Chinese hackers are positioning themselves in U.S. critical infrastructure IT networks for a potential clash with the United States, a top American cybersecurity official said Friday.

Morgan Adamski, executive director of U.S. Cyber Command, said Chinese-linked cyber operations are aimed at gaining an advantage in case of a major conflict with the United States.

Officials have warned that China-linked hackers have compromised IT networks and taken steps to carry out disruptive attacks in the event of a conflict. Their activities include gaining access to key networks to enable potential disruptions such as manipulating heating, ventilation and air-conditioning systems in server rooms, or disrupting critical energy and water controls, U.S. officials said earlier this year.

Beijing routinely denies cyber operations targeting U.S. entities. The Chinese Embassy in Washington did not immediately respond to a request for comment.

Adamski was speaking to researchers at the Cyberwarcon security conference in Arlington, Virginia. On Thursday, U.S. Senator Mark Warner told The Washington Post a suspected China-linked hack on U.S. telecommunications firms was the worst telecom hack in U.S. history.

That cyber espionage operation, dubbed “Salt Typhoon,” has included stolen call records data, compromised communications of top officials of both major U.S. presidential campaigns before the November 5 election, and telecommunications information related to U.S. law enforcement requests, the FBI said recently.

The FBI and Cybersecurity and Infrastructure Security Agency are providing technical assistance and information to potential targets, the bureau said.

Adamski said Friday that the U.S. government has “executed globally synchronized activities, both offensively and defensively minded, that are laser-focused on degrading and disrupting PRC cyber operations worldwide.”

Public examples include exposing operations, sanctions, indictments, law enforcement actions and cybersecurity advisories, with input from multiple countries, Adamski said.
…

NEW YORK — Nick Pickles, the former head of global affairs at Elon Musk’s social media platform X, is joining forces with one of Musk’s rivals, his fellow OpenAI co-founder Sam Altman.

Pickles, who resigned from X in September, told Reuters on Wednesday that he will serve as chief policy officer for Altman’s Tools for Humanity, the company building the technology to support World Network, formerly known as Worldcoin.

Pickles’ old boss, Musk, and his new boss, Altman, founded ChatGPT creator OpenAI in 2015 but have since fallen out in a messy legal dispute.

World Network, which has faced scrutiny over its data collection, is ramping up efforts to scan people’s irises, using its “orb” devices, to create World ID.

The ID will serve as a digital passport to prove, in the online realm, that its holder is an actual human being as opposed to an AI bot.

Pickles told Reuters that AI is “on the cusp” of overtaking traditional online defenses to determine whether a user is a real person, such as Captcha puzzles. Once AI can blow through those barriers, trust on the Web will further disintegrate.

“It’s imminent,” said Pickles. “Throughout my time at X and at Twitter, one of the consistent issues that kept coming up is, ‘Is this a real account or a bot?'” He added: “I saw every day how this issue is going to be central to the future of online interaction.”

During his 10 years at X, formerly known as Twitter, Pickles served most recently as the company’s top ambassador to heads of state across the globe. In that capacity, he worked closely with policymakers and regulators to shape regulatory proposals, negotiate compliance and represent the company in global forums.

He received a promotion at X in July.

One month later, billionaire Musk sued OpenAI and Altman for allegedly violating contract provisions that would have put the public good ahead of profits.

Pickles declined to comment on the litigation.

Pickles said he was optimistic about the new regulatory framework likely to be ushered in by the administration of President-elect Donald Trump.

His priority, he said, is hiring a lobbyist in Washington.
…

Farmers in Kenya are using artificial intelligence to help them get better crop yields. An AI-powered tool – called Virtual Agronomist – engages directly with farmers to help them create tailored plans to optimize the quality and quantity of their crops. Mohammed Yusuf has more from Mwea, Kenya.
…

WASHINGTON — Pakistan’s top cleric has declared that virtual private networks, or VPNs, are unlawful, igniting a debate on privacy rights and access to information amid a government crackdown on the internet.

Allama Raghib Naeemi, head of the Council of Islamic Ideology (CII), issued a decree saying it makes no difference whether a VPN is registered or unregistered.

“If attempts are made to access indecent or immoral sites, character assassination is done, statements are being made against national security, or if various incidents of religious blasphemy are being spread through it, then [using] it would completely be un-Islamic,” he said.

A VPN protects online privacy by creating a secure connection and is used to access blocked content, protect data from hackers and support remote work or secure transactions.

Several internet service providers in Pakistan expressed concerns Tuesday over the possible imposition of blanket restrictions on VPNs, warning that the move would anger users and impact online businesses.

Shahzad Arshad, chairman of the Wireless and Internet Service Providers Association of Pakistan, said in a statement, “It is essential to recognize that blanket restrictions or sweeping narratives around tools like VPNs risk alienating segments of society, particularly those who rely on these tools for entirely legitimate purposes, such as IT exports, financial transactions, and academic research.”

Arshad, in reference to CII’s declaration, said technology is neutral and that how it is used determines whether it is aligned with ethics.

Amnesty Tech, part of Amnesty International, said last week on X that imposing restrictions on VPNs would amount to “violating the right to privacy under international law, restricting people’s access to information, and suppressing free expression.”

Qibla Ayaz, former chairman of CII, told VOA Deewa it seems as if a government agency has reached out to the religious body seeking its stance on the VPN issue.

“Similar requests were sent by the government in 2023,” he said. 

The CII is a constitutional body in Pakistan that advises the legislature on whether a certain law is repugnant to Islam, namely to the Quran and Sunna.

According to activists and experts, CII’s declarations on technology use are unwarranted and will only strengthen the government’s digital suppression of social media users.

Haroon Baloch, a Pakistani digital rights activist, believes the proposed restrictions on VPNs are aimed at suppressing political dissent.

“First, the government had compliance challenges with X. And when the platform did not agree with the government’s requests, then it banned X. And when X was available with the help of VPN, the government is planning to ban the VPN now,” Haroon told VOA.

Pakistan banned X in February and installed firewalls to restrict access to certain online content. But consumers are using VPNs to access restricted networks and content and to hide their identities and locations. 

Pakistan Army Chief General Asim Munir told a gathering at the Islamabad Policy Research Institute on November 16 that technology has played a pivotal role in the dissemination of information, but “the spread of misleading and incorrect information has become a significant challenge.”

In a speech to religious leaders in Islamabad earlier in August, Munir said, “Anarchy is spread through social media.”

A directive in October from the Interior Ministry asked the Pakistan Telecommunication Authority to block “illegal” VPNs that had not registered by the end of November.

The Interior Ministry charged in a letter to the Pakistan Telecommunication Authority, which oversees the internet and mobile industry and has broad powers over online content and the licensing of service providers, that terrorists are increasingly using VPNs to facilitate violent activities and financial transactions in Pakistan.

