E-commerce and trade

China halts rare earth exports in trade war escalation

Exports of critical rare earth minerals and magnets from China have ground to a halt following new export restrictions, threatening global supply chains across the semiconductor, automotive, defence, and energy sectors.

The suspension took effect on 4 April, after Beijing imposed strict new licensing requirements in response to steep United States tariffs introduced by President Donald Trump.

China dominates the global supply of rare earth materials such as dysprosium and terbium, which are essential for manufacturing everything from electric vehicles to drones and missiles.

Industry insiders say licence applications could take up to several months to process, sparking fears of shortages if the halt persists beyond two months. Traders estimate shipments might resume after at least 60 days, but delays could stretch further.

Trump defended the tariffs, claiming they are necessary to address trade imbalances, particularly with China. He hinted at further tariffs targeting semiconductors and electronic devices, while his commerce secretary confirmed that smartphones and laptops may also be subject to new levies.

Critics, including Senator Elizabeth Warren, have condemned the approach, warning it will lead to confusion and instability in global markets.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Lenovo unveils compact edge AI server

Lenovo has introduced the ThinkEdge SE100, a compact AI inferencing server aimed at bringing edge AI within reach for businesses of all sizes.

Rather than relying on large data centres for processing, this server is designed to operate on-site in space-constrained environments, allowing data to be processed locally instead of being sent to the cloud.

The SE100 supports hybrid cloud deployments and is part of Lenovo’s new ThinkSystem V4 family. While the V4 systems are built for AI training, the SE100 is intended for inferencing, which is less demanding and doesn’t require power-hungry GPUs.

Lenovo says the unit is 85% smaller than a typical 1U server and draws under 140W, even with GPU configurations.

Engineered to be both energy-efficient and quiet, the SE100 uses Neptune liquid cooling instead of traditional fans, making it suitable for public spaces. Its design also helps extend system health and lifespan by reducing air flow needs and lowering operating temperatures.

Lenovo’s vice president of infrastructure products, Scott Tease, stated the SE100 is a cost-effective solution that simplifies AI deployment at the edge.

Its flexible design adapts to diverse business needs, offering low-latency, high-performance inferencing without the complexity or expense of full-scale AI infrastructure.

For more information on these topics, visit diplomacy.edu.

AI giant Nvidia rebounds but challenges remain

Shares in Nvidia soared by nearly 20 per cent following a 90-day suspension of new US tariffs, lifting Wall Street to one of its strongest single-day performances in decades. The tech giant, whose chips underpin much of the AI boom from tools like ChatGPT to drone technologies, added $440bn to its market value in just one session, underlining its pivotal role in the global AI race.

Despite the rally, serious concerns remain. While some tariffs were temporarily halted, President Donald Trump raised levies on Chinese imports to as high as 125 per cent. For Nvidia, whose supply chain relies heavily on advanced manufacturing in Asia, particularly Taiwan and South Korea, the move threatens to disrupt both costs and production timelines. Analysts caution that such trade friction could deter investment in AI infrastructure, which is still in early stages of commercial return.

Even with strong revenues and continued dominance in AI hardware, Nvidia faces growing headwinds. The firm’s recent share slump reflected broader anxiety over whether AI spending is peaking, alongside the rise of cheaper, open-source alternatives. Added pressure from high energy demands, regulatory risks, and tighter capital markets could further complicate growth. Industry watchers warn that tariffs may undermine the very conditions AI needs to flourish: stable supply chains, affordable power, and investor confidence.

For more information on these topics, visit diplomacy.edu.

Fujitsu launches AI scanner to assess tuna fat

Fujitsu has developed a new AI-powered inspection device that determines the fat content of frozen albacore tuna with unprecedented speed and accuracy. Replacing the traditional practice of slicing and thawing tuna tails for human evaluation, the technology uses ultrasonic waves and artificial intelligence to analyse the internal marbling of the fish without causing damage.

The system scans each tuna from four angles, generating waveforms that an AI algorithm interprets to assess fat levels. Results are displayed in seconds with labels such as ‘highly marbled’ or ‘low fat’, dramatically reducing the time required compared to manual inspection. While visual assessment typically takes around a minute, Fujitsu’s device completes the process in just 12 seconds.

