The Chinese Internet will Win!
The bifurcation of the internet isn’t even a fair race.
The internet is being split by a trade war that will result in not just a bifurcation of the internet, but a technology web war. The American internet came first, driven by a behavioral advertising model both inept in security, and poor in the regulation of algorithms and artificial intelligence.
However, the younger more dynamic internet as of 2019 is actually the Chinese internet. This bifurcation of competing Internets isn’t just a concern, it demonstrates a bottleneck in American innovation where the behavioral advertising model of targeted Ads by Google and Facebook created a less secure, less utilitarian with not just poorer user experiences online, but a system where competition broke down, and thus resulting in a decline of innovation in American technology.
WeChat, the most ubiquitous app in the world is more like an operating system with mini-program functionality, superior to Facebook’s entire family of apps that is more like a data harvesting security risk for consumers, political Ad-spam (Hello Instagram!) in a fragile democracy that shows the lack of regulation in America of algorithms and artificial intelligence.
ByteDance is widely anticipated to outgrow Facebook in the coming years, because it’s actually innovating new apps and user-centric experiences that appeal to younger consumers.
In terms of E-commerce convenience, China is already ahead in proving online to offline services (O2O), with tech companies like Meituan and Alibaba that will last for generations. As China catches up in the cloud & streaming services in the 2020s, its technology companies will continue their global growth, especially in Asian markets.
Silicon Valley has not only sold out America in its ad-centric model of its internet, it’s led to the idea that the Western internet is hackable, not secure and does’t care about its users. These are not conditions that scale well. Silicon Valley tech monopolies are facing an epidemic decline of trust even as they face new fines each year for unfair practices & privacy abuses.
If Silicon Valley set the ethical standard of data harvesting with its warped behavioral advertising profits play, Chinese companies will perfect it and already boast superior facial recognition technology startups. China’s 800 million + consumer base, means more data to feed its maturing AI.
Split-Ternet How China will Evolve
China doesn’t have to do much, it just needs to create a better competing internet for Asia, and it is. It sounds adversarial to call it the Chinese internet, but the Internet of the East will mature as young people in Asia become more important global consumers.
Former Google CEO Eric Schmidt recently warned the internet would split in two, with one internet led by the U.S. and the other led by China. The reality of course is that it’s already happend and the New Chinese internet is the superior one that can scale.
This is primarily due to the bottleneck of Facebook & Google’s behavioral advertising model that profiles our data without providing enough value — while failing in ethics, privacy, security, innovation and offering consumers real utility that warrants the corruption of our human right to data freedom and sovereignty from tracking ads.
There’s no doubt that in the advent of SplitTernet government sponsored hacking by China and Russia has led us to this realization, that the Western internet isn’t secure. When democracy, Brexit and passports were hacked, the American internet began to fail.
This decline may appear gradual, but in historically contexts of macro trends, it will be sudden as it is irreversible.
The Trade War culminates in the Asian Internet of the East Winning
America’s decision to conduct a trade war starting in 2018 will result in the collapse of the Western internet to the internet of the East over the course of the decades ahead.
China could decide to cut off investment to Silicon Valley due to the Huawei attack by Western nations led by national security concerns. Split-Ternet occurs however because China will win the race to AI and tech companies that can scale better due to Asia’s higher population density and mobile and E-commerce nativity.
The American internet that most western countries just consider normal — is not sustainable. The reason is the American web doesn’t regulate itself properly and won’t regulate its AI in a consciousnesses way.
The Regulation of Artificial Intelligence & the Internet Wars
China’s push to regulate, censor and centralize its leading tech companies towards the will of the Chinese government is actually a huge advantage. It creates a more efficient, utilitarian and innovative internet, from how startups are funded to how companies are monitored for anti-trust violations.
The bifurcation of the internet is the key arena where we will be able to witness Chinese innovation outpacing American innovation. The moment ByteDance became the most valuable startup, the signs are on the table that gradually the Chinese internet will win. If India is one of the key battlegrounds to watch, China’s global AI-wars is just beginning.
What will prevail is the safety and security of services for citizens and consumers first — and technology should serve that; the reality is Chinese tech companies will be able to do this better while providing more utility.
While Amazon and AWS have what appears to be an insurmountable lead in the Cloud — Alibaba, Huawei and others will eventually match them. Chinese economic superiority and state-sponsored cyber-hacking units are the angel and the devil of its end-game strategy. While Amazon gets the hype, China is winning the low-hanging fruit and the future of our online experiences are at stake.
The American model of Capitalism is Breaking Down
Democracy and the corporate pressure to meet shareholder expectations (above all else) are fundamentally faulty drivers for long-term planning that ensures the future viability of the American internet. It’s really that simple. The Tech wars lead to a zero sum game.
This is because as Facebook has demonstrated, democracy is hackable and capitalism isn’t properly regulated in an age of AI. It’s profiling & rating of users in its behavioral advertising model along with Google, gives China the keys to the future.
In 2019, it’s foreseeable that sometime in the not too distant future, the internet of the East supplants completely the internet of the West.
