Namibia’s communications regulator has ordered Starlink, operated by SpaceX, to cease its operations in the country. The Communications Regulatory Authority of Namibia (CRAN) stated that the company was running a telecommunications network without the required licence.
A cease-and-desist order was issued on 26 November, demanding that Starlink immediately halt all activities. CRAN has also advised the public against purchasing or subscribing to Starlink services, warning that these actions are illegal under Namibian law.
Investigators have already confiscated unlicensed terminals from consumers and have opened criminal cases with the police. The regulator emphasised its commitment to enforcing compliance with national telecommunications regulations.
Earlier this year, Cameroon faced a similar situation, seizing equipment at ports due to licence violations. SpaceX has yet to comment on the developments in Namibia.
Telefonica Germany has partnered with Amazon Web Services (AWS) to explore quantum technologies in its mobile network. The pilot project aims to optimise mobile tower placement, enhance security with quantum encryption, and provide insights for the development of 6G networks.
Quantum computing, known for its potential to outperform traditional systems, is expected to revolutionise industries, including telecommunications. Experts stress the importance of early engagement with prototypes to prepare for the arrival of powerful quantum systems. Telefonica’s Chief Technology & Information Officer, Mallik Rao, highlighted their proactive approach in integrating these emerging technologies.
Telefonica Germany has already made strides in modernising its network, recently migrating one million 5G customers to AWS cloud infrastructure. Plans are underway to transfer millions more over the next year and a half. Rao described the transition as smooth and beneficial for performance.
AWS and Telefonica’s collaboration underlines the growing interest among tech leaders in harnessing quantum mechanics for groundbreaking advancements in speed and security.
Vietnam’s Prime Minister Pham Minh Chinh called on the United States to remove export restrictions on certain technologies during an event in Hanoi hosted by the American Chamber of Commerce. Chinh emphasised Vietnam’s interest in satellite communications development and revealed ongoing talks with SpaceX to boost aerospace cooperation. He also urged the US to recognise Vietnam as a market economy, a step that could lower trade tariffs.
The US currently restricts Vietnam’s access to technologies deemed critical to national security, though Vietnam is allowed to import conventional weapons and some advanced technologies. Chinh questioned the necessity of the embargo, stating, “We are not fighting anyone, so why do you keep the embargo?”
Despite potential US tariffs of up to 20% on imports under the next Trump administration, Chinh avoided addressing the issue directly. He instead highlighted Vietnam’s $25 billion in expected foreign investment this year and stressed the importance of maintaining strong US-Vietnam relations to tackle global challenges.
The French government has initiated negotiations to acquire the advanced computing unit of IT firm Atos for €500M. This move seeks to safeguard critical technologies supporting the military and intelligence sectors. The agreement, which includes an initial payment of €150M, could rise to €625Mwith additional performance-based payouts. Atos’ advanced computing and cybersecurity operations generate €900M annually and employ 4,000 people.
Once a European tech leader, Atos has faced financial difficulties, with its survival hinging on an accelerated restructuring plan. The French state, emphasising national sovereignty, aims to maintain control over strategic assets. Finance Minister Antoine Armand stated that protecting key industrial activities is essential for ensuring the country’s security and independence.
The proposed deal reflects growing government interest in Atos’ assets, with nationalisation also being considered. Despite years of financial struggles, Atos shares surged 160% following the announcement, reflecting renewed investor optimism about its recovery and restructuring efforts.
Chinese big tech companies have emerged as some of the most influential players in the global technology landscape, driving innovation and shaping industries across the board. These companies are deeply entrenched in everyday life in China, offering a wide range of services and products that span e-commerce, social media, gaming, cloud computing, ΑΙ, and telecommunications. Their influence is not confined to China, they also play a significant role in global markets, often competing directly with US tech giants.
The rivalry between China and the US has become one of the defining geopolitical struggles of the 21st century. This competition oscillates between cooperation, fierce competition, and confrontation, influenced by regulatory policies, national security concerns, and shifting political priorities. The geopolitical pendulum of China-US tech firms, totally independent from the US election outcome, reflects the broader tensions between the two powers, with profound implications for global tech industries, innovation, and market dynamics.
The Golden Shield Project
In 2000, under Chairman Jiang Zemin’s leadership, China launched the Golden Shield Project to control media and information flow within the country. The initiative aimed to safeguard national security and restrict the influence of Western propaganda. As part of the Golden Shield, many American tech giants such as Google, Facebook, and Netflix were blocked by the Great Firewall for not complying with China’s data regulations, while companies like Microsoft and LinkedIn were allowed to operate.
