The incoming Trump administration is set to explore ways to impose higher costs on adversaries and private actors behind cyber attacks, according to Representative Mike Waltz, the pick for national security adviser. Waltz’s statement follows US allegations that a widespread Chinese cyberespionage operation, known as Salt Typhoon, targeted senior American officials and stole significant amounts of metadata.
The White House has revealed that at least eight telecommunications and infrastructure firms in the US were compromised during this campaign. While Waltz did not specify potential actions against Salt Typhoon, he emphasised the need to go beyond defensive measures and start taking offensive actions to deter cyber threats.
Waltz also highlighted the role of the US tech industry in strengthening national defence and exposing vulnerabilities in adversaries. Meanwhile, Chinese officials continue to deny involvement, dismissing the accusations as disinformation and asserting that Beijing opposes cyber attacks in all forms.
Nvidia has refuted social media claims suggesting it plans to limit chip supplies to China, categorically stating that these rumours are false. In a post on a popular Chinese platform, the company reaffirmed its dedication to providing top-quality products and services to Chinese customers, highlighting the importance of the region to its business.
The denial comes at a time of heightened scrutiny over global semiconductor trade, with geopolitical tensions influencing market dynamics. Nvidia’s statement emphasises its continued focus on meeting the needs of its Chinese clientele, despite speculation circulating online.
This clarification is expected to reassure stakeholders in one of Nvidia’s most significant markets, where demand for advanced chips continues to grow, particularly in artificial intelligence and high-performance computing sectors. The company’s swift dismissal of the claims underscores its commitment to maintaining strong ties with China.
Singaporean asset manager Keppel and Vietnam’s Sovico Group are in discussions to develop undersea fibre-optic cables aimed at boosting Southeast Asia’s data centre industry. The potential $150 million project would directly link Vietnam with Singapore, a critical regional hub for data infrastructure. However, talks remain fluid, with Keppel reportedly favouring a larger consortium-led project extending from Singapore to Japan, while Sovico supports a direct connection.
The discussions highlight Southeast Asia’s growing demand for AI services and internet capacity, with Vietnam planning 10 new submarine cables by 2030. These cables are also a focal point in the ongoing US-China tech rivalry, with the United States lobbying against the involvement of Chinese contractors, citing security concerns. US officials have reportedly briefed Sovico and other stakeholders on the risks of working with China’s HMN Technologies.
Vietnam, with a rapidly growing digital economy and a population nearing 100 million, currently relies on five undersea cable branches for global connectivity. Expanding its cable infrastructure is seen as key to establishing itself as a regional data hub, despite challenges like power shortages and stringent data regulations. Keppel and Sovico’s efforts, along with other planned projects, signal significant investment in the region’s digital future.
China is establishing a technical committee to set standards for AI, focusing on areas such as large language models and risk assessment. The committee, announced by the Ministry of Industry and Information Technology, includes 41 members, with representatives from major players like Baidu and renowned academic institutions such as Peking University.
The initiative reflects Beijing’s dual approach of promoting AI development while ensuring safety and ethical oversight. Unlike its earlier hands-off regulation of the mobile internet and e-commerce sectors, China is taking a more proactive stance in shaping AI’s trajectory. Last year, regulatory approval for public-facing chatbots took months, even as domestic companies advanced technologies comparable to OpenAI’s ChatGPT.
China’s move comes amid a growing global race to define AI standards. The competition is not only about technological innovation but also about influencing international frameworks for the sector. A report by the Finnish Institute of International Affairs highlights China’s ambition to become a standard-setter in AI, rather than merely following frameworks set by others.
Nvidia has added around 200 employees in China this year, boosting its research capabilities and focusing on autonomous driving technologies, Bloomberg News reports. The company now employs nearly 600 people in Beijing, with a recently opened office in the Zhongguancun tech hub, according to sources familiar with the matter.
Despite its expansion, Nvidia faces headwinds in China, including an ongoing investigation into alleged violations of the country’s anti-monopoly laws. This probe is widely interpreted as a response to US restrictions on China’s chip sector. Nvidia declined to comment on the situation.
China contributed about 17% of Nvidia’s revenue in the year ending January, down from 26% two years earlier. Globally, Nvidia employs around 29,600 people across 36 countries, as detailed in its February 2024 filing.
Lawmakers have called for urgent measures to strengthen US telecommunications security following a massive cyberattack linked to China. The hacking campaign, referred to as Salt Typhoon, targeted American telecom companies, compromising vast amounts of metadata and call records. Federal agencies have briefed Congress on the incident, which officials say could be the largest telecom breach in US history.
