Amazon’s AI chatbot Q aims to help businesses with daily tasks
Amazon unveiled its AI chatbot on Tuesday, Nov. 28, called Q. The chatbot is designed to help businesses with a variety of tasks, such as summarizing documents, and it can be tailored to the business.
“Amazon Q is a powerful new tool that can help businesses improve efficiency and productivity,” Adam Selipsky, CEO of Amazon Web Services said in Las Vegas at the AWS re:Invent conference. “Q has access to a vast amount of information and can provide employees with detailed, accurate, and nuanced answers to their questions.”
Q is currently available for customers to preview.
The launch of Q came about a year after OpenAI launched ChatGPT. Google opened access to Bard in March. As of early November, Microsoft was boasting its own chatbot as a tool for companies, called Copilot.
While Q may have entered the generative AI race with a chatbot later than its competitors, Amazon’s current commitment to AI research is clear. In September, the company invested $4 billion in Anthropic, a startup founded by former OpenAI employees. Anthropic offers its own chatbot named Claude.
Amazon also announced the development of two new chips, called Graviton4 and the Trainium2. The Trainium2 is designed to help customers train AI systems.
These Sports Illustrated writers never existed. Their faces are AI-generated.
Sports Illustrated has removed articles after Futurism reported that the outlet published them under fake author names with AI-generated headshots. The revelation has sparked concerns about the growing use of AI in journalism.
On Monday, Nov. 27, Futurism reported that the headshots of these nonexistent writers were available for purchase on a website that sells AI-generated content. According to the report, a source involved in the creation of the authors confirmed that some of the articles attributed to the authors were also AI-generated.
The Arena Group has been Sports Illustrated’s publisher since 2019. The company addressed the allegations in a statement to media outlets.
The articles in question were product reviews and were licensed content from an external, third-party company, AdVon Commerce.
The Arena Group
“Today, an article was published alleging that Sports Illustrated published AI-generated articles,” the statement said. “According to our initial investigation, this is not accurate. The articles in question were product reviews and were licensed content from an external, third-party company, AdVon Commerce.”
The Arena Group statement also mentioned that AdVon Commerce writers use pen or pseudo-names for some articles.
Sports Illustrated is not the first outlet accused of experimenting with AI and not disclosing it. In October, USA Today’s product reviews site, Reviewed, faced accusations of publishing AI-generated articles.
Despite AI detection programs reportedly indicating otherwise, Gannett said that the articles were written by freelancers, according to The New York Times. USA Today currently has ethical guidelines that mandate disclosure when AI is employed in their content creation process.
Study claims China can down USAF’s B-21 Raider stealth bomber
The United States Air Force flew its newest stealth bomber, the B-21 Raider, for the first time in early November. A few weeks later, a Chinese scientist claimed China’s own stealth fighters can shoot down the B-21.
The claim comes from Chen Jun, an associate professor at China’s Northwestern Polytechnical University in Xian. South China Morning Post (SCMP) reported on the findings.
According to the SCMP story, Chen led a research team that used computer modeling to conduct a war game between a U.S. B-21 and an unrevealed Chinese stealth fighter jet with advanced capabilities.
In the war game, China’s secret stealth fighter supposedly has what’s known as ‘conformal skin’ which allowed the plane to survey the battlespace without radar and maintain radio silence. Under these conditions, the model showed the Chinese fighter jet could detect the B-21 and take it down with a hypersonic missile that used artificial intelligence to track its target.
Even though their war game showed China may be able to down the B-21, the Chinese research team said the ensuing U.S. counterstrike and fight for air dominance would lead to a prolonged and complex battle that could take hours to settle.
There’s not a whole lot known about the B-21 raider, other than it’s the most advanced stealth bomber ever made. Unlike those previous stealth bombers, the Raider can carry its own air-to-air missiles and will fly in formation with AI-piloted Collaborative Combat Aircraft, or CCAs.
