Category Archives: Business

Economy and business news. Business is the practice of making one’s living or making money by producing or buying and selling products (such as goods and services). It is also “any activity or enterprise entered into for profit.” A business entity is not necessarily separate from the owner and the creditors can hold the owner liable for debts the business has acquired

NASA, US Navy Prepare Astronauts for Moon Mission

Although NASA has delayed the launch of a crewed mission to orbit the moon until 2025 at the earliest, four selected astronauts are training in preparation for the first such journey in more than 50 years. VOA’s Kane Farabaugh caught up with the crew of Artemis II during training and has more from San Diego.

Nigeria Takes Bold Steps to Erase Digital Gender Gap

The World Bank says digital entrepreneurship is paving the way for economic empowerment across Nigeria and reducing poverty through internet access. In a January report, the Bank says internet access reduced extreme poverty by 7% in the West African country. But it noted a digital gender gap where women are less likely than men to have internet access. Gibson Emeka reports from Abuja in this report narrated by Mary Alice Salinas.

Ukrainian YouTuber Finds Her AI Clone Selling Russian Goods on Chinese Internet

washington — Speaking Mandarin and promoting love for China, countless videos of foreign-looking women made with artificial intelligence started popping up on Chinese social media platforms around the Lunar New Year earlier this month.

The avatars in the videos are created with online images that are stolen, reproduced and repurposed so that even the women in real life recognize themselves in the videos.

Olga Loiek is one of those women. She’s a 20-year-old Ukrainian who studies cognitive science at the University of Pennsylvania. A couple of months ago, Loiek started a YouTube channel where she talks about mental health and shares her philosophies about life.

However, shortly after that, she started receiving messages from followers telling her that they had seen her on Chinese social media. There, she’s not Olga Loiek but a Russian woman who speaks Mandarin, loves China and wants to marry a Chinese man. Her name is Natasha, or Anna, or Grace, depending on the social media platform you find her on in China.

“I started translating the videos with Google Translate, and I realized that most of these accounts are talking about things like China, Russia, how good the relationship between China and Russia is,” she told VOA. “This feels very violating.”

In some videos, the avatars talk about how much they value Russia and China’s close ties. In other videos, they praise Chinese history and culture or talk about how much Russian women want to marry Chinese.

“If you marry Russian women, we will wash clothes, cook, and wash dishes for you every day,” an avatar said. “We will also give you foreign babies, as many as you want.”

Several dozen videos of Loiek’s avatar speaking Mandarin have been found on video sites Douyin and Bilibili. Most of these accounts would ask viewers to visit their online stores to buy what they say are authentic Russian goods.

Douyin, China’s version of TikTok, has labeled some of these videos as potentially AI-generated. But comments show that many believed they were looking at a real woman. One netizen wrote, “Russian beauty, Chinese people welcome you.”

Loiek said she would never say things like that, obviously, given that she’s from Ukraine, which has been at war with Russia since 2022.

She said, “This is probably used to make people, maybe people in China, feel that foreigners feel that their country is superior.”

On Bilibili, China’s biggest video site, some AI videos using Loiek’s face are marked with the logo of HeyGen, indicating that the video was generated on the company’s website.

In one tutorial on Bilibili, the demonstrator even shows how to make a short video on HeyGen with a clip of Loiek talking.

HeyGen is an AI company headquartered in Los Angeles that was launched in China in 2020. It specializes in realistic digital avatars, voice generation and video translating.

The technology developed by HeyGen was used in AI videos of Donald Trump and Taylor Swift speaking perfect Mandarin that went viral on Chinese social media in October 2023. According to Forbes, the company is now valued at $75 million.

HeyGen’s moderation policy states that users cannot generate avatars that “represent real individuals, including celebrities or public figures, without explicit consent.” The company’s official tutorial video on avatar making shows that users must submit a video of people giving consent to the use of their likeness. It’s unclear how some in China could circumvent the requirement to make videos of Loiek.

Loiek said that since she and her YouTube subscribers have sent complaints to Chinese social media companies, about a dozen of the accounts imitating her have been taken down.

VOA reached out to HeyGen and Douyin’s parent company, ByteDance, for comments but has not received a response.

The Chinese government rolled out provisions to regulate deepfakes and other “deep synthesis services” in early 2023. The law prohibits generating deepfakes without the consent of the people whose image or other information is used.

Loiek posted her story on YouTube, and it has been shared on Chinese social media. Netizens across platforms sympathized with her and called for tougher regulations on AI.

Chinese tech giants such as Baidu and Tencent are investing heavily in AI technology. One of the most hyped-up services powered by AI is digital humans.

Tencent and Xiaoice, a Chinese AI studio spun off from Microsoft, offer digital human services that can clone people and turn them into AI avatars for as little as $145.

AI avatars have also been found in online disinformation campaigns that spread pro-China and anti-U.S. narratives. In February 2023, research firm Graphika found a social media campaign promoting Beijing’s interests using realistic-looking computer-generated people in videos.

In September 2023, the U.S. State Department warned in a report, “Access to global data combined with the latest developments in artificial intelligence technology would enable the PRC [People’s Republic of China] to surgically target foreign audiences and thereby perhaps influence economic and security decisions in its favor.

