President Joe Biden said Tuesday that Republicans’ ideas for cutting the budget could undermine U.S. manufacturing and help China dominate the world economy. 

Speaking at a semiconductor maker in North Carolina to highlight his own policies, Biden is trying to shape public sentiment as he faces off with House Speaker Kevin McCarthy, R-Calif., about raising the federal government’s legal borrowing capacity. 

McCarthy sent a letter to Biden on Tuesday saying that talks should start about possible spending cuts in return for the debt limit increase.  

Biden has said Republicans need to put forth their own budget plan before negotiations start. Without an agreement, the federal government could default on its financial obligations. 

The president tried to ratchet up pressure on Tuesday by saying that the GOP demands on the budget would only empower China, the country’s key geopolitical rival.  

Being tough on China has been a core part of the identity of former President Donald Trump, who is seeking to return to the White House in 2024, and his Make America Great Again movement. The Democratic president said Republican objections to his policies would instead strengthen China. 

“It would mean ceding the future of innovation and technology to China,” Biden told the crowd. “I’ve got news for you and for MAGA Republicans in Congress: not on my watch. We’re not going to let them undo all the progress we made.” 

Biden’s trip to Wolfspeed follows the Durham-based company announcing plans last September to build a $5 billion manufacturing facility in Chatham County that is expected to create 1,800 new jobs. The company is the world’s leading producer of silicon carbide chips. Biden had won passage last July of a $280 billion legislative package known as the CHIPS Act, which was intended to boost the U.S. semiconductor industry and scientific research. 

It’s nothing new for the Biden administration to highlight the CHIPS Act, the $1.9 trillion COVID relief bill, the $1 trillion infrastructure legislation and a roughly $375 billion climate bill — major legislation that the Democratic administration steered into law before Democrats lost control of the House. 

But now, just weeks after Biden unveiled his own budget — it includes $2.6 trillion in new spending — his administration is looking for chances to lean into its battle with Republicans over spending priorities and who has the better ideas to steward the U.S. economy in the years to come.  

Republicans have rejected Biden’s budget but have yet to unveil their own counteroffer to the Democrats’ blueprint, which is built around tax increases on the wealthy and a vision statement of sorts for Biden’s yet-to-be-declared campaign for reelection in 2024. 

His trip is part of a larger effort to draw attention to his policies, which have been overshadowed by high inflation. 

Besides Biden’s visit to Wolfspeed, Vice President Kamala Harris, first lady Jill Biden and other senior administration officials will fan out to 20 states over the next three weeks to highlight the impact of Biden’s economic agenda, according to the White House. 

Biden has said he intends to run for a second term but has yet to formally launch his reelection campaign. 

His effort to highlight legislative victories could also give him an opportunity to present voters with images of an administration focused on governing as Trump braces for a possible indictment over alleged hush money payments made during his 2016 campaign. 

Trump narrowly won North Carolina in 2020. Among the other states that Biden and administration officials will be visiting in the weeks ahead are Georgia, Michigan, Pennsylvania, Nevada and Wisconsin — crucial battlegrounds that Biden won in 2020 and states expected to be competitive again in 2024. 
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At a March 23 product launch in Shanghai, Chinese tech giant Huawei unveiled its signature P60 series of smartphones with high-end cameras and its Mate X3 series mobile phones equipped with folding screens.

There were demonstrations. There were speeches. But something was missing from the Huawei offerings: 5G, which gives phones the speedy internet access wanted by many consumers in North America, Europe and Asia.

The smartphones also lack access to Google’s Android operating system and popular Western apps such as Google Maps.

The launch quieted “rumors that it is considering selling off its handset business, thus showcasing the company’s resilience amid U.S. government restrictions,” according to the government-affiliated China Daily.

Yu Chengdong, CEO of Huawei’s device business group, said at the event, “We have experienced four years of winter under sanctions. Now, the spring has come, and we are excited about the future.”

In 2020, Huawei briefly surpassed Apple and Samsung to become the world’s largest smartphone seller when its market share peaked at 18%, according to market tracker Canalys.

Then the Trump administration imposed successive rounds of U.S. export controls.

By 2022, Huawei had a 2% share of the global smartphone market, with most of its sales in China.