The Raider’s radar signature is also similar to that of a mosquito. So, right off the bat, any claim that the Chinese can track the B-21, let alone intercept it, should be taken with a hefty helping of salt.
That being said, the claim isn’t being made in a vacuum. The Chinese are working nonstop to compete with, and eventually surpass, the U.S. military in every domain.
For instance, the Chinese hold a commanding lead in hypersonic missile technology over the United States. China’s stealth fighter program is also growing. China likely has more J-20s than the U.S. has F-22s. However, the U.S. has far more F-35s than China has J-20s. Fighting China would mean using aircraft carriers, at least to start. The U.S. maintains 11 aircraft carriers across its fleet. The People’s Liberation Army Navy (PLAN) currently keeps up with two.
But the PLAN is nearing completion of what will be its third and largest carrier, the Fujian. Like the newest U.S. carriers, the Fujian features an electromagnetic launch system. So, larger aircraft with heavier payloads can take off from its deck.
New imagery taken from a commercial passenger plane and posted online appeared to show one of the carrier’s three catapult launchers being tested at a shipyard near Shanghai. If China is testing the launch system, that means it’s probably preparing the Fujian for its sea trials. Once a ship completes sea trials, it can be commissioned into service.
Getting back to China’s claim it can down a B-21: China is putting the resources in place to hypothetically be able to achieve the claim put forth by the team at Northwestern Polytechnical. However, the claim is based solely on a computer model made by a team of scientists, with questionable motivations, while working at a Chinese university under sanction by the U.S. for its close ties to the Chinese military.
Altman back as OpenAI CEO: Here’s the rollercoaster of events since Friday
Sam Altman now has his old job back. Here is the timeline of events from Altman’s abrupt dismissal to the moments that led up to his reinstatement as CEO of OpenAI.
Friday, Nov. 17, Altman was ousted from OpenAI. Co-founder and President Greg Brockman was removed from the board, then he quit. Mira Murati was appointed as interim CEO.
Saturday, Nov. 18, Axios reported on an internal memo written by Chief Operating Officer Brad Lightcap.
“We can say definitively that the board’s decision was not made in response to malfeasance or anything related to our financial, business, safety, or security/privacy practices,” Lightcap wrote. “This was a breakdown in communication between Sam and the board.”
Sunday, Nov. 19, Altman was reportedly in talks about returning to OpenAI while also contemplating the possibility of starting a new company.
Monday, Nov. 20, Microsoft CEO Satya Nadella announced that Altman, Brockman, and some colleagues would join a “new advanced AI research team” under Microsoft.
That same day, Emmett Shear, former CEO of Twitch, was named interim CEO at OpenAI, pledging to initiate an investigation into Altman’s firing.
In a letter, employees called for Altman and Brockman to be reinstated and for the board to step down. More than 700 people signed the letter.
The resolution came in the early hours of Wednesday, Nov. 22, as OpenAI announced an agreement for Altman to return as CEO with a new initial board.
Quora co-founder Adam D’Angelo retained his position on the board, while former Treasury Secretary Larry Summers and former Salesforce co-CEO Bret Taylor were added. The new board is tasked with constructing a larger one, potentially comprising up to nine members, according to reports from The Verge.
Sam Altman returning as OpenAI CEO amid board shakeup
In a twist to the AI saga that began last week, Sam Altman will return as CEO of OpenAI, the same company whose board fired him just five days ago. The latest shakeup at ChatGPT’s parent company also includes former salesforce co-CEO Bret Taylor and former Treasury Secretary Larry Summers joining the board.
Hours after Altman was ousted from the company he co-founded last Friday, he signed on to lead a new advanced AI research team with Microsoft, which is the largest investor of OpenAI.
On Monday, Nov. 20, hundreds of OpenAI employees, including one of its co-founders, signed a letter that said if the board did not resign and bring Altman back to the company, they would jump ship to Microsoft as well.
Early Wednesday morning, OpenAI announced on “X” that it had reached “an agreement in principle” for Altman to return with a new, initial board, made up of Taylor as chair, Summers, and Adam D’Angelo, who is a chief executive and board member at Quora.