“Of late, an alarming fact has been identified, wherein VPNs are used by terrorists to obscure and conceal their communications,” the letter said, adding that pornography sites are frequently accessed using VPNs.

“These trends … warrant the prohibition of unauthorized virtual private networks in order to address critical threats,” the letter said.

The 2024 “Freedom on the Net” report published by Freedom House says the Pakistan Telecommunication Authority has historically implemented policies that undermine internet freedom, removed content without a transparent process and instituted wholesale bans on platforms.

This story originated in VOA’s Deewa Service.
…

WASHINGTON — Pakistan’s top cleric has declared that virtual private networks, or VPNs, are unlawful, igniting a debate on privacy rights and access to information amid a government crackdown on the internet.

Allama Raghib Naeemi, head of the Council of Islamic Ideology (CII), issued a decree saying it makes no difference whether a VPN is registered or unregistered.

“If attempts are made to access indecent or immoral sites, character assassination is done, statements are being made against national security, or if various incidents of religious blasphemy are being spread through it, then [using] it would completely be un-Islamic,” he said.

A VPN protects online privacy by creating a secure connection and is used to access blocked content, protect data from hackers and support remote work or secure transactions.

Several internet service providers in Pakistan expressed concerns Tuesday over the possible imposition of blanket restrictions on VPNs, warning that the move would anger users and impact online businesses.

Shahzad Arshad, chairman of the Wireless and Internet Service Providers Association of Pakistan, said in a statement, “It is essential to recognize that blanket restrictions or sweeping narratives around tools like VPNs risk alienating segments of society, particularly those who rely on these tools for entirely legitimate purposes, such as IT exports, financial transactions, and academic research.”

Arshad, in reference to CII’s declaration, said technology is neutral and that how it is used determines whether it is aligned with ethics.

Amnesty Tech, part of Amnesty International, said last week on X that imposing restrictions on VPNs would amount to “violating the right to privacy under international law, restricting people’s access to information, and suppressing free expression.”

Qibla Ayaz, former chairman of CII, told VOA Deewa it seems as if a government agency has reached out to the religious body seeking its stance on the VPN issue.

“Similar requests were sent by the government in 2023,” he said. 

The CII is a constitutional body in Pakistan that advises the legislature on whether a certain law is repugnant to Islam, namely to the Quran and Sunna.

According to activists and experts, CII’s declarations on technology use are unwarranted and will only strengthen the government’s digital suppression of social media users.

Haroon Baloch, a Pakistani digital rights activist, believes the proposed restrictions on VPNs are aimed at suppressing political dissent.

“First, the government had compliance challenges with X. And when the platform did not agree with the government’s requests, then it banned X. And when X was available with the help of VPN, the government is planning to ban the VPN now,” Haroon told VOA.

Pakistan banned X in February and installed firewalls to restrict access to certain online content. But consumers are using VPNs to access restricted networks and content and to hide their identities and locations. 

Pakistan Army Chief General Asim Munir told a gathering at the Islamabad Policy Research Institute on November 16 that technology has played a pivotal role in the dissemination of information, but “the spread of misleading and incorrect information has become a significant challenge.”

In a speech to religious leaders in Islamabad earlier in August, Munir said, “Anarchy is spread through social media.”

A directive in October from the Interior Ministry asked the Pakistan Telecommunication Authority to block “illegal” VPNs that had not registered by the end of November.

The Interior Ministry charged in a letter to the Pakistan Telecommunication Authority, which oversees the internet and mobile industry and has broad powers over online content and the licensing of service providers, that terrorists are increasingly using VPNs to facilitate violent activities and financial transactions in Pakistan.

“Of late, an alarming fact has been identified, wherein VPNs are used by terrorists to obscure and conceal their communications,” the letter said, adding that pornography sites are frequently accessed using VPNs.

“These trends … warrant the prohibition of unauthorized virtual private networks in order to address critical threats,” the letter said.

The 2024 “Freedom on the Net” report published by Freedom House says the Pakistan Telecommunication Authority has historically implemented policies that undermine internet freedom, removed content without a transparent process and instituted wholesale bans on platforms.

This story originated in VOA’s Deewa Service.
…

Artificial intelligence was much discussed and demonstrated at the Africa Tech Festival in Cape Town, South Africa earlier this month. The conference highlighted how technology is changing industries on the continent. Vicky Stark filed this report.
…

The rise of AI tools like ChatGPT has sparked debate in higher education, raising questions about ethics and integrity in teaching, learning and knowledge creation. In South Africa, some academic institutions are taking a proactive approach, integrating AI into their curricula. Experts say this step is not only innovative but also helps level the playing field among students. Zaheer Cassim reports from Johannesburg.
…

DAEJEON, South Korea — Imagine a wheelchair equipped with wheels flexible enough to navigate all manner of obstacles from curbs to humps and even staircases.  

Or perhaps an unmanned delivery vehicle using the same wheels that takes the stairs to deliver food and groceries right to your door. 

This is what researchers from the Korea Institute of Machinery and Materials (KIMM) envision for their “morphing” wheel, which can roll over obstacles up to 1.3 times the height of its radius.  

Inspired by the surface tension of water droplets, it goes from solid to fluid when it encounters impediments. 

Other possible applications include robots that spy on the enemy in the battlefield. 

The KIMM team also hopes that morphing wheels will eventually be used with two- and four-legged robots – currently limited in movement efficiency and susceptible to vibration – that can carry payloads that need stable movement in industrial settings. 

“The goal is to make this viable for speed up to 100 kph, or the speed of an average car,” said Song Sung-hyuk, principal researcher at KIMM. 

Wheels developed for a similar purpose such as nonpneumatic or airless tires have flexibility but are limited in their ability to overcome obstacles, said Song, who is a member of KIMM’s AI robotics research team.  

The morphing wheel consists of an outer hoop of a chain and a series of spoke wires running through the hub. The stiffness of the spokes – and hence the wheel – is automatically regulated by a sensor as it reacts to the terrain. 

Song’s team demonstrated to Reuters a prototype wheelchair mounted on morphing wheels as it climbed stairs with 18-cm steps with a life-size dummy sitting in it. The team has also tested a device mounted with the wheel at speeds of up to 30 kph. 

The morphing wheel was featured on the cover of the journal Science Robotics in August.
…

BEIJING/HONG KONG — A 22-year-old Chinese woman’s account of how she was lured into the country’s illegal surrogacy industry before suffering a miscarriage went viral on Chinese social media this week and raised heated debates over women’s rights and social inequality. 

Surrogacy is banned in China, and authorities have vowed to severely crack down on illegal practices, including the buying and selling of sperm, egg and surrogacy services. 

The incident comes as Chinese authorities grapple with how to increase the country’s birth rate as more young couples put off having children or opt to have none. 

