White House Releases Fact Sheet on US India Strategic Technology Collaboration

The White House released a Fact Sheet outlining collaboration efforts concerning national security and technology with India on January 6, 2025.  The Fact Sheet states in relevant part:

Today, U.S. National Security Advisor (APNSA) Jake Sullivan met with Indian National Security Advisor (NSA) Ajit Doval, Indian External Affairs Minister S. Jaishankar, and Prime Minister Modi in New Delhi as the United States and India continue to forge a strategic technology partnership that benefits both of our countries and our partners around the world.  APNSA Sullivan and NSA Doval launched the U.S.-India initiative on Critical and Emerging Technology (iCET) in 2022 at the direction of President Biden and Prime Minister Modi.  In the intervening years, our two nations have taken significant steps forward together to integrate our technology and defense supply chains in recognition that, now more than ever, we need to work with our partners to build a trusted and resilient innovation base.

During their capstone meeting, APNSA Sullivan and NSA Doval underscored the vital importance of our efforts to jointly produce and develop strategic technologies that will allow us to deliver secure, reliable, and cost-competitive technology solutions for the world. As the United States and India deepen collaboration across key sectors – from space to semiconductors, biotechnology, cybersecurity, advanced telecommunications, and clean energy – we have seen the promise of our partnership deliver results.  Our partnership has also anchored multilateral work with like-minded nations from across the Indo-Pacific and Europe, including the Bio-5 Biopharmaceutical Supply Chain Consortium, the U.S.-India-ROK Technology Trilateral, and ongoing cooperation with Australia and Japan through the Quad.

Finally, APNSA Sullivan and NSA Doval reaffirmed our shared resolve to adapt and strengthen our technology protection toolkits and discussed efforts to address national security concerns associated with overcapacity in key technology sectors.  At the same time, they commended the progress we have made to address long-standing barriers to bilateral strategic trade, technology, and industrial cooperation.

The two national security leaders expressed their confidence that the bridges we have built across our governments, industry, and academia will endure and reflected on the significant achievements we have driven across every dimension of the technological enterprise – from the seabed to the stars, and beyond.  This includes:

Launching a New Era in Space Technology Cooperation

• Announcing the first-ever joint effort between American and Indian astronauts at the International Space Station with the launch of Axiom-4 scheduled to take place this spring, which will mark a significant milestone in the U.S.-India human spaceflight partnership and space exploration; 
• Reducing barriers to collaboration around commercial space technology following the U.S. government’s recent conclusion of updates to Missile Technology Control Regime export policy, which will open the door to additional technology licensing and co-development opportunities in support of the U.S.-India space partnership;
• Working toward the launch of a new bilateral space accelerator to promote commercial space cooperation, including around lunar exploration, human spaceflight, geospatial data and services, and the co-development of technology;
• Celebrating the conclusion of a Strategic Framework for Human Spaceflight Cooperation to deepen interoperability in space and working toward the imminent completion of additional agreements to commence advanced training for ISRO astronauts and ground personnel at the NASA Johnson Space Center and for joint experiments at the International Space Station;
• Preparing for the launch of the NASA-ISRO Synthetic Aperture Radar, a jointly developed satellite that will map the entirety of the Earth’s surface twice every 12 days as the United States and India work together to combat climate change and other global challenges, this spring;
• Deciding to hold the first bilateral experts’ exchange on space situational awareness and space traffic coordination in the first half of this year.  This exchange builds upon the two nations’ shared commitment to pursue opportunities for deeper collaboration to ensure safe and sustainable space operations;
• Exploring additional avenues for cooperation in space exploration technologies, including docking and interoperability demonstration missions, as well as India’s participation in the United States Traffic Coordination System for Space program. 

