| Huawei gear is full of US chips from Intel, Broadcom, Qualcomm, Quorvo, and other suppliers (mostly fabricated in Taiwan). Why doesn't Huawei fear the manipulation of its electronics through insidious US chip malware? How is our security improved by forcing Huawei not to use US chips, thus depriving the US chip industry of $11 billion of existing business and hundreds of billions of future business? How is our security improved by forcing China to divorce itself from all the protocols, operating systems, and architectures of our high-tech industry? How is our security enhanced by banning our systems and architectures from the world's largest and most sophisticated and in some ways even freest market? How is our security aided by harassing Chinese students and forcing them to take all their knowledge and learning back home rather than keeping it here as most of them want to do? Somehow the wise guys in the Pentagon have concluded that data sovereignty depends on who makes our routers and switches. Because Huawei is a Chinese company, it must comply with Chinese laws requiring cooperation with Intelligence agencies. So what? US companies effectively face similar demands, though without such transparently explicit laws. But networks can be hacked regardless of who makes them or runs them. American politicians constantly rail against China as a "surveillance state". But they learned the trade from Americans. The FBI runs a FACE (Facial Analysis, Comparison, and Evaluation) unit that applies artificial intelligence to some 640 million photographs. We are safer for it. The National Security Administration (NSA) is a global hacking pioneer and paragon. The True Cost of Privacy and Security In our increasingly bullied and beleaguered private sector, our leading technology companies are as dependent on face recognition as the Chinese. New Apple and Android smartphones use it as a replacement for passwords, which is an entirely benign step forward for privacy and security. Facebook is the eponymous facial recognition player. Over here, London is as full of cameras as Xinjiang province. But Xinjiang has the pretext of some thousand terrorist attacks in recent years taking the lives of some 500 Chinese. Why the US feels it necessary to harass the Chinese with moralistic preening about alleged offenses against the Uighur Islamists is a great mystery. The alternative to facial recognition in airports is to treat everyone as a terrorist, which is roughly the TSA solution. The Chinese are moving to a superior method that identifies specific people rather than molests everyone randomly. Although we continue to delude ourselves that the Chinese are stealing our technology, in fact, their companies are decisively in the lead in most fields. Completely counterproductive for US technology leadership is the protectionist campaign against Huawei, which despite all the contumely is by no means state-owned and is a capitalist telecom competitor in 170 countries. Hackers are estimated to have stolen a billion items of US personal data in 2018 and perhaps 3 billion in 2019 despite relatively little representation by Huawei anywhere in our networks. Among the famous victims of millions of breaches were the US Personnel Agency and the NSA itself. The problem of internet security, which makes every network porous and every nation paranoid, is architectural. The chief vulnerability of these networks is the Border Gateway Protocol (BGP), which connects routers across the internet. Its security operates above the network layer, where routers rule, on the Transport layer (TCP). This leaves the internet protocol (IP) network layer mostly unprotected. Huawei gear implements BGP in its routers, but Huawei had nothing to do with its creation or adoption. If we want to thwart hackers, we would do better welcoming the sophisticated cooperation offered by Huawei chief Ren Zhengfei than by incarcerating his daughter in Canada. The world needs a new internet architecture establishing a new layer of identity and security on the blockchain. Let's get on with it. Regards, 
George Gilder
Editor, Gilder's Daily Prophecy [Editor's Note:] Is it really possible to profit from computer generated trades? George's colleague and computer genius, James Altucher, recently developed a system that gives regular folks a real chance to profit up to $4,946 every week. He even created a brief 90-second demonstration to show you exactly how you can benefit from it. Click here to watch. | 
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