China’s population fell for a second consecutive year in 2023 and Beijing in October rallied local governments to direct resources towards fixing China’s population crisis to create a “birth-friendly” society.  

Zhang Jing, 22, told state-backed Phoenix TV magazine that she donated her eggs out of financial desperation and then agreed to “rent out her uterus” to be impregnated for a total of 30,000 yuan ($4,152).  

If she “successfully” delivered the baby, she would be paid a total of 240,000 yuan. At five months pregnant, she experienced severe complications and had to have an abortion.  

Zhang’s story amassed more than 86 million views and 10,000 comments on Chinese social media platform Weibo, with the hashtag “#2000s-born Surrogate Miscarriage Girl Speaks Out#.” 

The majority of comments strongly opposed surrogacy. Some warned that legalizing surrogacy in China could lead to increased competition that would lower compensation and further devalue women. 

“No woman could escape this if surrogacy were legalized,” one user wrote, while another said, “Legalizing surrogacy would drive down prices and commodify women.” 

Zhang’s story ignited calls for a more thorough crackdown on illegal surrogacy by authorities, with some commenters warning that allowing the black market to continue to operate could even normalize human organ trafficking.  

“Life should not be traded as a commodity,” one user wrote. “If this extends to the sale of organs, it will only get darker and darker, and women will have no future.” 

The incident comes a few weeks after a 28-year-old pregnant woman who acted as a surrogate in China’s southwestern city of Chengdu was allegedly abandoned by her surrogacy agency. 
…

MELBOURNE, Australia — How do you remove children from the harms of social media? Politically the answer appears simple in Australia, but practically the solution could be far more difficult.

The Australian government’s plan to ban children from social media platforms including X, TikTok, Facebook and Instagram until their 16th birthdays is politically popular. The opposition party says it would have done the same after winning elections due within months if the government hadn’t moved first.

The leaders of all eight Australian states and mainland territories have unanimously backed the plan, although Tasmania, the smallest state, would have preferred the threshold was set at 14.

But a vocal assortment of experts in the fields of technology and child welfare have responded with alarm. More than 140 such experts signed an open letter to Prime Minister Anthony Albanese condemning the 16-year age limit as “too blunt an instrument to address risks effectively.”

Details of what is proposed and how it will be implemented are scant. More will be known when legislation is introduced into the Parliament next week.

The concerned teen

Leo Puglisi, a 17-year-old Melbourne student who founded online streaming service 6 News Australia at the age of 11, laments that lawmakers imposing the ban lack the perspective on social media that young people have gained by growing up in the digital age.

“With respect to the government and prime minister, they didn’t grow up in the social media age, they’re not growing up in the social media age, and what a lot of people are failing to understand here is that, like it or not, social media is a part of people’s daily lives,” Leo said.

“It’s part of their communities, it’s part of work, it’s part of entertainment, it’s where they watch content – young people aren’t listening to the radio or reading newspapers or watching free-to-air TV – and so it can’t be ignored. The reality is this ban, if implemented, is just kicking the can down the road for when a young person goes on social media,” Leo added.

Leo has been applauded for his work online. He was a finalist in his home state Victoria’s nomination for the Young Australian of the Year award, which will be announced in January. His nomination bid credits his platform with “fostering a new generation of informed, critical thinkers.”

The grieving mom-turned-activist

One of the proposal’s supporters, cyber safety campaigner Sonya Ryan, knows from personal tragedy how dangerous social media can be for children.

Her 15-year-old daughter Carly Ryan was murdered in 2007 in South Australia state by a 50-year-old pedophile who pretended to be a teenager online. In a grim milestone of the digital age, Carly was the first person in Australia to be killed by an online predator.

“Kids are being exposed to harmful pornography, they’re being fed misinformation, there are body image issues, there’s sextortion, online predators, bullying. There are so many different harms for them to try and manage and kids just don’t have the skills or the life experience to be able to manage those well,” Sonya Ryan said.

“The result of that is we’re losing our kids. Not only what happened to Carly, predatory behavior, but also we’re seeing an alarming rise in suicide of young people,” she added.

Sonya Ryan is part of a group advising the government on a national strategy to prevent and respond to child sexual abuse in Australia.

She wholeheartedly supports Australia setting the social media age limit at 16.

“We’re not going to get this perfect,” she said. “We have to make sure that there are mechanisms in place to deal with what we already have which is an anxious generation and an addicted generation of children to social media.”

A major concern for social media users of all ages is the legislation’s potential privacy implications.

Age estimation technology has proved inaccurate, so digital identification appears to be the most likely option for assuring a user is at least 16.

Australia’s eSafety Commissioner, an office that describes itself as the world’s first government agency dedicated to keeping people safer online, has suggested in planning documents adopting the role of authenticator. The government would hold the identity data and the platforms would discover through the commissioner whether a potential account holder was 16.

The skeptical internet expert

Tama Leaver, professor of internet studies at Curtin University, fears that the government will make the platforms hold the users’ identification data instead.

The government has already said the onus will be on the platforms, rather than on children or their parents, to ensure everyone meets the age limit.

“The worst possible outcome seems to be the one that the government may be inadvertently pushing towards, which would be that the social media platforms themselves would end up being the identity arbiter,” Leaver said.

“They would be the holder of identity documents which would be absolutely terrible because they have a fairly poor track record so far of holding on to personal data well,” he added.

The platforms will have a year once the legislation has become law to work out how the ban can be implemented.

Ryan, who divides her time between Adelaide in South Australia and Fort Worth, Texas, said privacy concerns should not stand in the way of removing children from social media.

“What is the cost if we don’t? If we don’t put the safety of our children ahead of profit and privacy?” she asked. 
…

Zhuhai, China — Stealth fighter jets and attack drones took center stage as China’s largest air show officially opened on Tuesday, an opportunity for Beijing to showcase its growing military might to potential customers and rivals alike.

China has poured resources into modernizing and expanding its aviation capabilities as it faces off against the United States and others around regional flashpoints like Taiwan.

Record numbers of Chinese warplanes have been sent around the self-ruled democratic island, which Beijing claims as its territory, over the past few years.

The star of Airshow China, which showcases Beijing’s civil and military aerospace sector every two years in the southern city of Zhuhai, is the new J-35A stealth fighter jet.

Its inclusion in the airshow suggests it is nearly ready to enter operation, which would make China the only country other than the United States to have two stealth fighters in action, experts said.

The J-35A is lighter than China’s existing model, the J20, and looks more similar in design to a US F-35.

A group of J20s performed a display flight on Tuesday morning, flying in a diamond formation across a grey sky.

State news agency Xinhua quoted military expert Wang Mingzhi as saying the combination of the two models greatly enhances the People’s Liberation Army Air Force (PLAAF)’s “ability to conduct offensive operations in high-threat and contested environments.”