Deepening Defense Innovation and Industrial Cooperation

• Welcoming the advancement of discussions between Ultra Maritime and Bharat Dynamics Limited to enhance undersea domain awareness through a first-of-its-kind partnership on co-production of U.S. sonobuoys in support of the U.S. and Indian defense industrial bases;
• Welcoming India’s acquisition of the MQ-9B platforms, the possible co-production of land warfare systems, and progress on other co-production initiatives outlined in the U.S.-India Roadmap for Defense Industrial Cooperation;
• Celebrating the third edition of the India-U.S. Defense Acceleration Ecosystem (INDUS-X) Summit which took place at Stanford University in September 2024, and highlighting the continued progress under INDUS-X, including the Gurukul Educational Sessions and the launch of a third joint challenge on space situational awareness in low earth orbit;
• Welcoming the completion of an upgraded Memorandum of Understanding between the Defense Innovation Unit and the Defense Innovation Organization to expand cooperation on defense innovation and deepen collaboration between the U.S. and Indian startup ecosystems;
• Deepening cooperation between the U.S. Defense Innovation Unit and India’s Innovations for Defense Excellence to accelerate the joint adoption of cutting-edge commercial technologies for military solutions and capability enhancement of both countries’ defense ecosystems;
• Noting continued progress in the discussions between GE Aerospace and Hindustan Aeronautics Limited for the co-production of GE F414-INS6 engines to power India’s future fighter fleet;
• Expanding defense industrial partnerships, such as the launch of an AI Multi-Doman Situational Awareness product jointly developed by General Atomics and 114ai to support joint all domain command and control.

Building a Clean Energy and a Critical Minerals Partnership for the 21^st Century

• Advancing discussions to unlock new commercial partnerships around the deployment of small modular reactor technology in India;
• Reflecting the progress the United States and India have made—and will continue to make—as strategic partners and countries with a shared commitment to peaceful nuclear cooperation, NSA Sullivan announced US efforts to finalize necessary steps to delist Indian nuclear entities, which will promote civil nuclear cooperation and resilient clean energy supply chains;
• Commending the signing of a bilateral Critical Minerals Memorandum of Understanding between the U.S. Department of Commerce and the Indian Ministry of Commerce and Industry and the Ministry of Mines, and driving additional areas of cooperation in critical mineral supply chains such as for graphite, gallium, and germanium;
• Advancing collaboration between U.S. and Indian organizations and companies for carrying out research studies for beneficiation and co-development of processing technologies for critical minerals, including lithium, titanium, gallium, and vanadium;
• Building a collaborative program between the Geological Survey of India and the U.S. Geological Survey on exploration, characterization and evaluation of rare earth elements and critical mineral deposits.

Promoting Strategic Semiconductor Supply Chain Partnerships

• Advancing a strategic semiconductor partnership between the U.S. Space Force and 3rdiTech to establish a compound semiconductor fabrication plant in India to manufacture infrared, gallium nitride, and silicon carbide semiconductors that will be used in national security-relevant platforms; this includes favorably reviewing a technical assistance agreement and export licenses to promote technology transfers;
• Building on the U.S.-India Semiconductor Supply Chain and Innovation Partnership MOU and promoting secure, resilient, and sustainable semiconductor supply chains through continued collaboration between the U.S. Department of Commerce and the India Semiconductor Mission, Ministry of Electronics and Information Technology including facilitating investments in semiconductor manufacturing and strengthening R&D collaboration around state-of-the-art semiconductor and packaging technologies.

Building New Collaboration around AI, Advanced Computing, and Quantum

• Developing a government-to-government framework for promoting reciprocal investments in AI technology and aligning protections around the diffusion of AI technology;
• Strengthening cooperation around the national security applications of AI, following the U.S. government’s recent issuance of a National Security Memorandum on AI last fall, and promoting safe, secure, and trustworthy development of AI;
• Noting the importance of sustained engagement for cooperation on Quantum Information Science and Technology (QIST) as agreed to in the second meeting of the U.S.-India Quantum Coordination Mechanism held last August, during which both countries committed to achieving concrete outcomes;
• Initiating new cooperation in quantum science and technology, including through a workshop on post-quantum cryptography and quantum hardware held at the University of California, Los Angeles in September 2023 and facilitating visits of Indian technical experts from academia and the private sector to visit U.S. national laboratories and quantum institutions.

