sanctions aim to contain China's development, but the speaker questions the effectiveness of this approach.

How is Huawei allegedly bypassing restrictions on intellectual property?

Huawei is allegedly bypassing restrictions on intellectual property by secretly funding American research that will be published openly. They then take this public information and integrate it into their products, circumventing the need to own the intellectual property.

What is the role of the Optica Foundation in Huawei's research funding?

The Optica Foundation is used as a conduit for Huawei's research funding in the United States. It remains anonymous to avoid being seen as a promotion, and the foundation is interested in high-sensitivity optical sensors and detectors among other categories of research.

What is the speaker's concern regarding the United States' approach to dealing with China?

The speaker's concern is that the United States has a paternalistic view towards China, attempting to control the level of technological and societal growth that China can achieve, which the speaker finds problematic and not reflective of how life and global dynamics work.

What does the speaker suggest as an alternative to the current approach to intellectual property?

The speaker suggests considering an open-source approach to everything, documenting all aspects of a business so thoroughly that even a 9-year-old could replicate it, and then asking if one could still be the best despite this transparency.

What is the potential impact of Huawei's strategy on the future of technology and business?

The potential impact of Huawei's strategy is that it could lead to a shift in how technology and business operate, with a greater emphasis on execution and the ability to innovate quickly, rather than on owning and monopolizing ideas.

How does the speaker view the future dynamics between the US and China in terms of business and technology?

The speaker views the future dynamics as being significantly influenced by the differing paradigms of the US and China. While the US has historically been based on monopolizing ideas, China is pushing a paradigm based on execution and production capacity, which could reshape the global business landscape.

Outlines

00:00

🌐 Intellectual Property and Business Dynamics

The speaker discusses the contrast between the American emphasis on intellectual property and the Chinese focus on execution. In the US, the ability to patent and monopolize ideas is foundational to wealth creation, whereas in China, the priority is on who can manufacture and ship products most efficiently. The narrative highlights the issue of differing perspectives when issuing threats or ultimatums in international relations and business. It also touches on the current sanctions and the American attempt to contain China's technological advancement, particularly in AI, by restricting the export of high-power AI chips. The speaker suggests that Chinese companies like Huawei might circumvent these restrictions by funding open-source American research, thereby gaining access to publicly available information to integrate into their products without concern for intellectual property ownership.

05:00

🔍 The Impact of Huawei's Secret Research Funding

This paragraph delves into the revelation that Huawei has been secretly funding research in the US through a Washington-based foundation and university competitions, despite being blacklisted. The research, which is happening at prestigious institutions like Harvard, is aimed at developing cutting-edge technologies that could potentially benefit China's defense and commercial interests. The money is funneled in a way that raises national security concerns for the US government. The foundation has shown interest in high-sensitivity optical sensors and detectors, among other areas of research. The concern is that this could lead to innovations that give China an advantage. The speaker also points out the irony of the situation, where the US is trying to prevent China's commercial growth by restricting technology exports, which may not be effective if China can access the necessary knowledge through public research.

10:03

🚀 The Future of Technology and Business Paradigms

The final paragraph contemplates the future of technology and business, particularly the impact of differing global paradigms on innovation and execution. The speaker questions the US's paternalistic approach to China's technological growth and the effectiveness of containment strategies. They suggest that China's investment in public research and development could be a strategic move to bypass traditional intellectual property barriers. The paragraph also encourages individuals to consider how they prepare their careers and businesses for a future where execution may be more valuable than the idea itself. The speaker invites viewers to reflect on the dynamics between the US and China's business practices and ponders the implications for personal and corporate strategies in a rapidly evolving global economy.

Keywords

💡Intellectual Property

Intellectual property refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce. It is a crucial concept in the video as it underpins the discussion on how the U.S. values the ownership and protection of ideas, which is a cornerstone of its economic prosperity. The script mentions that the U.S. system allows for the patenting of ideas and the collection of royalties, which is contrasted with China's approach where execution and product shipment are prioritized over the ownership of ideas.

💡Patent

A patent is a form of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period, usually 20 years. In the context of the video, patents are highlighted as a means for inventors to profit from their ideas and to invest in further innovation. The script contrasts the American emphasis on patenting ideas with China's focus on execution and product shipment.

💡Copyright

Copyright is a legal right that grants the creator of an original work exclusive rights to its use and distribution, typically for a limited time. The video script touches on copyright as part of the broader concept of intellectual property, which is a key aspect of the U.S. economic model. It suggests that the ability to own and profit from creative works has contributed to the wealth of the United States.

💡Monopolize

To monopolize means to dominate or control an entire market or industry. In the video, the term is used to describe the power that comes with owning intellectual property, such as patents, which can effectively give the owner a monopoly over a particular idea or invention. The script contrasts this with China's approach, where the focus is on execution rather than on monopolizing ideas.

