{"id":27626,"date":"2017-12-07T09:22:44","date_gmt":"2017-12-07T09:22:44","guid":{"rendered":"http:\/\/www.bnreport.com\/how-tech-is-winning-the-trump-era\/"},"modified":"2017-12-07T09:22:44","modified_gmt":"2017-12-07T09:22:44","slug":"how-tech-is-winning-the-trump-era","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/how-tech-is-winning-the-trump-era\/","title":{"rendered":"How tech is winning the Trump era"},"content":{"rendered":"

SAN FRANCISCO \u2014 The conventional wisdom about the tech industry\u2019s relationship with Donald Trump is that it\u2019s a street brawl, with Silicon Valley\u2019s liberal CEOs clashing with the president on everything from immigration to climate change to transgender rights.<\/p>\n

But the reality is that Silicon Valley is getting much of what it wants.<\/p>\n

Trump and congressional Republicans are speeding ahead with a tax overhaul that would bring huge benefits for wealthy tech giants and their executives. A White House office headed by Trump son-in-law Jared Kushner is opening the door to companies like Amazon and IBM gaining a greater share of the federal government\u2019s multibillion-dollar information technology budget.<\/p>\n

And the administration\u2019s proposed NAFTA rewrite, criticisms of China\u2019s tech policies and efforts to champion computer science education could also bolster the industry\u2019s bottom line \u2014 as has the surging stock market that the president touts at every opportunity.<\/p>\n

These successes have flown under the radar amid the furor over social media\u2019s role in enabling Russia to meddle in the 2016 election, a public relations nightmare for an industry that has long viewed itself as a force for good and grown accustomed to deferential treatment in Washington. But behind the scenes, tech companies and their formidable lobbying operations have forged alliances at the White House and in Congress that benefit Silicon Valley \u2014 and its continued ability to generate sky-high profits.<\/p>\n

Meanwhile, Congress has shown no real appetite for the harsher repercussions that some people have floated for the industry, such as breakups of tech giants or strict regulations on online political ads.<\/p>\n

\n

Amid the volatility of the Trump era, the industry has embraced the opportunity to shape the administration\u2019s thinking and playbook<\/p>\n<\/blockquote>\n

\u201cThere are more wins for tech than many would have expected and more than reading the papers generally would suggest,\u201d said Ted Ullyot, a partner at the venture capital firm Andreessen Horowitz who formerly served as general counsel of Facebook and as a White House official under President George W. Bush.<\/p>\n

Without question, Washington would have been a more predictable, and perhaps more comfortable, environment for tech companies had Hillary Clinton won last year\u2019s election. There\u2019s little chance, for example, that the FCC would be trying to repeal the net neutrality rules that companies like Netflix and Reddit say are crucial to a level playing field on the internet. But amid the volatility of the Trump era, the industry has embraced the opportunity to shape the administration\u2019s thinking and playbook.<\/p>\n

In doing so, tech is showing signs of becoming a mature industry in the vein of oil or pharmaceuticals, using its influence to mold policy even as it takes hits in the public arena.<\/p>\n

One prime example of where Silicon Valley, Trump and Republicans in Congress have found common ground is on overhauling the U.S. tax code.<\/p>\n

Tech companies have marshaled hundreds of lobbyists to press their tax priorities and say they\u2019re pleased with the direction of GOP tax reform effort, particularly a provision that would let them bring their huge stashes of overseas money back to the U.S. at a reduced tax rate. Apple, Google, Microsoft, Qualcomm and Cisco are among the firms with billions of dollars parked in foreign banks. Apple alone counts more than $250 billion in cash and securities abroad as of Sept. 30.<\/p>\n

Apple CEO Tim Cook, in a recent television interview, sought to create a sense of urgency around corporate tax cuts: \u201cIn my view, it should have been fixed years ago,\u201d he said. \u201cBut let\u2019s get it done now.\u201d<\/p>\n

<\/p>\n

Elon Musk during his presentation at the Tesla Powerpack Launch Event in September in Australia | Mark Brake\/Getty Images<\/p>\n

The industry still has some quibbles with the tax reform effort, including a provision in the House bill that would impose an excise tax on products imported by multinational companies. But tech firms say overall they\u2019re thrilled with the degree to which they\u2019re being heard. The Senate recently dropped a proposed change to taxing stock options that many tech executives warned would make it hard to attract talent.<\/p>\n

\u201cIf tech were to get a win on tax reform this year, if it were done right and signed into law, that would probably make it a good year,\u201d said Andy Halataei, senior vice president of government affairs for the Information Technology Industry Council, which represents companies like Google, Microsoft, IBM and Oracle.<\/p>\n

