Category Archives: Business

economy and business news

Ethiopians File Lawsuit Against Meta Over Hate Speech in War

Two Ethiopians have filed a lawsuit against Facebook’s parent company, Meta, over hate speech they say was allowed and even promoted on the social media platform amid heated rhetoric over their country’s deadly Tigray conflict.

Former Amnesty International human rights researcher Fisseha Tekle is one petitioner in the case filed Wednesday and the other is the son of university professor Meareg Amare, who was killed weeks after posts on Facebook inciting violence against him.

The case was filed in neighboring Kenya, home to the platform’s content moderation operations related to Ethiopia. The lawsuit alleges that Meta hasn’t hired enough content moderators there, that it uses an algorithm that prioritizes hateful content and that it acts more slowly to crises in Africa than elsewhere in the world.

The lawsuit, also backed by Kenya-based legal organization the Katiba Institute, seeks the creation of a $1.6 billion fund for victims of hate speech.

A Facebook spokesman, Ben Walters, told The Associated Press they could not comment on the lawsuit because they haven’t received it. He shared a general statement: “We have strict rules which outline what is and isn’t allowed on Facebook and Instagram. Hate speech and incitement to violence are against these rules and we invest heavily in teams and technology to help us find and remove this content.” Facebook continues to develop its capabilities to catch violating content in Ethiopia’s most widely spoken languages, it said.

Ethiopia’s two-year Tigray conflict is thought to have killed hundreds of thousands of people. The warring sides signed a peace deal last month.

“This legal action is a significant step in holding Meta to account for its harmful business model,” said Flavia Mwangovya of Amnesty International in a statement pointing out that the Facebook posts targeting its former researcher and the professor were not isolated cases.

The AP and more than a dozen other media outlets last year explored how Facebook had failed to quickly and effectively moderate hate speech in cases around the world, including in Ethiopia. The reports were based on internal documents obtained by whistleblower Frances Haugen.

Fraud Charges Unsealed in Arrest of Crypto Magnate Bankman-Fried

Law enforcement officials and financial services regulators have filed a raft of criminal and civil charges against Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange company FTX, alleging wide-ranging fraud that eventually brought down the company, which was valued at $32 billion earlier this year.

The Department of Justice on Tuesday morning unsealed an indictment charging Bankman-Fried with eight criminal counts, including conspiracy to commit wire fraud, actual wire fraud, money laundering, and violation of laws governing donations to politicians and political parties.

At the request of U.S. prosecutors, Bankman-Fried, 30, was arrested on Monday evening at his home in the Bahamas, where the headquarters of FTX is located. The U.S. and the Bahamas have an extradition treaty, and Bankman-Fried is expected to be transferred to U.S. custody in the near future.

‘House of cards’

Earlier Tuesday, the Securities and Exchange Commission issued its own set of civil charges, also accusing Bankman-Fried of “years-long fraud” that included hiding information from investors, diverting customer funds to a hedge fund he owned, using other customer funds to make political donations, and to purchase hundreds of millions of dollars in real estate.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler. “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.”

Also on Tuesday, the Commodity Futures Trading Commission filed a lawsuit against Bankman-Fried.

Rapid rise, rapid fall

In the short time since its founding in 2019, FTX grew to be one of the largest cryptocurrency exchanges in the world, and Sam Bankman-Fried — often referred to as “SBF” — became one of the industry’s most recognizable figures. He was a regular speaker at business conferences, gave testimony before Congress, and was seen by many as a model cryptocurrency executive.

The list of investors who plowed billions of dollars into FTX is long and distinguished, including Sequoia Capital, SoftBank Group, Tiger Global Management, and Third Point Ventures.

Earlier this year, Bankman-Fried positioned his company as a savior for the broader crypto industry when a broad selloff of cryptocurrencies left many firms in the space reeling. FTX extended lines of credit to crypto lender BlockFi and crypto broker Voyager Digital in an effort to help them weather the storm. Both BlockFi and Voyager eventually filed for bankruptcy protection.

Signs of trouble

In September, news reports began raising questions about the relationship between FTX and Alameda Research, a hedge fund owned by Bankman-Fried which was supposed to be a completely separate corporate entity from FTX.

However, it gradually became clear that the two companies were actually closely connected. Media reports began to reveal that a large share of Alameda’s assets was tied up in an illiquid crypto token called FTT, which was issued by FTX. Over several days in early November, customers rushed to pull their money from accounts with FTX, sending the company into a massive liquidity crisis and forcing it to stop processing customer withdrawals.

After several days of attempts to arrange a rescue package, including a briefly considered sale of FTX to Binance, its largest competitor, FTX, Alameda, and more than 100 affiliated companies filed for bankruptcy.

On Tuesday, the Justice Department and the SEC alleged that Alameda actually had “virtually unlimited” access to funds held by FTX on behalf of its customers.

The charges against Bankman-Fried claim that Alameda illegally used those funds to invest in highly illiquid cryptocurrency tokens, as well as to make “undisclosed venture investments, lavish real estate purchases, and large political donations.”

Before its collapse, cryptocurrency investors around the world had placed billions of dollars in their accounts with FTX. In large part because of transfers to Alameda, FTX is facing an estimated shortfall of $8 billion.

‘I made a lot of mistakes’

Against the advice of his attorneys, Bankman-Fried has given a number of interviews to news organizations since his company declared bankruptcy. His contention has been that, while he may have made mistakes, he never intended to defraud anyone.

In early December, Bankman-Fried told The Wall Street Journal that he could not account for money that FTX customers transferred to Alameda Research.

In an appearance at a conference sponsored by The New York Times, he said, “Clearly I made a lot of mistakes. There are things I would give anything to be able to do over again. I did not ever try to commit fraud on anyone. I was excited about the prospects of FTX a month ago. I saw it as a thriving, growing business. I was shocked by what happened [in November.]”

His claims contradict the allegations leveled by prosecutors in the indictment unsealed Tuesday, which accuse Bankman-Fried of “willfully and knowingly” defrauding investors and customers.

‘Utter failure’ of controls

Last month, control of FTX and its constituent companies was turned over to John Ray III, an attorney and corporate insolvency specialist who has been brought on to manage multiple companies facing bankruptcy, including the failed energy giant Enron in the early 2000s. His primary task will be to assemble all the remaining assets of FTX in an effort to recover some of the money its customers lost in the exchange’s collapse.

Ray appeared at a hearing held by the House Financial Services Committee on Tuesday, during which he described a company that lacked even the most basic corporate governance structures and was run by a small cabal ill-equipped for the job of running a multi-billion dollar corporation.

In prepared testimony, Ray said, “[N]ever in my career have I seen such an utter failure of corporate controls at every level of an organization, from the lack of financial statements to a complete failure of any internal controls or governance whatsoever.”

In the broadest sense, Ray said, the company’s failure was the result of the “absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets.”

Under questioning, Ray said that the asset recovery process will take months to complete, and will not make FTX customers whole. “At the end of the day, we’re not going to be able to recover all the losses here,” he said.

The committee had also expected to hear from Bankman-Fried on Tuesday, but the FTX founder’s arrest on Monday made that impossible.