Now the Biden administration is considering banning all technology exports to Huawei.

And its smartphone business today shows how the Shenzhen-based company, a major supplier of equipment used in 5G telecommunications networks, still relies on American technology for some key components.

According to a December 2022 report by Counterpoint, a Hong Kong-based analyst firm, Huawei used up its stockpile of homegrown advanced chips for smartphones, leaving it with a market share of zero for the final three quarters of the year.

“They suffered a steep drop in profits. They have a lot of damage to the brand,” James Lewis, senior vice president, Pritzker chair and director of the Strategic Technologies Program at the Center for Strategic and International Studies, told VOA Mandarin. “I think it’s a mixed bag that Huawei was never going to give up. The Chinese government was never going to let Huawei go out of business, so they’ve found ways to keep selling things. Most of what they sell is 4G or earlier.”

Huawei founder Ren Zhengfei said in a February 24 speech that the Chinese tech giant has survived U.S. sanctions by substituting components locally.

He said, “We completed a process of redesigning over 4,000 circuit boards as well as finding local suppliers for more than 13,000 components the company needs for our products within three years.”

Paul Triolo, senior vice president for China and technology policy lead at Albright Stone Group, a business consulting firm, said the risks of using Cold War era tools such as export controls can have unintended consequences.

In an email, Triolo told VOA Mandarin, “If the result of the ‘small yard, high fence’ policy over the next decade is to significantly slow technology innovation and massively incentivize the development of a large rival technology ecosystem, then the US approach will be judged to have failed, with many losers. Any short-term national security gain will be very hard if not impossible to measure while the short-term pain, particularly for US technology companies, will be substantial, as will the long-term consequences to global innovation systems.”

After Huawei was caught stealing trade secrets, evading U.S. bans on transferring technology to Iran and was suspected — though never proved — to be an arm of the Chinese intelligence services, the U.S. began imposing a series of controls. Since 2019, these have cut off Huawei’s supply of chips from U.S. companies and its access to U.S. technology tools to design its own chips and have them manufactured by its partners.

The Biden administration is considering tightening export control measures against Huawei and completely banning all business dealings with the company, including banning exports to Huawei’s suppliers and middlemen.

For now, vendors selling less-desirable technologies such as 4G phones can still apply to the U.S. Department of Commerce for a license to do business with Huawei. The Commerce Department has approved billions of dollars in such sales from U.S. suppliers, including Intel Corp., which sells chips used in Huawei laptops, and Qualcomm Inc., which supplies chips for 4G smartphones.

Ren said in the speech last month that Huawei invested $23.8 billion in research and development in 2022. “As our profitability improves, we will continue to increase research and development expenditures.”

He added that the company has established its own enterprise resource planning system called MetaERP. Set to launch in April, it will help run its core business functions including finance, supply chain and manufacturing operations.

Lewis said Huawei had been able to circumvent some U.S. controls.

“They have a plan on how to recover, and they’re actually making it work. It doesn’t work in a lot of countries, but it works in Latin America. It works in Africa.”

This means the U.S. will need to refine its strategy on Huawei, Lewis said.

“It has to look at how does it match Huawei, how does it match China in the Southern Hemisphere,” he said. “So the Latin Americans are buying from China and from Huawei. Huawei has Africa pretty much sewn up. So, it’s really a question of how you undo that. And the answer is, you need to do it through development aid, and I don’t know if Western countries are willing to spend.”
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Ford Motor Company’s plan to create batteries for the rapidly expanding electric vehicle (EV) market could encounter congressional speed bumps because of the carmaker’s plan to use technology created by a Chinese company with ties to the communist government.

Ford executive chairman William Clay Ford Jr. announced in February that the company would spend $3.5 billion to build a new battery plant in Michigan and employ U.S. workers to promote U.S. “independence” in the EV market.

“Right now, many [U.S.] automakers import most of their batteries from abroad,” Ford said at that time. “This is a slow process that makes us vulnerable to supply chain disruptions.”

He added that the U.S.-produced batteries would “charge faster” and be “more affordable” and “incredibly durable.”

But the news did not sit well with some lawmakers, including Republican Senator Marco Rubio, who opposed President Joe Biden’s 2022 Inflation Reduction Act, which included tax credits to encourage domestic EV production.