Attack drones

The airshow will feature a dedicated drone zone for the first time, reflecting their increased prominence in warzones, including Ukraine.

The SS-UAV — a massive mothership that can rapidly release swarms of smaller drones for intelligence gathering, as well as strikes — will be on display in Zhuhai, according to the South China Morning Post.

In October the United States unveiled sanctions targeting China-based companies linked to the production of drones that Russia has deployed in Ukraine.

Moscow and Beijing have deepened military and defense ties since Russia’s invasion of its neighbor three years ago, and the secretary of its Security Council, Sergei Shoigu, is due to visit Zhuhai.

This year the show’s focus is squarely on the military sector, as it coincides with the 75th anniversary of the PLAAF, but China’s burgeoning space industry will also be showcasing developments.

A model of a homegrown reusable space cargo shuttle will debut at the show, Xinhua reported on Monday.

Named Haoloong, the shuttle is designed to be launched on a commercial rocket, and then dock with China’s space station Tiangong.

“It can re-enter the atmosphere, fly and land horizontally at a designated airport, allowing for recovery and reuse,” Xinhua said.

Beijing has poured huge resources into its space program over the past decade in an effort to catch up to traditional space powers the United States and Russia.
…

LISBON, PORTUGAL — Lisbon will this week play host to Europe’s biggest annual tech conference, Web Summit, where industry leaders and lawmakers will weigh the pros and cons of Donald Trump’s return to the White House.

Senior executives from firms such as Apple, Microsoft, and Meta will join high-ranking officials from Europe for debates about the future of artificial intelligence, social media regulation, and the impact a second Trump presidency may have on the continent.

Trump has previously promised he could end the war between Ukraine and Russia within 24 hours of taking office. Days after Trump’s re-election, two senior Ukrainian government officials, Alex Bornyakov and Mykhailo Fedorov, will take to the stage to discuss how the country has continued innovating in the face of conflict.

John Adam, chief revenue officer at software development firm Aimsoftpro, is among those attending. About 70% of the company’s workforce is still based in Ukraine, with the rest having relocated around Europe after the war’s outbreak in 2022.

“There’s mixed feelings because the Trump approach looks like it’s more geared towards the present lines of conflict, which is not an ideal scenario for Ukraine, and there’s a reluctance to accept that. At the same time, we would like this to have an endpoint,” he said.

The X factor

While not expected to attend, tech billionaire and vocal Trump supporter Elon Musk will be a recurring theme, from his role in Ukraine via satellite service Starlink to his success with space exploration firm SpaceX and controversial stewardship of social media platform X, formerly Twitter.

One panel will debate how Europe might develop a homegrown rival to SpaceX; another whether Musk “destroyed Twitter.” Joe Benarroch, who quit his role as X’s de facto spokesperson and head of business operations in June, will join a panel titled “What to do about social media.”

While the EU has tried forcing online platforms to clamp down on harmful content, Trump’s election may lead to them reducing moderation efforts, according to Mark Weinstein, founder of privacy-focused social media platform MeWe, who will share the stage with Benarroch on Wednesday.

“Historically, Trump has been highly critical of online moderation,” he said. “To avoid political retribution, major social networks are likely to continue the trend of becoming significantly more permissive with content they allow on their platforms.”
…

ABBOTS LANGLEY, England — Originally built to store crops from peasant farmers, the Tithe Barn on the edge of the English village of Abbots Langley was converted into homes that preserve its centuries of history. Now, its residents are fighting to stop a development next door that represents the future.

A proposal to build a data center on a field across the road was rejected by local authorities amid fierce opposition from villagers. But it’s getting a second chance from British Prime Minister Keir Starmer’s government, which is pursuing reforms to boost economic growth following his Labour party’s election victory in July.

Residents of Abbots Langley, 30 kilometers northwest of London, worry the facility will strain local resources and create noise and traffic that damages the character of the quiet village, which is home to more than 20,000 people. Off the main street there’s a church with a stone tower built in the 12th century and, further down the road, a picturesque circular courtyard of rustic thatched-roof cottages that used to be a farm modeled on one built for French Queen Marie Antoinette.

“It’s just hideously inappropriate,” said Stewart Lewis, 70, who lives in one of the converted houses in the 600-year-old Tithe Barn. “I think any reasonable person anywhere would say, ‘Hang on, they want a data center? This isn’t the place for it.'”

As the artificial intelligence boom fuels demand for cloud-based computing from server farms around the world, such projects are pitting business considerations, national priorities and local interests against each other.

Britain’s Deputy Prime Minister Angela Rayner has stepped in to review the appeals filed by developers of three data center projects after they were rejected by local authorities, taking the decision out of the hands of town planners. Those proposals include Abbots Langley and two projects in Buckinghamshire, which sits west of London. The first decision is expected by January.

The projects are controversial because the data centers would be built on “greenbelt” land, which has been set aside to prevent urbanization. Rayner wants to tap the greenbelt for development, saying much of it is low quality. One proposed Buckinghamshire project, for example, involves redeveloping an industrial park next to a busy highway.

“Whilst it’s officially greenbelt designated land, there isn’t anything ‘green’ about the site today,” said Stephen Beard, global head of data centers at Knight Frank, a property consultancy that’s working on the project.

“It’s actually an eyesore which is very prominent from the M25” highway, he said.

Greystoke, the company behind the Abbots Langley center and a second Buckinghamshire project to be built on a former landfill, didn’t respond to requests for comment. In an online video for Abbots Langley, a company representative says, “We have carried out a comprehensive search for sites, and this one is the very best.” It doesn’t specify which companies would possibly use the center.

The British government is making data centers a core element of its economic growth plans, deeming them “critical national infrastructure” to give businesses confidence to invest in them. Starmer has announced deals for new centers, including a 10 billion pound ($13 billion) investment from private equity firm Blackstone to build what will be Europe’s biggest AI data center in northeast England.

The land for the Abbots Langley data center is currently used to graze horses. It’s bordered on two other sides by a cluster of affordable housing and a highway.

Greystoke’s plans to construct two large buildings totaling 84,000 square meters and standing up to 20 meters tall have alarmed Lewis and other villagers, who worry that it will dwarf everything else nearby.

They also doubt Greystoke’s promise that it will create up to 260 jobs.

“Everything will be automated, so they wouldn’t need people,” said tech consultant Jennifer Stirrup, 51, who lives in the area.

Not everyone in the village is opposed.

Retiree Bryan Power says he would welcome the data center, believing it would benefit the area in a similar way as another big project on the other side of the village, the Warner Bros.’ Studio Tour featuring a Harry Potter exhibition.

“It’ll bring some jobs, whatever. It’ll be good. Yeah. No problem. Because if it doesn’t come, it’ll go somewhere else,” said Power, 56.