💡China

China is a significant player in the global economy and is a central focus in the video's discussion on differing approaches to intellectual property and business execution. The script contrasts the Chinese model, which emphasizes execution and product shipment, with the American model, which values the protection and ownership of intellectual property. China's actions, such as Huawei's funding of American research, are highlighted as examples of how they navigate the global technology landscape.

💡Huawei

Huawei is a leading Chinese technology company that has been blacklisted by the U.S. government due to national security concerns. The video script discusses how Huawei has been secretly funding American research to gain access to cutting-edge technology and information that would otherwise be restricted due to intellectual property laws and sanctions. This strategy allows Huawei to bypass direct restrictions on technology transfer.

💡Research Funding

Research funding in the video refers to the financial support provided to scientific and technological research. The script reveals that Huawei has been secretly funding research in the U.S., despite being blacklisted, through a Washington-based foundation and university competition. This strategy is seen as a way for Huawei to access innovative ideas and technologies without directly violating intellectual property laws.

💡Open Source

Open source refers to something that can be modified because its design is publicly accessible. In the context of the video, Huawei's approach to funding research that is open-sourced is highlighted. This means that once the research is published, it becomes publicly available, and Huawei can use this information to develop their own products without concern for intellectual property restrictions.

💡Sanctions

Sanctions are measures imposed on a country, entity, or individual to coerce a change in behavior. The video discusses U.S. sanctions aimed at preventing China from advancing in areas like AI and high-power processors. However, the script points out that these sanctions may be circumvented by Huawei's strategy of funding open-source research.

💡Optica Foundation

The Optica Foundation is mentioned in the video as the entity through which Huawei is funneling money to fund American research. The foundation's involvement allows Huawei to remain anonymous and avoid direct violations of sanctions while still gaining access to valuable research and development.

💡National Security

National security is the measure of the security and defense of a nation against various threats. The video script raises concerns about the potential impact of Huawei's research funding on U.S. national security. The fear is that the research could lead to innovations that could give China an advantage in both defense contracting and commercial interests.

💡Commercial Interests

Commercial interests refer to the economic and business objectives of a nation or company. The video discusses how U.S. sanctions are intended to contain China's commercial interests, particularly in the technology sector. However, the script suggests that China's approach to intellectual property and execution may allow them to continue advancing their commercial interests despite these restrictions.

Highlights

The Daily Blob discusses the impact of politics on technology and the challenges of differing global perspectives on intellectual property.

The U.S. values intellectual property as a cornerstone of wealth and innovation, with a system that allows for the patenting and monopolization of ideas.

China focuses more on execution and product shipment rather than owning intellectual property, leading to a different approach to idea monetization.

The Chinese system allows for the taking of ideas and competition based on execution, potentially leading to different outcomes in innovation.

U.S. sanctions aim to contain China's development in areas like AI, but China's approach to intellectual property could circumvent these restrictions.

Huawei's strategy of funding open-source American research allows them access to ideas without violating intellectual property laws.

The Optica Foundation, funded by Huawei, supports global research and academic communication, remaining anonymous to avoid promotional perceptions.

Huawei's funding of research competitions at U.S. universities like Harvard raises concerns about national security and commercial interests.

The fear is that publicly published research funded by Huawei could give China an advantage in defense and commercial sectors.

The legality of Huawei's actions is questioned, as funding research for publication does not fall under the current ban.

Huawei operates similar research competitions openly in other parts of the world, showing a global interest in advancing technology.

The U.S.'s approach to containing China's technological growth is criticized as paternalistic and potentially ineffective.

China's economic growth and production capacity are significant factors in the global technological landscape.

The video ponders the future of technology businesses in a world where intellectual property laws may not be as dominant.

The importance of considering different societal paradigms when building a business or career in technology is highlighted.

The video concludes with a call to action for viewers to consider the implications of Huawei's actions and the future of U.S.-China relations in technology.