Earlier this month, Rubio introduced legislation blocking tax credits for producing EV batteries using Chinese technology and called on the Biden administration to review Ford’s partnership with the company, Contemporary Amperex Technology Co. Ltd. (CATL).

“Nine billion to help people buy tax credits,” Rubio said. “By the way, with a Chinese battery in it. … I imagine we’ll spend a bunch more money to buy solar panels which are also made in China.”

In a Skype interview last week with VOA, China expert Jonathan Ward said “the White House has already called for a supply chain review that would cover essentially next generation batteries, critical minerals and rare earths, pharma and other biotechs.”

“We’re in the midst of this competition for supply chain security and industrial capacity where relying on our primary geopolitical adversary is really untenable in the long run,” he said.

Ward has authored two books outlining China’s economic, military and political goals. He said decades of outsourcing technology and manufacturing has left the United States with little choice but to work with Chinese companies like CATL to advance domestic EV development.

“Essentially 60% of the battery market is made up of Chinese corporations,” he said. “CATL, the battery maker in question here, is already 34% of global market share. The other companies are Japanese and South Korean, but they are smaller than the aggregate Chinese battery makers. So, we have this contest that we are going to have to deal with.”

Sarah Bauerle Danzman, an associate professor in international studies at Indiana University Bloomington, said since the U.S. currently “doesn’t have the capability” to produce EV batteries, “what is the theory of change that helps us get to that capacity?”

“Then the question becomes, are we becoming overly reliant or staying reliant on technology that ultimately the Chinese government controls rather than the U.S.?” she said.

From 2019 to 2020, Danzman was a policy adviser and case analyst with the Committee on Foreign Investment in the United States (CFIUS) at the State Department’s Office of Investment Affairs. She led the unit that reviews foreign investment transactions for possible national security concerns.

Rubio wants CFIUS to review Ford and CATL’s licensing agreement.

“Rubio is really focused on this idea that we don’t want to be dependent on Chinese technology,” she explained to VOA last week via a Skype interview. “The U.S. government coming in and changing those structures is a big imposition on the private sector, so there really does need to be a strong argument for why it needs to do so.”

“I think a lot of companies are going to find themselves in situations like this where Chinese partnerships [are] coming back to haunt us here,” said Ward. “I think our companies that have been entangled in the China market all have to reassess what they are doing.”

In its response to Rubio’s proposed legislation, Ford said its own subsidiary will build and operate the new battery plant in Michigan, and that “no other entity will get U.S. tax dollars for this project.”

During February’s announcement, Ford CEO Jim Farley said the proposed BlueOval Battery Park Michigan meets goals outlined by the Biden administration.

“We’re growing production of batteries here at home, reflecting the central purpose of the Inflation Reduction Act — that’s why it was passed, for this project,” Farley said.

Ford’s plans for the new Michigan facility come as the auto manufacturer reported more than $2 billion in operating losses in EV-related business in 2022.
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William Shatner, Monica Lewinsky and other prolific Twitter commentators — some household names, others little-known journalists — could soon be losing the blue check marks that helped verify their identity on the social media platform. 

They could get the marks back by paying up to $11 a month. But some longtime users, including 92-year-old Star Trek legend Shatner, have balked at buying the premium service championed by Twitter’s billionaire owner and chief executive Elon Musk. 

After months of delay, Musk is gleefully promising that Saturday is the deadline for celebrities, journalists and others who’d been verified for free to pony up or lose their legacy status. 

“It will be glorious,” he tweeted Monday, in response to a Twitter user who noted that Saturday is also April Fools’ Day. 

After buying Twitter for $44 billion in October, Musk has been trying to boost the struggling platform’s revenue by pushing more people to pay for a premium subscription. But his move also reflects his assertion that the blue verification marks have become an undeserved or “corrupt” status symbol for elite personalities and news reporters. 

Along with verifying celebrities, one of Twitter’s main reasons to mark profiles with a free blue check mark starting about 14 years ago was to verify politicians, activists and people who suddenly find themselves in the news, as well as little-known journalists at small publications around the globe, as an extra tool to curb misinformation coming from accounts that are impersonating people. 

