China

Salt Typhoon compromises critical US infrastructure

A US state’s Army National Guard network was thoroughly compromised by the Chinese cyberespionage group Salt Typhoon from March to December 2024. According to a confidential federal memo, hackers extracted highly sensitive information, including administrator credentials, network maps, and interstate communication data, raising alarm over data leaked across all 50 states and four US territories.

Security analysts caution that the breach goes beyond intelligence gathering. With access to National Guard systems, integral to state-level threat response and civilian support, the group is poised to exploit vulnerabilities in critical infrastructure, particularly during crises or conflict.

Salt Typhoon, linked to China’s Ministry of State Security, has a track record of penetrating telecommunications, energy grids, transport systems, and water utilities. Often leveraging known vulnerabilities in Cisco and Palo Alto equipment, the group has exfiltrated over 1,400 network configuration files from more than 70 US critical infrastructure providers.

Federal agencies, including DHS and CISA, are sounding the alarm: this deep infiltration presents a serious national security threat and indicates a strategic shift in cyber warfare. Navigating Sun Typhoon’s persistent access through local and federal networks is now a top priority in defending the critical systems on which communities rely.

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Tech giants work to avert an AI‑driven energy crisis

The AI boom is triggering alarms in the energy sector, with data centres expected to consume 3% of the world’s electricity by 2030, double today’s share. This projection has spurred tech firms to pursue aggressive efficiency strategies.

Control systems powered by AI regulate cooling more precisely, while liquid cooling systems replace inefficient air-based approaches. Cutting-edge chips and more innovative software have already yielded energy savings of 20–30% per workflow.

Infrastructure improvements mean data-centre support systems now consume just 10% of the energy that powering the servers does. Despite these advances, the total energy demand continues to rise, prompting investments in technology upgrades and low-carbon power sources.

A global race is underway as US and Chinese companies push for increasingly efficient AI chips. Still, experts warn that overall consumption will grow, so efficiency alone won’t be enough. Broad energy planning and sustainable strategies are critical to avoid a looming power crunch as AI proliferates.

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China deploys new malware tool for border phone searches

Chinese authorities reportedly use a powerful new malware tool called Massistant to extract data from seized Android phones. Developed by Xiamen Meiya Pico, the tool enables police to access messages, photos, locations, and app data once they have physical access to a device.

Cybersecurity firm Lookout revealed that Massistant operates via a desktop-connected tower, requiring unlocked devices but no advanced hacking techniques. Researchers said affected users include Chinese citizens and international travellers whose phones may be searched at borders.

The malware leaves traces on compromised phones, allowing for post-infection removal, but authorities already have the data by then. Forums in China have shown increasing user complaints about malware following police interactions.

Massistant is seen as the successor to an older tool, MSSocket, with Meiya Pico now controlling 40% of China’s digital forensics market. They previously sanctioned the firm for its surveillance tech links to the Chinese government’s use.

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Europe’s quantum ambitions meet US private power and China’s state drive

Quantum computing could fundamentally reshape technology, using quantum bits (qubits) instead of classical bits. Qubits allow complex calculations beyond classical computing, transforming sectors from pharmaceuticals to defence.

Europe is investing billions in quantum technology, emphasising technological sovereignty. Yet, it competes fiercely with the United States, which enjoys substantial private investment, and China, powered by significant state-backed funding.

The UK began quantum initiatives early, launching the National Quantum Programme 2014. It recently pledged £2.5 billion more, supporting start-ups like Orca Computing and Universal Quantum, alongside nations like Canada, Israel, and Japan.

Europe accounted for eight of the nineteen quantum start-ups established globally in 2024, including IQM Quantum Computers and Pasqal. Despite Europe’s scientific strengths, it only captured 5% of global quantum investments, versus 50% for the US.

The European Commission aims to strengthen quantum capabilities by funding six chip factories and a continent-wide Quantum Skills Academy. However, attracting sufficient private investment remains a significant challenge.

The US quantum industry thrives, driven by giants such as IBM, Google, Microsoft, IonQ, Rigetti, and D-Wave Quantum. Recent breakthroughs include Microsoft’s topological qubit and Google’s Willow quantum chip.

D-Wave Quantum has demonstrated real-world quantum advantages, solving complex optimisation problems in minutes. Its technology is now used commercially in logistics, traffic management, and supply chains.

China, meanwhile, leads in state-driven quantum funding, investing $15 billion directly and managing a $138 billion tech venture fund. By contrast, US federal investment totals about $6 billion, underscoring China’s aggressive approach.

Global investment in quantum start-ups reached $1.25 billion in Q1 2025 alone, reflecting a shift towards practical applications. By 2040, the quantum market is projected to reach $173 billion, influencing global economics and geopolitics.

Quantum computing raises geopolitical concerns, prompting democratic nations to coordinate through bodies like the OECD and G7. Interoperability, trust, and secure infrastructure have become essential strategic considerations.

Europe’s quantum ambitions require sustained investment, standard-setting leadership, and robust supply chains. Its long-term technological independence hinges on moving swiftly beyond initial funding towards genuine strategic autonomy.

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Nvidia to restart China AI chip sales after US talks

Nvidia has announced plans to resume sales of its H20 AI chip in China, following meetings between CEO Jensen Huang and US President Donald Trump in Beijing.

The move comes after US export controls previously banned sales of the chip on national security grounds, costing Nvidia an estimated $15 billion in lost revenue.

The company confirmed it is filing for licences with the US government to restart deliveries of the H20 graphics processing unit, expecting approval shortly.

Nvidia also revealed a new RTX Pro GPU designed specifically for China, compliant with US export rules, offering a lower-cost alternative instead of risking further restrictions.

Huang, attending a supply chain expo in Beijing, described China as essential to Nvidia’s growth, despite rising competition from local firms like Huawei.

