Oct 22, 2020

We are seeing the formation of global digital war

TikTok
China
Technology
Data
Chan Kung
5 min
digital war
The US government's handling of TikTok needs to be understood as the commencement of a digital war on a global scale, says Chan Kung...

The restructuring of TikTok, owned by the Chinese company ByteDance, has been under the market’s spotlight lately. Although some American companies such as Oracle and Walmart claimed that they had formed a preliminary plan with ByteDance on TikTok's reorganisation and data custody, other parties such as the US president, Donald Trump, seem to have different opinions on the plan, and a consistent final agreement has yet to be formed.

The US government's approach to TikTok shocked the entire capital market, and many believe that the US government disrupted the mode of market operation and brought extremely negative effects on investments in the United States. Moreover, the data security issues brought about by TikTok are not the same as the technical competition threats brought by Huawei. Why then, did the United States act so strongly on TikTok?

A digital war

From the perspective of global economic development trends, the US government's handling of TikTok needs to be understood not only from the perspective of the ‘decoupling’ between the United States and China, as it is not just an issue of data protection and security, but also the commencement of a ‘digital war’ on a global scale.

Recent reports have shown that the digital economy, which is mainly based on information technology and internet technology, is showing an increasingly strong development momentum, and that the physical isolation brought about by the Covid-19 pandemic has further accelerated its development. 

In 2017, the scale of the US digital economy accounted for 57% of the country’s GDP, ranking first in the world. Comparatively, China’s digital economy was RMB 27.2 trillion, accounting for 32.9% of its GDP, ranking second in the world. According to IDC forecasts, by 2023, the output value of the digital economy will account for 62% of global GDP, signifying the start of the era of digital economy for the world.

Regulatory clout

The outlook for the global digital economy is undoubtedly optimistic. In this context, data, as the foundation of digital technology and applications, is being paid more and more attention to by countries. Major economies including China, the United States, and the European Union have begun to treat all kinds of data as their own national resources or even assets, and have established sovereign-based data protection and application rules.

If the internet economy that began in the 1990s was in an age of freedom of the digital economy, then countries around the world are currently entering an era of data protection and competition, as digital technology continues to develop. The European Union has clarified its regulatory thresholds for data protection through the General Data Protection Regulations (GDPR), hoping to establish its own voice and market initiative in the digital economy.

Data localisation

The United States has been advocating for a free flow of data for a period, similar to free trade. This is based on its own leading position in the digital economy and relies more on giant technology companies such as Google and Facebook to obtain data resources from other countries. With the rise in e-commerce and related fields, China's digital economy and technology companies are also developing rapidly, causing it to be in direct competition with and even challenging the United States. In this case, data localisation is becoming an important consideration for governments including that of the United States, which will have a decisive impact on the global digital economy and the development of giant technology companies.

Therefore, for Chinese companies, whether it is ByteDance or Tencent, they will face high data barriers in the process of going international. TikTok, whose business is concentrated in international markets, currently has 500 million users and over 2 billion downloads. It has more than 70 million users in the United States and more than 100 million in Europe, so one can only imagine just how massive the user data obtained by TikTok can be.

TikTok: data rich

No matter where the data is stored, it is a rich asset to TikTok, which can bring various derivative applications and generate commercial benefits with technical support. This is precisely what the US government is worried about. As Ciaran Martin, CEO of UK National Cyber Security Center, said recently, although apps such as TikTok do not directly pose security threats, Chinese companies intend to obtain a large amount of user data from other countries in order to train artificial intelligence applications and obtain technological advantages. Western countries should seriously consider their future data protection models, similar to what the EU has done.

In fact, the European Union has begun to gradually tighten its data policy recently as well as join the competition for data resources. The Office of the Irish Data Protection Commissioner (DPC) has recently made a preliminary decision that the mechanism used by Facebook to transfer data from the EU to the US should not be implemented. As Facebook has a huge amount of user data from around the world, it said that such restrictions may cause it to withdraw from the EU market.

Data audits

TikTok on the other hand does not seem to attract much attention in Europe. Although it has more than 100 million users, its announcement to establish a data center in Ireland can temporarily alleviate European concerns about data. However, if TikTok continues to develop rapidly in Europe, it will eventually face increasingly stringent data audits in European countries. It should also be noted that India took advantage of China's border dispute to take measures and restrict the use of China's digital applications in India, indicating that more countries are joining the chaos of the so called ‘digital war’.