Lewinsky tweeted a screenshot Sunday of all the people impersonating her, including at least one who appears to have paid for a blue check mark. She asked, “what universe is this fair to people who can suffer consequences for being impersonated? a lie travels half way around the world before truth even gets out the door.” 

Shatner, known for his irreverent humor, also tagged Musk with a complaint about the promised changes. 

“I’ve been here for 15 years giving my (clock emoji) & witty thoughts all for bupkis,” he wrote. “Now you’re telling me that I have to pay for something you gave me for free?” 

Musk responded that there shouldn’t be a different standard for celebrities. “It’s more about treating everyone equally,” Musk tweeted. 

For now, those who still have the blue check but apparently haven’t paid the premium fee — a group that includes Beyoncé, Stephen King, Barack and Michelle Obama, Taylor Swift, Tucker Carlson, Drake and Musk himself — have messages appended to their profile saying it is a “legacy verified account. It may or may not be notable.” 

But while “the attention is reasonably on celebrities because of our culture,” the bigger concern for open government advocate Alex Howard, director of the Digital Democracy Project, is that impersonators could more easily spread rumors and conspiracies that could move markets or harm democracies around the world. 

“The reason verification exists on this platform was not simply to designate people as notable or authorities, but to prevent impersonation,” Howard said. 

One of Musk’s first product moves after taking over Twitter was to launch a service granting blue checks to anyone willing to pay $8 a month. But it was quickly inundated by imposter accounts, including those impersonating Nintendo, pharmaceutical company Eli Lilly and Musk’s businesses Tesla and SpaceX, so Twitter had to temporarily suspend the service days after its launch. 

The relaunched service costs $8 a month for web users and $11 a month for iPhone and iPad users. Subscribers are supposed to see fewer ads, be able to post longer videos and have their tweets featured more prominently. 
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Some parts of Twitter’s source code — the fundamental computer code on which the social network runs — were leaked online, the social media company said in a legal filing on Sunday that was first reported by The New York Times. 

According to the legal document, filed with the U.S. District Court of the Northern District of California, Twitter had asked GitHub, an internet hosting service for software development, to take down the code where it was posted. The platform complied and said the content had been disabled, according to the filing. Twitter also asked the court to identify the alleged infringer or infringers who posted Twitter’s source code on systems operated by GitHub without Twitter’s authorization. 

Twitter, based in San Francisco, noted in the filing that the postings infringe copyrights held by Twitter. 

The leak creates more challenges for billionaire Elon Musk, who bought Twitter last October for $44 billion and took the company private. Since then, it has been engulfed in chaos, with massive layoffs and advertisers fleeing. 

Meanwhile, the Federal Trade Commission is probing Musk’s mass layoffs at Twitter and trying to obtain his internal communications as part of ongoing oversight into the social media company’s privacy and cybersecurity practices, according to documents described in a congressional report. 
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U.S. House of Representatives Speaker Kevin McCarthy said on Sunday lawmakers will move forward with legislation to address national security worries about TikTok, alleging China’s government had access to the short video app’s user data.

In the United States, there are growing calls to ban TikTok, owned by China-based company ByteDance, or to pass bipartisan legislation to give President Joe Biden’s administration legal authority to seek a ban. Devices owned by the U.S. government were recently banned from having the app installed.

“The House will be moving forward with legislation to protect Americans from the technological tentacles of the Chinese Communist Party,” McCarthy said on Twitter.

 

TikTok CEO Shou Zi Chew appeared before a U.S. House Committee for about five hour on Thursday and lawmakers from both parties grilled him about national security and other concerns involving the app, which has 150 million American users.

In Thursday’s hearing, the TikTok CEO was asked if of the app, has spied on Americans at Beijing’s request. Chew answered, “No.”

Republican Representative Neal Dunn then referenced the company’s disclosure in December that some China-based employees at ByteDance improperly accessed TikTok user data of two journalists and were no longer employed by the company. He repeated his question about whether ByteDance was spying.

“I don’t think that spying is the right way to describe it,” Chew said. He went on to describe the reports as involving an “internal investigation” before being cut off.

McCarthy, a Republican, said in a tweet on Sunday, “It’s very concerning that the CEO of TikTok can’t be honest and admit what we already know to be true — China has access to TikTok user data.”