One of the biggest concerns about data centers is their environmental impact, especially the huge amounts of electricity they need. Greystoke says the facility will draw 96 megawatts of “IT load.” But James Felstead, director of a renewable energy company and Lewis’ neighbor, said the area’s power grid wouldn’t be able to handle so much extra demand.

It’s a problem reflected across Europe, where data center power demand is expected to triple by the end of the decade, according to consulting firm McKinsey. While the AI-fueled data boom has prompted Google, Amazon and Microsoft to look to nuclear power as a source of clean energy, worries about their ecological footprint have already sparked tensions over data centers elsewhere.

Google was forced to halt plans in September for a $200 million data center in Chile’s capital, Santiago, after community complaints about its potential water and energy usage.

In Ireland, where many Silicon Valley companies have European headquarters, the grid operator has temporarily halted new data centers around Dublin until 2028 over worries they’re guzzling too much electricity.

A massive data center project in northern Virginia narrowly won county approval last year, amid heavy opposition from residents concerned about its environmental impact. Other places like Frankfurt, Amsterdam and Singapore have imposed various restrictions on data centers.

Public knowledge about the industry is still low but “people are realizing more that these data centers are quite problematic,” said Sebastian Lehuede, a lecturer in ethics, AI and society at King’s College London who studied the Google case in Chile.

As awareness grows about their environmental impact, Lehuede said, “I’m sure we will have more opposition from different communities.”
…

New Delhi — The electric vehicle industry is closely watching to see how Tesla boss Elon Musk, who played a key role in the victory of Republican President-elect Donald Trump, will use his influence with the incoming president to steer the industry’s future.

At stake are several issues including the new administration’s approach to tariffs on Chinese EVs and tax credits. In anticipation of decisions favorable to Tesla, shares in the company rose 27% after the election result was announced, taking its market capitalization to $1 trillion.

During the campaign, Trump said he would increase tariffs on Chinese goods and roll back tax credits available to EV buyers in the U.S. He also vowed to reduce or eliminate many vehicle emissions standards under the Environmental Protection Agency, which support the EV industry.

Industry analysts are divided on whether high tariffs on Chinese EVs are advantageous or disadvantageous for Tesla’s business. Some analysts have suggested that Musk could persuade the Trump administration to reduce the tariffs on Chinese EVs and might even temper the overall tariff regime against Chinese goods.

However, Musk is likely to support the elimination of the $7,500 tax credit given to EV buyers in the United States. The absence of tax credits would make it difficult for legacy carmakers to introduce EV versions of their cars in competition with Tesla.

“As Elon Musk played a very important role in funding Trump’s campaign, he will no doubt have the ear of the U.S. president and play a role that will help shape policies that are advantageous to Tesla and his other businesses,” Bill Russo, founder and CEO of Automobility Limited, a Shanghai-based strategic consulting and investment platform, told VOA.

To be sure, Musk opposed U.S. tariffs on China-made EVs last May. “Neither Tesla nor I asked for these tariffs. In fact, I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good,” Musk said after the Biden administration enhanced tariffs on Chinese EVs.

The question is whether he will continue to oppose tariffs on Chinese EVs after Trump enters the White House. A section of analysts has predicted that Musk would continue this line of argument because China accounts for one-third of Tesla sales.

“Tesla is in China because Elon Musk needs the scale and efficient cost structure of the Chinese supply chain to make the company more competitive around the world,” Russo said.

China makes over 70% of the EV batteries in the world and almost two-thirds of all EVs and related components. “Tariffs make accessing this supply chain more costly, and that does not help Tesla,” he said.

Between January and May this year, Tesla sold almost as many cars in China as it did in the United States. Chinese consumers bought one-third of Tesla cars of all models totaling 513,644. In the same period, the company sold 522,444 vehicles in the U.S.

Wedbush Securities analyst Dan Ives argued that higher tariffs would help Tesla compete better with Chinese EVs in the U.S. market.

“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio etc.) from flooding the U.S. market over the coming years,” Ives said in a note to clients this week.

Taking a different view, Beatrix C. Keim, director of Germany-based Centre Automotive Research, said the next president is unlikely to listen to arguments for reducing tariffs on Chinese EVs.

“There is a 100% tariff for Chinese EVs in place. I don’t think that Trump will weaken this,” she said. The high tariff does not affect Tesla because it does not export cars from its Shanghai plant for the U.S. market, and builds them in the U.S.

Keim said Musk will do whatever serves Tesla’s business in China. “Chinese people are very likely to react emotionally if he is perceived as acting against China’s interest,” she said. “Chinese customers had once blocked the sales of Tesla cars, and this can happen again.”

Musk said last April that he loved the Chinese people.

“I’m a big fan of China. I also have a lot of fans in China. Well, the feelings are reciprocated,” Musk, who has often been described in Chinese social media as a “friend of China,” said in April.

Tesla is set to introduce a new fully self-driving (FSD – Supervised) car in the coming months, though the vehicle’s safety remains under review. Musk must have sufficient influence in both Washington and Beijing to obtain the regulatory approvals necessary to sell it.

“China is likely to approve FSD as it would like to show goodwill toward foreign technology,” Russo said. However, Tesla’s FSD may have a limited market in China where local manufacturers play a much bigger role.

Keim said Tesla’s FSD might not face regulatory challenges in Europe, but it may be difficult for it to find enough customers in the face of local competition.

One of the questions that is often asked is whether China would retaliate by imposing higher tariffs on American goods, including Tesla.

“This is very unlikely, as Tesla has invested in China and is used as an example of how foreign brands are still welcome in China, and Tesla is held up as a benchmark for Chinese companies to measure against,” Russo said.

“Killing competition is not viewed as healthy for the forward development of the Chinese automakers. This is in stark contrast to the way the U.S. has acted so far.”
…

Washington — Researchers at Michigan State University recently discovered that honeybees, with their keen sense of smell, can sniff out lung cancer on a patient’s breath.

“Our world is visual. Insects’ world is all based on smell, so their sense of smell is very, very good,” says Debajit Saha, assistant professor of biomedical engineering at Michigan State University, who was part of a team that published research on the discovery last month.

“There is quite a bit of research that shows that when some cancer grows inside our body, our breath actually changes. Our research does show that honeybees can detect lung cancer and possibly other diseases based on the smell of those cells.”

Saha and his team harnessed the bees and attached electrodes to their brains. The insects were then exposed to synthetic compounds that mimicked the breath of a lung cancer patient. Ninety-three percent of the time, the bees could tell the difference between the cancer breath and the artificial breath of a healthy person. The bees could also distinguish between different types of lung cancer.

The discovery could have implications for early detection of many cancers, including lung, breast, head and neck, and colorectal cancers.