Microsoft CEO Satya Nadella said the return of Altman and co-founder Greg Brockman to OpenAI will ensure the AI startup will continue to “thrive and build on its mission.”
“We are encouraged by the changes to the OpenAI board. We believe this is a first essential step on a path to more stable, well-informed, and effective governance,” Nadella wrote on “X.”
Altman took to “X” overnight and posted, “I love OpenAI, and everything I’ve done over the past few days has been in service of keeping this team and its mission together…with the new board and with Satya’s support, I’m looking forward to returning to OpenAI, and building on our strong partnership with Microsoft.”
Microsoft capitalizes on OpenAI turmoil, hires Sam Altman for AI research team
In a turn of events, Microsoft has seized the opportunity created by the recent turmoil at OpenAI, securing the services of the startup’s former CEO and president Sam Altman. Microsoft’s stock price surged to a record high following the move.
Altman, the former CEO of OpenAI, has assumed a key leadership role at Microsoft, heading a new advanced AI research team. This development comes in tandem with Greg Brockman, Altman’s co-founder at OpenAI, also joining the ranks at Microsoft.
Satya Nadella, chairman and CEO of Microsoft, announced the change in a post on X. Nadella indicated that more OpenAI personnel could make the move to Microsoft in the near future. Altman reposted the announcement, writing “the mission continues.”
The chain of events began on Friday, Nov. 17 when OpenAI dismissed Altman, citing concerns from the board that he had not been “consistently candid in his communications.” Brockman then resigned, and three senior researchers followed suit. Despite efforts to negotiate Altman’s return, an agreement was not reached.
OpenAI has instead appointed Emmett Shear, the former CEO of Twitch, as the interim CEO. Shear said that he will initiate an investigation into the circumstances leading to his appointment.
On Monday, Nov. 20, Kara Swisher reported that more than 500 OpenAI employees signed a letter advocating for the reinstatement of Altman and Brockman.
Microsoft hiring former OpenAI CEO who was fired 3 days ago: The Morning Rundown, Nov. 20, 2023
A wild weekend in the AI industry ends with the co-founder of OpenAI, the company behind ChatGPT, landing at Microsoft. And a former first lady is being remembered as a trailblazer in the White House. These stories and more highlight The Morning Rundown for Monday, Nov. 20, 2023.
Microsoft hiring former OpenAI CEO after being fired days earlier
Microsoft has announced it will hire Sam Altman, the former CEO of OpenAI, the parent company of ChatGPT, to lead a new advanced AI research team capping a whirlwind of a weekend in the world of AI. Microsoft’s move comes just hours after reports say OpenAI’s board of directors sent a note to employees that said Altman would not be returning to the AI startup after being ousted from his position on Friday, Nov. 17.
Microsoft, who is OpenAI’s biggest investor, will also bring Greg Brockman, OpenAI’s former president and co-founder who quit the company after Altman’s firing, to their new team.
According to reports, OpenAI’s board has selected Emmett Shear, the former CEO of live streaming service Twitch, to replace Altman.
OpenAI’s board released a statement after letting Altman go, which said the former CEO “was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI.”
Though no specific incidents involving Altman were given, the statement said Altman had “lost the trust of the board of directors.”
OpenAI released its chatbot, ChatGPT, almost one year ago, bringing artificial intelligence into the mainstream conversation, and with it came debates over the technology’s benefits and dangers.
According to CNN, a factor in Altman’s ouster was disagreements between the former CEO and the board over the future of AI, where Altman was seeking more aggressive developments, and the board was looking to be more cautious in the company’s approach.
Former first lady Rosalynn Carter dies at 96
The nation continues to remember the life and legacy of former first lady Rosalynn Carter, who passed away on Sunday, Nov. 19, at the age of 96. The Carter Center announced Rosalynn Carter died while surrounded by loved ones at the Carter home in Plains, Georgia.
