#Technology vendors to #banking, others in #China forced to use equipment with #cybersecurity back-doors, decryption keys, etc.

Looking down the road a few years, if these behaviors continue, and there’s no reason to think they won’t, the technology world has one of two possible outcomes.  One outcome has US and other foreign technology vendors caving to Chinese govt demands for their source code, security back-doors, etc.  This would long-term undermine those vendors’ strategic competitive positions and critically erode US national security.  Cybercrime and intellectual property theft are well documented from China.  The other outcome has US vendors refusing, or being disallowed by US regulation, and a gradual balkanization of Chinese vs. non-Chinese technologies.  A possible middle-ground would be a new, perhaps lower, tier of export controls where the US authorities can review potential risks before sale to Chinese companies.

An important space to watch.

via New Tension on Tech Rules From China | NDTV Gadgets.

As measured by IMF’s PPP index, China economy #1, US #2

From the article:

This will not change anything tomorrow or next week, but it will change almost everything in the longer term. We have lived in a world dominated by the U.S. since at least 1945 and, in many ways, since the late 19th century. And we have lived for 200 years — since the Battle of Waterloo in 1815 — in a world dominated by two reasonably democratic, constitutional countries in Great Britain and the U.S.A. For all their flaws, the two countries have been in the vanguard worldwide in terms of civil liberties, democratic processes and constitutional rights.

Think also of other second and third-order consequences of Western hegemony the past century, particularly on business and management.  For example, early management science arguably started during the West’s industrial age.  Even more specifically, take project management.  The humble PERT chart was an indirect result of Western primacy (it was an offshoot of the US Navy’s Polaris submarine program in the 1950’s).

So, how extensively will continued Chinese and other Eastern growth, and likely primacy, trickle down to affect business and management practices elsewhere?

It’s official: America is now No. 2 – Yahoo Finance.