Transcripts

welcome to another episode of The Daily

blob where I come on to YouTube every

day to Roar about the things going on in

the technology world and sadly talk way

too much about

politics when I came back to do the

daily blob I was like I'm just gonna

talk about technology I'm not going to

talk about

politics oh and then the world happened

and then the world happened so I think

this is an interesting story and I think

this is a perfect example of the problem

when politicians look at the world a

particular way and they expect everybody

else to look at the world the same way

one of the problems that you have

whether you're you know whatever type of

leader that you are is that when you

issue threats when you issue ultimatums

if the other side doesn't see the world

in the same way that you see the world

those threats and ultimatums might not

go the way that you think and so one of

the interesting things with the American

way of doing business is that we really

care about intellectual property so

intellectual property is literally a

founding building block of the United

States the idea that you can get a a

patent the idea that you can have

copyright the I the the idea that you

can literally own and essentially

monopolize an idea and make money off of

it is a Cornerstone of basically what

has been able uh to make the United

States wealthy somebody comes up with

with an idea for something they patent

it then other people who want to use it

basically have to pay a royalty all that

money then comes in to the original

Venture of the idea they get a lot of

money and then the idea is that they can

then invest that into coming up with

other ideas and other ideas and other

ideas and other ideas and basically with

that consolidation of money that comes

in from that one idea then you can

create you know major industries uh the

problem is is when you get to countries

like China they actually

uh uh concentrate on execution more than

they concentrate on the idea of owning

intellectual property so what I mean by

that is the the the concept there is the

people that should make the money are

the people that can build and actually

ship product the fastest right so if

somebody has an idea uh and they patent

it and then for whatever reason they

don't allow other people to use the

patent or the royalties are too high

that idea doesn't actually help the

citizen R and it doesn't really help the

world essentially that person has

captured that idea so that nobody else

can use it right and that is a fault of

the intellectual property system that we

have and so basically what the Chinese

system is is you don't really own the

idea in such a way you come up with the

idea you start shipping product and then

the idea the concept is almost anybody

else can basically take that idea they

can start shipping product and whoever

executes best in ends up being the

winner and why this is important is

because there's a lot of sanctions going

on right now in order to try to prevent

China from I don't

know I still don't get

it we're trying to prevent them from

getting AI or

something I I I'm giving up on the Biden

Administration they're just kind of

doing what they're doing right there's

this idea that

somehow we can contain right again a

political thing there's this idea that

we can contain pain China both

economically and militarily and

developmentally right and so we're not

going to ship them uh basically uh chips

that are able to do high power Ai and a

lot of these other things and the idea

is that will contain them well the

Curious Thing though is a lot of that

comes from the idea of owning

intellectual property right Nvidia owns

the right to be able to manufacture

processors or whatever in a certain way

well what becomes interesting is if you

have companies such as Huawei

what if wuwei starts funding American

Research that essentially will be open-

sourced it will be

published because they don't care about

the intellectual property they do not

care about monopolizing the idea all

they care about is finding a way to

solve the problem so instead of worrying

about monopolizing the idea they start

funding American highquality Research so

that Americans can solve the problem

publicly and then they take that public

information bring it back into China in

order to integrate that into their

product since they don't care about the

IP to begin with and I think this is an

interesting thing where you have

societies come together and again humans

look at the world differently one of my

problems having traveled around the

world and listening and listening again

you sit down and you listen to people

and you know it's a diverse conversation

when they say crap you wouldn't have

even imagined and the thing is when you

sit down and you talk with people all

around the world the reality is is

different societies vook at the world

differently the idea that we're all the

same is abjectly stupid and so the

problem is is when two societies come

together and they look at the world

differently you can run into some major

problems if you don't take that into

account remain Gadget Huawei has been

secretly funding research in America

after being blacklisted so they can't

get the products that are protected by

intellectual property so they'll just

fund research so that somebody creates

the documentation so they can just take

that documentation back home the money

is being funneled through a Washington

base foundation and a University

competition Chinese Tech GI giant wuwei

has been secretly funding research in

America despite being blacklisted The

Cutting Edge research is happening at

universities including Harvard and the

money is being funneled through an

independent Washington based Research

Foundation along along with a

competition for scientists uh Bloomberg

found that wuwei was the sole funer of a

research competition that has awarded

millions of dollars since 2022 and

attracted hundreds of proposals from

scientists some of these scientists are

the top us universities that have banned

research researchers from working with

the company so basically it's a

competition so you're not working with

the company you're just doing a

competition uh the fear is that this

research could lead to innovations that

give China a leg up with regard to both

defense Contracting and commercial

interest according to Kevin wolf a

partner at the business focused Law Firm

Akin who specializes in export controls

Optica the foundation behind all this

has posted online that it is interested

in quote high sensitivity Optical

sensors and detectors among other

categories uh of research and again so

one of the the the concerning Parts here

again you always hear about the defense

Contracting right everything's about

security we got to ban Tik Tock because

National Security or something right so

anyway you always hear about the

security thing but again think about

this

we we are

stating that we are trying to prevent

China's commercial interests from