As for Loiek, she does not plan to quit YouTube or stop posting.

“We need some sort of regulatory frameworks, so we can understand and we can prevent these things from happening,” she said.

Adrianna Zhang contributed to this report.

AI – Charting Rules of the Road

Artificial intelligence touches nearly every aspect of our digital lives, but there are few laws governing its use. In this episode of our web series about AI, VOA’s Tina Trinh looks at how lawmakers and tech developers are making rules for something that is changing nearly every day.

China Users on Banned Social Platforms Need Protection, Advocates Say

washington — Rights advocates are urging international social media platforms to do more to prevent Chinese authorities from obtaining the personal information of users. The call comes after two popular Chinese social media influencers alleged on X and YouTube that police in China were investigating their followers and had called some in for questioning.

Social media platforms such as X and YouTube and thousands of websites — from The New York Times to the BBC and VOA — are blocked in China by the country’s Great Firewall. But increasingly, even as social controls tighten under the leadership of Xi Jinping, many in China are using virtual private networks to access X, YouTube and other sites for news, information and opinions not available in China.

Li Ying, who is also known online as Teacher Li, is one of the social media influencers who issued the warning on Sunday. Li came to prominence as a source of news and information following a rare display of public dissent in 2022 in China, protesting the government’s draconian zero-COVID policy. His account on X has now become a hub for news and videos provided by netizens that the Chinese government considers sensitive and censors online.

In a post on Sunday, Teacher Li said, “Currently, the public security bureau is checking my 1.6 million followers and people in the comments, one by one.”

He shared screenshots of private messages he received from followers over the past few months, some of which claimed that police had interrogated individuals, even causing one person to lose their job.

VOA could not independently verify the authenticity of the claims, but court records in China and reports by rights groups have previously documented the country’s increasing use of social media platforms banned in China to detain, prosecute and sentence individuals over comments made online.

The Chinese Embassy spokesperson in Washington, Liu Pengyu, said he was not aware of the specifics regarding the social media influencers.

“As a principle, the Chinese government manages internet-related affairs according to law and regulation,” Liu said.

Influencers warn followers

News of the crackdown on followers of social influencers comes amid a flurry of reports about China’s hacking capabilities. Last week, FBI Director Christopher Wray warned that cyberattacks on U.S. infrastructure were “at a scale greater than we’d seen before.”

A recent document dump detailed how private companies are helping China to hack foreign governments across Southeast Asia and to unmask users of foreign social media accounts.

Wang Zhi’an, a former journalist at China’s state broadcaster CCTV who has a million subscribers on X and 1.2 million followers on YouTube, says his followers have reported similar problems.

In response, both Wang and Teacher Li have urged their followers to take precautions, suggesting they unfollow their accounts, change their usernames, avoid Chinese-made phones and prepare to be questioned.

As of Tuesday afternoon, Li’s followers on X had dropped to 1.4 million. VOA reached out to Li for comment but did not receive a response as of publication.

Authorities reportedly tracking followers

Maya Wang, acting China director at Human Rights Watch, said China is putting more effort into policing platforms based outside of the country as more Chinese people move to the platforms to speak out.

She said the recent reports of authorities tracking down followers is just a part of China’s long-standing effort to restrict freedom of expression.

“I think the Chinese government is also increasingly worried about the information that is being propagated, transmitted or distributed on these foreign platforms because they have been, thanks to these individuals, very influential,” Wang said.

A recent leak of documents from I-Soon, a private contractor linked to China’s top policing agency and other parts of its government, described tools used by Chinese police to curb dissent on overseas social media, including one tool specifically created to surveil users on X.

Hackers also created tools for police to hack email inboxes and unmask anonymous users of X, the documents show. The leak revealed that officers sometimes sent requests to surveil specific individuals to I-Soon.

Wang said it is incumbent on social media companies to make sure their users stay safe.

“I would want to direct these questions to Twitter [X] to ask — are they adopting heightened measures to protect PRC [People’s Republic of China]-based users?” she said. “I think Twitter [X] needs to investigate just how exactly this kind of information is being obtained and whether or not they need to plug some loopholes.”

Yaqiu Wang, research director for China, Hong Kong and Taiwan at Freedom House, said that besides better protecting their users’ privacy, the companies should also put in more effort to combat China’s clampdown on freedom of speech.

“They should have steps actually helping out activists to protect their freedom of speech,” she said. “Big social media companies should widely disseminate information to their users, like a manual or instructions of how to protect their account.

“They need to be more transparent, so users and the public know whether government-sponsored hacking activities are going on,” she added.

VOA reached out to X, formerly known as Twitter, several times for comment but did not receive any response by the time of publication.

Xiao Yu contributed to this report.

2 Exiled Chinese Bloggers Warn of Police Interrogating Their Followers

SHANGHAI — Two prominent Chinese bloggers in exile said that police were investigating their millions of followers on international social media platforms, in an escalation of Beijing’s attempts to clamp down on critical speech even outside of the country’s borders.

Former state broadcaster CCTV journalist Wang Zhi’an and artist-turned-dissident Li Ying, both Chinese citizens known for posting uncensored Chinese news, said in separate posts Sunday that police were interrogating people who followed them on social media, and urged followers to take precautions such as unfollowing their accounts, changing their usernames, avoiding Chinese-made phones and preparing to be questioned.

