The United States has long dominated in the global tech space. The U.S. establishes the technology platforms that everyone else uses. We are forgetting that it’s U.S. leadership at the platform level that has brought us to this point where we have multi-trillion dollar corporations.
Trump’s ordering of Chinese firm TikTok to be sold to a U.S. company or face shutdown here in the U.S. is a bad precedence to set.
Data sovereignty is the issue: U.S. consumer data should be stored on servers here in the U.S. and not in China or other countries. There is already a model for achieving data sovereignty and it’s what Microsoft has to do with Chinese consumers on its Windows or Office platforms in China. What the Trump Administration should do with TikTok is what China did to Microsoft and other U.S. tech companies. The Trump Administration should pick a cloud provider here in the U.S., and then order TikTok to store all U.S. consumer data on that cloud server within the U.S. That would keep the storage of U.S. consumer data here in the U.S. under the protection of U.S. consumer data laws.
Trumps over-the-top handling of TikTok sets the precedence of what China and other countries can do to U.S. tech companies. The U.S. has a dominant position in global tech and therefore has much more to loose if China and other countries retaliate and treat U.S. tech companies the same way Trump has treated TikTok.
Eric Schmidt, former Google CEO, Schmidt Futures co-founder, and chair of Governor Cuomo’s Reimagine New York Commission, joins ‘Squawk Box’ to discuss the growth of tech stocks, importance of Apple’s App Store and his concerns with the U.S. action toward TikTok’s U.S. operations.