Lawmakers angry

The allegations of fraud and mismanagement at FTX have raised calls in Washington for action by Congress to rein in the cryptocurrency industry, which operates under a poorly defined set of regulatory rules.

House Financial Services Committee Chair Maxine Waters on Tuesday said that she was “deeply troubled” by the revelations coming out about FTX. At the same hearing, U.S. Representative Patrick McHenry, who will take over the chairmanship when Republicans assume control of the House next month, criticized Bankman-Fried but said that he still sees “promise” in digital assets.

Others were less tolerant of the industry, with Representative Brad Sherman, a Democrat, calling the entire industry “a garden of snakes.”

Industry representatives urged lawmakers to tread carefully when it comes to establishing new rules for cryptocurrencies.

“Following the failure of FTX International, it’s understandable that lawmakers want to do something, but they should be wary of passing legislation in haste that would do more harm than good,” Kristin Smith, executive director of the Blockchain Association, wrote on Monday. “Instead, Congress should take its time to investigate the issues we’ve seen and work closely with the crypto industry to find solutions that benefit everyone.”

NASA’s Orion Capsule Blazes Home From Test Flight to Moon 

NASA’s Orion capsule made a blisteringly fast return from the moon Sunday, parachuting into the Pacific off Mexico to conclude a test flight that should clear the way for astronauts on the next lunar flyby.

The incoming capsule hit the atmosphere at Mach 32, or 32 times the speed of sound, and endured reentry temperatures of 5,000 degrees Fahrenheit (2,760 degrees Celsius) before splashing down west of Baja California near Guadalupe Island. A Navy ship quickly moved in to recover the spacecraft and its silent occupants — three test dummies rigged with vibration sensors and radiation monitors.

NASA needed a successful splashdown to stay on track for the next Orion flight around the moon, currently targeted for 2024. Four astronauts will make the trip. That will be followed by a two-person lunar landing as early as 2025.

Astronauts last landed on the moon 50 years ago Sunday. After touching down on Dec. 11, 1972, Apollo 17’s Eugene Cernan and Harrison Schmitt spent three days exploring the lunar surface, the longest stay of the Apollo era. They were the last of the 12 moonwalkers.

Apple Plans to Move Production Outside of China

The Wall Street Journal reports U.S. smartphone giant Apple Inc. is accelerating plans to move some China-based production lines to other southeastern Asian countries such as India and Vietnam.

That, analysts said, would represent a significant shift in the so-called de-Sinification of global supply chains after manufacturers become aware of risks of concentrating production in China.

China’s zero-COVID policy, which paralyzed some of its supply chains, and its deteriorating business environment would be the major trigger behind the shift, they added.

India: the world’s next factory?

“China’s anti-virus measures have forced many multinationals, including Apple, to hedge against the risk of disrupted supply chains. Though China is set to ease COVID restrictions, uncertainty remains because these multinationals have had experienced much sudden change of policy there – reasons behind Apple’s accelerated relocation of its production lines outward,” Darson Chiu, a research fellow of the economic forecasting center under the Institute of Economic Research (TIER) in Taipei, told VOA over the phone.

He said that many companies, including Apple, have seen the potential in India in competing with China to be “the world’s next factory,” adding that cost of labor and land is “at one-fifth of the level in China.”

“This highlights an evolving trend, where many companies, not just Apple, are concerned about the environment in China, and not just because of COVID. When we look at theft of intellectual property, that’s of technology, cyber-attacks on companies inside China, the onerous restrictions that apply from Chinese government to data flows, there are a number of factors that are making China a much less attractive environment for manufacturers to be,” Stephen Ezell, director of global innovation policy at the Information Technology and Innovation Foundation (ITIF) in Washington told VOA by video.

“And I think it’s possible that Apple represents the tip of the spear for a much greater share of global high-tech production moving outside of China,” he added.

A domino effect?

Ezell said more multinationals might follow suit if Apple succeeds in shipping products from India, as it had produced a small percentage of iPhone 14s there.

Citing people involved in the discussion, The Wall Street Journal reported on December 6 that Apple had asked its suppliers to plan more actively for assembling its products elsewhere in Asia, “particularly India and Vietnam,” to reduce dependence on China-based assemblers, led by Taiwan-headquartered Foxconn’s Zhengzhou plant. 

Turmoil over anti-virus measures and wage disputes last month among the plant’s 300,000 workers have made Apple uncomfortable having so much business tied up in the plant, which made about 85% of the iPhone’s pro series, according to the report.

It added that Apple’s long-term goal is to ship 40% to 45% of iPhones from India, compared with a current single-digit percentage, citing Ming-chi Kuo, an analyst at TF International Securities in Hong Kong.

When asked by VOA, Foxconn refused to comment. But the company Thursday announced on its WeChat account that it has lifted closed-loop Covid restrictions at its Zhengzhou plant.

Paul Triolo, senior vice president for China, and technology policy lead at Albright Stonebridge Group in Washington, told VOA that Apple has already done some manufacturing with Foxconn in India, which plans to add 50,000 workers to total at 70,000 there over the next two years.

He warned, though, that it will be hard for Foxconn to duplicate its highly optimized China supply chain in India, where skilled workers and infrastructure including airports, ports and high-speed rail, as well as an ecosystem of component suppliers at a low cost, are lacking.

Painful transition

“India has some advantages … it does tend to crank out a lot of engineers but you’re talking about a sort of different cultural issues and expectations and labor practices, and all these things. So it’s not as easy as just picking up something and dropping it into another country. You have to learn the local situation. You have to work with local governments. That can be painful,” Triolo told VOA by video.

He added that, even though companies like Foxconn are good at managing production, the cost structures will be different in India.

Hence, he noted that some of Apple’s diversification of supply chains may happen inside China, as Foxconn is reportedly looking to expand at its Taiyuan plant in China’s northern Shanxi province.

The biggest challenge of all lies in India’s ability to strengthen its depth of supplier base for Apple at an optimal cost, Ezell said.

“The production ecosystem, that’s what’s the key driver in decreasing the cost, not just low labor costs. So, the challenge for India is going to be several folds. One, building a localized base of suppliers that can support production at lower cost. And then more broadly, ensuring that India does have the highly skilled trained workforce and individuals that had experience and building what are truly very complex electronics with iPads or phones,” Ezell said.

Negative impact on China’s jobless rate

Arthur Guo, a senior analyst at the market intelligence firm International Data Corp in Beijing, said he would not be surprised to see Apple diversify the production of its iPhone 15 next year after the lockdown at Foxconn’s Zhengzhou plant has seriously affected the supply of the iPhone 14.

That will hurr China’s economic growth and unemployment rate, Guo said in a written reply to VOA.

“However, this relocating process will last for a period and will not be implemented immediately. In the future, we believe China still will be an important production country for Apple and will find a better solution to this problem,” Guo added.

Earlier estimates by TF’s Kuo showed that the total shipment of iPhone 14 pro and pro max in the fourth quarter would be 15 million to 20 million units less than expected due to labor protests at the Zhengzhou plant.

