There is an excellent article in the December 29, 2023 New York times written by Chris Miller, author of the excellent book Chip War and Jordan Schneider founder of the podcast and newsletter “China Talk”. They point out that our government’s efforts to stop Russia and China from our advanced Technology and equipment to enhance their military defense. Our enforcement has been weak at best.
The United States manufactures the most advanced machinery for making semiconductors and precision metalworking. The authors point out that our sanctions and restrictions haven’t stopped China and Russia from obtaining American made machinery and technology that would allow them to make more sophisticated semiconductors and gain a lead in artificial intelligence.. One problem is that once this machinery is sold legitimately, to one customer it can then be resold to China or Russia. Another problem is that we have limited personnel to police company sales.
The writers also make useful suggestions to protecting our technology. Companies making controlled tools should be mandated to install tamperproof geolocation devices in them. If prohibited machinery is transferred into China or Russia, it would be disabled automatically. In addition, some of the complex manufacturing machines rely on software and it is possible to know where the tools are and what they are being used for through these software programs which can be monitored.
The U.S. much make greater demands on companies for facilitating the transfers of these machines to China and Russia and to strengthen and implement export controls. One additional way to help stop the transfer of U.S. technology is to continue to encourage whistleblowers to reveal violations, to issue heavy fines for violations by US companies and to reward whistleblowers for original and detailed information including the sale of products to companies that re-sell to China, Russia or Iran.
Jeffrey Newman Esq. represents whistleblowers under the SEC, CFTC and FINCEN whistleblower programs. Persons providing original information to these agencies through counsel, may receive rewards totaling up to 30 percent of a successful recovery made by the SEC, CFTC OR FINCEN and the names and identification of the whistleblowers are confidential. Jeff Newman can be reached at Jeff@Jeffnewmanlaw.com or at 617-823-3217
