US targets Chinese firms over TSMC chips in Huawei processor

Washington has blacklisted over two dozen Chinese entities, including Zhipu AI and Sophgo, for alleged links to restricted chip technology in Huawei processors. The Commerce Department has also tightened export controls on chips that could be diverted to Huawei.

Zhipu AI, backed by Tencent and Alibaba, was accused of contributing to China’s military modernisation through advanced AI research. Sophgo faced scrutiny after a chip found in Huawei’s Ascend 910B AI system matched one it ordered from Taiwan Semiconductor Manufacturing Co (TSMC).

The measures impose stricter licensing requirements for chip exports, targeting semiconductors at 14 or 16-nanometre nodes used in AI applications. New restrictions also affect DRAM memory, crucial for high-bandwidth AI processing, which could impact Chinese chipmaker CXMT.

Zhipu AI denied the claims, while Sophgo stated it had no direct or indirect ties to Huawei. Huawei and TSMC declined to comment on the latest sanctions, which build on previous curbs against Huawei and its network of suppliers.

The US clock strikes ‘ban or divest TikTok’

TikTok faces an uncertain future as the US government’s 19 January 2025 deadline approaches, demanding ByteDance divest its US operations or face a nationwide ban. The ultimatum, backed by the Supreme Court’s apparent readiness to uphold the decision, appears to be the culmination of years of scrutiny over the platform’s data practices and ties to China. Amid this mounting pressure, reports suggest Elon Musk, the owner of X (formerly Twitter), could acquire TikTok’s US operations, a proposal that has sparked debates about its feasibility and geopolitical implications.

Now, let’s see how it began..

How did the TikTok odyssey begin?

The story of TikTok began in 2014 with Musical.ly, a social media app enabling users to create and share lip-sync videos. Founded in Shanghai, it quickly gained traction among US and European teenagers. By 2017, Musical.ly had over 100 million users and caught the attention of ByteDance, a Chinese tech giant that acquired it for $1 billion. In 2018, ByteDance merged Musical.ly with its domestic app Douyin, launching TikTok for international audiences. Leveraging powerful machine-learning algorithms, TikTok’s ‘For You Page’ became its defining feature, captivating users with an endless stream of personalised content.

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By 2018, TikTok had become one of the most downloaded apps globally, surpassing giants like Facebook and Instagram. Its cultural influence exploded, reshaping how content was created and consumed. From viral dance challenges to comedic skits, TikTok carved out a unique space in the digital world, particularly among younger users. However, its meteoric rise also brought scrutiny. Concerns emerged over user data privacy and potential manipulation by its parent company ByteDance, which critics claimed had ties to the Chinese government.

The ‘ban or divest’ saga

The incipit of the current conflict can be traced back to 2020 when then-President Donald Trump attempted to ban TikTok and Chinese-owned WeChat, citing fears that Beijing could misuse US data or manipulate public discourse through the platforms. The courts blocked Trump’s effort, and in 2021, President Joe Biden revoked the Trump-era orders, but initiated its review of TikTok’s data practices, keeping the platform under scrutiny. Despite challenges, TikTok continued to grow, surpassing 1 billion active users by 2021. It implemented community guidelines and transparency measures to address content moderation and concerns about misinformation. It also planned to store US user data on Oracle-operated servers to mitigate fears of Chinese government access. However, bipartisan concerns over TikTok’s influence persisted, especially regarding its ties to the Chinese government and the potential data misuse. Lawmakers and US intelligence agencies have long raised alarms about the vast amount of data TikTok collects on its US users and the potential for Beijing to exploit this information for espionage or propaganda. Therefore, last year, Congress passed a bill with overwhelming support requiring ByteDance to divest its US assets, marking the strictest legal threat the platform has ever faced.

The 19 January 2025 deadline and the rumours about Elon Musk’s potential acquisition of TikTok

By 2024, TikTok was at the centre of a geopolitical storm. The US government’s demand for divestment or a ban by 19 January 2025 intensified the platform’s challenges. Amid these disputes, Elon Musk, owner of X (formerly Twitter), has emerged as a potential buyer for TikTok’s US operations. Musk’s ties to US and Chinese markets via Tesla’s Shanghai production hub position him as a unique figure in this debate. If Musk were to acquire TikTok, it could bolster X’s advertising reach and data capabilities, aligning with his broader ambitions in AI and technology. However, such a sale would involve overcoming numerous hurdles, including ByteDance’s valuation of TikTok at $40–50 billion and securing regulatory approvals from both Washington and Beijing. On the other hand, ByteDance, backed by Beijing, is resisting the sale, arguing that the conditioning violates free speech and poses significant logistical hurdles.

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TikTok has attempted to safeguard its US user base of 170 million by planning to allow users to download their data in case the ban takes effect. It has also reassured its 7,000 US employees that their jobs and benefits are secure, even if operations are halted. While new downloads would be prohibited under the ban, existing users could retain access temporarily, although the platform’s functionality would degrade over time.

The looming deadline has sparked a surge in alternative platforms, such as RedNote (known in China as Xiaohongshu), which has seen a significant influx of US users in anticipation of TikTok’s potential exit.