Meanwhile, the White House has made a priority of modernizing the U.S. government\u2019s creaky IT systems, an initiative that could bring increased spending on services like cloud computing offered by Amazon, Google and Microsoft. And Trump\u2019s executive orders on funding computer science education, expanding apprenticeship programs and accelerating drone testing all serve tech\u2019s business interests.<\/p>\n

Such policy wins contrast with Silicon Valley\u2019s string of public confrontations with Trump. The industry\u2019s leading executives have condemned the president\u2019s efforts to bar people from some majority-Muslim countries from traveling to the U.S., withdraw from the Paris climate change accord and ban transgender people from serving in the military, to name just a few.<\/p>\n

\n

The discussions with the administration continued \u2014 out of the public glare<\/p>\n<\/blockquote>\n

\u201cOur employees are looking for people to lead,\u201d eBay CEO Devin Wenig told an Internet Association conference in San Francisco earlier this month. \u201cWhen outrageous statements are made publicly or things that seem to undermine core values, they\u2019re looking for somebody to stand up and say that\u2019s not OK.\u201d<\/p>\n

But Wenig distinguished between issues that touch the industry\u2019s business interests, such trade deals, and those that may have an indirect impact, such as LGBT rights. He said CEOs can agree with the administration on the former and still disagree on the latter \u2014 a form of compartmentalization that has become the industry\u2019s modus operandi since the 2016 election.<\/p>\n

Trump hasn\u2019t made it an easy balancing act. Tech executives like Travis Kalanick of Uber, Elon Musk of Tesla and Ginni Rometty of IBM joined Trump\u2019s CEO advisory councils, but they each wound up withdrawing as controversies piled up and their cooperation with the president drew criticism from customers and employees. Kalanick pulled out in February after the ban on Muslim travelers, Musk did the same in June following the Paris climate decision, and Rometty departed in August along with other CEOs after Trump\u2019s remarks about racially charged violence in Charlottesville, Va.<\/p>\n

In practice, that meant that Silicon Valley was no longer enthused about taking part in public White House roundtables, like one in June with Apple\u2019s Cook, Amazon CEO Jeff Bezos and Microsoft CEO Satya Nadella. But the discussions with the administration continued \u2014 out of the public glare.<\/p>\n

\u201cWhat we moved away from was the political nature of public involvement, kind of \u2018photo opportunity\u2019 council meetings, because those became too politicized and no longer could be a frank exchange of ideas,\u201d Reed Cordish, the president\u2019s assistant for intragovernmental and technology initiatives, said at the Internet Association conference.<\/p>\n

\u201cWhat\u2019s been clear over the last 11 months is that when we are focused on policies that the tech community feels [are] right, feels brings the country forward, feels helps them add jobs and innovate, they\u2019re right there to support them,\u201d he continued.<\/p>\n

\n

The industry says it\u2019s encouraged by how seriously the Trump administration is working to change how the government buys technology<\/p>\n<\/blockquote>\n

The industry says it\u2019s encouraged by how seriously the Trump administration is working to change how the government buys technology. Key to that effort is the White House Office of American Innovation, headed by Kushner, which released a plan in August to shift federal agencies to more modern technologies.<\/p>\n

The U.S. spends about $82 billion on IT products and services per year, but much of that goes to traditional D.C.-based contractors, and Silicon Valley has complained it\u2019s too complicated and frustrating to sell its cutting-edge products to the feds. If the government does reform how federal agencies buy technology, it could benefit companies like Oracle, Amazon, IBM and Microsoft that sell everything from networking equipment to productivity software to cloud computing services.<\/p>\n

The industry also gives high marks to a bipartisan bill, championed by the White House and making its way to the president\u2019s desk, that would give chief information officers of federal agencies a new fund they can use to pay for upgrading their legacy technology systems.<\/p>\n

Silicon Valley has scored as well with the White House campaign to promote computer science and coding. While interest in the STEM fields \u2014 science, technology, education and math \u2014 has grown in Washington in recent years, the tech industry has cheered the Trump administration for throwing its weight behind the \u201cT.\u201d In September, Trump issued an executive order directing the Education Department to award at least $200 million a year in STEM grants, \u201cincluding computer science in particular.\u201d<\/p>\n

\n

\u201cA tech CEO ultimately has to be pretty practical on these things\u201d \u2014 Nick Sinai, a partner at Insight Venture Partners<\/p>\n<\/blockquote>\n

\u201cA tech CEO ultimately has to be pretty practical on these things,\u201d said Nick Sinai, a partner at Insight Venture Partners in Boston who served as President Barack Obama\u2019s deputy chief technology officer. \u201cThey have to live their values, but most of them also believe it makes sense to engage the federal government to some degree.\u201d<\/p>\n

But Sinai said the Trump administration so far has a \u201cpretty lousy record on a number of these longer-term but really fundamental issues,\u201d such as research funding and immigration, that will be key to the tech industry\u2019s future success.<\/p>\n