Rosalynn Carter was diagnosed with dementia in May and continued to live out her final months at home with her husband, former President Jimmy Carter.
“Rosalynn was my equal partner in everything I ever accomplished. She gave me wise guidance and encouragement when I needed it,” The former president said. “As long as Rosalynn was in the world, I always knew somebody loved and supported me.”
During her time in the White House, the Carters’ relationship was something the American public had not seen from a president and first lady. Rosalynn Carter would speak her mind to the president and attend cabinet meetings.
President Joe Biden and first lady Jill Biden commemorated Rosalynn Carter in a statement saying, “She was a champion for equal rights and opportunities for women and girls; an advocate for mental health and wellness for every person; and a supporter of the often unseen and uncompensated caregivers of our children, aging loved ones, and people with disabilities.”
Reports: US close to deal with Israel, Hamas to release hostages
According to sources familiar with the deal, both sides would cease combat operations for at least five days while 50-plus hostages would be released in small groups every 24 hours. Israeli officials say nearly 240 people were taken hostage during Hamas’ Oct. 7 terror attack.
The Washington Post reports that overhead surveillance will continue to help enforce the pause in fighting. The U.S.-brokered deal would also allow for significant humanitarian aid to enter Gaza.
U.S. Deputy National Security Adviser Jon Finer told ABC News on Sunday, Nov. 19, that negotiations have “reached a very sensitive stage,” and some areas of disagreement that have prevented a deal in the past have “narrowed.” The Israeli Ambassador to the U.S., Michael Herzog, said he’s hopeful a deal can be made in the “coming days.”
More companies pause ads on “X” in fallout from Musk’s comment
Musk’s comment not only resulted in a response from major advertisers but also from the White House, which said it was “unacceptable to repeat the hideous lie…at any time, let alone after the deadliest day for the Jewish people since the Holocaust,” referring to the terrorist attack by Hamas in Israel last month that killed at least 1,200 people.
Musk, who bought the social media site formerly known as Twitter in October 2022, spoke out on Friday, Nov. 17, against advertisers who were pulling their ads and said “X” would be filing a lawsuit on Monday, Nov. 20, against Media Matters, a liberal media watchdog group that accused “X” of placing ads next to posts supporting Hitler and the Nazi party. Musk called the group’s allegations a “fraudulent attack.”
On Sunday, Musk released another statement on X saying the reports of him being antisemitic are not true. He added, “I wish only the best for humanity and a prosperous and exciting future for all.”
Honda recalling nearly 250,000 vehicles due to an engine issue
Honda said owners will be notified by mail in early January; dealers will repair or replace the engine as necessary.
The cost of Thanksgiving dinner is down compared to 2022
It’s Thanksgiving week; before you gather around the table for the annual feast, you may be happy to hear that this year’s holiday dinner will cost a tad less to make than it did in 2022. A typical Thanksgiving meal for 10 people, complete with all the fixings, including cranberries and sweet potatoes, will cost an average of $61.17, according to the American Farm Bureau Federation, down from 2022’s $64.05.
One of the reasons for a slightly less expensive feast is the drop in turkey prices this year due to a decline in bird flu cases, which affected last year’s turkey production. But don’t get too jolly over these holiday food prices because this year’s Thanksgiving feast will still cost almost $8 more than in 2021 when Thanksgiving for 10 was around $53.
Biden and Xi discuss AI, fentanyl, pandas amid heightened tensions
President Joe Biden and Chinese President Xi Jinping convened in San Francisco on Nov. 15 to discuss — among other things — artificial intelligence. Contrary to a South China Morning Post report suggesting a potential pledge to ban AI in nuclear weapon control and deployment, the leaders opted to continue dialogue on the risks of advanced AI systems and enhancing safety.
“The United States will continue to compete vigorously with the PRC, but will manage that competition responsibly so it doesn’t veer into conflict or accidental conflict,” Biden said.
Last month, the Biden administration heightened restrictions on U.S. companies selling sophisticated semiconductor chips to China, citing national security concerns. The tightened regulations affect not only military applications, but also commercial usage, impacting Chinese companies that are engaged in artificial intelligence projects.