Li Ying, known as Teacher Li, came to prominence as a source of news about the White Paper protests, a rare moment of anti-government protests in mainland China in 2022. Teacher Li’s account on X, formerly known as Twitter, @whyyoutouzhele now posts news and videos submitted by users, which cover everything from local protests to viral videos of real-life incidents that are censored on the Chinese internet.

In a post Sunday evening, Teacher Li suggested people unfollow his account. “Currently, the public security bureau is checking my 1.6 million followers and people in the comments, one by one.”

Li shared screenshots of private messages he received from followers over the past few months, which claimed that police had interrogated individuals, and that one person had even lost their job.

As of Monday afternoon, Li had dropped down to 1.4 million followers on X.

International social media platforms like X and YouTube are blocked in China but can still be accessed with software that circumvents the country’s censorship systems.

Wang, who has a million subscribers on X and 1.2 million followers on YouTube, also told his fans to unsubscribe.

Li, Wang and the Chinese foreign ministry did not immediately respond to requests for comment.

Over the past decade, Beijing has cracked down on dissent on Chinese social media, with thousands of censors employed both at private companies and with the Chinese state.

Chinese users expressing critical opinions online have reported being called, harassed or interrogated by police, with some called in for questioning and ordered to take down certain posts or delete their accounts. In some cases, users have been detained, with some spending up to two weeks in jail and a small number sentenced to years in prison.

More recently, Beijing has extended its reach to tracking non-Chinese platforms such as Facebook, Telegram and X. A recent leak of documents from I-Soon, a private contractor linked to China’s top policing agency and other parts of its government, described tools used by Chinese police to curb dissent on overseas social media, including one tool specifically created to surveil users on X.

Hackers also created tools for police to hack email inboxes and unmask anonymous users of X, the documents show. Sometimes, officers sent requests to surveil specific individuals to I-Soon, the leak revealed.

Li said he would not stop posting even if people unfollowed, but he urged his followers to take basic digital safety precautions.

“I don’t want your life to be impacted just because you wanted to understand the real news in China,” Li said, in an additional post. “You only want to understand what’s happening, but the price is quite high

 

Japan Moon Lander Revives After Lunar Night

Tokyo — Japan’s moon lander has produced another surprise by waking up after the two-week lunar night, the country’s space agency said Monday.

The unmanned Smart Lander for Investigating Moon (SLIM) touched down last month at a wonky angle that left its solar panels facing the wrong way.

As the sun’s angle shifted, it came back to life for two days and carried out scientific observations of a crater with a high-spec camera, the Japan Aerospace Exploration Agency (JAXA) said.

It went to sleep again as darkness returned and, since it was “not designed for the harsh lunar nights,” JAXA had been uncertain whether it would reawaken.

“Yesterday we sent a command, to which SLIM responded,” JAXA said on X, formerly Twitter, on Monday.

“SLIM succeeded in surviving a night on the Moon’s surface while maintaining its communication function!”

It said that communications were “terminated after a short time, as it was still lunar midday and the temperature of the communication equipment was very high.”

But it added: “Preparations are being made to resume operations when instrument temperatures have sufficiently cooled.”

SLIM, dubbed the “Moon Sniper” for its precision landing technology, touched down within its target landing zone on Jan. 20.

The feat was a win for Japan’s space program after a string of recent failures, making the nation only the fifth to achieve a “soft landing” on the moon, after the United States, the Soviet Union, China and India.

But during its descent, the craft suffered engine problems and ended up on its side, meaning the solar panels were facing west instead of up.

The latest news comes after JAXA toasted a successful blast-off for its new flagship H3 rocket on Feb. 17, making it third time lucky after years of delays and two previous failed attempts.

Countries including Russia, South Korea and the United Arab Emirates are also trying to reach the moon.

The first American spaceship to the moon since the Apollo era, the uncrewed Odysseus lander built by a private company and funded by NASA, landed near the lunar south pole on Thursday.

But its maker said the US spacecraft is probably lying sideways following its dramatic landing, even as ground controllers work to download data and surface photos from it.

Private Japanese firm ispace also attempted to land on the moon last year but the probe suffered a “hard landing” and contact was lost.

Tax-Free Status of Movie, Music and Games Traded Online Is on Table as WTO Nations Meet in Abu Dhabi

Geneva — Since late last century and the early days of the web, providers of digital media like Netflix and Spotify have had a free pass when it comes to international taxes on films, video games and music that are shipped across borders through the internet.

But now, a global consensus on the issue may be starting to crack.

As the World Trade Organization opens its latest biannual meeting of government ministers Monday, its longtime moratorium on duties on e-commerce products — which has been renewed almost automatically since 1998 — is coming under pressure as never before.

This week in Abu Dhabi, the WTO’s 164 member countries will take up a number of key issues: Subsidies that encourage overfishing. Reforms to make agricultural markets fairer and more eco-friendly. And efforts to revive the Geneva-based trade body’s system of resolving disputes among countries.

All of those are tall orders, but the moratorium on e-commerce duties is perhaps the matter most in play. It centers on “electronic transmissions” — music, movies, video games and the like — more than on physical goods. But the rulebook isn’t clear on the entire array of products affected.