“We do think breath-based diagnostics of cancer can be a game changer,” Saha says. “The reason is, many times we detect the cancer late, when the tumor has already grown pretty big. But generally, when cancer starts growing in your body, the breath signature starts changing much earlier.”

He hopes to develop a portable system in which electrodes are implanted in a honeybee brain that a patient will be able to breathe into. This cyborg sensor, which is part-brain, part-engineered, would deliver test results in real time.

“Hopefully, within the next five years, we’ll have something to show that humans can be diagnosed using these insect brain disc sensors,” Saha says.

Using animals to detect cancer isn’t a new concept. At the Penn Vet Working Dog Center at the University of Pennsylvania, researchers are training dogs to recognize certain cancer odors.

“A lot of other animals also have quite intense and capable senses of smell,” says Cindy Otto, executive director of the Penn Vet Working Dog Center. “But part of what makes dogs so good is that they cooperate with humans, and so, they communicate that information.”

The dogs are in a foster program where they live with families and are brought to “work” each day. Not all dogs can do the work, according to Clara Wilson, a postdoctoral researcher at the center.

“If the dog is not really interested in this type of work, we find out pretty quickly. And you can’t make a dog want to do this, because they’re not going to give you high-quality answers,” Wilson says. “They need to love it to be engaged. And so, it’s a really fun game for them.”

Sniffing out cancer might be a game to the animals, but researchers are finding that the animals detect cancer better than machines. A dog’s sense of smell is 10,000 to 100,000 times more acute than that of humans.

“Why are we finding that these dogs are outperforming the computers?” says Amritha Mallikarjun, another postdoctoral researcher at the center. “Well, part of their success is because of this superior sensitivity to detect odor molecules as compared to anything we currently have on the market.”

The researchers hope to continue isolating characteristics of cancer odors to enhance technological development, eventually creating e-noses that duplicate a dog’s cancer sniffing abilities, enabling earlier detection of cancer.

“This may not be the endgame, but I think it’s going to advance the overall approach to diagnosing not only cancer but many other diseases,” Otto says.

“You can look back in history to the Greeks and Romans. The physicians then used odor as part of their diagnostic tools, and I think as modern humans, we’ve kind of let go of that. I think we can really capitalize on that and advance the health of not only humans, but dogs and other species as well.”
…

Canada announced Wednesday it won’t block access to the popular video-sharing app TikTok but is ordering the dissolution of its Canadian business after a national security review of the Chinese company behind it.

Industry Minister François-Philippe Champagne said it is meant to address risks related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The government is not blocking Canadians’ access to the TikTok application or their ability to create content. The decision to use a social media application or platform is a personal choice,” Champagne said.

Champagne said it is important for Canadians to adopt good cybersecurity practices, including protecting their personal information.

He said the dissolution order was made in accordance with the Investment Canada Act, which allows for the review of foreign investments that may harm Canada’s national security. He said the decision was based on information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of local jobs.

“We will challenge this order in court,” the spokesperson said. “The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

TikTok is wildly popular with young people, but its Chinese ownership has raised fears that Beijing could use it to collect data on Western users or push pro-China narratives and misinformation. TikTok is owned by ByteDance, a Chinese company that moved its headquarters to Singapore in 2020.

TikTok faces intensifying scrutiny from Europe and America over security and data privacy. It comes as China and the West are locked in a wider tug of war over technology ranging from spy balloons to computer chips.

Canada previously banned TikTok from all government-issued mobile devices. TikTok has two offices in Canada, one in Toronto and one in Vancouver.

Michael Geist, Canada research chair in Internet and E-commerce Law at the University of Ottawa, said in a blog post that “banning the company rather than the app may actually make matters worse since the risks associated with the app will remain but the ability to hold the company accountable will be weakened.”

Canada’s move comes a day after the election in the United States of Donald Trump. In June, Trump joined TikTok, a platform he once tried to ban while in the White House. It has about 170 million users in the U.S.

Trump tried to ban TikTok through an executive order that said “the spread in the United States of mobile applications developed and owned” by Chinese companies was a national security threat. The courts blocked the action after TikTok sued.

Both the U.S. FBI and the Federal Communications Commission have warned that ByteDance could share user data such as browsing history, location and biometric identifiers with China’s government. TikTok said it has never done that and would not, if asked.

Trump said earlier this year that he still believes TikTok posed a national security risk, but was opposed to banning it.

U.S. President Joe Biden signed legislation in April that would force ByteDance to sell the app to a U.S. company within a year or face a national ban. It’s not clear whether that law will survive a legal challenge filed by TikTok or that ByteDance would agree to sell.
…

sydney — The Australian government will legislate for a ban on social media for children under 16, Prime Minister Anthony Albanese said on Thursday, in what it calls a world-leading package of measures that could become law late next year.

Australia is trying out an age-verification system to assist in blocking children from accessing social media platforms, as part of a range of measures that include some of the toughest controls imposed by any country to date.

“Social media is doing harm to our kids and I’m calling time on it,” Albanese told a news conference.

Albanese cited the risks to physical and mental health of children from excessive social media use, in particular the risks to girls from harmful depictions of body image, and misogynist content aimed at boys.

“If you’re a 14-year-old kid getting this stuff, at a time where you’re going through life’s changes and maturing, it can be a really difficult time, and what we’re doing is listening and then acting,” he said.

A number of countries have already vowed to curb social media use by children through legislation, though Australia’s policy is one of the most stringent.

No jurisdiction so far has tried using age verification methods like biometrics or government identification to enforce a social media age cut-off, two of the methods being tried.

Australia’s other world-first proposals are the highest age limit set by any country, no exemption for parental consent and no exemption for pre-existing accounts.

Legislation will be introduced into the Australian parliament this year, with the laws coming into effect 12 months after being ratified by lawmakers, Albanese said.

The opposition Liberal Party has expressed support for a ban.

“The onus will be on social media platforms to demonstrate they are taking reasonable steps to prevent access,” Albanese said. “The onus won’t be on parents or young people.”

“What we are announcing here and what we will legislate will be truly world-leading,” Communications Minister Michelle Rowland said.

Rowland said platforms impacted would include Meta Platforms’ Instagram and Facebook, as well as Bytedance’s TikTok and Elon Musk’s X. Alphabet’s YouTube would likely also fall within the scope of the legislation, she added.

TikTok declined to comment, while Meta, Alphabet and X did not respond to requests for comment.

The Digital Industry Group, a representative body that includes Meta, TikTok, X and Alphabet’s Google as members, said the measure could encourage young people to explore darker, unregulated parts of the internet while cutting their access to support networks.

“Keeping young people safe online is a top priority … but the proposed ban for teenagers to access digital platforms is a 20th Century response to 21st Century challenges,” said DIGI Managing Director Sunita Bose.

