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Data-intensive technologies such as AI may reshape the modern world. We propose that two features of data interact to shape innovation in data-intensive economies: first, states are key collectors and repositories of data; second, data is a non-rival input in innovation. We document the importance of state-collected data for innovation using comprehensive data on Chinese facial recognition AI firms and government contracts. Firms produce more commercial software and patents, particularly data-intensive ones, after receiving government public security contracts. Moreover, effects are largest when contracts provide more data. We then build a directed technical change model to study the state's role in three applications: autocracies demanding AI for surveillance purposes, data-driven industrial policy, and data regulation due to privacy concerns. When the degree of non-rivalry is as strong as our empirical evidence suggests, the state's collection and processing of data can shape the direction of innovation and growth of data-intensive economies.

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Portrait of David Yang
David Yang’s research focuses on political economy, behavioral and experimental economics, economic history, and cultural economics. In particular, David studies the forces of stability and forces of changes in authoritarian regimes, drawing lessons from historical and contemporary China. David received a B.A. in Statistics and B.S. in Business Administration from University of California at Berkeley, and PhD in Economics from Stanford. David is currently a Prize Fellow in Economics, History, and Politics at Harvard and a Postdoctoral Fellow at J-PAL at MIT. He also joined Harvard’s Economics Department as an Assistant Professor as of 2020.

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David Yang Prize Fellow in Economics, History, and Politics; Department of Economics, Harvard University
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The Great Wall of China is one of Asia’s most photographed and visited landmarks. Built over thousands of years and winding through a total of 13,170 miles, this wide-reaching network of defenses was constructed as a barrier against China’s northern neighbors. But within the digital landscape of China is a much less conspicuous yet far more pervasive set of fortifications: the Great Firewall. China’s state-operated internet is carefully controlled, heavily censored, and designed to keep its own citizens away from information that might damage the power and perception of the Communist Party.

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Portrait of Margaret Roberts
Margaret Roberts, an assistant professor in political science at the University of California San Diego, has spent most of her career trying to unravel the puzzlements and intricacies of China’s Great Firewall and how this kind of calculated, pervasive internet censorship is used strategically to divide the public and target influencers. In a recent presentation at the China Program’s 2020 winter/spring colloquia series, she unpacked some of her findings.

In Robert’s assessment, the Great Firewall is an example of censorship via what she terms “friction.” Rather than centering on fear, this type of censorship acts as a tax on information, creating small inconveniences that are easy to explain away and requiring those seeking information to spend more time and money if they want access to it. Censorship thus “works through distraction and diversion. It nudges — but does not force — most users away from unsavory material.”

This framing of censorship, Robert says, helps explain why, even though China’s Great Firewall is porous and can be circumvented, the number of people who “jump the wall” using a virtual private network (VPN) remains relatively low. People are not necessarily afraid of legal or political consequences of using a VPN, but rather the process of doing so is deemed too bothersome or offers too little value for the effort in most people’s day-to-day lives.

This friction-driven censorship is, therefore, effective on two levels: it keeps the majority of citizens away from sensitive material by making it too labor-intensive for them to access, and it naturally filters for outlier individuals the government has an interest in monitoring. According to Robert’s data, VPN users are overwhelmingly 35-year-old and younger, tend to be college degree holders, have fluency in English, have traveled or studied outside of China, and are interested in international politics — precisely the kinds of cohorts the Communist Party would benefit from managing more closely.

However, these digital demographics shift dramatically to include much broader groups of people during crises and following abrupt interruptions to citizen’s daily lives. Through analysis of Chinese social media data, online experiments, and nationally representative surveys, Roberts shows how the number of VPN  downloads spiked during the devastating Tianjin chemical explosion in 2015 as people scrambled to find information on the disaster. VPN downloads also increased after the shutdown of Instagram on September 29, 2014, following protests in Hong Kong. The Chinese government barred access to the platform to contain posts about the protests, but Roberts says that it was the sudden loss of access to the social media platform’s draw of entertainment that pulled many more “everyday” citizens over the firewall than would be typical. Once over, these new users quickly moved from accessing pictures of pop stars to exploring banned websites and censored information in more political spaces.

