The Information's 411 Trump's Secret Trade Crackdown


happy Friday everybody it's the information's four one one look from the reporting team in the information at the stories we've written the story behind the story and just other items in the news that we find interesting my name is Tom Dotan work here at the information had a definition of all this stuff that's in this story which is a lot is called dual use technology meaning there's a possible military application and days we are fresh off our annual subscriber summit that I've been plugging frequently during the podcast that happened yesterday on Thursday and the next of the amount of US exports of sensitive technology has declined and that's part of a larger effort by the trump administration to keep a earth range very interesting importance and distribution of what you described as sensitive US technology and you know the kind of regulation and oversight the US government has on where around the world us sensitive technology is going and you know some of these stories can occasionally get lost in the weeds of numbers but having a handy study story collection of data that you put together that looked at sensitive use technology and its export and this is something that I had not thought at all about just the Uh of course does and he looked at basically pulled a bunch of government data foyer a bunch of government data and was able to see that under the trump administration the number I'm talking to Matt Drainage who wrote an excellent piece looking at the trends in exporting sensitive US technology this is not a subject that I knew much about at all but so keep a lookout for that but for now my conversation with Matt Drain and his look into sensitive US technology there you should check out the actual story because it has an excellent chart that was put together by Matt and our Graphics New York Mike Sullivan that really drills down national security risks yeah other examples could be certain types of drones others things would be things like night vision in one so examples could be certain types of advanced semiconductors say to be used in a ID badge for the Pentagon or in some sort of fighter so that we are going to be sending out I say as a bonus episode is going to be Jessica Lessons Interview with Fiji Cmo but we've got a bunch of other ones coming to including interviews with Max in and check out the story so I mentioned to you that this is a special episode beyond just being a little bit short we've also got a couple of bonus episodes coming your way in the next couple Oh to the part of the tech industry that we write about but unquestionably interesting and important and in addition to our conversation I also WanNa Plug that for those of you that are subscribers get where you wouldn't want you'd want to have the supply chain be completely us-based and have zero for Chinese right for risk of some sort of tampering we're close eye on where exactly some of the US's most sensitive technology is going but that also affects the cubbies that creates the stuff it's a very different world chart that really clearly lays it all out really kind of brings it to focus so definitely should a after listening to this interview hop on over to your Internet machine and overweight gets to go why don't you just explain what you mean by sensitive US technology like what qualifies in the data that you were looking at yeah sure so the William of license applications these companies have to apply for which is what the data show and also those that are approved so that's one number two what we saw is a pretty clear advanced encryption software things where you could see a foreign government taking interest in as we are in many cases the leading developers of that technology and so the US government just want Break when the trump administration came in you can see a couple of different ways that they have had an impact on this so the first one is the last two years Syria Iran North Korea cetera interesting so this is technology that the US is selling to other countries it's going to the Middle East it's going to South America wherever that's not the companies that are based here right in Silicon Valley are have a market all over the world and so we're seeing a huge uptick so every year pretty steady uptake in the overall for overseas this a bureau of Industry and security is tiny vision of the Commerce Department they sanctioned and find that company blue coat for essentially letting that technology chin the CEO of Insta- carport Meta and plenty of other things I've mentioned on the show so those are going to come at you fast and furious in the next few days we've seen a large increase in the value of these applications that were denied so when a company submit something to say okay here's the type of technologies generally what it is the other thing I I should add is that the attorneys there's a whole bunch of attorneys that all these tech companies rely on to advise them on this and they tell me I've talked to keep tabs on where is this going and who is the end user and the whole idea with this is that we're going to regulate all the export of of this huge group of technologies which is growing and we into the hands of what we would consider the bad guy right many so what did you find when you analyze this data here I mean what did what what is the trend not released that so I can't tell you the data don't show the names of the companies however the attorneys that they rely on for advice and consulting with this right and the key question is who is that end user so one example that people might be familiar with a company called blue coat they made it advance spyware and in twenty twelve or twenty thirteen it ended up in the hands of the Syrian government which used it spire their own citizens when that became publicly known the US government and the agency that do you see this trend connecting to what are they what does the larger goal they're trying to achieve so I think one good example that Kinda shows that is certain types of semiconductors about two years now that the Commerce Department is overseeing and it's called th-the basically what they're doing is they're redefining quote unquote critical emerging technologies so in terms of how much this technology getting exported so there are a couple number one we've seen a steady increase the last decade so the data goes back to two thousand ten a steady increase in the overall volume of exports. So you know is good business right well it's a good business and just you know generally global economy is becoming more spread out right and managed to change this as a backroom deal kind of thing do you have to find a sensitive or receptive member in I don't know under Mick Mulvaney or someone like that WHO's willing to company here justifying getting those experts approved and you did even just two three years ago right and business wise they're seeing bottomline impact I mean this is absolutely affecting all sorts of stuff that touches a whole bunch of companies so when they introduced this plan back in two thousand seventeen they gave companies a large window to weigh in administration cast when he came into office very broad net over what that looks like includes things that we care about here such as driverless vehicles quantum computing have said that of course you know by and large is not certainly hasn't helped them right right and so going forward what can these companies do is there talk about that too they're going to add to it soon the trump administration is but the whole idea is to let's monitor this stuff and make sure that it doesn't end up in the hands of a foreign government that we don't see eye to eye with champion this cause and reverse the trend or it's just hoped that a new administration comes into view that differently so it's actually a pretty transparent process it's been playing out for of an obscure field within the tech world so it's hard for me to think there's a huge lobbying arm these companies can rely on to ease some of these restrictions I mean how do you how do you you know all the stuff that he's tweeting having a very real on the ground impact that some of these attorneys have described to me as a chilling effect in Silicon Valley where you're having a tougher time if you're out there who enjoyed hearing about about story it's even more fascinating if you can kind of check out the way that the data was graft and visually interpreted on the site it's an we're seeing those either denied or delayed from US companies now another example is companies a lot of smaller companies are mid sized companies that did business with that are part of China's made in two thousand twenty five plan which we've talked about on previous episodes where the Chinese government wants to have a lot of this advanced tech made at home waivers e. t. e. r. now having to apply for these licences my didn't have to before and we're seeing those take a lot of time and get a lot of scrutiny of course because those companies is this is the end user in this country and this is roughly how much it's worth so what we've seen the last couple of years as the trump administration has really tried to clamp down and on the export of technology particularly China rate as we've often heard about what we're seeing is an increase in the number of applications that are getting denied and these companies businesses in a in a negative way yes but there's a carrier there which is which companies are applying for these licenses the government. Clearly this is Wilbur Ross fits the Commerce Department so so listen up Wilbur you got a bunch of applications headed your way all right excellent job as always and I want to make a plug to those listening I plan to release now they have this feedback released their new definitions of what what all critical emerging tech is by

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