Arizona Ramps Up Tech Workforce, Skills to Meet Chips Job Boom

Taiwanese chip giant TSMC is building a second U.S. facility in the southwest state of Arizona, highlighting the Biden Administration’s push to bring more of the semiconductor supply chain to the United States. But are there enough trained workers there to meet the demand? Michelle Quinn has our story from Arizona, where they are ramping up training for workers and students at all levels. Videographer: Levi Stallings 

Boeing’s Final 747 Rolls Out of Washington State Factory

After more than half a century, the last Boeing 747 rolled out of a Washington state factory on Tuesday.

The 747 jumbo jet has taken on numerous roles — a cargo plane, a commercial aircraft capable of carrying nearly 500 passengers, and the Air Force One presidential aircraft — since it debuted in 1969. It was the largest commercial aircraft in the world and the first with two aisles, and it still towers over most other planes.

The plane’s design included a second deck extending from the cockpit back over the first third of the plane, giving it a distinctive hump that made the plane instantly recognizable and inspired a nickname, the Whale. More elegantly, the 747 became known as the Queen of the Skies.

It took more than 50,000 Boeing employees less than 16 months to churn out the first 747. The company has completed 1,573 more since then.

But over the past 15 years or so, Boeing and its European rival Airbus released new wide-body planes with two engines instead of the 747’s four. They were more fuel-efficient and profitable.

Delta was the last U.S. airline to use the 747 for passenger flights, which ended in 2017, although some other international carriers continue to fly it, including the German airline Lufthansa.

The final customer is the cargo carrier Atlas Air, which ordered four 747-8 freighters early this year. The last was scheduled to roll out of Boeing’s massive factory in Everett, Washington, on Tuesday night.

Boeing’s roots are in the Seattle area, and it has assembly plants in Washington state and South Carolina. The company announced in May that it would move its headquarters from Chicago to Arlington, Virginia.

The move to the Washington, D.C., area puts its executives closer to key federal government officials and the Federal Aviation Administration, which certifies Boeing passenger and cargo planes.

Boeing’s relationship with the FAA has been strained since the deadly crashes of its best-selling plane, the 737 Max, in 2018 and 2019. The FAA took nearly two years — far longer than Boeing expected — to approve design changes and allow the plane back in the air.

Biden Touts Advanced Chips Manufacturing in Visit to Arizona Semiconductor Plant

President Joe Biden’s visit Tuesday to a massive construction project in north Phoenix highlighted Arizona’s role in a major U.S. policy shift on semiconductor manufacturing.

The Biden administration is pushing to boost domestic chips manufacturing with more than $50 billion in subsidies in the new CHIPs and Science Act.

The president’s visit to the new fabrication facility being built by Taiwanese chips giant TSMC came as the firm announced it would build a second fabrication facility and triple its investment in Phoenix to $40 billion.

Biden says it is good news for TSMC’s biggest customer, Apple.

“These are the most advanced semiconductor chips on the planet. Chips will power iPhones and MacBooks,” Biden said. “Apple had to buy all the advanced chips from overseas. Now, they are going to bring more of their supply chain here at home. It can be a game changer.”

U.S. technology firms have long outsourced semiconductor manufacturing overseas, particularly with TSMC, the world’s largest foundry.

Calls to change that increased when the U.S. found itself scrambling for chips in the supply chain breakdowns prompted by the COVID-19 pandemic.

Recent tensions with China added to the sense of urgency. China sees Taiwan as a part of its territory, and U.S. policymakers were worried about the long-term ability to source high-end chips, essential for computers, smartphones, cars, fighter planes and data centers.

The Biden administration has been pushing to make the most cutting-edge chips in the U.S.

Ahead of Biden’s visit Tuesday, TSMC announced it would ratchet up the kind of technology it makes in Arizona beyond the 4-nanometer technology slated to begin production in 2024. In addition, TSMC said it would begin producing 3-nanometer technology in its second fabrication facility by 2026. Those advanced chips deliver faster processing and use less power.

“This state-of-the-art manufacturing facility behind us is a testimony that TSMC is also taking a giant step forward to help build a vibrant semiconductor ecosystem in the United States,” said Mark Liu, TSMC’s chairman.

The president toured the construction site and was part of the TSMC plant’s “first tool-in” ceremony, the moment when a building is ready for manufacturing equipment to move in.

The company, which had said it would hire 2,000 workers, now says it will employ 4,500.

Arizona is among the states trying to attract federal funding.

A 3,700-square-meter cleanroom at nearby Arizona State University in Tempe is helping to meet the workforce demands of Arizona’s burgeoning semiconductor sector. There, students, companies and startups work on hardware innovations.

With 30,000 engineering students, Arizona State is home to the country’s largest college of engineering and is a driver in meeting the next-generation demand.

“Chips and Science Act is a once in a lifetime opportunity. This is the moment. This is the moment to build out capabilities, infrastructure, expertise,” Kyle Squires, dean of the schools of engineering at Arizona State University, told VOA recently. “We’re bringing this capability back into the U.S. You’ve got to have a workforce ready to engage it.”

Biden to Visit Arizona Computer Chip Facility

U.S. President Joe Biden is traveling to Arizona on Tuesday to visit a computer chip facility, underscoring the Grand Canyon state’s position in the emerging U.S. semiconductor ecosystem.

Biden will visit a Taiwan Semiconductor Manufacturing Co. (TSMC) plant in north Phoenix. He will tour the plant and deliver remarks celebrating his economic plan and the “manufacturing boom” it has caused, White House press secretary Karine Jean-Pierre said during Monday’s briefing.

TSMC is the world’s largest contract manufacturer of semiconductor chips.

In August, Biden signed the CHIPS and Science Act, legislation aimed at countering China’s massive subsidies to its chip industry. It includes about $52 billion in funding for U.S. companies for the manufacturing of chips, which go into technology like smartphones, electric vehicles, appliances and weapons systems.

 

Arizona is among the states trying to attract federal funding.

The president will be on hand in Phoenix to celebrate the TSMC plant’s “first tool-in,” which is the moment when a building is ready for manufacturing equipment to move in.

Projects in the region are creating thousands of new jobs including the TMSC facility in north Phoenix, the technology firm Intel expanding southeast of the city and suppliers from around the world moving in.

A 3,700-square-meter cleanroom at nearby Arizona State University in Tempe is helping to meet the workforce demands of Arizona’s burgeoning semiconductor sector. There, students, companies and startups work on hardware innovations.

With 30,000 engineering students, Arizona State is home to the country’s largest college of engineering and a driver in meeting next-generation demand.

“Chips and Science Act is a once in a lifetime opportunity. This is the moment. This is the moment to build out capabilities, infrastructure, expertise,” Kyle Squires, dean of engineering schools at Arizona State University, told VOA recently. “We’re bringing this capability back into the U.S. You’ve got to have a workforce ready to engage it.”

VOA’s Michelle Quinn contributed to this report.

3 Chinese Astronauts Return to Earth After 6-Month Mission

Three Chinese astronauts landed in a northern desert on Sunday after six months working to complete construction of the Tiangong station, a symbol of the country’s ambitious space program, state TV reported.