This is one of the important takeaways Roberts sees in her work. “This porous nature of censorship . . . means that there’s an Achilles heel of friction, which is that during crises, or sudden, more visible [moments of] censorship, people are willing to seek out that type of information and that can undermine some of these other strategies.”

With the Great Firewall only a few decades old, the full effects of its friction-based barricades remain to be seen, but Roberts is certain that in the coming years, the control of access to and accuracy of online information will have important effects not only on modern China but the future digital world as a whole.

You can learn more about Margaret Robert’s work in her book, Censored: Distraction and Diversion Inside China’s Great Firewall.

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IMPORTANT EVENT UPDATE: 

In keeping with Stanford University's March 3 message to the campus community on COVID-19 and current recommendations of the CDC, the Asia-Pacific Research Center is electing to postpone this event until further notice. We apologize for any inconvenience this may cause, and appreciate your understanding and cooperation as we do our best to keep our community healthy and well. 

 

Data-intensive technologies such as AI may reshape the modern world. We propose that two features of data interact to shape innovation in data-intensive economies: first, states are key collectors and repositories of data; second, data is a non-rival input in innovation. We document the importance of state-collected data for innovation using comprehensive data on Chinese facial recognition AI firms and government contracts. Firms produce more commercial software and patents, particularly data-intensive ones, after receiving government public security contracts. Moreover, effects are largest when contracts provide more data. We then build a directed technical change model to study the state's role in three applications: autocracies demanding AI for surveillance purposes, data-driven industrial policy, and data regulation due to privacy concerns. When the degree of non-rivalry is as strong as our empirical evidence suggests, the state's collection and processing of data can shape the direction of innovation and growth of data-intensive economies.

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Portrait of David Yang
David Yang’s research focuses on political economy, behavioral and experimental economics, economic history, and cultural economics. In particular, David studies the forces of stability and forces of changes in authoritarian regimes, drawing lessons from historical and contemporary China. David received a B.A. in Statistics and B.S. in Business Administration from University of California at Berkeley, and PhD in Economics from Stanford. David is currently a Prize Fellow in Economics, History, and Politics at Harvard and a Postdoctoral Fellow at J-PAL at MIT. He also joined Harvard’s Economics Department as an Assistant Professor as of 2020.

David Yang Prize Fellow in Economics, History, and Politics; Department of Economics, Harvard University
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Shorenstein APARC Stanford University Encina Hall E301 Stanford, CA 94305-6055
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Visiting Scholar at APARC
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Ming Zeng joined the Walter H. Shorenstein Asia-Pacific Research Center (APARC) as visiting scholar for the 2020 calendar year from Alibaba Group, where he serves as chairman of the Academic Council and formerly as Chief Strategy Officer, and the Hupan School of Entrepreneurship, where he serves as founding Dean and Professor of Strategy. At APARC, he will be conducting research on innovation and entrepreneurship in the Asia-Pacific, specifically on the globalization of Chinese digital companies across Asia.  Prior to coming to APARC, Zeng was a visiting scholar at the Stanford King Center on Global Development at SIEPR.

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Accurate automated segmentation of remote sensing data could benefit applications from land cover mapping and agricultural monitoring to urban development surveyal and disaster damage assessment. While convolutional neural networks (CNNs) achieve state-of-the-art accuracy when segmenting natural images with huge labeled datasets, their successful translation to remote sensing tasks has been limited by low quantities of ground truth labels, especially fully segmented ones, in the remote sensing domain. In this work, we perform cropland segmentation using two types of labels commonly found in remote sensing datasets that can be considered sources of “weak supervision”: (1) labels comprised of single geotagged points and (2) image-level labels. We demonstrate that (1) a U-Net trained on a single labeled pixel per image and (2) a U-Net image classifier transferred to segmentation can outperform pixel-level algorithms such as logistic regression, support vector machine, and random forest. While the high performance of neural networks is well-established for large datasets, our experiments indicate that U-Nets trained on weak labels outperform baseline methods with as few as 100 labels. Neural networks, therefore, can combine superior classification performance with efficient label usage, and allow pixel-level labels to be obtained from image labels.

