OSTP elaborates on $1.5B request for AI R&D, White House issues executive orders on TikTok and WeChat, and Huawei faces tightened export controls

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Worth Knowing

China Introduces Policies Supporting Domestic Chipmakers: On August 4, China’s State Council released policies to promote the country’s chip industry. They include tax benefits for companies involved in chip production, most notably a 10-year corporate tax exemption for chipmakers producing 28-nanometer or more advanced chips. Other components of the plan emphasize strengthening the semiconductor talent pipeline, promoting R&D collaborations and incentivizing international semiconductor company relocation to China. The changes come amid U.S. restrictions on China-based Huawei’s access to foreign chipmakers (see details below in Government Updates). However, some experts say the policies are unlikely to boost China’s chip industry significantly.
Tech Companies Criticize Visa Restrictions: Leading tech companies submitted an amicus brief supporting a legal challenge to the Trump Administration’s June restrictions on temporary worker visas. The brief, which cites CSET research among other sources, argues that the new restrictions harm U.S. workers and the economy, permanently damage U.S. businesses and benefit global competitors. Fifty-two companies authored the filing, including Amazon, Apple, Intel, Facebook, Microsoft, Netflix, Salesforce and Twitter.
South Wales Police Use of Facial Recognition Ruled Illegal: A U.K. appellate court ruled that the South Wales Police’s use of facial recognition violates human rights and equality laws. The unanimous decision found the department lacked an adequate data protection plan, clear guidance on acceptable facial recognition targets and proof that the technology was not discriminatory. Activists are calling on other U.K. police departments to suspend their use of the technology, but the South Wales police force said it expected to continue using facial recognition with minor changes. The decision comes amid global debate over police use of facial recognition: days earlier, the Portland, Maine City Council prohibited city officials’ use of facial recognition, including the police.
UK Government Drops Grading Algorithm After Protests: Facing pushback, U.K. Education Secretary Gavin Williamson announced Monday that the government has abandoned plans to use a grading algorithm for certain high school aptitude tests. After exams were canceled due to COVID-19, the U.K. government used an algorithm to assign scores for A-level and GCSE exams — both carry significant weight in university admissions. A-level scores were released Thursday; 40 percent of students received lower grades than their teachers had predicted. After political pressure and student protests, the administration reversed course, letting teachers assign grades instead.
Government Updates

Trump Administration Limits China’s Access To US Technology: The Administration announced a series of policies designed to limit China’s access to U.S. technology and data:
Bill Limiting Private Use of Facial Recognition Introduced: Sens. Merkley and Sanders introduced legislation that requires private companies to obtain written consent from customers before collecting their biometric information. The National Biometric Information Privacy Act restricts the collection and use of biometric information including face scans, voiceprints, fingerprints and genetic markers. The bill requires any private entity in possession of biometric information to develop plans to destroy the data; future data collection can be done only with written consent. Under the law, individuals can sue companies that fail to comply.

OSTP Elaborates on $1.5B in Non-Defense AI Spending Request for 2021: In a report released last Friday, the White House Office of Science and Technology Policy expanded on the Administration’s request for a 30 percent increase in non-defense AI R&D spending for 2021. The document estimated that non-defense AI R&D spending was $1.1 billion in FY20; it proposed an increase to $1.5 billion in FY21. OSTP also reiterated its commitment to the Industries of the Future — including AI — and emphasized that they should remain the Administration’s top priority for the 2022 budget.

In Translation
CSET’s translations of significant foreign language documents on AI

Reform and Readjustment Plan for Central State Agencies: Plan for the Reform and Functional Readjustment of Central State Agencies. This 2018 document details China’s significant reorganization of party departments and government ministries. The reshuffle affects virtually all central-level departments and ministries, including those involved in science and technology, industrial policy and education. As of August 2020, few of the newly created or renamed ministries have their own websites, suggesting that the reorganization has not yet been completed.

State Administration of Foreign Affairs Budget: 2017 Budget of the Former State Administration of Foreign Experts Affairs. This is the final 2017 budget for the PRC State Administration of Foreign Experts Affairs. SAFEA was responsible for recruiting foreign experts, primarily scientists, to come to the PRC and contribute to China’s technological advancement. 2017 was the last full year of SAFEA’s existence; in 2018, it was eliminated in a ministry reshuffle, its functions incorporated into the PRC Ministry of Science and Technology.

Ministry of Foreign Affairs Budget: Ministry of Foreign Affairs 2019 Budget. This is the 2019 budget for the PRC Ministry of Foreign Affairs. In addition to its diplomatic and consular responsibilities, the MFA is a major funder of study abroad programs for Chinese students.

What We’re Reading

Report: Cementing American Artificial Intelligence Leadership: AI Research & Development, Bipartisan Policy Center (August 2020)

Volume: The Impact of Artificial Intelligence on Strategic Stability and Nuclear Risk, Volume III, South Asian Perspectives, Stockholm International Peace Research Institute (April 2020)

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