Bridging our People, Talent, and Innovation Bases

• Celebrating progress toward opening U.S. Consulate Bengaluru in early 2025 and continuing work to establish new Indian Consulates in Boston and Los Angeles;
• Advancing a “Bio-X” initiative that would promote biotechnology cooperation by leveraging the synergies between domestic programs and enhancing the competitiveness of the biotechnology industries in both countries;
• Celebrating steps that expand of the ability of top AI scientists, engineers, and entrepreneurs from India to come to the United States, including rulemaking that modernized the U.S. H-1B application process, recent clarifications of the rules for O-1 visas and other visa categories, and other efforts that have streamlined visa processing;
• Noting the recently launched U.S.-India Advanced Materials R&D Forum, which convened its inaugural meeting in November 2024, to expand collaboration between U.S. and Indian universities, national laboratories, and private sector researchers.

George Will on the U.S. and China Relationship

George Will, a political conservative commentator and Pulitzer Prize winning journalist in the United States, has authored an Op-Ed in the Washington Post titled, “China’s decline may be looming. Here’s how the U.S. can win, if it so chooses.”  The article provides some sage advice concerning federal spending on basic research as well as immigration policy.  I would add that moving forward in the future will require reexamining cooperation with China.  Additionally, the West’s cybersecurity issues need to be resolved and the United States should continue to work on ensuring that our human capital, all members of our society, reach their full potential.  

Global Detroit Entrepreneur in Residence Program

Global Detroit is a very interesting organization which is basically focused on economic development in Michigan and the general Detroit area.  Detroit has struggled economically.  Notably, Global Detroit has an Entrepreneur in Residence program which focuses on bringing foreign born entrepreneurs and their companies to Detroit/Michigan through working at a host university as a mentor.  Here is a success story:

Ashok Seetharam was living in Milwaukee when his startup, PAXAFE, began to take off. But he wasn’t sure he’d be able to stay. PAXAFE was Ashok’s third startup. After moving to the U.S. from India and graduating from Brown University with a graduate degree in Biomedical Engineering, he co-founded Orthopedix and led the company through XlerateHealth, an early-stage healthcare accelerator program. Orthopedix ultimately licensed its patented technology to a major orthopedic implant manufacturer. Next, he oversaw product development and a team of engineers for another healthcare startup, Toggle Health. 

In late 2018, Ashok and Ilya Preston founded PAXAFE in Milwaukee. Ilya’s family immigrated from Russia when he was a child. He and Ashok met at XlerateHealth in 2017. They originally helped kickstart a Minnesota startup focused on the transport of medical specimens, but ended up parting ways to start their own company. PAXAFE develops hardware and software IoT solutions that enable cheaper, intelligent shipping insurance. 

International startup founders face major challenges to launching their companies in the U.S. To remain in the country, they typically need an H-1B visa, which is available to foreign-born “specialty workers” in specific, largely high-tech fields. Ashok was permitted to remain in the U.S. for a short time on a different visa following his graduation from Brown, but he needed an H-1B visa to stay.

Fortunately for Ashok, in late 2018 Global Detroit launched a program called Global EIR. A partnership with the national Global EIR program, the program places foreign-born startup founders at universities to teach and mentor. By working at the university, Global EIRs are able to legally work in the US. This affords them the opportunity to launch their startups here and apply for a concurrent H-1B through their company. Global Detroit currently partners with the University of Michigan’s Economic Growth Institute on the program. Ashok was accepted, and PAXAFE moved their headquarters to Ann Arbor last summer. The company has recently closed on an additional $650,000 round of pre-seed funding, bringing their total raised in 2019 to almost $1 million. Working out of Ann Arbor SPARK, they have begun piloting their product and hiring for new positions.

“I didn’t think it was possible to continue building my company in the U.S. when I didn’t make the H-1B lottery,” Ashok recalls. “That all changed when I learned about Global Detroit and Global EIR. Not only did they help with my immigration through the Global EIR program but also continued to provide unparalleled support– both personally and with the business–which maximized our chance of success.”