A capsule carrying commander Chen Dong and astronauts Liu Yang and Cai Xuzhe touched down at a landing site in the Gobi Desert in northern China at approximately 8:10 p.m. (1210 GMT), China Central Television reported.

Prior to departure, they overlapped for almost five days with three colleagues who arrived Wednesday on the Shenzhou-15 mission for their own six-month stay, marking the first time China had six astronauts in space at the same time. The station’s third and final module docked with the station this month.

The astronauts were carried out of the capsule by medical workers about 40 minutes after touchdown. They were all smiles, and appeared to be in good condition, waving happily at workers at the landing site.

“I am very fortunate to have witnessed the completion of the basic structure of the Chinese space station after six busy and fulfilling months in space,” said Chen, who was the first to exit the capsule. “Like meteors, we returned to the embrace of the motherland.”

Liu, another of the astronauts, said that she was moved to see relatives and her fellow compatriots.

The three astronauts were part of the Shenzhou-14 mission, which launched in June. After their arrival at Tiangong, Chen, Liu and Cai oversaw five rendezvous and dockings with various spacecraft including one carrying the third of the station’s three modules.

They also performed three spacewalks, beamed down a live science lecture from the station, and conducted a range of experiments.

The Tiangong is part of official Chinese plans for a permanent human presence in orbit.

China built its own station after it was excluded from the International Space Station, largely due to U.S. objections over the Chinese space programs’ close ties to the People’s Liberation Army, the military wing of the ruling Communist Party.

With the arrival of the Shenzhou-15 mission, the station expanded to its maximum weight of 100 tons.

Without attached spacecraft, the Chinese station weighs about 66 tons — a fraction of the International Space Station, which launched its first module in 1998 and weighs around 465 tons.

With a lifespan of 10 to 15 years, Tiangong could one day be the only space station still up and running if the International Space Station retires by around the end of the decade as expected.

China in 2003 became the third government to send an astronaut into orbit on its own after the former Soviet Union and the United States.

China has also chalked up uncrewed mission successes: Its Yutu 2 rover was the first to explore the little-known far side of the moon. Its Chang’e 5 probe also returned lunar rocks to Earth in December 2020 for the first time since the 1970s, and another Chinese rover is searching for evidence of life on Mars.

Officials are reported to be considering an eventual crewed mission to the moon, although no timeline has been offered.

Musk’s Company Aims to Soon Test Brain Implant in People

Tech billionaire Elon Musk said his Neuralink company is seeking permission to test its brain implant in people soon.

In a “show and tell” presentation livestreamed Wednesday night, Musk said his team is in the process of asking U.S. regulators to allow them to test the device. He said he thinks the company should be able to put the implant in a human brain as part of a clinical trial in about six months, though that timeline is far from certain.

Musk’s Neuralink is one of many groups working on linking brains to computers, efforts aimed at helping treat brain disorders, overcoming brain injuries and other applications.

The field dates to the 1960s, said Rajesh Rao, co-director of the Center for Neurotechnology at the University of Washington. “But it really took off in the ’90s. And more recently we’ve seen lots of advances, especially in the area of communication brain computer interfaces.”

Rao, who watched Musk’s presentation online, said he doesn’t think Neuralink is ahead of the pack in terms of brain-computer interface achievements. “But … they are quite ahead in terms of the actual hardware in the devices,” he said.

The Neuralink device is about the size of a large coin and is designed to be implanted in the skull, with ultra-thin wires going directly into the brain. Musk said the first two applications in people would be restoring vision and helping people with little or no ability to operate their muscles rapidly use digital devices.

He said he also envisions that in someone with a broken neck, signals from the brain could be bridged to Neuralink devices in the spinal cord.

“We’re confident there are no physical limitations to enabling full body functionality,” said Musk, who recently took over Twitter and is the CEO of Tesla and SpaceX.

In experiments by other teams, implanted sensors have let paralyzed people use brain signals to operate computers and move robotic arms. In a 2018 study in the journal PLOS ONE, three participants with paralysis below the neck affecting all of their limbs used an experimental brain-computer interface being tested by the consortium BrainGate. The interface records neural activity from a small sensor in the brain to navigate things like email and apps.

A recent study in the journal Nature, by scientists at the Swiss research center NeuroRestore, identified a type of neuron activated by electrical stimulation of the spinal cord, allowing nine patients with chronic spinal cord injury to walk again.

Researchers have also been working on brain and machine interfaces for restoring vision. Rao said some companies have developed retinal implants, but Musk’s announcement suggested his team would use signals directly targeting the brain’s visual cortex, an approach that some academic groups are also pursuing, “with limited success.”

Neuralink did not immediately respond to an email to the press office. Dr. Jaimie Henderson, a neurosurgery professor at Stanford University who is an adviser for Neuralink, said one way Neuralink is different from some other devices is that it has the ability to reach into deeper layers of the brain. But he added: “There are lots of different systems that have lots of different advantages.”

Arizona Aims to Become a Semiconductor Powerhouse

The United States is pushing to regain its position as a center for semiconductor manufacturing and research as part of a Biden administration plan to make the nation less reliant on supply chains in Asia. VOA’s Michelle Quinn reports from the Southwest state of Arizona on competition for billions of dollars in federal funding to bolster domestic chip manufacturing. Additional videographer: Levi Stallings

US Bans Huawei, ZTE Equipment Sales, Citing National Security Risk

The Biden administration has banned approvals of new telecommunications equipment from China’s Huawei Technologies HWT.UL and ZTE 000063.SZ because they pose “an unacceptable risk” to U.S. national security.

The U.S. Federal Communications Commission (FCC) said Friday it had adopted the final rules, which also bar the sale or import of equipment made by China’s surveillance equipment maker Dahua Technology Co 002236.SZ, video surveillance firm Hangzhou Hikvision Digital Technology Co Ltd 002415.SZ and telecoms firm Hytera Communications Corp Ltd 002583.SZ.

The move represents Washington’s latest crackdown on the Chinese tech giants amid fears that Beijing could use Chinese tech companies to spy on Americans.

“These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” FCC Chairperson Jessica Rosenworcel said in a statement.

Huawei declined to comment. ZTE, Dahua, Hikvision and Hytera did not immediately respond to requests for comment.

Rosenworcel circulated the proposed measure — which effectively bars the firms from selling new equipment in the United States — to the other three commissioners for final approval last month.

The FCC said in June 2021 it was considering banning all equipment authorizations for all companies on the covered list.

That came after a March 2021 designation of five Chinese companies on the so-called “covered list” as posing a threat to national security under a 2019 law aimed at protecting U.S. communications networks: Huawei, ZTE, Hytera Communications Corp Hikvision and Dahua.

All four commissioners at the agency, including two Republicans and two Democrats, supported Friday’s move.

Musk Plans to Relaunch Twitter Premium Service, Again

Elon Musk said Friday that Twitter plans to relaunch its premium service that will offer different colored check marks to accounts next week, in a fresh move to revamp the service after a previous attempt backfired.

It’s the latest change to the social media platform that the billionaire Tesla CEO bought last month for $44 billion, coming a day after Musk said he would grant “amnesty” for suspended accounts and causing yet more uncertainty for users.