At the same time, China’s internet user base grew dramatically, reaching 800 million netizens by 2018, with 98% using mobile devices. This rapid expansion provided a fertile ground for Chinese tech firms, which thrived without significant competition from foreign players. Among the earliest beneficiaries of this system were the BATX companies, which capitalised on China’s evolving internet landscape and rapidly established a dominant presence in the market.
The powerhouses of Chinese tech
The major Chinese tech companies, often referred to as the Big Tech of China, include Alibaba Group, Tencent, Baidu, ByteDance, Huawei, Xiaomi, JD.com, Meituan, Pinduoduo, and Didi Chuxing.
Alibaba Group is a global e-commerce and technology conglomerate, operating platforms such as Taobao and Tmall for e-commerce, AliExpress for international retail, and Alipay for digital payments. The company also has significant investments in cloud computing with Alibaba Cloud and logistics.
Tencent, a massive tech conglomerate, is known for its social media and entertainment services. It owns WeChat, a widely used messaging app that offers payment services, social media features, and more. Tencent also has investments in gaming, owning major stakes in Riot Games, Epic Games, and Activision Blizzard, as well as interests in financial services and cloud computing.
Baidu, often called China’s Google, is a leading search engine provider. In addition to its search services, Baidu has a strong presence in AI development, autonomous driving, and cloud computing, particularly focusing on natural language processing and autonomous vehicles.
ByteDance, the company behind TikTok, has made a name for itself in short-form video content and AI-driven platforms. It also operates Douyin, the Chinese version of TikTok, along with Toutiao, a popular news aggregation platform. ByteDance has expanded into gaming, e-commerce, and other AI technologies.
Huawei is a global leader in telecommunications equipment and consumer electronics, particularly smartphones and 5G infrastructure. The company is deeply involved in cloud computing and AI, despite facing significant geopolitical challenges.
Xiaomi is a leading smartphone manufacturer that also produces smart home devices, wearables, and a wide range of consumer electronics. The company is growing rapidly in the Internet of Things (IoT) space and AI-driven products.
JD.com, one of China’s largest e-commerce platforms, operates similarly to Alibaba, focusing on direct sales, logistics, and tech solutions. JD.com has also made significant strides in robotics, AI, and logistics technology.
Meituan is best known for its food delivery and local services platform, offering everything from restaurant reservations to hotel bookings. The company also operates in sectors like bike-sharing, travel, and ride-hailing.
Pinduoduo has rapidly grown in e-commerce by focusing on group buying and social commerce, particularly targeting lower-tier cities and rural markets in China. The platform offers discounted products to users who buy in groups.
Didi Chuxing is China’s dominant ride-hailing service, offering various transportation services such as ride-hailing, car rentals, and autonomous driving technology.
But what are the BATX companies we mentioned earlier?
BAXT
The term BATX refers to a group of the four dominant Chinese tech companies: Baidu, Alibaba, Tencent, and Xiaomi. These companies are central to China’s technology landscape and are often compared to the US “FAANG” group (Facebook, Apple, Amazon, Netflix, Google) because of their major influence across a range of industries, including e-commerce, search engines, social media, gaming, ΑΙ and telecommunications. Together, BATX companies are key players in shaping China’s tech ecosystem and have a significant impact on global markets.
China’s strategy for tech growth
China’s technology development strategy has proven effective in propelling the country to the forefront of several high-tech industries. This ambitious approach, which involves broad investments across both large state-owned enterprises and smaller private startups, has fostered significant innovation and created a competitive business environment. As a result, it has the potential to serve as a model for other countries looking to stimulate tech growth.
A key driver of China’s success is its diverse investment strategy, supported by government-led initiatives like the “Made in China 2025” and the “Thousand Talents Plan“. These programs offer financial backing and attract top talent from around the globe. This inclusive approach has helped China rapidly emerge as a global leader in fields like AI, robotics, and semiconductors. However, critics argue that the strategy may be overly aggressive, potentially stifling competition and innovation.
Some have raised concerns that China’s government support unfairly favours domestic companies, providing subsidies and other advantages that foreign competitors do not receive. Yet, this type of protectionist approach is not unique to China; other countries have implemented similar strategies to foster the growth of their own industries.