“This is so important to millions of businesses, especially small- and medium-sized businesses,” WTO Director-General Ngozi Okonjo-Iweala said. “Some members believe that this should be extended and made permanent. Others believe … there are reasons why it should not.” 

“That’s why there’s been a debate and hopefully — because it touches on lives of many people — we hope that ministers would be able to make the appropriate decision,” she told reporters recently.

Under WTO’s rules, major decisions require consensus. The e-commerce moratorium can’t just sail through automatically. Countries must actively vote in favor for the extension to take effect.

Four proposals are on the table: Two would extend the suspension of duties. Two — separately presented by South Africa and India, two countries that have been pushing their interests hard at the WTO — would not.

Proponents say the moratorium benefits consumers by helping keep costs down and promotes the wider rollout of digital services in countries both rich and poor.

Critics say it deprives debt-burdened governments in developing countries of tax revenue, though there’s debate over just how much state coffers would stand to gain.

The WTO itself says that on average, the potential loss would be less than one-third of 1% of total government revenue.

The stakes are high. A WTO report published in December said the value of “digitally delivered services” exports grew by more than 8% from 2005 to 2022 — higher than goods exports (5.6%) and other-services exports (4.2%).

Growth has been uneven, though. Most developing countries don’t have digital networks as extensive as those in the rich world. Those countries see less need to extend the moratorium — and might reap needed tax revenue if it ends.

South Africa’s proposal, which seeks to end the moratorium, calls for the creation of a fund to receive voluntary contributions to bridge the “digital divide.” It also wants to require “leading platforms” to boost the promotion of “historically disadvantaged” small- and medium-sized enterprises.

Industry, at least in the United States, is pushing hard to extend the moratorium. In a Feb. 13 letter to Biden administration officials, nearly two dozen industry groups, including the Motion Picture Association, the U.S. Chamber of Commerce and the Entertainment Software Association — a video-game industry group — urged the United States to give its “full support” to a renewal.

“Accepting anything short of a multilateral extension of the moratorium that applies to all WTO members would open the door to the introduction of new customs duties and related cross-border restrictions that would hurt U.S. workers in industries across the entire economy,” the letter said.

A collapse would deal a “major blow to the credibility and durability” of the WTO and would mark the first time that its members “changed the rules to make it substantially harder to conduct trade,” wrote the groups, which said their members include companies that combined employ over 100 million workers. 

Chip Giant TSMC Shifts From Hotspot Taiwan With Japan Plant

TOKYO — Chip giant Taiwan Semiconductor Manufacturing Co. opened its first semiconductor plant in Japan Saturday as part of its ongoing global expansion.

“We are deeply grateful for the seamless support provided by you at every step,” TSMC Chairman Mark Liu said after thanking the Japanese government, local community and business partners, including electronic giant Sony and auto-parts maker Denso. The company’s founder, Morris Chang, was also present at the ceremony in Kikuyo.

This comes as Japan is trying to regain its presence in the chip production industry.

Japan Advanced Semiconductor Manufacturing, or JASM, is set to be up and running later this year. TSMC also announced plans for a second plant in Japan earlier this month, with production expected to start in about three years. Private sector investment totals $20 billion for both plants. Both plants are in the Kumamoto region, southwestern Japan.

Prime Minister Fumio Kishida sent a congratulatory video message, calling the plant’s opening “a giant first step.” He stressed Japan’s friendly relations with Taiwan and the importance of cutting-edge semiconductor technology.

Japan had previously promised TSMC 476 billion yen ($3 billion) in government funding to encourage the semiconductor giant to invest. Kishida confirmed a second package, raising Japan’s support to more than 1 trillion yen ($7 billion).

Although TSMC is building its second plant in the U.S. and has announced a plan for its first in Europe, Japan could prove an attractive option.

Closer to Taiwan geographically, Japan is an important U.S. ally. Neighboring China claims the self-governing island as its own territory and says it must come under Beijing’s control. The long-running divide is a flashpoint in U.S.-China relations.

The move is also important for Japan, which has recently earmarked about 5 trillion yen ($33 billion) to revive its chips industry.

Four decades ago, Japan dominated in chips, headlined by Toshiba Corp. and NEC controlling half the world’s production. That’s declined lately to under 10%, due to competition from South Korean, U.S. and European manufacturers, as well as from TSMC.

The coronavirus pandemic negatively affected the supply of electronic chips, stalling plants, including automakers, with Japan almost entirely dependent on chip imports. This pushed Japan to seek chip production in pursuit of self-sufficiency.

Sony Semiconductor Solutions Corporation, Denso Corporation and top automaker Toyota Motor Corporation are investing in TSMC’s Japan plant, with the Taiwanese giant retaining an 86.5% ownership of JASM.

Once the two plants are up and running, they’re expected to create 3,400 high-tech jobs directly, according to TSMC.

Ensuring access to an ample supply of the most advanced chips is vital with the growing popularity of electric vehicles and artificial intelligence. Some analysts note Japan still leads in crucial aspects of the industry, as seen in Tokyo Electron, which manufactures the machinery used to produce chips.