Although diplomatic channels have remained open, military communications were halted following former House Speaker Nancy Pelosi’s visit to Taiwan in August.
“We’re resuming military-to-military contact, direct contacts,” Biden said in a press conference. “As a lot of you know who follow this, that’s been cut off and it’s been very worrisome. That’s how accidents happen, misunderstandings. So we’re back to direct, open, clear, direct communications.”
“China never bets against the U.S., never interferes in its internal affairs,” Xi said. “China has no intention to challenge or to replace the U.S. Instead, we are glad to see a confident, open, and prosperous U.S. Likewise, the U.S. should not bet against China. The U.S. should not interfere in China’s internal affairs.”
During the meeting, leaders reached an agreement to address the production and trafficking of drugs like fentanyl. Additionally, Xi indicated he intends to send new pandas to the United States following the return of three pandas to China earlier this month.
IDF carries out ‘targeted operation’ in Gaza hospital: The Morning Rundown, Nov. 15, 2023
The Israeli army says it is carrying out a ‘targeted operation’ at Gaza’s largest hospital. And the United States and China agree to address climate change as the countries’ two leaders are set to meet. These stories and more highlight The Morning Rundown for Wednesday, Nov. 15, 2023.
IDF says troops carrying out ‘targeted operation’ at Gaza hospital
The Israeli army has accused Hamas of operating out of various departments of the Gaza hospital, as well as using underground tunnels beneath the facility, which stopped operations over the weekend due to dwindling supplies and lack of electricity.
In a statement, the IDF said, prior to the raid, it had given 12 hours for all military activities to cease within the hospital, calling Hamas’ alleged use of the hospital a violation of international law.
White House officials on Tuesday, Nov. 14, said U.S. intelligence backs Israel’s claims regarding Hamas’ use of the largest hospital in Gaza.
Hamas and hospital officials have denied those allegations. The terrorist group released a statement that said it holds Israel’s army and President Biden “fully responsible” for the raid on the hospital, where thousands of civilians have been sheltering along with hundreds of patients and staff amid Israel’s continuous strikes in Gaza in the wake of the Oct. 7 attacks.
The IDF’s precise and targeted operation against Hamas in the Shifa Hospital is still ongoing.
We can now confirm that incubators, baby food and medical supplies, provided by the IDF, have successfully reached the hospital.
The IDF’s “targeted operation” came a day after President Biden said hospitals in Gaza “must be protected.” Biden also said he hoped there would be “less intrusive action relative to hospitals.” The White House said the U.S. would not support airstrikes on any hospitals.
The Israeli army said its forces in the raid included medical teams and Arabic speakers, and its intent was not to harm any civilians.
House passes two-step funding bill to avert government shutdown
“Just like the continuing resolution that was approved at the end of September, Republicans needed significant help from Democrats to get it approved. More Democrats provided votes than Republicans to get it approved. Senate Majority Leader Chuck Schumer, D-N.Y., said his chamber will work to approve the continuing resolution as soon as possible.
“The continuing resolution funds the government in two parts at 2023 spending levels: money for veterans programs, transportation, housing, agriculture, and energy would flow through Jan. 19.
“Funding for the military, State Department, Department of Homeland Security, and other government agencies would last until Feb. 2.
Get up to speed on the stories leading the day every weekday morning. Get The Morning RundownTM newsletter straight to your inbox!
“It is a temporary solution and Congress needs to approve a full year appropriations bill for all of 2024. They want to include funding for Ukraine and Israel, natural disasters in the U.S., and border security. But that will take a lot of negotiating.”
Us, China address climate change ahead of Biden-Xi meeting
In a statement on Tuesday, Nov. 14, the State Department said both countries will “rise up to one of the greatest challenges of our time for present and future generations of humankind.”
The U.S. and China agreed to revive a bilateral climate working group, which China suspended last year amid growing tensions over Taiwan, that will address issues like energy transition, methane, resource efficiency, and deforestation.