Another critique is that China’s broad investment model may encourage risky ventures and the subsidising of failures, potentially leading to a market that is oversaturated with unprofitable businesses. While this criticism holds merit in some cases, the overall success of China’s strategy in cultivating a dynamic and competitive tech landscape remains evident.
Looking ahead, China’s technology development strategy is likely to continue evolving. As the country strengthens its position on the global stage, it may become more selective in its investments, focusing on firms with the potential for global leadership.
In any case, China’s strategy has shown it can drive innovation and foster growth. Other nations hoping to advance their technological sectors should take note of this model and consider implementing similar policies to enhance their own competitive and innovative business environments.
But under what regulatory framework does Chinese tech policy ultimately operate? How does it affect the whole project? Are there some negative effects of the tight state grip?
China’s regulatory pyramid: Balancing control and consequences
China’s regulatory approach to its booming tech sector is defined by a precarious balance of authority, enforcement, and market response. Angela Zhang, author of High Wire: How China Regulates Big Tech and Governs Its Economy, proposes a “dynamic pyramid model” to explain the system’s intricate dynamics. This model highlights three key features: hierarchy, volatility, and fragility.
The top-down structure of China’s regulatory system is a hallmark of its hierarchy. Regulatory agencies act based on directives from centralised leadership, creating a paradox. In the absence of clear signals, agencies exhibit inaction, allowing industries to flourish unchecked. Conversely, when leadership calls for stricter oversight, regulators often overreach. A prime example of this is the drastic shift in 2020 when China moved from years of leniency toward its tech giants to implementing sweeping crackdowns on firms like Alibaba and Tencent.
This erratic enforcement underscores the volatility of the system. Chinese tech regulation is characterised by cycles of lax oversight followed by abrupt crackdowns, driven by shifts in political priorities. The 2020 – 2022 crackdown, which involved antitrust investigations and record-breaking fines, sent shockwaves through markets, wiping out billions in market value. While the government eased its stance in 2022, the uncertainty created by such pendulum swings has left investors wary, with many viewing the Chinese market as unpredictable and risky.
Despite its intentions to address pressing issues like antitrust violations and data security, China’s heavy-handed regulatory approach often results in fragility. Rapid interventions can undermine confidence, stifle innovation, and damage the very sectors the government seeks to strengthen. Years of lax oversight exacerbate challenges, leaving regulators with steep issues to address and markets vulnerable to overcorrection.
This model offers a lens into the broader governance dynamics in China. The system’s centralised control and reactive policies aim to maintain stability but often generate unintended economic consequences. As Chinese tech firms look to expand overseas amid domestic challenges, the long-term impact of these regulatory cycles remains uncertain, potentially influencing China’s ability to compete on the global stage.
The battle for tech supremacy between the USA and China
The incoming US President Donald Trump is expected to adopt a more aggressive, unilateral approach to counter China’s technological growth, drawing on his history of quick, broad measures such as tariffs. Under his leadership, the USA is likely to expand export controls and impose tougher sanctions on Chinese tech firms. Trump’s advisors predict a significant push to add more companies to the US Entity List, which restricts US firms from selling to blacklisted companies. His administration might focus on using tariffs (potentially up to 60% on Chinese imports) and export controls to pressure China, even if it strains relations with international allies.
The escalating tensions have been further complicated by China’s retaliatory actions. In response to US export controls, China has targeted American companies like Micron Technology and imposed its own restrictions on essential materials for chipmaking and electric vehicle production. These moves highlight the interconnectedness of both economies, with the US still reliant on China for critical resources such as rare earth elements, which are vital for both technology and defence.
This intensifying technological conflict reflects broader concerns over data security, military dominance, and leadership in AI and semiconductors. As both nations aim to protect their strategic interests, the tech war is set to continue evolving, with major consequences for global supply chains, innovation, and the international balance of power in technology.
According to Morgan Adamski, executive director of US Cyber Command, Chinese hackers are embedding themselves in US critical infrastructure IT networks to prepare for a potential conflict with the United States. He announced that China-linked cyber operations aim to secure strategic advantages in the event of a major clash.
These operations involve compromising key networks and positioning themselves to execute disruptive attacks. Examples include manipulating heating, ventilation, and air conditioning (HVAC) systems in server rooms or disrupting vital energy and water controls, officials said earlier this year.
Speaking at the Cyberwarcon security conference in Arlington, Virginia, Adamski emphasised the scale of the threat, noting that the US government has launched globally coordinated efforts to counter these operations. These efforts include offensive and defensive measures designed to degrade and disrupt China’s cyber activities worldwide. Actions range from exposing cyber campaigns to imposing sanctions and issuing cybersecurity advisories, with support from allied nations.