Still, it’s clear the Japanese government is intent on playing catchup. Tokyo is supporting various semiconductor projects nationwide, such as those involving Western Digital and Micron of the U.S., and Japanese companies such as Renesas Electronics, Canon and Sumitomo.

Head of Boeing’s 737 MAX Program Leaves After Midair Incident

WASHINGTON — Boeing said on Wednesday it was replacing the head of its troubled 737 MAX program effective immediately, the first major executive departure since the January 5 midair panel blowout of a new Alaska Airlines MAX 9. 

Ed Clark, who had been with the plane-maker for nearly 18 years, departed as Boeing has been dealing with its latest crisis and has vowed to ramp up quality efforts. 

Regulators have curbed the plane-maker’s production, and lawmakers and customers have been scrutinizing production and safety measures.  

Boeing has scrambled to explain and strengthen safety procedures after a door panel detached during flight on a new Alaska Airlines 737 MAX 9, forcing pilots to make an emergency landing while passengers were exposed to a gaping hole 16,000 feet above the ground.  

Clark’s departure came after Boeing’s board met this week and approved the changes, according to sources familiar with the matter. He oversaw the company’s production facility in Renton, Washington, where the plane involved in the accident was completed. 

Clark was previously chief mechanic and engineer for the 737 before being named head of the program in 2021. He was the fifth person in four years to run the 737 program. 

Katie Ringgold is replacing him as vice president and general manager of the 737 program, according to a memo seen by Reuters sent to staff by Boeing Commercial Airplanes CEO Stan Deal, who said the plane-maker was working to ensure “that every airplane we deliver meets or exceeds all quality and safety requirements. Our customers demand, and deserve, nothing less.” 

The latest mishap occurred as Boeing was still working to rebuild its reputation following the 20-month grounding of the 737 MAX following two fatal crashes that killed a total of 346 people. That grounding was lifted in November 2020.  

Airline industry executives have expressed frustration with Boeing’s quality control. The only other major manufacturer of commercial aircraft is France’s Airbus. 

The memo was first reported by the Seattle Times. 

The FAA grounded the MAX 9 for several weeks in January and has capped Boeing’s production of the MAX while it audits the plane-maker’s manufacturing process, which has suffered a string of quality issues in recent years. 

The door panel that flew off the MAX 9 appeared to be missing four key bolts, according to a preliminary report from the U.S. National Safety Transportation Board in early February. The panel is a plug-in placed on some 737 MAX 9s instead of an additional emergency exit.  

According to the report, the door plug in question was removed to repair rivet damage, but the NTSB has not found evidence the bolts were reinstalled. 

The disclosure has prompted anger among Boeing’s airline customers. Some, including Alaska Airlines, announced they would conduct enhanced quality oversight of planes before they leave the Boeing factory. 

Global Operation Smashes ‘Most Harmful Cyber Crime Group’

LONDON — An international operation led by UK and U.S. law enforcement has severely disrupted “the world’s most harmful cybercrime group”, the Russian-linked ransomware specialist LockBit, officials announced Tuesday. 

 

LockBit and its affiliates have targeted governments, major companies, schools and hospitals, causing billions of dollars of damage and extracting tens of millions in ransoms from victims. 

 

Britain’s National Crime Agency (NCA), working with the Federal Bureau of Investigation, Europol and agencies from nine other countries in Operation Cronos, said it had infiltrated LockBit’s network and taken control of its services. 

 

“We have hacked the hackers, we have taken control of their infrastructure, seized their source code, and obtained keys that will help victims decrypt their systems,” NCA director general Graeme Biggar told reporters in London. 

 

LockBit’s website — selling services that allow people to organize cyber attacks and hold data until a ransom is paid appears — was taken over on Monday evening. 

 

A message appeared on the site stating that it was “now under control of law enforcement”. 

 

“As of today LockBit is effectively redundant, LockBit has been locked out,” Biggar said. 

 

The U.S. Justice Department (DOJ) said the agencies had seized control of “numerous public-facing websites used by LockBit to connect to the organization’s infrastructure” and taken control of servers used by LockBit administrators. 

 

The NCA added that it had obtained more than 1,000 decryption keys and will be contacting UK-based victims in the coming days and weeks to offer support and help them recover encrypted data. 

 

Biggar said the network had been behind 25 percent of all cyber attacks in the past year. 

 

LockBit has targeted over 2,000 victims and received more than $120 million in ransom payments since it formed four years ago, according to the DOJ. 

 

Those targeted have included Britain’s Royal Mail, US aircraft manufacturer Boeing, and a Canadian children’s hospital. 

 

In January 2023, US law enforcers shut down the Hive ransomware operation which extorted some $100 million from more than 1,500 victims worldwide. 

 

Since then, LockBit has been seen as the biggest current threat. 

 

 

Hive and LockBit are part of what cybersecurity experts call a “ransomware as a service” style, or RaaS — a business that leases its software and methods to others to use in extorting money. 

 

Ariel Ropek, director of cyber threat intelligence at cybersecurity firm Avertium, told AFP last year that this structure makes it possible for criminals with minimal computer fluency to get into ransomware by paying others for their expertise. 

 

On the so-called dark web, providers of ransomware services pitch their products openly. 