Twitter previously suspended the premium service, which under Musk granted blue-check labels to anyone paying $8 a month, because of a wave of imposter accounts. Originally, the blue check was given to government entities, corporations, celebrities and journalists verified by the platform to prevent impersonation.

In the latest version, companies will get a gold check, governments will get a gray check, and individuals who pay for the service, whether or not they’re celebrities, will get a blue check, Musk said Friday.

“All verified accounts will be manually authenticated before check activates,” he said, adding it was “painful, but necessary” and promising a “longer explanation” next week. He said the service was “tentatively launching” Dec. 2.

Twitter had put the revamped premium service on hold days after its launch earlier this month after accounts impersonated companies including pharmaceutical giant Eli Lilly & Co., Nintendo, Lockheed Martin, and even Musk’s own businesses Tesla and SpaceX, along with various professional sports and political figures.

It was just one change in the past two days. On Thursday, Musk said he would grant “amnesty” for suspended accounts, following the results of an online poll he conducted on whether accounts that have not “broken the law or engaged in egregious spam” should be reinstated.

The yes vote was 72%. Such online polls are anything but scientific and can easily be influenced by bots. Musk also used one before restoring former U.S. President Donald Trump’s account.

“The people have spoken. Amnesty begins next week. Vox Populi, Vox Dei,” Musk tweeted Thursday using a Latin phrase meaning “the voice of the people, the voice of God.”

The move is likely to put the company on a crash course with European regulators seeking to clamp down on harmful online content with tough new rules, which helped cement Europe’s reputation as the global leader in efforts to rein in the power of social media companies and other digital platforms.

Zach Meyers, senior research fellow at the Centre for European Reform think tank, said giving blanket amnesty based on an online poll is an “arbitrary approach” that’s “hard to reconcile with the Digital Services Act,” a new EU law that will start applying to the biggest online platforms by mid-2023.

The law is aimed at protecting internet users from illegal content and reducing the spread of harmful but legal content. It requires big social media platforms to be “diligent and objective” in enforcing restrictions, which must be spelled out clearly in the fine print for users when signing up, Meyers said.

Britain also is working on its own online safety law.

“Unless Musk quickly moves from a ‘move fast and break things’ approach to a more sober management style, he will be on a collision course with Brussels and London regulators,” Meyers said.

European Union officials took to social media to highlight their worries. The 27-nation bloc’s executive Commission published a report Thursday that found Twitter took longer to review hateful content and removed less of it this year compared with 2021.

The report was based on data collected over the spring — before Musk acquired Twitter — as part of an annual evaluation of online platforms’ compliance with the bloc’s voluntary code of conduct on disinformation. It found that Twitter assessed just over half of the notifications it received about illegal hate speech within 24 hours, down from 82% in 2021.

The numbers may yet worsen. Since taking over, Musk has l aid off half the company’s 7,500-person workforce along with an untold number of contractors responsible for content moderation. Many others have resigned, including the company’s head of trust and safety.

Recent layoffs at Twitter and results of the EU’s review “are a source of concern,” the bloc’s commissioner for justice, Didier Reynders tweeted Thursday evening after meeting with Twitter executives at the company’s European headquarters in Dublin.

In the meeting, Reynders said he “underlined that we expect Twitter to deliver on their voluntary commitments and comply with EU rules,” including the Digital Services Act and the bloc’s strict privacy regulations known as General Data Protection Regulation, or GDPR.

Another EU commissioner, Vera Jourova, tweeted Thursday evening that she was concerned about news reports that a “vast amount” of Twitter’s European staff were fired.

“If you want to effectively detect and take action against #disinformation & propaganda, this requires resources,” Jourova said. “Especially in the context of Russian disinformation warfare.”

Twitter, Others Slip on Removing Hate Speech, EU Review Says

Twitter took longer to review hateful content and removed less of it in 2022 compared with the previous year, according to European Union data released Thursday.

The EU figures were published as part of an annual evaluation of online platforms’ compliance with the 27-nation bloc’s code of conduct on disinformation.

Twitter wasn’t alone; most other tech companies signed up to the voluntary code also scored worse. But the figures could foreshadow trouble for Twitter in complying with the EU’s tough new online rules after owner Elon Musk fired many of the platform’s 7,500 full-time workers and an untold number of contractors responsible for content moderation and other crucial tasks.

The EU report, carried out over six weeks in the spring, found Twitter assessed just over half of the notifications it received about illegal hate speech within 24 hours, down from 82% in 2021.

In comparison, the amount of flagged material Facebook reviewed within 24 hours fell to 64%, Instagram slipped to 56.9%, and YouTube dipped to 83.3%. TikTok came in at 92%, the only company to improve.

The amount of hate speech Twitter removed after it was flagged slipped to 45.4% from 49.8% the year before. TikTok’s removal rate fell by a quarter to 60%, while Facebook and Instagram saw only minor declines. Only YouTube’s takedown rate increased, surging to 90%.

“It’s worrying to see a downward trend in reviewing notifications related to illegal hate speech by social media platforms,” European Commission Vice President Vera Jourova tweeted. “Online hate speech is a scourge of a digital age and platforms need to live up to their commitments.”

Twitter didn’t respond to a request for comment. Emails to several staff on the company’s European communications team bounced back as undeliverable.

Musk’s $44 billion acquisition of Twitter last month fanned widespread concern that purveyors of lies and misinformation would be allowed to flourish on the site. The billionaire Tesla CEO, who has frequently expressed his belief that Twitter had become too restrictive, has been reinstating suspended accounts, including former President Donald Trump’s.

Twitter faces more scrutiny in Europe by the middle of next year, when new EU rules aimed at protecting internet users’ online safety will start applying to the biggest online platforms. Violations could result in huge fines of up to 6% of a company’s annual global revenue.

France’s online regulator Arcom said it received a reply from Twitter after writing to the company earlier this week to say it was concerned about the effect that staff departures would have on Twitter’s “ability maintain a safe environment for its users.”

Arcom also asked the company to confirm that it can meet its “legal obligations” in fighting online hate speech and that it is committed to implementing the new EU online rules. Arcom said that it received a response from Twitter and that it will “study their response,” without giving more details.

Tech companies that signed up to the EU’s disinformation code agree to commit to measures aimed at reducing disinformation and file regular reports on whether they’re living up to their promises, though there’s little in the way of punishment.

Musk Restores Trump’s Twitter Account After Online Poll

Elon Musk reinstated Donald Trump’s account on Twitter on Saturday, reversing a ban that has kept the former president off the social media site since a pro-Trump mob attacked the U.S. Capitol on Jan. 6, 2021, as Congress was poised to certify Joe Biden’s election victory.

Musk made the announcement in the evening after holding a poll that asked Twitter users to click “yes” or “no” on whether Trump’s account should be restored. The “yes” vote won, with 51.8%.

“The people have spoken. Trump will be reinstated. Vox Populi, Vox Dei,” Musk tweeted, using a Latin phrase meaning “the voice of the people, the voice of God.”

Shortly afterward, Trump’s account, which had earlier appeared as suspended, reappeared on the platform complete with his former tweets, more than 59,000 of them. His followers were gone, at least initially.