Earlier, US Senator Mark Warner described a suspected China-linked cyberespionage campaign, dubbed ‘Salt Typhoon,’ as the worst telecommunications hack in US history. Beijing has repeatedly denied conducting cyberattacks on US entities.
The UN Office for Disarmament Affairs (ODA) will conduct a simulation exercise in early 2025 to help Member States engage with the Global Points of Contact (POC) Directory.
The directory ensures quick and effective responses to cybersecurity incidents by providing a reliable channel for diplomatic and technical contacts across countries. It is part of broader efforts to implement the agreed confidence-building measures (CBMs) and promote cyber stability and security globally, particularly under frameworks such as the UN’s Open-Ended Working Group (OEWG) on the security of ICTs. Most states have recently appointed their POCs and participated in the first ‘ping’ test (a test conducted by the directory manager to verify that the information in the directory is up-to-date).
In hybrid format, the exercise aims to familiarise nominated POCs with practical aspects of participating in the directory and clarify the roles of diplomatic and technical contacts. In collaboration with the UN Institute for Disarmament Research (UNIDIR) and the International Telecommunications Union (ITU), the event will occur virtually, with an in-person debrief.
The UK government has announced the launch of a Laboratory for AI Security Research (LASR), an initiative to protect against emerging AI-driven threats and bolster Britain’s cyber resilience. The lab, backed by an initial £8.22 million in government funding, will bring together experts from academia, industry, and government to address AI’s evolving challenges to national security.
Speaking at the NATO Cyber Defence Conference in London, the Chancellor of the Duchy of Lancaster emphasised that AI is revolutionising national security and noted that ‘[…]as we develop this technology, there’s a danger it could be weaponised against us. Our adversaries are exploring how to use AI on the physical and cyber battlefield’.
LASR will collaborate with leading institutions, including the Alan Turing Institute, Oxford University, Queen’s University Belfast, and Plexal, alongside government agencies such as GCHQ, the National Cyber Security Centre, and the MOD’s Defence Science and Technology Laboratory. Partnerships will extend to NATO allies and Five Eyes countries, fostering an international approach to AI security.
In addition to LASR, the government announced a £1 million incident response project to help allies respond more effectively to cyberattacks. This initiative will further enhance international cooperation in managing cyber incidents.
The official communication highlights that this announcement aligns with the government’s broader agenda, including the forthcoming Cyber Security and Resilience Bill (to be introduced to Parliament in 2025) and the designation of data centres as critical national infrastructure (CNI) to secure the UK’s position as a global leader in cybersecurity and AI innovation.
The US government is expected to reduce Intel Corp‘s preliminary $8.5 billion federal chips grant to less than $8 billion, according to a report by The New York Times. The decision reflects Intel’s recent $3 billion contract to produce chips for the Pentagon, unnamed sources said.
Earlier this year, the Biden administration announced nearly $20 billion in grants and loans for Intel to expand its semiconductor manufacturing capabilities. The funding, part of the 2022 CHIPS and Science Act, supports building two new factories in Arizona and modernising an existing one.
The CHIPS Act allocated $52.7 billion to bolster US semiconductor production, including $39 billion for subsidies and $11 billion for research and development, as part of a national push to strengthen domestic chip manufacturing and reduce reliance on foreign supply chains.
French IT giant Atos has entered discussions with the government for a potential €500 million ($524 million) acquisition of its advanced computing division. Known for its crucial role in securing communications for the French military and manufacturing supercomputer servers, Atos is restructuring to address its mounting debt. The government has prioritised retaining control over the company’s strategic technology assets to safeguard national interests.
The proposed deal includes an initial payment of €150 million upon signing, expected before the exclusivity period ends on May 31. The offer could rise to €625 million with performance-based earn-outs. French Finance Minister Antoine Armand emphasised the state’s duty to ensure the survival and development of industries critical to national sovereignty. Atos’ advanced computing and cybersecurity unit, employing 4,000 people and generating €900 million annually, is seen as a vital asset.
As part of its restructuring, Atos announced plans to sell its cybersecurity unit’s Critical Systems and Cyber Products. With this deal factored in, the company forecasts its financial leverage for 2027 to be between 1.8 and 2.1 times core earnings. Meanwhile, France‘s parliament is considering an amendment that could pave the way for Atos’ nationalisation, underscoring the government’s commitment to protecting key technologies.