 

At one end are the initial access brokers, who specialise in breaking into corporate or institutional computer systems. 

 

They then sell that access to the hacker, or ransomware operator. 

 

But the operator depends on RaaS developers like Hive or LockBit, which have the programming skills to create the malware needed to carry out the operation. 

 

Typically, their programs — once inserted by the ransomware operator into a target’s IT systems — are manipulated to freeze, via encryption, the target’s files and data. 

 

RaaS developers offer a full service to the operators, for a large share of the ransom paid out, said Ropek. 

 

When the ransomware is planted and activated, the target receives a message telling them how much to pay to get their data unencrypted. 

 

That ransom can run from thousands to millions of dollars. 

 

On Tuesday, the U.S. unsealed an indictment against two Russian nationals, bringing to five the number of Russians it has charged in connection with LockBit. 

 

In a separate notice, the U.S. Treasury Department said it is imposing sanctions on the pair, affiliates of LockBit, who “actively engaged” in ransomware attacks. 

 

Biggar said a “large concentration” of the cyber criminals are in Russia and are Russian-speaking, but law enforcement agencies have not seen any direct support for LockBit from the Russian state. 

 

“There is clearly some tolerance of cyber criminality within Russia,” he added. 

Kenyan Companies Embrace AI for Marketing Efficiency, Cost Savings

Kenyan companies, facing economic challenges, are turning to artificial intelligence to reduce production and advertising expenses. That’s causing anxiety among artists and ad agencies, who fear reduced income and job losses if AI can replace the work they’ve always done. Mohammed Yusuf reports from Nairobi.

US-China Rivalry Expands to Biotech; Lawmakers Raise Alarm

WASHINGTON — U.S. lawmakers are raising alarms about what they see as America’s failure to compete with China in biotechnology, warning of the risks to U.S. national security and commercial interests. But as the two countries’ rivalry expands into the biotech industry, some say that shutting out Chinese companies would only hurt the U.S.

Biotechnology promises to revolutionize everyday life, with scientists and researchers using it to make rapid advances in medical treatment, genetic engineering in agriculture and novel biomaterials. Because of its potential, it has caught the attention of both the Chinese and U.S. governments.

Bills have been introduced in the House and Senate to bar “foreign adversary biotech companies of concern” from doing business with federally funded medical providers. The bills name four Chinese-owned companies.

The Chinese Embassy said those behind the bills have an “ideological bias” and seek to suppress Chinese companies “under false pretexts.” It demanded that Chinese companies be given “open, just, and non-discriminatory treatment.”

The debate over biotechnology is taking place as the Biden administration tries to stabilize the volatile U.S.-China relationship, which has been battered by a range of issues, including a trade war, the COVID-19 pandemic, cybersecurity and militarization in the South China Sea.

Critics of the legislation warn that restrictions on Chinese companies would impede advances that could bring a greater good.

“In biotech, one cannot maintain competitiveness by walling off others,” said Abigail Coplin, an assistant professor at Vassar College who specializes in China’s biotech industry. She said she was worried that U.S. policymakers would get too obsessed with the technology’s military applications at the cost of hindering efforts to cure disease and feed the world’s population.

In a letter to senators sponsoring the bill, Rachel King, chief executive officer of the trade association Biotechnology Innovation Organization, said the legislation would “do untold damage to the drug development supply chain both for treatments currently approved and on market as well as for development pipelines decades in the making.”

But supporters say the legislation is crucial to protecting U.S. interests.

The National Security Commission on Emerging Biotechnology, a group created by the U.S. Senate to review the industry, said the bill would help secure the data of the federal government and of American citizens and it would discourage unfair competition from Chinese companies.

The commission warned that advancement in biotechnology can result not only in economic benefits but also rapid changes in military capabilities.

Much is at stake, said Rep. Mike Gallagher, chair of the House Select Committee on the Chinese Communist Party. Gallagher introduced the House version of the bill and last week led a congressional delegation to Boston to meet with biotech executives.

“It’s not just a supply chain battle or a national security battle or an economic security battle; I would submit it’s a moral and ethical battle,” Gallagher said. “Just as the sector advances at a really astronomic pace, the country who wins the race will set the ethical standards around how these technologies are used.”

He argues that the U.S. must “set the rules of the road” and if not, “we’re going to live in a less free, less moral world as a result.”

Both the United States and China, the world’s two largest economies, have identified biotech as a critical national interest.

The Biden administration has put forward a “whole-of-government approach” to advance biotechnology and biomanufacturing that is important for health, climate change, energy, food security, agriculture and supply chain resilience.

The Chinese government has plans to develop a “national strategic technology force” in biotech, which would be tasked with making breakthroughs and helping China achieve “technological independence,” primarily from the U.S.

“Both the Chinese government and the Americans have identified biotech as an area important for investment, a sector that presents an opportunity to grow their economy,” said Tom Bollyky, the Bloomberg chair in global health at the Council on Foreign Relations. He said any restrictive U.S. measures should be tailored to address military concerns and concerns about genomic data security.

“Naturally there’s going to be competition, but what’s challenging in biotech is that we are talking about human health,” Bollyky said.

Ray Yip, who founded the U.S. Centers for Disease Control and Prevention office in China, also worries that the rivalry will slow medical advancements.