President Joe Biden said on the eve of his much-anticipated meeting with China’s Xi Jinping that his goal for the talks is simply to try to get U.S.-Chinese communications back on stable ground after a tumultuous year. https://t.co/GKXXo4yX6M
The announcement comes less than a month before the annual U.N. climate change conference in Dubai and hours before the first in-person meeting in a year between the two countries’ leaders.
With U.S.-China relations strained over the past year, from a spy balloon to close calls in the air to new export rules over semiconductors, China expert and former Miami Herbert Business School Dean John Quelch tells Straight Arrow News’ Business Correspondent Simone Del Rosario that this meeting is a good sign of things to come for the relationship between the two countries.
“We’re very close to hitting rock bottom. And I see the meeting in San Francisco, following a series of cabinet visits to Beijing, as very encouraging that we will look back on this as the turning point and that the relationship will be improving henceforth,” Quelch said.
Federal climate report finds America already feeling effects of climate change
A newly released federal report shows that the effects of climate change are already being felt across America, particularly by families living below the poverty line, and those effects are becoming more and more evident.
This report is not being covered by all media.
This assessment shows us in clear scientific terms that climate change is impacting all regions all sectors of the United States, not just some, all.
President Joe Biden
The Straight Arrow news Media Miss™ tool shows the majority of outlets covering it are left-leaning.
Right-leaning news outlets are under-reporting the results of the Fifth National Climate Assessment. Our real-time Media Miss™ tool spotlights which stories right-leaning and left-leaning outlets aren’t covering so you get a complete picture of the news. This is how the news should be fair, factual, and unbiased.
Horrific damage in Matador Tx after a violent tornado came through. I tried to help a family locate there dog and cat but was unsuccessful. People missing and multiple fatalities. Prayers for this community! #txwx#tornadopic.twitter.com/TNekXNloQC
On Tuesday, Nov. 14, President Joe Biden addressed the report.
“This assessment shows us in clear scientific terms that climate change is impacting all regions all sectors of the United States, not just some, all. It shows that communities across America are taking more action than ever to reduce climate risk. It warns that more action is still badly needed. We can’t be complacent,” Biden said.
In his speech, Biden announced that $6 billion in federal funding will go to communities across America to take steps towards climate resilience. The congressionally mandated climate report is designed to help policymakers make fact-based decisions about climate change nationwide.
Straight Arrow News strives to provide unbiased, fact-based news in addition to offering a comprehensive look at how the media is covering stories that matter most. Learn more about the Media Miss™ tool and decide for yourself.
YouTube to make changes amid rise in AI-generated content
In a post on YouTube’s official blog Tuesday, Nov. 14, titled “Our approach to responsible AI innovation,” the company’s vice presidents of product management wrote, “all content uploaded to YouTube is subject to our community guidelines, regardless of how it’s generated, but we also know that AI will introduce new risks and will require new approaches.”
Those who consistently choose not to disclose that they are using AI-generated content will be subject to penalties like video removal and suspension from the YouTube Partner Program.
YouTube will begin showing labels, letting viewers know when a video has manipulated material.
In addition, YouTube will soon be making it possible to request the removal of any content that uses someone’s face or voice without permission. Music labels will also be able to make removal requests. SAN reporter Shannon Longworth has more on YouTube’s approach to AI.
Horse gets loose on plane, forcing flight to return
A flight headed to Belgium was forced to return to New York due to the conduct of a traveler, but this time, it wasn’t because of an unruly human passenger; it was because of a wayward horse.
“Yes, sir, we are a cargo plane. We have a live animal, horse on board the airplane and the horse managed to escape its stall. We don’t have a problem flying-wise, but we need to return back to New York. We cannot get the horse back secured,” the pilot said, according to audio obtained by You Can See ATC via Live ATC.
According to data from the Nov. 9 flight, the 747 cargo plane took off less than 30 minutes before the pilot radioed into air traffic control about the animal on the loose.