Developed in partnership with Tokai University and with support from machinery firm Ishida Tech, the device promises greater consistency and the ability to inspect every fish in a catch, something previously considered too labour-intensive. Scheduled to launch in June, it will be priced between 30 million and 35 million yen (£160,000–£187,000). Fujitsu aims to expand the system to evaluate additional species like yellowfin and bonito, and to assess freshness and texture in future updates.

For more information on these topics, visit diplomacy.edu.

WooCommerce responds to alleged data breach claim

A hacker going by the alias ‘Satanic’ recently claimed responsibility for a significant data breach affecting websites that use WooCommerce, a leading eCommerce platform. The attacker alleged that over 4.4 million customer records were compromised, including personal and corporate data such as email addresses, phone numbers, physical addresses, and social media profiles, as well as company revenues, staff sizes, and tech stacks.

The original announcement was made on Breach Forums, a known cybercrime forum, where the hacker stated that the data was available for sale via private messages or Telegram. While initial reports—including one by HackRead—linked the breach to WooCommerce-based stores, WooCommerce has since issued an official statement denying that its systems were involved in the incident.

‘We can confirm that no WooCommerce data has been involved in the breach described in these articles. Our team quickly investigated the data samples and compared them against our own records. We determined that the data was not obtained through a breach of WooCommerce.com or any other Automattic services.’ — Jay Walsh, Director of Communications, WooCommerce.

The company believes that the leaked data originated from a third-party service that aggregates publicly available information about e-commerce sites. It is unclear whether the data was accessed legally or obtained through other means.

The attacker claimed the breach was achieved by exploiting vulnerabilities in third-party systems integrated with WooCommerce-powered websites—such as CRMs or marketing platforms—rather than through WooCommerce itself. However, no technical evidence has been shared to substantiate this claim.

The incident follows previous breach claims by the same hacker involving platforms like Magento and Twilio’s SendGrid, the latter of which was also denied by the company.

WooCommerce, owned by Automattic, powers a large share of global online shops. While the platform remains secure according to its developers, the case highlights ongoing concerns about the security of third-party tools and integrations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Gerry Adams targets Meta over use of his books

Gerry Adams, the former president of Sinn Féin, is considering legal action against Meta for allegedly using his books to train AI. Adams claims that at least seven of his books were included in a large collection of copyrighted material Meta used to develop its AI systems.

He has handed the matter over to his solicitor. The books in question include his autobiography Before the Dawn, prison memoir Cage Eleven, and reflections on Northern Ireland’s peace process Hope and History, among others.

Adams is not the only author voicing concerns about Meta’s use of copyrighted works. A group of writers filed a US court case in January, accusing Meta of using the controversial Library Genesis (LibGen) database, which hosts over 7.5 million books, many believed to be pirated.

The discovery followed a searchable database of titles from LibGen being published by The Atlantic, which led several authors to identify their works being used to train Meta’s Llama AI model.

The Society of Authors has condemned Meta’s actions, with chair Vanessa Fox O’Loughlin calling the move ‘shocking and devastating’ for authors.

Many authors are concerned that AI models like Llama, which power tools such as chatbots, could undermine their work by reproducing creative content without permission. Meta has defended its actions, claiming that its use of information to train AI models is in line with existing laws.

Adams, a prolific author and former MP, joins other Northern Irish writers, including Booker Prize winner Anna Burns, in opposing the use of their work for AI training without consent.

For more information on these topics, visit diplomacy.edu.

Anker raises prices amid rising US tariffs

Chinese tech company Anker, one of Amazon’s largest sellers, has raised prices on a fifth of its products on the platform since last Thursday. The price hikes, averaging 18%, are a direct result of the recent increase in US tariffs on Chinese goods.

The majority of the price rises occurred after 7 April, when President Donald Trump imposed an additional 50% import duty on Chinese imports.

It follows a broader trend where US import tariffs on Chinese goods have now reached 145%, while Beijing retaliated by raising tariffs on US products to 125%.

In response, China’s largest cross-border e-commerce association warned that many Chinese businesses selling on Amazon are considering price hikes or may leave the US market altogether.

Anker, a major player in the e-commerce space since its founding in 2011, has leveraged its bargaining power to implement these price increases.

With 5,000 employees and annual revenues of 22.17 billion yuan ($3 billion), Anker is able to absorb some of the tariff pressure while many of its competitors face similar challenges.

The company has also hinted at expanding into non-US markets, including Europe and Southeast Asia, as it seeks to navigate the increasingly challenging trade environment.

Anker and Amazon did not immediately respond to requests for comment.