Many of you will think it’s a crazy proposition, but come back to this statement in the years ahead, and you will see a transforming bifurcation that favors the rise of Asia, as China as its natural leader. To win economically and technologically, it makes sense to replace the Western internet with your own.
With increasing talk of the U.S. and China’s trade war becoming a war over technology, the true cost of Mark Zuckerberg’s failure of security on his platform, is itself a national security risk; that the Chinese internet is stealing “market-share” from American and will continue to do so.
Spliternet Occurs due to a Weak Advertising Model
Google’s monopoly over behavioral advertising that targets, profiles and tracks consumers is a form of ruthless capitalism that violates anti-trust regulations on so many levels. It’s such an effective revenue generation model that it short-circuits the necessity to be innovative and to grow in sustainable ways.
SplitTernet occurs due to America’s advertising monopolies failure to innovate actual products and services behind their initial value proposition of years ago. Silicon Valley’s legacy venture capital biases and lack of Government regulation actually stunts its ability to continue building startups that will matter to the world’s winning internet of the future.
China could and should completely cut investment into Silicon Valley, according to the former deputy governor of the People’s Bank of China, since they will have deeper pockets for technology companies and learn how to scale globally in the next five to ten years. The internet of the East at that point will be a legitimate competitor to the Western internet we all consider our normal today.
Chinese Centralization will Drive Spli-Ternet
While Google, Facebook, Apple and Amazon are incredibly centralized, they are not working together towards common objectives in a way that the Chinese Government can foster with its dynasty of technology companies. Therefore, their ability to adapt to a changing tech wars of 2 separate Internets will be extremely limited.
This is especially true as the Asian consumer becomes more relevant to the global economy and how technology companies scale their business models. American tech monopolies have become internally divided in recent times as their practices become more transparent with a backlash from the Media itself after years of disruption.
Even as they work more closely with the American government like Microsoft, Amazon and Google selling their services for profit, it’s a less dynamic partnership than how long-term vision impacts the growth of the Chinese internet. Capitalism and errant business models like behavioral advertising that exploits data harvesting with minimal effort required, obscures the long-term objectives of these companies.
The age of American colonialism in technology won’t last over, the golden age of Silicon Valley has long past and is to a new generation of tech workers — a relic of the past.
As successful as Amazon will be in India or as successful as the opposition towards Huawei’s has growth, America has too few technology companies to compete in the long-run in Asia, much less the world. In this light, the Chinese internet supplanting the American version, is not only likely, it is somewhat inevitable.
The East Internet will Regulate Algorithms and Tech Better
The age of regulated artificial intelligence, is therefore, by proxy an a zero sum game when the Chinese internet has prevailed. This is because the West have already shown they will fail to regulate algorithms, platforms and AI in a secure way for global citizens. Facebook is to democracy what smoking is to health. Western capitalism also promotes AI that further escalates wealth inequality. In this light China’s decision to create a great firewall and its own “internet”, will finally make sense.
The American internet didn’t just fail to protect democracy, its free market exploitation of users with data harvesting is a crime against our human rights. The consequences of creating an unsafe, privacy invasive platforms and an ad-centric internet without offering a competitive level of convenience to actual consumers will be its downfall. The global market will reveal the karma of an unregulated state of monopolies.
You don’t need to be at Davos or listen to talks by Eric Schmidt to realize this, the writing is on the wall in 2019. The bifurcation of the internet won’t just accelerate to a technology war and AI arms race, it necessitates that only one internet can “win”.
China Against the World
The so-called “splinternet” is probably not a phrase you’ve heard of, but there are very real reasons. It’s not just a possibility, it’s already happening. Regulatory pressure is mounting against tech companies across the EU and US, but it’s too late. The Western internet is failing at regulation, and Asia is better equipped to be an AI-superpower, because it has more consumers.
It does not matter that Billions of people prefer Google or that Facebook’s family of apps have the most users, what matters is that for every Google or Facebook, China has (and will continue to develop) dozens of technology companies that could scale to become winners in their verticals.
Eventually Chinese companies will just offer superior products, that will out-Amazon the FAANGs. If tech companies in the U.S. have destroyed wealth equality in places like San Francisco and Seattle, Beijing is orchestrating a Chinese golden age in technology innovation that benefits all of Asia.
American Big Tech is no longer delivering on its value proposition. SplinTernet will reveal Chinese business models that have more long-term sustainability that will eventually catapult the Eastern internet to supremacy, this could begin to occur as early as 2025.
China’s total retail sales has already surpassed the U.S. , but that’s just the beginning. 35% of retail sales in China is online, compared to just 11% in the U.S. Amazon China has 0.6% of the Chinese retail sales market.
China isn’t just set to become the economic, political, military and technological leader of the world, it’s set to win the race to the dominant model of the internet, mobile payments, E-commerce and eventually the Cloud, Consumer-AI and Healthtech & FinTech fields as well, not to mention dozens of other sub-verticals.
The vitality of its consumer apps market even in 2019, guarantees this transition of Silicon Valley to Beijing as the center of global innovation.