TikTok’s cultural legacy and future

The fate of TikTok in the US hangs in the balance as President-elect Donald Trump considers an executive order to delay the enforcement of the ‘ban or divest’ law by up to 90 days. The potential extension, supported by figures from both political sides, including Senate Majority Leader Chuck Schumer and Trump’s incoming national security adviser Mike Waltz, aims to provide ByteDance, TikTok’s Chinese owner, additional time to divest its US operations and avoid a nationwide ban. With over 170 million American users and substantial ad revenue at risk, lawmakers are increasingly wary of the disruption a ban could cause, signalling bipartisan support to keep the app operational while addressing national security concerns. TikTok CEO Shou Zi Chew’s attendance at Trump’s inauguration further hints at a shift in relations between the platform and the new administration. Meanwhile, the uncertainty has already driven US users to explore alternatives like RedNote as the clock ticks down to the Sunday deadline.

Either way, TikTok’s impact on culture and technology is undeniable. It has redefined digital content creation and inspired competitors like Instagram Reels and YouTube Shorts. Yet, its journey highlights the challenges of navigating geopolitical tensions and concerns over data privacy in a hyper-connected world. As the 19 January deadline looms, TikTok stands at a crossroads. Whether it becomes part of Musk’s tech empire, succumbs to a US ban, or finds another path, its legacy as a trailblazer in short-form video content remains secure. The platform’s next chapter, however, hangs in the balance, as these TikTok developments underscore the broader implications of its struggles, including the reshaping of the social media landscape and the role of government intervention in regulating digital platforms.

TikTok users react to looming US Shutdown

Disappointment and confusion swept across TikTok users in the United States as news broke that ByteDance, the app’s Chinese owner, plans to shut down the platform for its 170 million US users by Sunday. The move comes in response to a federal ban requiring ByteDance to sell TikTok’s US assets by January 19 due to national security concerns. While some users hold out hope for a last-minute reprieve, many are preparing for the worst.

Content creators, many of whom have built careers and followings on TikTok, expressed frustration and sadness. Some vowed to boycott rival platforms like Instagram, Facebook, and X, while others scrambled to save their content. True crime creator Amber Goode, from Colorado, criticised the government for “playing with us,” while other users shared instructions on migrating to alternative platforms, including China-based apps like RedNote.

TikTok has maintained that it does not and would never share US user data with China, arguing that the ban violates First Amendment rights. Unless the Supreme Court intervenes, users attempting to open the app on Sunday will be redirected to a shutdown information page. President-elect Donald Trump is reportedly exploring executive actions to delay the ban, but the outcome remains uncertain.

The shutdown has sparked mixed emotions globally, with some international users relieved that American social media issues may no longer dominate their feeds. However, for US creators like Ishpal Sidhu, who stands to lose her livelihood, the uncertainty has cast a shadow over what was once a thriving platform.

Telegram scammers exploit new malware tactics

Crypto scammers have increasingly turned to Telegram malware scams, with reports revealing a staggering 2,000% rise in such incidents since November. Unlike traditional phishing scams, these schemes involve fake verification bots within bogus trading, airdrop, and alpha groups, tricking users into downloading malware. Once installed, the malware allows attackers to steal passwords, crypto wallet keys, and browser data.

Security experts have noted this shift as scammers adapt to user awareness of phishing links. Malware tactics, such as fake Cloudflare verification pages and copied text injection, now dominate the landscape. Security firm Scam Sniffer highlighted that these scams target legitimate communities and rely on sophisticated social engineering to lure victims.

The consequences are severe yet difficult to measure, with $2.3 billion stolen in 2024 across 165 incidents, according to Cyvers. Whilst losses in December were lower than usual, scammers continue to evolve their methods, making these attacks increasingly challenging to counter.

Noyb challenges Chinese data practices in Europe

Austrian advocacy group Noyb has filed privacy complaints against six Chinese companies, including TikTok, Shein, and Xiaomi, alleging illegal transfers of European user data to China. The group, known for targeting US tech giants like Apple and Meta, said this is its first case against Chinese firms. Complaints have been filed in four EU countries, seeking fines of up to 4% of each company’s global revenue.

Noyb claims that companies such as Alibaba’s AliExpress and Tencent’s WeChat transfer EU citizens’ data either directly to China or undisclosed ‘third countries,’ which are likely China. Under EU data protection laws, such transfers are prohibited if the destination country fails to meet the bloc’s strict privacy standards. A Noyb lawyer emphasised that China’s status as a ‘surveillance state’ makes such transfers clearly unlawful.

The allegations add to mounting regulatory challenges for Chinese tech firms. TikTok, already under scrutiny in Europe for election interference concerns, faces a potential US ban starting Sunday over national security fears. Regulators in multiple regions continue to ramp up pressure on Chinese companies amid growing global concerns over data privacy and security.

TikTok prepares for possible US shutdown

TikTok is preparing to shut down its US operations on Sunday unless a federal ban is averted at the last minute, according to sources. The ban, stemming from a law signed last April, requires TikTok’s Chinese parent company, ByteDance, to sell its US assets by January 19 or face nationwide restrictions. The Supreme Court is currently deliberating on whether to uphold or pause the ban, but no ruling has been made yet.