“Rather than blocking access through bans, we need to take a balanced approach to create age-appropriate spaces, build digital literacy and protect young people from online harm,” she added.

France last year proposed a ban on social media for those under 15, though users were able to avoid the ban with parental consent.

The United States has for decades required technology companies to seek parental consent to access the data of children under 13, leading to most social media platforms banning those under that age from accessing their services.
…

PARIS — Seven French families have filed a lawsuit against social media giant TikTok, accusing the platform of exposing their adolescent children to harmful content that led to two of them taking their own lives at 15, their lawyer said on Monday.

The lawsuit alleges TikTok’s algorithm exposed the seven teenagers to videos promoting suicide, self-harm and eating disorders, lawyer Laure Boutron-Marmion told broadcaster franceinfo.

The families are taking joint legal action in the Créteil judicial court. Boutron-Marmion said it was the first such grouped case in Europe.

“The parents want TikTok’s legal liability to be recognized in court,” she said, adding: “This is a commercial company offering a product to consumers who are, in addition, minors. They must, therefore, answer for the product’s shortcomings.”

TikTok, like other social media platforms, has long faced scrutiny over the policing of content on its app.

As with Meta’s Facebook and Instagram, it faces hundreds of lawsuits in the U.S. accusing them of enticing and addicting millions of children to their platforms, damaging their mental health.

TikTok could not immediately be reached for comment on the allegations.

The company has previously said it took issues that were linked to children’s mental health seriously. CEO Shou Zi Chew this year told U.S. lawmakers the company has invested in measures to protect young people who use the app.
…

HANOI, Vietnam — U.S. tech companies have warned Vietnam’s government that a draft law to tighten rules on data protection and limit data transfers abroad would hamper social media platforms and data center operators from growing their businesses in the country.

The Southeast Asian nation with a population of 100 million is one of the world’s largest markets for Facebook and other online platforms, and is aiming to exponentially increase its data center industry with foreign investment in coming years.

The draft law “will make it challenging for tech companies, social media platforms and data center operators to reach the customers that rely on them daily,” said Jason Oxman, who chairs the Information Technology Industry Council (ITI), a trade association representing big tech companies including Meta, Google and data centers operator Equinix.

The draft law, being discussed in parliament, is also designed to ease authorities’ access to information and was urged by the ministry of public security, Vietnamese and foreign officials said.

The ministry of public security and the information ministry did not respond to attempts to contact them via email and phone.

Vietnam’s parliament is discussing the law in its current month-long session and is scheduled to pass it on Nov. 30 “if eligible,” according to its program, which is subject to changes.

Existing Vietnamese regulations already limit cross-border transfers of data under some circumstances, but they are rarely enforced.

It is unclear how the new law, if adopted, would impact foreign investment in the country. Reuters reported in August that Google was considering setting up a large data center in southern Vietnam before the draft law was presented in parliament.

Research firm BMI had said Vietnam could become a major regional player in the data center industry as limits on foreign ownership are set to end next year.

Among the provisions of the draft law is prior authorization for the transfer overseas of “core data” and “important data,” which are currently vaguely defined.

“That will hinder foreign business operations,” Oxman told Reuters.

Tech companies and other firms favor cross-border data flows to cut costs and improve services, but multiple jurisdictions, including the European Union and China, have limited those transfers, saying that allows them to better protect privacy and sensitive information.

Under the draft law, companies will have to share data with Vietnam’s ruling Communist Party and state organizations in multiple, vaguely defined cases including for “fulfilling a specific task in the public interest.”

The U.S. tech industry has raised concerns with Vietnamese authorities over “the undue expansion of government access to data,” Oxman said.

The new law “would cause significant compliance challenges for most private sector companies,” said Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, noting talks were underway to persuade authorities to “reconsider the rushed legislative process” for the law.
…

The state of California has passed several laws attempting to regulate artificial intelligence, including AI used to create realistic looking but manipulated audio or video — known as a deepfake. In this U.S. election season, the aim is to counter misinformation. But it has raised concerns about free speech. From California, Genia Dulot has our story.
…

The navigation systems of thousands of passenger aircraft are being disrupted every day as they fly close to conflict zones, according to researchers. They are warning that the blocking or “spoofing” technology behind it could put lives at risk. Henry Ridgwell has more from London.
…

ADAMA, ETHIOPIA — Residents in Ethiopia’s Oromia region say access to phone communication and internet service has been disrupted for months as government forces fight against two rebel groups.

The disruption of mobile phone calls and internet data has been concentrated in conflict-hit Oromia zones, where government forces have engaged in fighting against the Oromo Liberation Army, or the OLA.

A resident from South Oromia of Guji Zone Wadera Wereda, who spoke to VOA on condition of anonymity for safety reasons, said phone and internet data connections have been cut in his area due to the fighting.

He said there was fighting on Monday and the week before in Wadera Wereda, where regional security personnel including local police were killed. Other residents confirmed the same clashes without giving specific casualty figures. Local authorities could not be reached for comment.

The data outage and network disruptions were also reported in the North Shewa Zone administration of Oromia region.

“The zone has been under network blockade for the last two months due to the insurgency,” said a second resident from Dera Wereda in North Shewa, who also sought anonymity due to safety reasons.

Residents also said people who lost their SIM cards or want replacements could not do so at local telecom offices because the conflict has affected supplies. Network disruptions also impacted schools in the area that access materials online.

He says his school had to transfer all its grade-12 students this year to neighboring Wereda due to a lack of service.

“We cannot manage to send their details and credentials to relevant bodies,” with the downed service, he told VOA in a phone interview.

Journalists have waited for hours to speak to residents in Kelem Welega Zone, whose network is down during morning hours. One resident traveled to Dembi Dolo, about 620 kilometers west of the capital, Addis Ababa, to speak with the media about the network outages.

The disruptions have been present since the yearslong fighting between federal forces and the OLA began in 2019. In one of the latest deadliest attacks, suspected OLA fighters killed as many as 17 pro-government militiamen in the West Showa zone of Oromia on October 17, according to residents and local officials.

A second rebel group, Fano, is also fighting in the neighboring Amhara region, which spills over on either side.

Residents say as the intensity of the clashes increases, the network situation becomes worse, as the government resorts to shutting down communication.

“It’s a very unfortunate tactic that is usually used by governments that are struggling with legitimacy issues,” said Horn of Africa security analyst Samira Gaid.

“It only serves to convince the masses that the government has something to hide. Rather than controlling the narrative or news reporting, it elevates mistrust in government, adds to misinformation and disinformation, and contributes to groups becoming more covert with their communications,” she told VOA.

Ethiopia’s state-run communication outlets have not responded to repeated VOA requests for comment.

Speaking at a press conference in Addis Ababa last month, Frehiwot Tamiru, CEO of Ethio Telecom, admitted that such problems exist in conflict areas. She declined to give specific answers, referring reporters to other government entities.