It is not clear whether Trump would return to Twitter. An irrepressible tweeter before he was banned, Trump has said in the past that he would not rejoin even if his account was reinstated. He has been relying on his own, much smaller social media site, Truth Social, which he launched after being blocked from Twitter.

And on Saturday, during a video speech to a Republican Jewish group meeting in Las Vegas, Trump said that he was aware of Musk’s poll but that he saw “a lot of problems at Twitter,” according to Bloomberg.

“I hear we’re getting a big vote to also go back on Twitter. I don’t see it because I don’t see any reason for it,” Trump was quoted as saying by Bloomberg. “It may make it, it may not make it,” he added, apparently referring to Twitter’s recent internal upheavals.

The prospect of restoring Trump’s presence to the platform follows Musk’s purchase last month of Twitter — an acquisition that has fanned widespread concern that the billionaire owner will allow purveyors of lies and misinformation to flourish on the site. Musk has frequently expressed his belief that Twitter had become too restrictive of freewheeling speech.

His efforts to reshape the site have been both swift and chaotic. Musk has fired many of the company’s 7,500 full-time workers and an untold number of contractors who are responsible for content moderation and other crucial responsibilities. His demand that remaining employees pledge to “extremely hardcore” work triggered a wave of resignations, including hundreds of software engineers.

Users have reported seeing increased spam and scams on their feeds and in their direct messages, among other glitches, in the aftermath of the mass layoffs and worker exodus. Some programmers who were fired or resigned this week warned that Twitter may soon fray so badly it could crash.

Musk’s online survey, which ran for 24 hours before ending Saturday evening, concluded with 51.8% of more than 15 million votes favoring the restoration of Trump’s Twitter’ account. It comes four days after Trump announced his candidacy for the presidency in 2024.

Trump lost his access to Twitter two days after his supporters stormed the Capitol, soon after the former president had exhorted them to “fight like hell.” Twitter dropped his account after Trump wrote a pair of tweets that the company said cast further doubts on the legitimacy of the presidential election and raised risks for the Biden presidential inauguration.

After the Jan. 6 attack, Trump was also kicked off Facebook and Instagram, which are owned by Meta Platforms, and Snapchat. His ability to post videos to his YouTube channel was also suspended. Facebook is set to reconsider Trump’s account suspension in January.

Throughout his tenure as president, Trump’s use of social media posed a significant challenge to major social media platforms that sought to balance the public’s interest in hearing from public officials with worries about misinformation, bigotry, harassment and incitement of violence.

But in a speech at an auto conference in May, Musk asserted that Twitter’s ban of Trump was a “morally bad decision” and “foolish in the extreme.”

Earlier this month, Musk, who completed the $44 billion takeover of Twitter in late October, declared that the company wouldn’t let anyone who had been kicked off the site return until Twitter had established procedures on how to do so, including forming a “content moderation council.”

On Friday, Musk tweeted that the suspended Twitter accounts for the comedian Kathy Griffin, the Canadian psychologist Jordan Peterson and the conservative Christian news satire website Babylon Bee had been reinstated. He added that a decision on Trump had not yet been made. He also responded “no” when someone on Twitter asked him to reinstate the conspiracy theorist Alex Jones’ account.

In a tweet Friday, the Tesla CEO described the company’s new content policy as “freedom of speech, but not freedom of reach.”

He explained that a tweet deemed to be “negative” or to include “hate” would be allowed on the site but would be visible only to users who specifically searched for it. Such tweets also would be “demonetized, so no ads or other revenue to Twitter,” Musk said.

Botswana Records Surge in Lithium Batteries Theft as Global Demand Soars

Authorities in Botswana are reporting increased thefts of lithium batteries from mobile phone towers amid a surge in global demand for the battery in electric vehicles. The southern African nation’s biggest mobile network operator says it has lost more than $100,000 worth of lithium batteries in the past week alone.

Botswana police spokesperson Diteko Motube said most of the stolen batteries are being smuggled across the border to Zimbabwe.

Motube said five suspects from Zimbabwe and a Botswanan national were arrested this week while in possession of batteries worth more than $100,000.

The batteries were stolen from Botswana’s leading mobile network service provider, Mascom.

Company spokesperson Tebogo Lebotse-Sebego said the thefts are derailing their service delivery.

“This issue is certainly a crisis and it is affecting our quality of services ambitions,” said Lebotse-Sebego. “We are working closely with the relevant law enforcement offices and other administrators, including the community to find sustainable solutions to arrest the situation.”

Electric cars fuel demand

There is a surge in global demand for lithium batteries – and their components – due to their use in electric cars.

However, Zimbabwean-born UK based economic and political analyst Zenzo Moyo said the thefts in Botswana could be the result of the frequent power outages experienced in some southern African countries.

“It is not surprising that these lithium batteries are in high demand now mainly because of the load shedding that is being experienced in southern Africa especially in Zimbabwe and South Africa,” said Moyo.

Some households use lithium batteries for solar lighting, while light industries also rely on them.

Moyo said there is a huge market for the batteries in countries — such as Zimbabwe — that are turning to alternative energy sources.

“The economic hardships that Zimbabwe face cannot be used as an excuse for any kind of theft whether these are batteries or not,” he said. “If you look at the numbers that (the police) intercepted — these are huge numbers — it indicates that the people who were carrying these batteries are either runners or were selling them. There is a huge market for them understandably but the people that were carrying these batteries cannot be people who are starving but selling because there is a market.”

Demand greater than supply

Lithium’s price has risen 13-fold in the last two years, with global demand for the metal rapidly outpacing supply.

Benchmark Mineral Intelligence, a London-based price reporting agency, projects, that the lithium mining market will almost double in the next eight years to nearly $6.4 billion in 2030.

Taiwan’s APEC Envoy at the Center of Processor Chip Tension

Taiwan’s envoy to a gathering of Asia-Pacific leaders is the 91-year-old billionaire founder of a computer chip manufacturing giant that operated behind the scenes for decades before being thrust into the center of U.S.-Chinese tension over technology and security.

Morris Chang’s hybrid role highlights the clash between Taiwan’s status as one of China’s top tech suppliers and Beijing’s threats to attack the self-ruled island democracy of 22 million people, which the mainland’s ruling Communist Party says it part of its territory.

Taiwan’s decision to send Chang instead of a political leader to the Asia-Pacific Economic Cooperation summit in Thailand reflects the island’s unusual status. The United States and other governments have agreed to Chinese demands not to have official relations with Taiwan or have their leaders meet its president.

Chang transformed the semiconductor industry when he founded Taiwan Semiconductor Manufacturing Corp. in 1987 as the first foundry to produce chips only for customers without designing its own. That allowed smaller designers to compete with industry giants without spending billions of dollars to build a factory.

TSMC has grown into the biggest chip producer, supplying Apple Inc., Qualcomm Inc. and other customers and turning Taiwan into a global tech center. TSMC-produced chips are in millions of smartphones, automobiles and high-end computers.

Despite that, TSMC ranks high on any list of the biggest companies that are unknown outside their industries.