The benefit of coming up with better diagnostics and therapy is beyond any individual country, Yip said, “and will not overshadow the capacity or prestige of the other country.”

What concerns Anna Puglisi, a senior fellow at Georgetown University’s Center for Security and Emerging Technology, is Beijing’s lack of transparency and its unfair market practices. “Competition is one thing. Unfair competition is another thing,” she said.

Puglisi described BGI, a major Chinese biotech company identified in both the House and Senate bills, as “a national champion” that is subsidized and given favored treatment by the state in a system that “blurs private and public as well as civilian and military.”

“This system creates market distortions and undermines the global norms of science by using researchers and academic and commercial entities to further the goals of the state,” Puglisi said.

BGI, which has stressed its private ownership, offers genetic testing kits and a popular prenatal screening test to detect Down syndrome and other conditions. U.S. lawmakers say they are concerned such data could end up in the hands of the Chinese government.

The Defense Department has listed BGI as a Chinese military company, and the Commerce Department has blacklisted it on human rights grounds, citing a risk that BGI technology might have contributed to surveillance. BGI has rejected the allegations.

In raising its concerns about BGI, the National Security Commission on Emerging Biotechnology says the company is required to share data with the Chinese government, has partnered with the Chinese military, and has received considerable Chinese state funding and support.

State subsidies have allowed BGI to offer genomic sequencing services at a highly competitive price that is attractive to U.S. researchers, according to the commission. The genomic data, once in the hands of the Chinese government, “represents a strategic asset that has privacy, security, economic, and ethical implications,” it said.

BGI could not immediately be reached for comment.

Some Creators Celebrate New AI-Video Tool; Others Worry About Abuse

paris — A new artificial intelligence tool that promises to create short videos from simple text commands has raised concerns along with questions from artists and media professionals. 

OpenAI, the creator of ChatGPT and image generator DALL-E, said Thursday it was testing a text-to-video model called “Sora” that can allow users to create realistic videos with simple prompts. 

The San Francisco-based startup says Sora can “generate complex scenes with multiple characters, specific types of motion, and accurate details of the subject and background,” but admits it still has limitations, such as possibly “mixing up left and right.” 

Here are early reactions from industries that could be affected by the new generative artificial intelligence (AI) tool:   

Examples of Sora-created clips on OpenAI’s website range widely in style and subject, from seemingly real drone footage above a crowded market to an animated bunny-like creature bouncing through a forest. 

Thomas Bellenger, founder and art director of Cutback Productions, has been carefully watching the evolution of generative AI image generation.   

“There were those who felt that it was an unstoppable groundswell that was progressing at an astonishing rate, and those who just didn’t want to see it,” said Bellenger, whose France-based company has created large scale visual effects for such touring musicians as Stromae and Justice. 

He said the development of generative AI has “created a lot of debate internally” at the company and “a lot of sometimes visceral reactions.” 

Bellenger noted that Sora has yet to be released, so its capabilities have yet to be tested by the public. 

“What is certain is that no one expected such a technological leap forward in just a few weeks,” Bellenger said. “It’s unheard of.” 

He said whatever the future holds, they’ll “find ways to create differently.” 

Mixed reaction among creators

Video game creators are equally likely to be impacted by the new invention, with reaction among the sector divided between those open to embracing a new tool and those fearing it might replace them. 

French video game giant Ubisoft hailed the OpenAI announcement as a “quantum leap forward” with the potential to let players and development teams express their imaginations. 

“We’ve been exploring this potential for a long time,” a Ubisoft spokesperson told AFP. 

Alain Puget, chief of Nantes-based studio Alkemi, said he won’t replace any artists with AI tools, which “only reproduce things done by humans.” 

Nevertheless, Puget noted, this “visually impressive” tool could be used by small studios to produce more professionally rendered images. 

While video “cut scenes” that play out occasionally to advance game storylines are different from player-controlled action, Puget expects tools like Sora to eventually be able to replace “the way we do things.”   

‘A terrifying leap’

Basile Simon, a former journalist and current Stanford University researcher, thinks there has been “a terrifying leap forward in the last year” when it comes to generative AI allowing realistic-looking fabrications to be rapidly produced. 

He dreads the idea of how such tools will be abused during elections and fears the public will “no longer know what to believe”. 

Julien Pain of French TV channel France Info’s fact-checking program “Vrai ou Faux” (True or False) says he’s also worried about abuse of AI tools. 

“Until now, it was easy enough to spot fake images, for example by noticing the repetitive faces in the background,” Pain said. “What this new software does seems to be on another level.” 

While OpenAI and U.S. tech titans may promote safety tools, such as industry-wide watermarks that reveal AI-created imagery, “what about tomorrow’s competitors in China and Russia?” he posited. 

The Fred & Farid agency, which has collaborated with the Longchamp and Budweiser brands and where a studio dedicated to AI was opened in early January, anticipates that “80 percent of brand content will be generated by artificial intelligence.” 

“Creative genius” will no longer be limited by production skills thanks to generative AI tools, one enthusiast contended.   

Stephanie Laporte, chief executive and founder of the OTTA advertising and influencer agency, believes the technology will “force the industry to evolve.” 