The plane was forced to make a U-turn near the Canadian border, and in order to return safely to JFK Airport, the pilot dumped about 20 tons of fuel over the Atlantic Ocean, 10 miles west of Martha’s Vineyard.
Horse Escapes Plane's Cargo Hold, Pilot Makes Emergency Landing in NYC | Click to read more 👇 https://t.co/8KFDFldIvX
It remained unclear how the horse got loose, and while no injuries were reported, the pilot requested a veterinarian once the plane landed. The flight was able to make its journey to Belgium the following day.
Can Biden and Xi hit a turning point with US-China relations near ‘rock bottom’?
President Joe Biden and China’s President Xi Jinping are coming together for a highly anticipated meeting Wednesday, Nov. 15 in San Francisco. It’s their first in a year, and what a year it has been. From a spy balloon to Rep. Nancy Pelosi’s Taiwan visit, many say the relationship between the globe’s two economic powerhouses is at a new low.
Following Pelosi’s Taiwan trip, China severed military-to-military communications. Biden’s goal is to restore that contact as the leaders meet face-to-face, while Xi will likely take issue with recent export controls on AI chips implemented by the U.S. in the name of national security.
China expert and former Miami Herbert Business School Dean John Quelch rated the current relationship between the U.S. and China a three out of 10.
“We’re very close to hitting rock bottom,” Quelch said. “I see the meeting in San Francisco, following a series of cabinet visits to Beijing, as very encouraging that we will look back on this as the turning point and that the relationship will be improving henceforth.”
The following interview has been edited for clarity.
Simone Del Rosario: What do you think has been the most damaging action in the past year that each side has taken when it comes to this relationship?
John Quelch: There was an incident where the U.S. Defense Secretary reported that he had attempted to call his counterpart in China and had not been able to receive a return call. Military-to-military communication breakdown is an extremely serious threat to global peace.
Simone Del Rosario: Is there one side that you would say is more reliant on this interdependent relationship?
John Quelch: No, I think both are equally reliant and should realize that global peace and prosperity depend on them both behaving in an appropriately adult fashion towards each other. I would say, for example, that China should be much more self-confident about its ability to compete with an economic-level playing field. And for its part, the U.S. should be not quite so alert to restricting all forms of technology on the grounds of national security.
Simone Del Rosario: Less than a month before this face-to-face, the Biden administration did tighten those export controls on semiconductors, further blocking advanced AI chips from getting to China. CCP spokesperson Mao Ning said, “The U.S. needs to stop politicizing and weaponizing trade and tech issues and stop destabilizing global industrial and supply chains.” Do you expect China to retaliate in any way for this?
John Quelch: The use of that rhetoric is absurd and unconstructive and the Chinese should be called out for it. Secretary Blinken has made it very clear that the U.S. wants to have a high fence around a small yard when it comes to restrictions on technology. The Chinese, of course, believe that the yard is anything but small, that it’s actually very significant and sizable and is blocking their ability to develop the new technology they’ve stated publicly for a number of years that they want to lead the world in.
I think retaliation at this point is not the language that should be used. The language that should be used is, let’s forge a pathway on as many issues as possible where our joint collaboration can achieve benefits for humanity and for global prosperity.
Companies in multinational industries, let’s take the pharmaceutical industry, for example, cooperate and compete every day without any particular problems. I mean, occasionally, there are legal disputes, of course, but basically many companies in that industry are collaborating at the same time as they are competing in other areas. Why nation-states have so much problem doing what the private sector is perfectly adept at never ceases to amaze me.
Simone Del Rosario: For the first time in recorded history, China marked a quarterly deficit in foreign direct investment from July to September. Would you say this is de-risking at work or more?
John Quelch: There’s no doubt that China’s internal investment has reduced in size and scope in the last five years. But that is actually what many economists recommended. They recommended that Chinese investment should go down and Chinese consumption should go up.