As the EU leaders said, the future economic landscape lies in the realisation of digital sovereignty in the digital economy. The United States' attack on TikTok and WeChat means that the digital war is taking the lead between the United States and China. It will also cause a series of changes in the field of technology, financial investment, and international trade. Therefore, this kind of competition has surpassed the previous trade wars, financial wars and technological wars, and its rivalry is reflected more on the overall development pattern as well as the competition for potential market space.

Endgame

The fate of TikTok in this game between the United States and China is not only about whether companies can obtain commercial benefits and access to the social platform market, but also a strategic competition of data resources and digital assets between countries. This is actually a strategic competition for whether the digital economy can be fully developed in the future and whether the long-term economic growth potential can be realised.

Chan Kung is the founder of Anbound

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Jul 22, 2021

Airbiquity and Cyngn make any warehouse vehicle autonomous

autonomous vehicles
Warehouse
Technology
Catherine Gray
3 min
Airbiquity and Cyngn combine technology solutions to convert any materials handling vehicle into an autonomous vehicle, regardless of make and age

Connected services provider Airbiquity has partnered with autonomous vehicle technology specialists Cyngn to help material handling companies evolve vehicle fleets into autonomous systems.

This new partnership will support companies working in warehouses move and handle goods without needing a human to drive the machines. By introducing this technology, warehouses will have the ability to evolve their existing vehicles to become autonomous.

“Working with Cyngn, we have the opportunity to help guide the future of autonomous vehicles and make our technology accessible to more industries,” explained Kamyar Moinzadeh, President and CEO of Airbiquity.

Vehicle agnostic technology for flexibility

Cyngn’s flagship product, DriveMod, is an end-to-end autonomy solution that can be flexibly deployed on multiple vehicle types in various environments. DriveMod delivers intelligent analytics, artificial intelligence, advanced safety features and self-driving capabilities for industrial vehicles. 

The technology is vehicle agnostic which means DriveMod works across all kinds of industrial vehicles, regardless of age, vehicle type or manufacturer.

"On the heels of announcing our OTAmatic expansion into non-automotive industry vehicles, this partnership is further validation of the need for safe and secure industrial-grade over-the-air software update management technology to ensure that autonomous vehicles are running most efficiently," said Moinzadeh.

OTAmatic, an over-the-air (OTA) software and data management solution, developed by Airbiquity, securely orchestrates and automates connected vehicle software updates and data management from the cloud.

Securely evolving vehicles to become autonomous

By integrating Airbiquity’s OTAmatic and Cyngn’s DriveMod, organisations can invest in industrial AV technology that starts generating value today while being prepared to tackle the challenges of tomorrow.

Typically, industrial AV solutions require companies to completely replace their existing fleet. This new partnership between Airbiquity and Cyngn shifts that paradigm through retrofitting.

Discussing the benefits of the new partnership, Lior Tal, CEO at Cyngn said: "Autonomous vehicle fleets generate vast amounts of data, which we leverage to derive greater insights and create opportunities for increased efficiency. By using Airbiquity's most advanced and industry-proven over-the-air update technology, companies gain access to these ever-expanding capabilities without disrupting their daily operations."

With both companies’ technology, organisations in the materials handling market will be able to securely evolve their vehicles into AV systems which can be refined over time – thus leading to increased autonomous fleet management efficiency and up-time.

Leveraging data to improve AVs 

DriveMod enables fleets of all shapes and sizes to drive autonomously. This can be achieved by a simple retrofit or by being embedded directly into original equipment manufacturer (OEM) vehicles at assembly.

Businesses within many industries, such as mining, automotive and construction, use OTAmatic to efficiently plan and execute OTA campaigns. This can be done with refined vehicle and device targeting, discrete policy and privacy controls, customisable user communications and solution deployment flexibility.

Over time and with more data, DriveMod will develop a deeper understanding of the domains in which it operates. Combining this with OTAmatic’s over-the-air software updates ensures autonomous vehicle fleets will continue to generate novel value and efficiency.

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