Balancing Security Concerning University Research and Anti-Asian Sentiment in the United States: U.S. Senate Hearings

On April 22, 2021, the U.S. Senate Committee on Health, Education, Labor and Pensions held hearings on “Protecting U.S. Biomedical Research:  Efforts to Prevent Undue Foreign Influence.”  The Committee heard testimony from representatives from various governmental entities, including the National Institutes of Health [NIH] and the Government Accounting Office.  In written testimony, Dr. Michael Lauer, Deputy Director for Extramural Research at the NIH, explored the tension between balancing security and very serious anti-Asian sentiment in the United States.  The context involves the attempts by governments to take advantage of the open collaboration amongst international researchers in attempting to address biomedical crises.  Notably, Dr. Lauer pointed to three issues confronted by the NIH concerning security and biomedical research:

1) failure by some researchers at NIH‐funded institutions to disclose substantial contributions of resources from other organizations, including foreign governments and businesses, which threatens to distort decisions about the appropriate use of NIH funds and accurate evaluation of commitment of effort to US‐supported research; 2) diversion of proprietary information included in grant applications or produced by NIH‐ supported biomedical research to other entities, including other countries; and 3) failure by some peer reviewers to keep information in grant applications confidential; including, in some instances, disclosure to foreign entities or other attempts to influence funding decisions.

Dr. Lauer raises attempts by the NIH to address these issues, including cybersecurity measures.  Importantly, he states that the NIH has contacted over 90 awardee institutions and over 900 scientists raising potential serious concerns.  Dr. Lauer also raised potential actions that can be taken by the NIH:

Terminations or suspensions of scientists who have engaged in egregious violations of NIH grant terms and conditions and institutional policies. · Interventions to address previously un‐reported affiliations with foreign institutions. · Relinquishment or refund of NIH funds.· Prohibition of certain individuals from serving as investigators on NIH grants. · Outreach to FBI for assistance. · Discovery (through acquisition of certain foreign grants and contracts) of overlapping or duplicative work, or conflicts in stating committed effort to research projects. This discovery has led to NIH suspensions of active grants as appropriate. · Efforts to raise awareness among institutional faculty about government and institutional policies dealing with foreign affiliations and relationships (see, for example, the Penn State web site).

In addressing concerns with anti-Asian violence in the United States, Dr. Lauer states, in part:

We must ensure that our responses to this issue do not create a hostile environment for colleagues who are deeply dedicated to advancing human health through scientific inquiry. We cannot afford to reject brilliant minds working honestly and collaboratively to provide hope and healing to millions around the world.

Dr. Lauer’s testimony can be found, here.  The difficulty, of course, is maintaining security while at the same time fostering an open and collaborative environment wherein research can continue to flourish.  It will be interesting to see how this develops.  The COVID-19 global pandemic has decreased human movement throughout the world likely increasing the transfer of information through digital networks and resulting in even greater importance of the security of networks.  At the same time, as COVID-19 eases eventually (and hopefully), how will the United States ensure that foreign researchers and entrepreneurs, particularly from China, will feel welcome attending university and working in the United States.  Notably, the U.S. Senate recently passed legislation, almost unanimously (94-1 – only Senator Josh Hawley voting against it), addressing anti-Asian hate crimes. 

Nonimmigrant F-1 and M-1 Students Must Leave United States if Enrolled in Fully Online Course Program

The US Department of Homeland Security will release rules stating that nonimmigrant students must leave the country if enrolled in a fully online course program.  The Press Release below outlines the rules.  Notably, Harvard University and USC will be online or mostly online.  Several law schools have announced a move to online for the Fall of 2020, including UC Hastings and UC Berkeley.  It will be interesting to see if this rule announcement results in changes to a hybrid mode for some classes directed to foreign students at those universities. 

Temporary exemptions for the fall 2020 semester include:

1. Nonimmigrant F-1 and M-1 students attending schools operating entirely online may not take a full online course load and remain in the United States. The U.S. Department of State will not issue visas to students enrolled in schools and/or programs that are fully online for the fall semester nor will U.S. Customs and Border Protection permit these students to enter the United States. Active students currently in the United States enrolled in such programs must depart the country or take other measures, such as transferring to a school with in-person instruction to remain in lawful status. If not, they may face immigration consequences including, but not limited to, the initiation of removal proceedings.
2. Nonimmigrant F-1 students attending schools operating under normal in-person classes are bound by existing federal regulations. Eligible F students may take a maximum of one class or three credit hours online.
3. Nonimmigrant F-1 students attending schools adopting a hybrid model—that is, a mixture of online and in person classes—will be allowed to take more than one class or three credit hours online. These schools must certify to SEVP, through the Form I-20, “Certificate of Eligibility for Nonimmigrant Student Status,” certifying that the program is not entirely online, that the student is not taking an entirely online course load this semester, and that the student is taking the minimum number of online classes required to make normal progress in their degree program. The above exemptions do not apply to F-1 students in English language training programs or M-1 students pursing vocational degrees, who are not permitted to enroll in any online courses.