Chang, a Texas Instruments Inc. veteran who served as TSMC chairman until 2018, represented then-President Chen Shui-bian at the Asia-Pacific Economic Cooperation meeting in 2006. He was re-appointed to the same job in 2018, 2019 and 2020 by President Tsai Ing-wen.

“Taiwan’s semiconductor industry, especially TSMC, plays a pivotal role in the domestic and even the world economy,” Tsai told reporters on Oct. 20. “At this important moment, Chang is an irreplaceable candidate to serve as the representative of our country’s APEC leaders.”

Britain’s trade minister, Greg Hands, said London wants closer cooperation with Taiwan on semiconductors during a visit this month. Britain is home to Arm, a leading chip designer.

Taiwan is in a “very challenging environment” and APEC is the “most important international conference venue for Taiwan,” Chang said at the Oct. 20 briefing with Tsai.

“Taiwan needs to build a secure and resilient supply chain with trusted partners, especially in the electronics sector,” he said.

Last year, Chang warned support was eroding for globalization and free markets that helped TSMC prosper.

“Globalization seems to be a bad word and ‘free market economy’ is beginning to carry conditions,” Chang said while accepting an award from the Asia Society.

“Many companies in Asia and America face challenges as to how to operate in the new environment,” Chang said. “Still, I’m confident that solutions will be found.”

TSMC was thrust into geopolitics in 2020 when then U.S. President Donald Trump blocked the company and other vendors from using U.S. technology to make chips for Chinese tech giant Huawei Technologies Ltd., which produces smartphones and network gear for phone and internet carriers. American officials say Huawei is a security threat and might enable Chinese spying, an accusation the company denies.

Most of the world’s smartphones and other consumer electronics are assembled in Chinese factories. But they need components and technology from the United States, Europe and Asian suppliers — especially Taiwan, the biggest chip exporter.

Huawei, China’s first global tech brand, designs chips but needs TSMC and other contractors to make them. Their foundries need American manufacturing technology, which gives Washington leverage to disrupt Chinese high-tech industry.

Processor chips are China’s biggest import at $300 billion a year, ahead of oil. The ruling Communist Party sees that as a strategic weakness and is spending heavily to create its own chip producers, but they are generations behind TSMC and other global leaders.

Trump’s successor, Joe Biden, left Trump’s curbs in place and imposed more restrictions that extend to other Chinese companies.

TSMC, headquartered in Hsinchu, adjacent to the Taiwan capital, Taipei, says it made 12,302 different products last year for 535 customers. The company reported an $18.7 billion profit last year on $49.8 billion in revenue.

Chang was born in Ningbo, south of Shanghai, and moved to Hong Kong after a civil war on the mainland ended with the Communist Party taking power in 1949.

The mainland’s former ruling Nationalist Party fled to Taiwan. The two sides have been ruled separately since then. They have no official relations but are linked by billions of dollars of trade and investment.

Chang studied at Harvard University and the Massachusetts Institute of Technology before receiving a Ph.D. in electrical engineering from Stanford University in 1964.

Chang spent a quarter-century at Texas Instruments, rising to become a vice president in charge of its semiconductor business, before being invited to Taiwan in the 1980s to lead a technology research institute.

In 1988, TSMC became Taiwan’s first company traded on the New York Stock Exchange. Chang’s stake in the company is worth $1.6 billion.

EXPLAINER: Nasa’s New Mega Moon Rocket, Orion Crew Capsule

NASA is kicking off its new moon program with a test flight of a brand-new rocket and capsule.

Liftoff was slated for early Wednesday from Kennedy Space Center in Florida. The test flight aims to send an empty crew capsule into a far-flung lunar orbit, 50 years after NASA’s famed Apollo moonshots.

The project is years late and billions over budget. The price tag for the test flight: more than $4 billion.

A rundown of the new rocket and capsule, part of NASA’s Artemis program, named after Apollo’s mythological twin sister:

Rocket power

At 322 feet (98 meters), the new rocket is shorter and slimmer than the Saturn V rockets that hurled 24 Apollo astronauts to the moon a half-century ago. But it’s mightier, packing 8.8 million pounds (4 million kilograms) of thrust. It’s called the Space Launch System rocket, SLS for short, although a less clunky name is under discussion. Unlike the streamlined Saturn V, the new rocket has a pair of side boosters refashioned from NASA’s space shuttles. The boosters peel away after two minutes, just like the shuttle boosters. The core stage keeps firing before crashing into the Pacific. Less than two hours after liftoff, an upper stage sends the capsule, Orion, racing toward the moon.

Moonship

NASA’s high-tech, automated Orion capsule is named after the constellation, among the night sky’s brightest. At 11 feet (3 meters) tall, it’s roomier than Apollo’s capsule, seating four astronauts instead of three. For the test flight, a full-size dummy in an orange flight suit occupies the commander’s seat, rigged with vibration and acceleration sensors. Two other mannequins made of material simulating human tissue — heads and female torsos, but no limbs — measure cosmic radiation, one of the biggest risks of spaceflight. Unlike the rocket, Orion has launched before, making two laps around Earth in 2014. For the test flight, the European Space Agency’s service module was attached for propulsion and solar power via four wings.

Flight plan

Orion’s flight is set to last 25 days from its Florida liftoff to Pacific splashdown, about the same as astronaut trips. It takes nearly a week to reach the moon. After whipping closely around the moon, the capsule enters a distant orbit with a far point of close to 40,000 miles (64,000 kilometers). That would put Orion about 270,000 miles (435,000) from Earth, farther than Apollo. The big test comes at mission’s end, as Orion hits the atmosphere at 25,000 mph (40,000 kph) on its way to a splashdown in the Pacific. The heat shield uses the same material as the Apollo capsules to withstand reentry temperatures of 5,000 degrees Fahrenheit (2,750 degrees Celsius). But the advanced design anticipates the faster, hotter returns by future Mars crews.

Hitchhikers

Besides three test dummies, the test flight includes a slew of stowaways for deep space research. Ten shoebox-size satellites pop off once Orion is hurtling toward the moon. NASA expects some to fail, given the low-cost, high-risk nature of these mini satellites. In a back-to-the-future salute, Orion carries a few slivers of moon rocks collected by Apollo 11’s Neil Armstrong and Buzz Aldrin in 1969, and a bolt from one of their rocket engines, salvaged from the sea a decade ago.

Apollo vs. Artemis

More than 50 years later, Apollo still stands as NASA’s greatest achievement. Using 1960s technology, NASA took just eight years to go from launching its first astronaut, Alan Shepard, and landing Armstrong and Aldrin on the moon. By contrast, Artemis already has dragged on for more than a decade, despite building on the short-lived moon exploration program Constellation. Twelve Apollo astronauts walked on the moon from 1969 through 1972, staying no longer than three days at a time. For Artemis, NASA will draw from a diverse astronaut pool and is extending the time crews spend on the moon to at least a week. The goal is to create a long-term lunar presence that will grease the skids for sending people to Mars.