Chinese companies remain highly dependent on Nvidia’s CUDA platform, while US lawmakers have raised concerns about Nvidia engaging with Chinese entities linked to military or intelligence services.

Nvidia’s return to the Chinese market comes as Washington and Beijing show signs of easing trade tensions, including relaxed rare earth export rules from China and restored chip design services from the US.

Analysts note, however, that Chinese firms are likely to keep diversifying suppliers instead of relying solely on US chips for supply chain security.

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EU bets on quantum to regain global influence

European policymakers are turning to quantum technology as a strategic solution to the continent’s growing economic and security challenges.

With the US and China surging ahead in AI, Europe sees quantum innovation as a last-mover advantage it cannot afford to miss.

Quantum computers, sensors, and encryption are already transforming military, industrial and cybersecurity capabilities.

From stealth detection to next-generation batteries, Europe hopes quantum breakthroughs will bolster its defences and revitalise its energy, automotive and pharmaceutical sectors.

Although EU institutions have heavily invested in quantum programmes and Europe trains more engineers than anywhere else, funding gaps persist.

Private investment remains limited, pushing some of the continent’s most promising start-ups abroad in search of capital and scale.

The EU must pair its technical excellence with bold policy reforms to avoid falling behind. Strategic protections, high-risk R&D support and new alliances will be essential to turning scientific strength into global leadership.

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Nvidia chief says Chinese military unlikely to use US chips

Nvidia’s CEO, Jensen Huang, has downplayed concerns over Chinese military use of American AI technology, stating it is improbable that China would risk relying on US-made chips.

He noted the potential liabilities of using foreign tech, which could deter its adoption by the country’s armed forces.

In an interview on CNN’s Fareed Zakaria GPS, Huang responded to Washington’s growing export controls targeting advanced AI hardware sales to China.

He suggested the military would likely avoid US technology to reduce exposure to geopolitical risks and sanctions.

The Biden administration had tightened restrictions on AI chip exports, citing national security and fears that cutting-edge processors might boost China’s military capabilities.

Nvidia, whose chips are central to global AI development, has seen its access to the Chinese market increasingly limited under these rules.

While Nvidia remains a key supplier in the AI sector, Huang’s comments may ease some political pressure around the company’s overseas operations.

The broader debate continues over balancing innovation, commercial interest and national security in the AI age.

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Report shows China outpacing the US and EU in AI research

AI is increasingly viewed as a strategic asset rather than a technological development, and new research suggests China is now leading the global AI race.

A report titled ‘DeepSeek and the New Geopolitics of AI: China’s ascent to research pre-eminence in AI’, authored by Daniel Hook, CEO of Digital Science, highlights how China’s AI research output has grown to surpass that of the US, the EU and the UK combined.

According to data from Dimensions, a primary global research database, China now accounts for over 40% of worldwide citation attention in AI-related studies. Instead of focusing solely on academic output, the report points to China’s dominance in AI-related patents.

In some indicators, China is outpacing the US tenfold in patent filings and company-affiliated research, signalling its capacity to convert academic work into tangible innovation.

Hook’s analysis covers AI research trends from 2000 to 2024, showing global AI publication volumes rising from just under 10,000 papers in 2000 to 60,000 in 2024.

However, China’s influence has steadily expanded since 2018, while the EU and the US have seen relative declines. The UK has largely maintained its position.

Clarivate, another analytics firm, reported similar findings, noting nearly 900,000 AI research papers produced in China in 2024, triple the figure from 2015.

Hook notes that governments increasingly view AI alongside energy or military power as a matter of national security. Instead of treating AI as a neutral technology, there is growing awareness that a lack of AI capability could have serious economic, political and social consequences.

The report suggests that understanding AI’s geopolitical implications has become essential for national policy.

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Cyber defence effort returns to US ports post-pandemic

The US Cybersecurity and Infrastructure Security Agency (CISA) has resumed its seaport cybersecurity exercise programme. Initially paused due to the pandemic and other delays, the initiative is now returning to ports such as Savannah, Charleston, Wilmington and potentially Tampa.

These proof-of-concept tabletop exercises are intended to help ports prepare for cyber threats by developing a flexible, replicable framework. Each port functions uniquely, yet common infrastructure and shared vulnerabilities make standardised preparation critical for effective crisis response.

CISA warns that threats targeting ports have grown more severe, with nation states exploiting AI-powered techniques. Some US ports, including Houston, have already fended off cyberattacks, and Chinese-made systems dominate critical logistics, raising national security concerns.

Private ownership of most port infrastructure demands strong public-private partnerships to maintain cybersecurity. CISA aims to offer a shared model that ports across the country can adapt to improve cooperation, resilience, and threat awareness.

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US targets Southeast Asia to stop AI chip leaks to China

The US is preparing stricter export controls on high-end Nvidia AI chips destined for Malaysia and Thailand, in a move to block China’s indirect access to advanced GPU hardware.

According to sources cited by Bloomberg, the new restrictions would require exporters to obtain licences before sending AI processors to either country.

The change follows reports that Chinese engineers have hand-carried data to Malaysia for AI training after Singapore began restricting chip re-exports.

Washington suspects Chinese firms are using Southeast Asian intermediaries, including shell companies, to bypass existing export bans on AI chips like Nvidia’s H100.

Although some easing has occurred between the US and China in areas such as ethane and engine components, Washington remains committed to its broader decoupling strategy. The proposed measures will reportedly include safeguards to prevent regional supply chain disruption.

Malaysia’s Trade Minister confirmed earlier this year that the US had requested detailed monitoring of all Nvidia chip shipments into the country.

As the global race for AI dominance intensifies, Washington appears determined to tighten enforcement and limit Beijing’s access to advanced computing power.

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