Schools should update their information in the Student and Exchange Visitor Information System (SEVIS) within 10 days of the change if they begin the fall semester with in-person classes but are later required to switch to only online classes, or a nonimmigrant student changes their course selections, and as a result, ends up taking an entirely online course load. Nonimmigrant students within the United States are not permitted to take a full course of study through online classes. If students find themselves in this situation, they must leave the country or take alternative steps to maintain their nonimmigrant status such as a reduced course load or appropriate medical leave.

Due to COVID-19, SEVP instituted a temporary exemption regarding online courses for the spring and summer semesters. This policy permitted nonimmigrant students to take more online courses than normally permitted by federal regulation to maintain their nonimmigrant status during the COVID-19 emergency.

Clausing on the Benefits of Globalization

Professor Kimberly Clausing, the Thormund Miller and Walter Mintz Professor of Economics at Reed College, has authored a Harvard University Press book titled, “Open. The Progressive Case for Free Trade, Immigration, and Global Capital.”  The reviews of the book are very positive.  I’ve pasted them below.  Here is the abstract: 

With the winds of trade war blowing as they have not done in decades, and Left and Right flirting with protectionism, a leading economist forcefully shows how a free and open economy is still the best way to advance the interests of working Americans.

Globalization has a bad name. Critics on the left have long attacked it for exploiting the poor and undermining labor. Today, the Right challenges globalization for tilting the field against advanced economies. Kimberly Clausing faces down the critics from both sides, demonstrating in this vivid and compelling account that open economies are a force for good, not least in helping the most vulnerable.

A leading authority on corporate taxation and an advocate of a more equal economy, Clausing agrees that Americans, especially those with middle and lower incomes, face stark economic challenges. But these problems do not require us to retreat from the global economy. On the contrary, she shows, an open economy overwhelmingly helps. International trade makes countries richer, raises living standards, benefits consumers, and brings nations together. Global capital mobility helps both borrowers and lenders. International business improves efficiency and fosters innovation. And immigration remains one of America’s greatest strengths, as newcomers play an essential role in economic growth, innovation, and entrepreneurship. Closing the door to the benefits of an open economy would cause untold damage. Instead, Clausing outlines a progressive agenda to manage globalization more effectively, presenting strategies to equip workers for a modern economy, improve tax policy, and establish a better partnership between labor and the business community.

Accessible, rigorous, and passionate, Open is the book we need to help us navigate the debates currently convulsing national and international economics and politics.

Here are the reviews from the Harvard University Press website:

“Global integration will not work if it means local disintegration. Kim Clausing’s important book lays out the economics of globalization and, more important, shows how globalization can be made to work for the vast majority of Americans. I hope the next President of the United States takes its lessons on board.”—Lawrence H. Summers, Harvard University, former Secretary of the Treasury

“It is all too easy to blame the recent troubles of advanced economies—including slower growth, rising inequality, and lower social mobility—on economic globalization. Kimberly Clausing’s comprehensive but crystal-clear new book shows that ‘the fault lies not in our stars, but in ourselves’: if only the political will is there, national policy can harness globalization as a force for inclusive growth. This is a message that thoughtful citizens of every political stripe need to absorb.”—Maurice Obstfeld, University of California, Berkeley, and former Chief Economist, International Monetary Fund

“Open provides a vitally important corrective to the current populist moment. Clausing brings the underlying economics to life, showing that walls won’t keep prosperity trapped within; they’ll keep new ideas out, deter valuable foreign capital, close off investment opportunities, prevent our businesses from learning from others, and destroy the vigor that comes with a vibrant immigrant community. Most important, Open points the way to a kinder, gentler version of globalization that ensures that the gains are shared by all.”—Justin Wolfers, University of Michigan

“Anyone interested in the biggest economic debates of our time would benefit from reading Open. Kimberly Clausing marshals a wide range of evidence and analysis to address the question of how to advance the prospects of the middle class. Her answer is a combination of timeless truths about the importance of openness updated in often novel ways to address the challenges of today’s global economy.”—Jason Furman, Harvard University, former Chairman of the Council of Economic Advisers

“Clausing, a respected international economist and one of the world’s leading experts on multinational firms’ responses to tax policy, has created a clarion call for a return to reason by polarizing forces on both sides of the political isle. There is something in here for people on both sides to love and to hate, but plenty for everyone to learn.”—Katheryn Russ, University of California, Davis

Hat tip to Professor Paul Caron’s TaxProf Blog. 