The company says it has spent more than $1.5 billion on data security efforts under the name “Project Texas” which currently has nearly 1,500 full-time employees and is contracted with Oracle Corp ORCL.N to store TikTok’s U.S. user data.

Rather than appease lawmakers’ concerns, Chew’s appearance before Congress on Thursday “actually increased the likelihood that Congress will take some action,” Representative Mike Gallagher of Wisconsin, the Republican chairman of the House Select Committee on the Chinese Communist Party, told ABC News on Sunday.

Former U.S. President Donald Trump lost a series of court rulings in 2020 when he sought to ban TikTok and another Chinese-owned app, WeChat, a unit of Tencent 0700.HK.
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Gordon Moore, the Intel Corp. co-founder who set the breakneck pace of progress in the digital age with a simple 1965 prediction of how quickly engineers would boost the capacity of computer chips, has died. He was 94.

Moore died Friday at his home in Hawaii, according to Intel and the Gordon and Betty Moore Foundation.

Moore, who held a Ph.D. in chemistry and physics, made his famous observation — now known as “Moore’s Law” — three years before he helped start Intel in 1968. It appeared among several articles about the future written for the now-defunct Electronics magazine by experts in various fields.

The prediction, which Moore said he plotted out on graph paper based on what had been happening with chips at the time, said the capacity and complexity of integrated circuits would double every year.

Strictly speaking, Moore’s observation referred to the doubling of transistors on a semiconductor. But over the years, it has been applied to hard drives, computer monitors and other electronic devices, holding that roughly every 18 months a new generation of products makes their predecessors obsolete.

It became a standard for the tech industry’s progress and innovation.

“It’s the human spirit. It’s what made Silicon Valley,” Carver Mead, a retired California Institute of Technology computer scientist who coined the term “Moore’s Law” in the early 1970s, said in 2005. “It’s the real thing.”

‘Wisdom, humility and generosity’

Moore later became known for his philanthropy when he and his wife established the Gordon and Betty Moore Foundation, which focuses on environmental conservation, science, patient care and projects in the San Francisco Bay area. It has donated more than $5.1 billion to charitable causes since its founding in 2000.

“Those of us who have met and worked with Gordon will forever be inspired by his wisdom, humility and generosity,” foundation president Harvey Fineberg said in a statement.

Intel Chairman Frank Yeary called Moore a brilliant scientist and a leading American entrepreneur.

“It is impossible to imagine the world we live in today, with computing so essential to our lives, without the contributions of Gordon Moore,” he said.

In his book “Moore’s Law: The Life of Gordon Moore, Silicon Valley’s Quiet Revolutionary,” author David Brock called him “the most important thinker and doer in the story of silicon electronics.”

Helped plant seed for renegade culture

Moore was born in San Francisco on Jan. 3, 1929, and grew up in the tiny nearby coastal town of Pescadero. As a boy, he took a liking to chemistry sets. He attended San Jose State University, then transferred to the University of California, Berkeley, where he graduated with a degree in chemistry.

After getting his Ph.D. from the California Institute of Technology in 1954, he worked briefly as a researcher at Johns Hopkins University.

His entry into microchips began when he went to work for William Shockley, who in 1956 shared the Nobel Prize for physics for his work inventing the transistor. Less than two years later, Moore and seven colleagues left Shockley Semiconductor Laboratory after growing tired of its namesake’s management practices.

The defection by the “traitorous eight,” as the group came to be called, planted the seeds for Silicon Valley’s renegade culture, in which engineers who disagreed with their colleagues didn’t hesitate to become competitors.

The Shockley defectors in 1957 created Fairchild Semiconductor, which became one of the first companies to manufacture the integrated circuit, a refinement of the transistor.

Fairchild supplied the chips that went into the first computers that astronauts used aboard spacecraft.

Called Moore’s Law as ‘a lucky guess’

In 1968, Moore and Robert Noyce, one of the eight engineers who left Shockley, again struck out on their own. With $500,000 of their own money and the backing of venture capitalist Arthur Rock, they founded Intel, a name based on joining the words “integrated” and “electronics.”