What’s next

There’s a lot more to be done before astronauts step on the moon again. A second test flight will send four astronauts around the moon and back, perhaps as early as 2024. A year or so later, NASA aims to send another four up, with two of them touching down at the lunar south pole. Orion doesn’t come with its own lunar lander like the Apollo spacecraft did, so NASA has hired Elon Musk’s SpaceX to provide its Starship spacecraft for the first Artemis moon landing. Two other private companies are developing moonwalking suits. The sci-fi-looking Starship would link up with Orion at the moon and take a pair of astronauts to the surface and back to the capsule for the ride home. So far, Starship has only soared six miles (10 kilometers).

FBI Says It has ‘National Security Concerns’ About TikTok

FBI Director Christopher Wray said on Tuesday that the bureau has “national security concerns” about popular short-form video hosting app TikTok as the Chinese-owned company seeks U.S. government approval to continue operating in the country.

Speaking during a U.S. House of Representatives Homeland Security Committee hearing on “worldwide threats to the homeland,” Wray said the FBI’s concerns about TikTok include “the possibility that the Chinese government could use it to control data collection on millions of users.”

There is also concern, Wray said in response to a question, that the Chinese government could “control the recommendation algorithm, which could be used for influence operations … or to control software on millions of devices, which gives the opportunity to potentially technically compromise personal devices.”

In written testimony, Wray called the foreign intelligence and economic threat from China “the greatest long-term threat to our nation’s ideas, innovation, and economic security.”

But he declined to answer in an open session a lawmaker’s question about whether the Chinese government has been leveraging TikTok to collect data about U.S. citizens.

Concerns about ties to Chinese government

TikTok’s ties to the Chinese government have been a flashpoint among U.S. lawmakers and officials for years. The app grew in popularity in recent years after its parent company, ByteDance, a China-based company with suspected ties to the Chinese government, bought and later absorbed Musical.ly, which allowed users to create and share lip-sync videos.

Citing national security concerns, then-President Donald Trump issued an executive order in 2020 that would effectively ban TikTok in the United States. But the social platform sued to block Trump’s executive order.

Last year President Joe Biden revoked the Trump directive, asking the Treasury Department to examine security concerns associated with the app.

The Committee on Foreign Investment in the United States (CFIUS), an interagency body headed by the Treasury Department that reviews the national security implications of foreign investments in U.S. companies, has been examining TikTok’s proposal to continue to remain active in the U.S. market and the risks associated with it.

Noting that the FBI’s foreign investment unit is part of the CFIUS review process, Wray said that “our input would be taken into account in any agreements that might be made to address the issue.”

U.S. lawmakers question how data used

Although TikTok has denied having ties to China’s ruling Communist Party, U.S. lawmakers have long expressed concern about the Chinese government’s ability to access U.S. user data collected by the app.

Questioning Wray during Tuesday’s hearing, Republican Representative Diana Harshbarger cited a recent Forbes article that reported ByteDance “planned to use the TikTok app to track the physical location of specific American citizens.”

TikTok later dismissed the allegation raised in the article, saying in a statement it “does not collect precise GPS location information from U.S. users.”

In a June letter, TikTok sought to reassure U.S. lawmakers about its data security, writing that it now stores “100% of US user data, by default, in the Oracle cloud environment.”

‘Spinach’ vs. ‘opium’ versions

Last week, the U.S. TV news magazine “60 Minutes” reported that TikTok has two versions — a limited, educational “spinach version” for Chinese consumers, and an addictive “opium version” for the rest of the world.

While the version used in the West “has kids hooked for hours at a time,” in China, children under 14 years can use TikTok for only 40 minutes per day and view only videos about science experiments, museum exhibits, patriotic videos and educational videos, according to “60 Minutes.”

Wray said the online “threat to our youth is something we’re always concerned about.” The FBI is just as concerned about the way the Chinese government uses its laws as “an aggressive weapon against companies, both U.S. companies and Chinese companies,” he said.

“Under Chinese law, Chinese companies are required to essentially — and I’m going to shorthand here — basically do what the Chinese government wants them to do, in terms of sharing information or serving as a tool of the Chinese government,” Wray said. “And so, that’s plenty of reason by itself to be concerned.”

Beijing has denied similar allegations in the past.

40 States Settle Google Location-tracking Charges for $392 Million

Search giant Google has agreed to a $391.5 million settlement with 40 states to resolve an investigation into how the company tracked users’ locations, state attorneys general announced Monday. 

The states’ investigation was sparked by a 2018 Associated Press story, which found that Google continued to track people’s location data even after they opted out of such tracking by disabling a feature the company called “location history.” 

The attorneys general called the settlement a historic win for consumers, and the largest multistate settlement in U.S history dealing with privacy. 

It comes at a time of mounting unease over privacy and surveillance by tech companies that has drawn growing outrage from politicians and scrutiny by regulators. The Supreme Court’s ruling in June ending the constitutional protections for abortion raised potential privacy concerns for women seeking the procedure or related information online. 

“This $391.5 million settlement is a historic win for consumers in an era of increasing reliance on technology,” Connecticut Attorney General William Tong said in a statement. “Location data is among the most sensitive and valuable personal information Google collects, and there are so many reasons why a consumer may opt-out of tracking.” 

Google, based in Mountain View, California, said it fixed the problems several years ago. 

“Consistent with improvements we’ve made in recent years, we have settled this investigation, which was based on outdated product policies that we changed years ago,” company spokesperson Jose Castaneda said in a statement. 

Location tracking can help tech companies sell digital ads to marketers looking to connect with consumers within their vicinity. It’s another tool in a data-gathering toolkit that generates more than $200 billion in annual ad revenue for Google, accounting for most of the profits pouring into the coffers of its corporate parent, Alphabet — which has a market value of $1.2 trillion. 

In its 2018 story, the AP reported that many Google services on Android devices and iPhones store users’ location data even if they’ve used a privacy setting that says it will prevent Google from doing so. Computer-science researchers at Princeton confirmed these findings at the AP’s request. 

Storing such data carries privacy risks and has been used by police to determine the location of suspects. 

The AP reported that the privacy issue with location tracking affected some 2 billion users of devices that run Google’s Android operating software and hundreds of millions of worldwide iPhone users who rely on Google for maps or search. 

The attorneys general who investigated Google said a key part of the company’s digital advertising business is location data, which they called the most sensitive and valuable personal data the company collects. Even a small amount of location data can reveal a person’s identity and routines, they said. 

Google uses the location information to target consumers with ads by its customers, the state officials said. 

The attorneys general said Google misled users about its location tracking practices since at least 2014, violating state consumer protection laws. 

As part of the settlement, Google also agreed to make those practices more transparent to users. That includes showing them more information when they turn location account settings on and off and keeping a webpage that gives users information about the data Google collects. 

The shadowy surveillance brought to light by the AP troubled even some Google engineers, who recognized the company might be confronting a massive legal headache after the story was published, according to internal documents that have subsequently surfaced in consumer-fraud lawsuits. 

Arizona Attorney General Mark Brnovich filed the first state action against Google in May 2020, alleging that the company had defrauded its users by misleading them into believing they could keep their whereabouts private by turning off location tracking in the settings of their software. 

Arizona settled its case with Google for $85 million last month, but by then attorneys general in several other states and the District of Columbia had also pounced on the company with their own lawsuits seeking to hold Google accountable for its alleged deception.