Heavily Taxing Billionaires to Promote Innovation

An important issue confronting the world concerns the high concentration of wealth and redistribution of that wealth through the tax system. Part of the problem is what to do with the wealth gained from additional taxation of billionaires (and what is a politically defensible use of that additional revenue). Democratic presidential candidates are starting to create a "dream list" of things to do with billionaires' money.  Well, why not use that money to invest in research and development which may lead to more jobs, innovation (even life saving innovation), and additional tax revenue.  

Professor Michael Simkovic from University of Southern California Gould School of Law takes on general claims that taxing billionaires may lead to less innovation in a short five page article titled, “Taxes, Spending and Innovation.”  Professor Simkovic points to studies concerning patents and Nobel Prize winners.  Professor Simkovic states:

Public policy can be used to promote innovation by raising taxes and extensively funding high quality science, math, and engineering education, or by encouraging immigration of people with those skills.

There has been a general decline in the amount of federal funding in terms of real dollars for some time for the National Institutes of Health.  Well, billionaires give to universities and other charities, right?  We don't need to heavily tax them as they choose to give their wealth to charitable organizations that innovate.  Professor Simkovic notes that voluntary gifts to charity, including to universities, is relatively small at “2% of GDP”—for gifts from all donors.  He concludes we should look to peer-reviewed empirical work to test claims and that, “Claims that we can drive more innovation and growth through a higher concentration of resources in the hands of a small number of billionaires—while providing fewer resources to middle and upper middle--‐class knowledge workers—are not empirically supported.”  [Hat Tip to Professor Paul Caron’s Tax Prof Blog]. 

Trump Administration Suspends Program for Visas for Entrepreneurs

The Trump Administration suspended an Obama Administration program about to go in effect that would provide visas to entrepreneur immigrants.  According to the Wharton School of Business, the program would help create jobs in the United States and had little downside.  The program is apparently similar to others created in Canada, France and Argentina.  Notably, the Trump Administration is supporting new legislation to radically reform the immigration system in the United States by moving to a supposed “merit” based system designed to reduce immigration by 50%.  The Wharton School of Business states:

Immigrants make up about 12% of the U.S. working population, [Hsu] added. Among STEM (science, technology, engineering and math) workers, immigrants make up 24% of bachelors and 47% of doctorates, he continued. “So [immigrant entrepreneurs] are punching above their weight in the talent pool for the workforce that we desire in the U.S.,” he said. He pointed to one much-cited statistic: foreign-born entrepreneurs make up about half the founders in the so-called “billion dollar club” of startups that are worth at least a billion dollars each. 

In an Op-Ed in Crain’s New York Business, Orin Herskowitz, the Senior Vice President of Intellectual Property and Technology Transfer of Columbia University and President of Columbia Technology Ventures, states that:

The rule, one of President Barack Obama’s final acts in office, provides so-called “startup visas” long sought by Silicon Valley. It is narrow, allowing foreign entrepreneurs to live in the United States for 30 months while building their companies. To qualify, applicants must show that they have reputable investment in their company of no less than $250,000 and the potential for a positive impact on economic growth and job creation. The rule has now been delayed until next March, and the Department of Homeland Security has given notice that the administration will propose rescinding the program before then. . . .

There are other storm clouds on the horizon. The president’s proposed budget reduces funding for basic science. And the legal playing field is beginning to tilt against innovators, most dramatically through a retreat from the respect for patent protection recognized by our Constitution more than two centuries ago as a bulwark of our economy. The former director of the U.S. Patent and Trademark Office, David Kappos, points out that a series of court decisions have rendered many biotech and software inventions un-patentable or at best uncertain in the U.S., causing the abandonment of promising research, or the repositioning of that research overseas to China, where affirmative steps have been taken to strengthen patent protection.

[Hat tip to Technology Transfer Central for the lead to the articles.]