Immigration has been a particular sticking point \u2014 but even there, friction is just part of the story.<\/p>\n

Tech firms have been at the forefront of the fight against Trump\u2019s repeal of the Deferred Action for Childhood Arrivals program and the International Entrepreneur Rule, which grants temporary stays to immigrants with promising business ideas. But on the issue of H-1B visas \u2014 which arguably has a more direct impact on the industry \u2014 Trump has pushed for reforms that may ultimately benefit the biggest tech firms, by restricting the visas to workers with in-demand skills that command high pay.<\/p>\n

Even when Congress takes a stab at regulating the tech industry, Silicon Valley has so far managed to blunt some of the impact. A bipartisan bill to require new disclosures for online political ads \u2014 including who paid for them \u2014 has languished since its introduction, with Senate Majority Leader Mitch McConnell saying he\u2019s \u201cskeptical\u201d of such proposals. The tech industry also managed to negotiate some key concessions in the Senate version of an anti-sex trafficking bill that Silicon Valley companies have warned could spark a wave of litigation.<\/p>\n

<\/p>\n

Facebook CEO Mark Zuckerberg delivers the keynote address at Facebook\u2019s F8 Developer Conference in April 2017 | Justin Sullivan\/Getty Images<\/p>\n

On trade, the Trump administration\u2019s priorities in the NAFTA renegotiation got a tech-friendly update earlier this month. The U.S. is seeking guarantees that Canada and Mexico won\u2019t require tech companies to turn over sensitive algorithms or impose rules that make them vulnerable to lawsuits over content posted by users.<\/p>\n

Similarly, the industry largely applauds steps the administration has taken to investigate China over its actions on the American tech industry, including requiring the companies to hand over trade secrets in return for being allowed to operate in the Chinese market.<\/p>\n

For the tech industry, some of the president\u2019s most offensive moves \u2014 such as the travel ban and the withdrawal from the Paris climate accord \u2014 are hung up in court or years away from taking effect. The more immediate effect of the Trump era has been a stock market boost. Since Trump\u2019s election as president, what investors call the FANG stocks \u2014 Facebook, Amazon, Netflix and Google \u2014 have increased an average of nearly 60 percent, resulting in a market capitalization increase of more than $600 billion for the four companies, according to investment research firm Morningstar Direct.<\/p>\n

\u201cSoon after the election and at the beginning of the administration, it was unknown how much the White House would engage with the tech sector,\u201d said TechNet CEO Linda Moore, whose group represents companies like Apple, Google and Microsoft. But, she said, it quickly became clear the industry had an opening: \u201cWith a relatively new team in the White House and in the agencies, that opportunity was there and we seized it.\u201d<\/p>\n

Original Article<\/a><\/p>\n

[contf] [contfnew] <\/p>\n

<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"

SAN FRANCISCO \u2014 The conventional wisdom about the tech indus..<\/p>\n","protected":false},"author":1,"featured_media":27627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50],"tags":[],"class_list":["post-27626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech"],"yoast_head":"\nHow tech is winning the Trump era - Business News Report<\/title>\n<meta name=\"description\" content=\"SAN FRANCISCO \u2014 The conventional wisdom about the tech indus..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/how-tech-is-winning-the-trump-era\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How tech is winning the Trump era - Business News Report\" \/>\n<meta property=\"og:description\" content=\"SAN FRANCISCO \u2014 The conventional wisdom about the tech indus..\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bnreport.com\/en\/how-tech-is-winning-the-trump-era\/\" \/>\n<meta property=\"og:site_name\" content=\"Business News Report\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/\" \/>\n<meta property=\"article:published_time\" content=\"2017-12-07T09:22:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bnreport.com\/wp-content\/uploads\/2017\/12\/GettyImages-629851768.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"3133\" \/>\n\t<meta property=\"og:image:height\" content=\"2089\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"infopal11\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BNReport\" \/>\n<meta name=\"twitter:site\" content=\"@BNReport\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"infopal11\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/how-tech-is-winning-the-trump-era\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/how-tech-is-winning-the-trump-era\\\/\"},\"author\":{\"name\":\"infopal11\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\"},\"headline\":\"How tech is winning the Trump era\",\"datePublished\":\"2017-12-07T09:22:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/how-tech-is-winning-the-trump-era\\\/\"},\"wordCount\":2079,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/how-tech-is-winning-the-trump-era\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2017\\\/12\\\/GettyImages-629851768.jpg\",\"articleSection\":[\"Tech\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.bnreport.com\\\/en\\\/how-tech-is-winning-the-trump-era\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/how-tech-is-winning-the-trump-era\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/how-tech-is-winning-the-trump-era\\\/\",\"name\":\"How tech is winning the Trump era - 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