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Remote Sensing MDPI
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Sherrie Wang
George Azzari
David Lobell
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WE HAVE REACHED VENUE CAPACITY AND ARE NO LONGER ACCEPTING RSVPS

 

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Portrait of Nicholas Lardy
China has grown faster for longer than any country in recorded history.  Is it market-oriented reform, state industrial policy, or some sophisticated blend of the two that explains this success?  In this talk, Dr. Nicholas Lardy will also further examine what might explain China’s slowdown of recent years.  Is China falling into the frequently fatal middle-income trap?  Or have domestic policy choices led to the slowdown?  Have trade frictions with the United States also contributed to China’s slowing growth?  In addition, what should U.S. policy stance be towards China?  Should the United States continue to ramp up restrictions on two-way flows of technology to try to further slow China’s growth?  How successful is such a strategy likely to be and what costs to the United States would be inherent in such an approach?

Nicholas R. Lardy is the Anthony M. Solomon Senior Fellow at the Peterson Institute for International Economics.  He joined the Institute in March 2003 from the Brookings Institution, where he was a senior fellow from 1995 until 2003.  Before Brookings, he served at the University of Washington, where he was the director of the Henry M. Jackson School of International Studies from 1991 to 1995.  From 1997 through the spring of 2000, he was also the Frederick Frank Adjunct Professor of International Trade and Finance at the Yale University School of Management.  He is an expert on the Chinese economy.  Lardy's most recent books are The State Strikes Back: The End of Economic Reform in China? (2019), Markets over Mao: The Rise of Private Business in China (2014), Sustaining China's Economic Growth after the Global Financial Crisis (2012), The Future of China's Exchange Rate Policy (2009), and China's Rise: Challenges and Opportunities (2008). 


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This event is part of the 2020 Winter/Spring Colloquia series, The PRC at 70: The Past, Present – and Future?, sponsored by APARC's China Program.

 

Nicholas Lardy Anthony M. Solomon Fellow Peterson Institute for International Economics
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IMPORTANT EVENT UPDATE: 

In keeping with Stanford University's March 3 message to the campus community on COVID-19 and current recommendations of the CDC, the Asia-Pacific Research Center is electing to make this event available through live stream only. We appreciate your understanding and cooperation as we do our best to keep our community healthy and well. 

Please join the live stream via Zoom by clicking here at the scheduled time, 4:30 PM, on March 4 to view Adam Segal's talk.

 

Analysts on both sides of the Pacific have described an escalating “technology cold war” between Beijing and Washington. Chinese hackers attack American technology companies and Beijing is reportedly planning on the removal of foreign software and hardware from government offices. Washington is blocking Chinese investments, using punitive measures against Huawei and Chinese surveillance companies, and scrutinizing research collaboration with Chinese universities as well as scientists and students. Both sides believe they are in and have to win a race to dominate 5G, AI, quantum, and other emerging technologies. What are the weapons of the tech cold war, and are the US and China doomed to ever more competition, or can they find common ground for cooperation? What does increasing competition between China and the United States mean for the rest of the world?

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Portrait of Adam Segal
Adam Segal is the Ira A. Lipman Chair in emerging technologies and national security and Director of the Digital and Cyberspace Policy Program at the Council on Foreign Relations (CFR). An expert on security issues, technology development, and Chinese domestic and foreign policy, Segal was the project director for the CFR-sponsored Independent Task Force reports titled Innovation and National Security: Keeping Our Edge. His most recent book, The Hacked World Order: How Nations Fight, Trade, Maneuver, and Manipulate in the Digital Age (PublicAffairs, 2016), describes the increasingly contentious geopolitics of cyberspace. His work has appeared in the Financial Times, the New York Times, Foreign Policy, the Wall Street Journal, and Foreign Affairs, among others. He currently writes for the blog, “Net Politics.”

 


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Image of red flag over the Shanghai Bund
This event is part of the 2020 Winter/Spring Colloquia series, The PRC at 70: The Past, Present – and Future?, sponsored by APARC's China Program.

 

Adam Segal Director Digital and Cyberspace Policy Program, Council on Foreign Relations
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