She also anticipates ad companies with lean budgets will resort to AI tools to save money on workers. 

A possible exception, she believes, is the luxury segment, where brands are “very sensitive to authenticity” and “will probably use AI sparingly.” 

Japan’s New Flagship H3 Rocket Reaches Orbit in Key Test

TOKYO — Japan’s flagship H3 rocket reached orbit and released two small observation satellites in a key second test following a failed debut launch last year, buoying hope for the country in the global space race.

The H3 rocket blasted off from the Tanegashima Space Center on time Saturday morning, two days after its originally scheduled liftoff was delayed by bad weather.

The rocket successfully reached orbit at an altitude of about 670 kilometers (about 420 miles) and released two satellites, said the Japan Aerospace Exploration Agency, or JAXA.

“We feel so relieved to be able to announce the good results,” JAXA President Hiroshi Yamakawa told a news conference.

The H3’s main missions are to secure independent access to space and be competitive as international demand for satellite launches grows. “We made a big first step today toward achieving that goal,” Yamakawa said.

The launch is a boost for Japan’s space program following a recent streak of successes, including a historic precision touchdown on the moon of an unmanned spacecraft last month.

The liftoff was closely watched as a test for Japan’s space development after H3, in its debut flight last March, failed to ignite the second-stage engine. JAXA and its main contractor, Mitsubishi Heavy Industries, have been developing H3 as a successor to its current mainstay, H-2A, which is set to retire after two more flights.

JAXA H3 project manager Masashi Okada called the result “perfect,” saying H3 cleared all missions set for Saturday’s flight. “After a long wait, the newborn H3 finally had its first cry.”

At 57 meters (187 feet) long, the H3 is designed to carry larger payloads than H-2A at much lower costs of about 50 billion yen ($330 million).

China to Show Off Airliner at Singapore Show Amid Supply Crunch

SINGAPORE — Singapore will play host to Asia’s biggest air show next week for the first time since the end of COVID border restrictions, with regional travel rebounding and the military side of the show bristling with defensive systems and nervous arms buyers.

An expected full return of civil demand in Asia is being tested by an industry-wide supply crunch and macroeconomic headwinds, however — especially in the world’s second-largest aviation market, China — while geopolitical tensions have put weapons in the spotlight.

“Supply chain issues are limiting the ability of many airlines to upgrade their fleets and service their aircraft,” said Association of Asia Pacific Airlines head Subhas Menon.

The biennial show will feature the first trip outside Chinese territory for China’s first homegrown passenger jet, COMAC’s narrow-body C919.

With the dominant two plane manufacturers, Airbus and Boeing, struggling to ramp up production and meet demand for new planes, and Boeing struggling with a string of crises, air show attendees will be watching how the Commercial Aircraft Corporation of China, or COMAC, positions itself as a viable alternative.

Many inside the industry caution that only four C919s are in service in China; the plane is only certified by Chinese regulators; and the C919 relies on international supply chains.

Nevertheless, China’s aviation authority has said it would promote the plane internationally this year and pursue European Union Aviation Safety Agency certification.

“We have also seen a growing trend where clients are including the C919 option in their fleet evaluation,” said Adam Cowburn of Alton Aviation Consultancy.

COMAC will be one of two commercial plane makers flying their planes alongside Airbus. Boeing will not send a commercial aircraft to the show this year.

It is the first major international industry event since last month’s blowout of a door plug on a 737 MAX 9 pushed Boeing into its second safety crisis in five years and sent images of a fuselage with a gaping hole whizzing across the globe.

Analyst Sash Tusa of U.K.-based Agency Partners said that in the past, the industry rarely discussed aviation safety in public, on the assumption that any mention would undermine confidence.

“But this omerta no longer seems to apply,” he added in a note.

Environmental impact

Singapore will invite industry delegates to discuss aviation’s environmental impact and will reveal a plan for making Singapore’s aviation sector sustainable. In November, the global aviation industry agreed to lower fuel carbon emissions 5% by 2030, toward a goal of “net zero” carbon emissions by 2050.

“For the industry to meet its Fly Net Zero ambitions by 2050, Asia will be a key driver given that it will continue to remain the largest aviation market,” Cowburn said.

A massive ramp-up in sustainable aviation fuel, or SAF, production is the current hope for meeting these targets, but it costs three to five times more than traditional jet fuel and there are concerns about how to sustainably meet demand.

“That awareness of aviation’s climate impact has been rising, and the questions about this industry’s license to operate have been increasingly raised — without there being a credible path of tackling that problem,” said Sami Jauhiainen of refiner Neste, which started refining SAF in Singapore last year.

Defense needs

Some new freighters are also in demand, delegates said. Amid spiraling tensions over Taiwan, disputes over South China Sea sovereignty and a spike in North Korean missile tests, regional defense budgets are rising. Systems from small drones to complex sub-hunting aircraft will be on display.

The war in Ukraine, which has seen extensive use of high-end air defenses, and repeated attacks on Red Sea shipping, may also spur interest in systems that can intercept missiles and drones, as well as intelligence, surveillance and reconnaissance platforms used to keep tabs on adversaries. No Russian companies are listed among the exhibitors at the air show.

Six air forces will stage flying demonstrations, including the United States and India.