Senator Ben Ray Luján described the hack as a wake-up call, urging the full implementation of federal recommendations to secure networks. Senator Ted Cruz warned of future threats, emphasising the need to close vulnerabilities in critical infrastructure. Debate also surfaced over the role of offensive cybersecurity measures, with Senator Dan Sullivan questioning whether deterrence efforts are adequate.
The White House reported that at least eight telecommunications firms were affected, with significant data theft. In response, Federal Communications Commission Chairwoman Jessica Rosenworcel proposed annual cybersecurity certifications for telecom companies. Efforts to replace insecure Chinese-made equipment in US networks continue, but funding shortfalls have hampered progress.
China has dismissed the allegations, claiming opposition to all forms of cybercrime. However, US officials have cited evidence of data theft involving companies like Verizon, AT&T, and Lumen. Congress is set to vote on a defence bill allocating $3.1 billion to remove and replace vulnerable telecom hardware.
The US Justice Department has urged a federal appeals court to reject TikTok‘s emergency request to delay a law requiring its Chinese parent company, ByteDance, to divest from the app by 19 January or face a nationwide ban. TikTok argued the law threatens to shut down one of America’s most popular social media platforms, which boasts over 170 million US users, while the Justice Department maintains that continued Chinese ownership poses a national security risk.
While the law would not immediately block users from accessing TikTok, the Justice Department admitted the lack of ongoing support would eventually render the app inoperable. A three-judge appeals court panel recently upheld the divestment requirement, and ByteDance has asked the US Supreme Court to review the case.
The controversy places TikTok’s future in the hands of the incoming presidential administration. President Joe Biden could grant a 90-day extension to the divestment deadline before President-elect Donald Trump, who has vowed to prevent a ban, takes office on January 20. Trump’s stance on TikTok has been consistent since his unsuccessful attempts to ban the app during his first term.
The law also strengthens the US government’s powers to ban other foreign-owned apps over data security concerns, following a broader trend initiated under Trump, including an earlier attempt to block Tencent-owned WeChat. As legal battles continue, TikTok’s operations in the US hang in the balance.
Chinese drone manufacturers DJI and Autel Robotics face potential bans in the US under a proposed military bill. The legislation requires a national security review within a year to assess risks posed by their drones. If no review occurs, the companies will automatically join the Federal Communications Commission’s ‘Covered List,’ effectively blocking the sale of new models.
DJI, the world’s largest drone producer, claims the process is unfair, citing extensive security audits and enhanced privacy features. Autel Robotics, also impacted by the proposal, has previously been flagged for investigation over national security concerns.
US lawmakers remain concerned about potential surveillance risks and data vulnerabilities linked to Chinese drones. DJI has refuted these claims, emphasising that no forced labour is involved in its production, despite customs citing related concerns to block imports.
The controversy reflects escalating tensions in US-China relations, particularly in technology and national security domains. The outcome of the proposed bill could reshape the landscape of the commercial drone market in the United States.
US government agencies are set to brief the House of Representatives on a widespread cyberespionage campaign allegedly linked to China. Known as Salt Typhoon, the operation reportedly targeted American telecommunications firms to steal call metadata and other sensitive information. A similar briefing was held for senators last week.
The White House revealed that at least eight US telecom companies had been affected, with a large number of citizens’ data compromised. Senator Ron Wyden is drafting legislation in response, while Senator Bob Casey expressed significant concern, noting that legislative action might be delayed until the new year.
On Wednesday, a Senate Commerce subcommittee will examine the broader risks posed by cyber threats to communication networks. Industry representatives, including Competitive Carriers Association CEO Tim Donovan, will contribute insights on best practices to counter such attacks.
China has denied the allegations, labelling them as disinformation, and reaffirmed its opposition to cyber theft. Officials and lawmakers continue to emphasise the gravity of the breaches, with Senator Richard Blumenthal calling the scale of Chinese hacking efforts ‘terrifying.’
The US Department of Commerce has finalised a $6.1B subsidy for Micron Technology, marking one of the largest awards under the CHIPS and Science Act. The funds will support the construction of new semiconductor plants in New York and Idaho, with expectations to create at least 20,000 jobs by the end of the decade.
An additional $275M investment has been earmarked for expanding Micron’s Virginia facility, which focuses on producing chips for critical sectors like defense, automotive, and networking. The White House emphasised that this effort aims to strengthen national security by reducing reliance on foreign suppliers, particularly from China and Taiwan.
The Biden administration has made semiconductor independence a priority, providing similar funding to companies like Intel and Taiwan Semiconductor Manufacturing Co. These initiatives aim to secure the US position in global chip production, a vital industry for technological and economic stability.