What has happened though, is Chinese investment has gone down but for various reasons, including the COVID crisis and the lockdowns. Confidence among consumers in China has not increased, in fact, it’s diminished. And as a result, the Chinese consumer is not consuming, but rather saving. And so the much-vaunted shift from an investment-driven economy to a consumption-driven economy has simply not occurred as advertised.
Now to your question regarding the foreign direct investment, foreigners typically aren’t excited about investing when domestic investment is going down. I mean, if your own country can’t eat its own dog food, why should foreigners get into the game?
So there needs to be a restoration of confidence internally in China, both among the investors and among consumers. Once that begins to happen — and it hasn’t happened since COVID, whereas the rest of the world has rebounded — once that begins to happen, then foreign investors will begin to go back into China. It’s an enormous market, it’s obviously 20% of the world’s population, and so it simply cannot be ignored by multinational players.
Simone Del Rosario: Going back to this meeting at hand, what would you say both sides are realistically looking for so that they can walk away and say, that was successful?
John Quelch: I would say No. 1 would be a joint statement that restores joint leadership on climate change ahead of COP28. COP28 looks like it’s going to be a non-event. But if China and the U.S. can come up with a plan that will lead the rest of the world, that will be a big plus.
A second area where I think President Biden will be looking for action is fentanyl. Because with an election next year, there’s no doubt that millions and millions of U.S. voters have been affected directly or indirectly know of a friend or a family member who’s passed away or been really badly affected by fentanyl coming in from China through Mexico. So that’s an election issue. That’s a hot button and President Biden needs help on that.
I think in the third arena, there may well be a useful joint statement regarding restrictions on artificial intelligence being used as a basis for activating nuclear arms. So in other words, we won’t have auto-pilot AI determining whether or not to press the nuclear button. That’s a very simple and I think easily agreed-to measure that will bring the visibility back to military-to-military collaboration.
Simone Del Rosario: Do you think there’s any instance where there wouldn’t be a joint statement at all leaving this meeting?
John Quelch: I think perhaps on tariffs. I think the Chinese would obviously like to see changes in U.S. tariff policy toward China, exports coming into the U.S. But I think from an election point of view, that would be probably a bridge too far for President Biden to excise the Trump tariffs, even though they’ve been entirely unproductive.
Simone Del Rosario: Before I let you go, I want to talk about something that you described in your latest op-ed with the Tampa Bay Times. You talked about cultural asymmetry. The number of U.S. students taking Mandarin courses peaked in 2013. We’re seeing China’s economic influence and power grow around the globe. But in the U.S., the UK, Australia and more countries, the interest in China expertise is waning. What do you think is behind the disconnect here and does it give the U.S. a competitive disadvantage?
John Quelch: It’s definitely a disadvantage. As I said in the op-ed, the Chinese know vastly more about the United States than the U.S. or Americans know about China, whether it be adults or school children or whatever group. The fact of the matter is that, as you correctly say, the interest in enrollment in Chinese language programs has gone down significantly in the last five years. And I think that it’s very unfortunate.
We need to encourage and motivate more study of Chinese language, culture and history. How does that happen? It has to happen through travel, it has to happen through cultural exchange and educational exchange, for example. But COVID and related visa restrictions have, of course, impeded progress in that area. So this is an issue that I hope will gain some visibility in the course of the conversations between the two leaders. I would like to see much more easy flow when it comes to visas. These are opportunities for tourism and for educational travel.
Simone Del Rosario: What do we have to gain by infusing more interest in these cultural studies?
John Quelch: Being a, originally, liberal arts undergraduate in history myself, I have a strong belief that understanding the history and culture of a region is very important to understanding what the political dynamics of the present moment happen to be. It’s also a matter of respect as well.
When I was working in China, whenever I used to go to a meeting, I always used to research the company or research the history of the city or region which I was visiting and make sure that my remarks included references to the context in which I was speaking. It’s just a matter of respect, it’s a matter of common sense, and it doesn’t take that much time to do it. But Americans in general are not that attuned to the need to behave in this way.