For more information on these topics, visit diplomacy.edu.

EU prepares new data strategy for AI growth

The European Commission will soon launch a consultation on its upcoming Data Union Strategy, a key part of efforts to boost Europe’s leadership in AI.

The strategy, set to be published by the end of the year, aims to make it easier for businesses and public bodies to share data securely and efficiently across the EU.

The initiative supports the broader AI Continent Action Plan, expected to be unveiled this week, which seeks to encourage faster adoption of AI technologies by European companies.

Instead of relying on fragmented systems, the Commission wants to improve data access, digital infrastructure, and cloud capabilities while investing in talent and streamlining complex processes.

The plan includes the creation of AI factories where companies can train models using EU-based resources, and a separate Cloud and AI Development Act later this year will promote energy-efficient investments to support these goals.

Public feedback on the Data Union Strategy will be gathered from April to June as part of the consultation process.

Despite the ambition, the Commission acknowledges ongoing concerns such as uncertainty around international data flows and challenges accessing suitable data for generative AI.

Strict privacy laws like the GDPR, instead of enabling wider AI training, have led to frustration from major tech firms over regulatory delays in Europe.

For more information on these topics, visit diplomacy.edu.

EU plans new law to tackle online consumer manipulation

The European Commission is preparing to introduce the Digital Fairness Act, a new law that aims to boost consumer protection online instead of adding more regulatory burden on businesses.

Justice Commissioner Michael McGrath described the upcoming legislation as both pro-consumer and pro-business during a speech at the European Retail Innovation Summit, seeking to calm industry concerns about further EU regulation following the Digital Services Act and the Digital Markets Act.

Designed to tackle deceptive practices in the digital space, the law will address issues such as manipulative design tricks known as ‘dark patterns’, influencer marketing, and personalised pricing based on user profiling.

It will also target concerns around addictive service design and virtual currencies in video games—areas where current EU consumer rules fall short. The legislation will be based on last year’s Digital Fairness Fitness Check, which highlighted regulatory gaps in the online marketplace.

McGrath acknowledged the cost of complying with EU-wide consumer protection measures, which can run into millions for businesses.

However, he stressed that the new act would provide legal clarity and ease administrative pressure, particularly for smaller companies, instead of complicating compliance requirements further.

A public consultation will begin in the coming weeks, ahead of a formal legislative proposal expected by mid-2026.

Maria-Myrto Kanellopoulou, head of the Commission’s consumer law unit, promised a thoughtful approach, saying the process would be both careful and thorough to ensure the right balance is struck.

For more information on these topics, visit diplomacy.edu

EU refuses to soften tech laws for Trump trade deal

The European Union has firmly ruled out dismantling its strict digital regulations in a bid to secure a trade deal with Donald Trump. Henna Virkkunen, the EU’s top official for digital policy, said the bloc remained fully committed to its digital rulebook instead of relaxing its standards to satisfy American demands.

While she welcomed a temporary pause in US tariffs, she made clear that the EU’s regulations were designed to ensure fairness and safety for all companies, regardless of origin, and were not intended as a direct attack on US tech giants.

Tensions have mounted in recent weeks, with Trump officials accusing the EU of unfairly targeting American firms through regulatory means. Executives like Mark Zuckerberg have criticised the EU’s approach, calling it a form of censorship, while the US has continued imposing tariffs on European goods.

Virkkunen defended the tougher obligations placed on large firms like Meta, Apple and Alphabet, explaining that greater influence came with greater responsibility.

She also noted that enforcement actions under the Digital Markets Act and Digital Services Act aim to ensure compliance instead of simply imposing large fines.

Although France has pushed for stronger retaliation, the European Commission has held back from launching direct countermeasures against US tech firms, instead preparing a range of options in case talks fail.

Virkkunen avoided speculation on such moves, saying the EU preferred cooperation to conflict. At the same time, she is advancing a broader tech strategy, including plans for five AI gigafactories, while also considering adjustments to the EU’s AI Act to better support small businesses and innovation.

Acknowledging creative industries’ concerns over generative AI, Virkkunen said new measures were needed to ensure fair compensation for copyrighted material used in AI training instead of leaving European creators unprotected.

The Commission is now exploring licensing models that could strike a balance between enabling innovation and safeguarding rights, reflecting the bloc’s intent to lead in tech policy without sacrificing democratic values or artistic contributions.

For more information on these topics, visit diplomacy.edu.