increasing does that sound like a good

idea at least to say publicly quote it's

a bad look yes that is a bad look but

anyways it's a bad look for a

prestigious Research Foundation to be

anonymously accepting money from a

Chinese company that raises so many

National Security concerns for the US

government says James Mulin a defense

contractor who's worked on security

research issues uh it's worth noting

that this money money funneling

operation doesn't look to be illegal

right so again that's the interesting

thing if Huawei tried to purchase

processors from the United States that

would be illegal if

wuwei Funds American researchers so that

they develop new ways of building

processors and then they publicly

publish that information

well that's

fine again this becomes the interesting

thing when you start think about nation

state actors when you're dealing with

actors that can spend tens of billions

or hundreds of billions of dollars in

order to implement Solutions it entirely

changes the game

plan um uh let's see here illegal as

research intended for publication

doesn't fall under the purview of the

ban Huawei operates similar competitions

in other parts of the world though

openly people who participate in the

us-based research comption didn't even

know that Huawei was involved believing

the money to come from Optica the

competition Awards $1 million per year

and Optica didn't give any indication

that Huawei was supplying the cash a

Huawei spokesperson told Bloomberg that

the company and the Optica Foundation

created the competition to support

Global Research and pro promote academic

communication saying that remained

Anonymous to keep from being seen as a

promotion of some kind yeah sure there

you go uh we're we're Anonymous so it

doesn't seem uh like it's

advertising really um so anyways I

thought this was kind of an interesting

story again to be thinking about you

know how the world of technology is

going to progress and how we again we

think about things like technology there

so much you know go thing you know this

idea of owning intellectual property

right the right to monopolize an idea

that's something very inherent into the

American system how do we deal when it

entirely different Society basically

says no nah right what happens again

when

manufacturing uh becomes so relatively

trivial if expensive that the idea

actually becomes more valuable than the

product again right now the idea the

concept is is that Nvidia can't ship AI

chips to China because whatever right

but here's the thing what if China gets

to the point where they don't actually

need the hardware itself they don't need

Nvidia to build the ship they just kind

of sort of need to know how to build a

ship and so then again they put this

funding out there for research and they

can they can rightly say they can

rightly say look look China China is

putting so much money into public

research and development how can you be

snarky about that right everybody a clap

look at how good China is being for the

world and then when that when the the

the the research is is published

publicly published China then just takes

all that research and you know basically

it's paint by numbers okay so we need

one of those and we need one of those

and we do one of those and we do a

couple of these and we need a couple of

phds and yay we now have an AI chip or

Optical sensor uh or whatever else um

again I do think it's kind of like that

fascinating idea and and that's my

concern with how the United States is

trying to deal with China is we're

really we really have that

paternalistic view of China not just not

just again that we want a better

military than China or you know we care

about the n-h line or something like

that but there's this this this massive

paternalism as in we are trying to State

at what level their society can

grow

what as I've said many times hey have

you all said that out loud it doesn't

sound that good right but again that's

really like oh okay we We As Americans

like the level of technology that China

is currently at so we are going to keep

them

there yeah that's that's not how life

works again you look at kids you look at

you look at The Minister's daughter The

Minister's daughter how does that work

out in the real world you want to talk

about bat crap crazy doing drugs and

sleeping with everybody and you're like

wow what does your father do oh he was a

minister like ah now I understand right

cuz people are going to do what they're

going to do um and so it's kind of

curious to see this interplay between uh

between the US and China and again one

of the other other important things to

be thinking about this is again as you

create your technology businesses

thinking about the world viiew again

China is the second largest economy in

the world and again it really depends on

how you look at it they're they're

producing so much their production

capacity essentially they passes

everybody else and so one of the things

to be thinking about is what what is the

Paradigm you're pushing your career

forward right if the United States and

the Western World were the powers for

the past couple of hundred years then

how we look at the world uh is is

significant for how you became powerful

rich and Powerful yesterday but again as

China grows as these other countries

grow

economically their paradigms are going

to start pushing the world more and more

our paradigm is based on monopol

monopolizing the idea their Paradigm is

based on the ACT the actual ability to

execute so one of the things to be

thinking about with your career and your

business and all that kind of stuff is

are you designing the business your

business for how business will operate

within the next 5 to 10

years and that is something to think

about again imagine imagine if you open-

sourced everything imagine if you

literally

documented everything about your

business to the point that a 9-year-old

could do it could you still be the best

could you still be the best and I think

that's one of the things uh to ponder

here so anyways so what do you think

about this what do you think about

Huawei uh funding American Research so

they that they can get access to the

information and build the crap

themselves right again basic basically

that's what what basically what H Huawei

is doing right now is they're hiring

tech consultants hey we're essentially

just Hing you so that you can explain

some stuff to us we'll go do it

ourselves right what do you think about

this what do you think about the

Dynamics between how the US does

business and how China does business and

how that'll work going into the future

um again I will be fascinated by this

and I really hope at some point we get

an Administration that isn't trying to

you know be apparent to China that would

ever be ever so lovely as an American

like I may have issues with China but

I'm not your mommy or

daddy but anyo uh if you like these

videos give us a thumbs up subscribe if

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y'all later