In June, the company said it has repaired and restored service to dozens of mobile stations that had previously been damaged in the western region of the country.

This story originated in VOA’s Horn of Africa Service.
…

JIUQUAN, China — China declared a “complete success” after it launched a new three-person crew to its orbiting space station early Wednesday as the country seeks to expand its exploration of outer space with missions to the moon and beyond.

The Shenzhou-19 spaceship carrying the trio blasted off from the Jiuquan Satellite Launch Center in northwest China at 4:27 a.m. local time atop a Long March-2F rocket, the backbone of China’s crewed space missions.

“The crew condition is good and the launch has been successful,” the state broadcaster China Central Television announced.

China built its own space station after being excluded from the International Space Station, mainly because of U.S. concerns over the People’s Liberation Army, the Chinese Communist Party’s military arm’s overall control over the space program. China’s moon program is part of a growing rivalry with the U.S. and others, including Japan and India.

The team of two men and one woman will replace the astronauts who have lived on the Tiangong space station for the last six months. They are expected to stay until April or May of next year.

The new mission commander, Cai Xuzhe, went to space in the Shenzhou-14 mission in 2022, while the other two, Song Lingdong and Wang Haoze, are first-time space travelers, born in the 1990s.

Song was an air force pilot and Wang an engineer with the China Aerospace Science and Technology Corporation. Wang will be the crew’s payload specialist and the third Chinese woman aboard a crewed mission.

Besides putting a space station into orbit, the Chinese space agency has landed an explorer on Mars. It aims to put a person on the moon before 2030, which would make China the second nation after the United States to do so. It also plans to build a research station on the moon and has already transferred rock and soil samples from the little-explored far side of the moon in a global first.

The U.S. still leads in space exploration and plans to land astronauts on the moon for the first time in more than 50 years, though NASA pushed the target date back to 2026 earlier this year.

The new crew will perform spacewalks and install new equipment to protect the station from space debris, some of which was created by China.

According to NASA, large pieces of debris have been created by “satellite explosions and collisions.” China’s firing of a rocket to destroy a redundant weather satellite in 2007 and the “accidental collision of American and Russian communications satellites in 2009 greatly increased the amount of large debris in orbit,” it said.

China’s space authorities say they have measures in place in case their astronauts have to return to Earth earlier.

China launched its first crewed mission in 2003, becoming only the third nation to do so after the former Soviet Union and the United States. The space program is a source of enormous national pride and a hallmark of China’s technological advances over the past two decades.
…

The Treasury Department on Monday finalized a new rule meant to prevent U.S.-based people and companies from investing in the development of a range of advanced technologies in China, thereby preventing Beijing from accessing cutting-edge expertise and equipment.

The rule, which implements an executive order signed by President Joe Biden in 2023, focuses particularly on advanced semiconductors and microelectronics and the equipment used to make them, technology used in quantum computing, and artificial intelligence systems.

When it takes effect on January 2, the rule will prohibit certain transactions in semiconductors, microelectronics and artificial intelligence. It also establishes mandatory reporting requirements for transactions that are not banned outright.

In the field of quantum computing, the rule is more far-reaching, banning all transactions “related to the development of quantum computers or production of any critical components required to produce a quantum computer,” as well as the development of other quantum systems. Unlike the fields of AI and semiconductors, the rule does not allow for transactions that can be completed so long as they are reported to the government.

The rule also announced the creation of the Office of Global Transactions within Treasury’s Office of Investment Security, which will administer the Outbound Investment Security Program.

Justification and opposition

“Artificial intelligence, semiconductors, and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications like cutting-edge code-breaking computer systems or next generation fighter jets,” Paul Rosen, assistant secretary for investment security, said in a statement.

“This Final Rule takes targeted and concrete measures to ensure that U.S. investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security,” Rosen said.

Beijing has repeatedly complained about U.S. technology policy, arguing that the U.S. is dedicated to preventing China’s rise as a global power. In a press conference on Tuesday, Chinese Foreign Ministry spokesperson Lin Jian reiterated China’s longstanding objections to U.S. efforts to withhold advanced technology from Chinese companies.

“China deplores and rejects the U.S.’s Final Rule to curb investment in China,” Lin said. “China has protested to the U.S. and will take all measures necessary to firmly defend its lawful rights and interests.”

Not just equipment

The language of the rule frequently notes that it applies to transactions with “countries of concern,” but the specific language in the text makes it plain that the targets of the rule are companies and individuals doing business in mainland China as well as the “special administrative districts” of Hong Kong and Macao.

The Final Rule’s ban on transactions is not limited to the physical transfer of finished goods and machinery in the specified fields. Explanatory documents released on Monday make it clear that several intangible benefits are also covered.

Countries of concern “are exploiting or have the ability to exploit certain United States outbound investments, including certain intangible benefits that often accompany United States investments and that help companies succeed,” an informational statement accompanying the rule said. “These intangible benefits include enhanced standing and prominence, managerial assistance, investment and talent networks, market access, and enhanced access to additional financing.”

Signaling to US companies

The onus will be on U.S. companies to comply with the new rule, Stephen Ezell, vice president for global innovation policy at the Information Technology & Innovation Foundation, told VOA.

“This is the U.S. government signaling to U.S. entities and investors that they need to think twice about making investments on the prohibited transaction side of the equation that would advance China’s capabilities in these areas,” Ezell said.

He added that the impact of the rule on investment in Chinese technology companies would have effects far beyond any reduction in funding.

“It’s not just the dollars,” he said. “A key target here is getting at the intangible benefits that come with those investments, such as managerial capability, talent networks.” He described that loss as “very significant.”

Closing loopholes

In an email exchange with VOA, Daniel Gonzales, a senior scientist at the RAND Corporation, explained that the purpose of the rule was, in part, to prevent U.S. investment firms from supporting Chinese firms in the development of certain kinds of technology.

“These rules were put in place after many episodes where U.S. [venture capital] companies helped to transfer or nurture advanced technologies that have relevant military capabilities,” Gonzales wrote. “One particular case was that of TikTok and its AI algorithms, which were developed with the help of Sequoia Capital of California.”

Sequoia did not break any laws in assisting TikTok, Gonzales said. But “it has since become known to U.S. authorities that TikTok does possess an AI algorithm that has a variety of applications, some of which have military implications. This new rule is intended to close this loophole.”

Gonzales said the U.S. government’s concern with quantum computing is also born of worries about Chinese offensive capabilities.

“Chinese researchers are working on developing quantum computer algorithms that can break encryption codes used by the U.S. government and the U.S. financial sector to protect private and confidential information,” he wrote. “China has several startup companies working to develop more powerful quantum computers. This new rule is intended to prevent the leakage of U.S. quantum technology to China through U.S. VCs.”
…