Moore became Intel’s chief executive in 1975. His tenure as CEO ended in 1987, thought he remained chairman for another 10 years. He was chairman emeritus from 1997 to 2006.

He received the National Medal of Technology from President George H.W. Bush in 1990 and the Presidential Medal of Freedom from President George W. Bush in 2002.

Despite his wealth and acclaim, Moore remained known for his modesty. In 2005, he referred to Moore’s Law as “a lucky guess that got a lot more publicity than it deserved.”

He is survived by his wife of 50 years, Betty, sons Kenneth and Steven, and four grandchildren.
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A U.S. ban of Chinese-owned TikTok, the country’s most popular social media for young people, seems increasingly inevitable a day after the grilling of its CEO by Washington lawmakers from across the political divide. 

But the Biden administration will have to move carefully in denying 150 million Americans their favorite platform over its links to China, especially after a previous effort by then-President Donald Trump was struck down by a U.S. court. 

TikTok CEO Shou Zi Chew endured a barrage of questions by U.S. lawmakers who made clear their belief that the app best known for sharing jokes and dance routines was a threat to U.S. national security as well as being a danger to mental health. 

In a tweet, TikTok executive Vanessa Pappas deplored a hearing “rooted in xenophobia.”   

With both Republicans and Democrats against him at Congress, Chew must now confront a White House ultimatum that TikTok either sever ties with ByteDance, its China-based owners, or be banned in America. 

Bipartisan legislation

A ban will depend on passage of legislation called the RESTRICT ACT, a bipartisan bill introduced in the Senate this month that gives the U.S. Commerce Department powers to ban foreign technology that threatens national security. 

When asked about Chew’s tumultuous hearing, spokeswoman Karine Jean-Pierre repeated the White House’s support of the legislation, which is one of several proposals by Congress to ban or squeeze TikTok. 

The sell-or-be-banned order tears up 2.5 years of negotiations between the White House and TikTok to find a way for the company to keep running under its current ownership while satisfying national security concerns. 

Those talks resulted in a proposal by TikTok called Project Texas in which the personal data of U.S. users stays in the United States and would be inaccessible to Chinese law or oversight. 

But the White House turned sour on the idea after officials from the FBI and the Justice Department said that the vulnerabilities to China would remain. 

“It’s hard for TikTok to prove a negative. ‘No, we’re not turning over any data to the Chinese government.’ Look at how skeptical our European partners are about U.S. companies where we have a strong legal system,” said Michael Daniel, executive director of the Cyber Threat Alliance, a nongovernmental organization dedicated to cybersecurity. 

Presently, the White House’s preferred solution is that TikTok sever ties with ByteDance either through a sale or a spinoff. 

“My understanding is that what has been … insisted on is the divestment of TikTok by the parent company,” U.S. Secretary of State Antony Blinken said Thursday.

Impossible to achieve? 

But that option is riddled with difficulties, with many experts saying that TikTok cannot function without ByteDance, which develops the app’s industry-leading technology. 

“ByteDance’s ownership of TikTok and the golden jewel algorithm at the center of this security debate is a hot-button issue that will not necessarily be solved just by a spinoff or sale of the assets,” said Dan Ives of Wedbush Securities. 

Proving the point, China has ruled out giving the go-ahead for a TikTok sale, citing its own laws to protect sensitive technology from foreign buyers. 

That leaves a ban of TikTok that would undeniably benefit domestic rivals Instagram, Snapchat and YouTube. 

One unknown is whether a death sentence for TikTok will cost Washington politically among voters. 

Through a ban, “a democracy will be taking steps that impede the ability of young Americans to express themselves and earn a livelihood,” said Sarah Kreps, professor of government at Cornell University. 

Does the lawmakers’ grilling of the TikTok CEO minimize the danger of political blowback? 

“I want to say this to all the teenagers … who think we’re just old and out of touch,” said Representative Dan Crenshaw, a Republican. “You may not care that your data is being accessed now, but there will be one day when you do care about it.”
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Shou Zi Chew, chief executive officer of TikTok, pushed back Thursday against calls from US lawmakers to ban the social media app, contending that the company is not connected to the Chinese Communist Party. VOA Congressional Correspondent Katherine Gypson has more
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