President-elect Donald Trump, set to take office the day after the ban would take effect, is reportedly considering a temporary suspension of the shutdown. However, legal uncertainty clouds the possibility of such action. Meanwhile, the Biden administration, in its final days, has signalled it will not block the ban without a credible divestment plan from ByteDance. TikTok has argued that the law violates First Amendment rights and warned that a prolonged ban could lead to significant user loss and global disruptions to its services.

If the ban proceeds, TikTok plans to display a pop-up message informing users of the shutdown and allow them to download their data. The app would become largely inoperable as US companies would no longer be permitted to provide critical services for its maintenance. TikTok has emphasised its ability to restore operations quickly if the ban is reversed but warned that the shutdown would impact not just American users but its global platform due to its reliance on US-based infrastructure.

The political and legal standoff has sparked widespread public and corporate reactions. Social media users have expressed disappointment at the impending ban, while TikTok’s US operations, employing over 7,000 workers, hang in the balance. Despite ongoing efforts to delay the enforcement, the platform faces an uncertain future as Sunday’s deadline looms.

US dismantles China-backed malware infecting thousands of computers

The US Justice Department has removed malware from over 4,200 computers worldwide in an operation targeting a hacking group linked to the Chinese government. The malware, known as ‘PlugX,’ was used to steal information and compromise systems across the United States, Europe, and Asia. Investigators identified the cybercriminals behind the attack as ‘Mustang Panda’ and ‘Twill Typhoon,’ groups believed to have received financial support from China.

Court documents filed in the US District Court for the Eastern District of Pennsylvania allege that the Chinese government paid Mustang Panda to develop PlugX. The malware has been active since at least 2014 and was used not only to target governments and businesses but also Chinese political dissidents. Officials described the operation as a critical step in neutralising cyber threats backed by foreign states.

Authorities emphasised the growing risks posed by state-sponsored hacking groups and their ability to infiltrate global networks. The Justice Department remains committed to dismantling cyber threats and preventing adversaries from exploiting sensitive information. The scale of the attack highlights the persistent threat of cyber espionage and the need for international cooperation in addressing cybersecurity challenges.

US Supreme Court to hear challenge to Texas pornography age verification law

The US Supreme Court will hear a challenge on Wednesday regarding a Texas law that mandates adult websites verify the age of users before granting access to potentially harmful material. The law, which is part of a broader trend across Republican-led states, requires users to submit personal information proving they are at least 18 years old to access pornographic content. The case raises significant First Amendment concerns, as adult entertainment industry groups argue that the law unlawfully restricts free speech and exposes users to risks such as identity theft and data breaches.

The challengers, including the American Civil Liberties Union and the Free Speech Coalition, contend that alternative methods like content-filtering software could better protect minors without infringing on adults’ rights to access non-obscene material. Texas, however, defends the law, citing concerns over the ease with which minors can access explicit content online.

This case is significant because it will test the balance between state efforts to protect minors from explicit content and the constitutional rights of adults to access protected expression. If the Supreme Court upholds the law, it could set a precedent for similar age-verification measures across the US.

Google fixes its AI’s snippy podcast hosts

Google’s NotebookLM, an AI-driven podcast platform, recently faced a surprising issue: its virtual hosts sounded irritated when users interrupted them. The problem emerged after the launch of an interactive feature allowing users to “call in” and ask questions during AI-generated discussions. Users reported that the hosts would sometimes make snippy comments like ‘I was getting to that,’ creating an oddly confrontational experience.

To address the issue, Google’s team implemented a ‘friendliness tuning’ process. They revised the prompts used to guide the AI hosts, studying how human speakers handle interruptions more politely. The adjustment was announced with a light-hearted post on the platform’s social media.

The change seems to be working. In tests, the AI hosts now react to interruptions with polite curiosity rather than frustration. NotebookLM’s refined approach highlights the importance of human-like interaction in AI products, ensuring users feel more engaged and welcomed in conversations.

Indonesia targets age limits for social media access

Indonesia plans to implement interim guidelines to protect children on social media as it works toward creating a law to establish a minimum age for users, a senior communications ministry official announced on Wednesday. The move follows discussions between Communications Minister Meutya Hafid and President Prabowo Subianto, aiming to address concerns about online safety for children.

The proposed law will mirror recent regulations in Australia, which banned children under 16 from accessing social media platforms like Instagram, Facebook, and TikTok, penalising tech companies that fail to comply. In the meantime, Indonesia will issue regulations requiring platforms to follow child protection guidelines, focusing on shielding children from harmful content while still allowing access to some degree.

Public opinion on the initiative is divided. While parents like Nurmayanti support stricter controls to reduce exposure to harmful material, human rights advocates, including Anis Hidayah, urge caution to ensure children’s access to information is not unduly restricted. A recent survey revealed nearly half of Indonesian children under 12 use the internet, with many accessing social media platforms such as Facebook, Instagram, and TikTok.

This regulatory push reflects Indonesia’s broader efforts to balance digital innovation with safeguarding younger users in its rapidly growing online landscape