A Chinese state-sponsored hacking group, Volt Typhoon, reportedly breached Singapore Telecommunications (SingTel) in June as part of a broader cyber campaign targeting telecom companies and critical infrastructure globally.
SingTel confirmed that malware was detected during the breach but assured there was no data exfiltrated or service disruption. The company took immediate action, reporting the incident to authorities, though it could not confirm if the breach was the same event mentioned in media reports.
Chinese officials have denied involvement in the attack, with a spokesperson asserting that China opposes all forms of cyberattacks. Volt Typhoon, previously linked to cyberattacks on critical US infrastructure, is believed to have used this incident as a test for potential future attacks on US telecom firms. The breach highlights the growing concerns over Chinese cyber activities targeting global critical infrastructure.
SpaceX, the aerospace company founded by Elon Musk, is urging its Taiwanese suppliers to relocate manufacturing operations off the island due to rising geopolitical tensions between China and Taiwan. This shift, aimed at reducing risk amid China’s increased military drills around Taiwan, has led some suppliers to transfer parts of their production to countries such as Vietnam and Thailand. Notable Taiwanese companies, including Chin-Poon Industrial and Wistron NeWeb Corporation (WNC), confirmed that SpaceX requested they move production, citing geopolitical concerns.
In response, WNC has already started producing network equipment for SpaceX’s Starlink project in Vietnam, with plans to double its workforce there. Similarly, Universal Microwave Technology has expanded in Southeast Asia, investing in new factories in Vietnam and Thailand, while Shenmao Technology is establishing a $5 million unit in Vietnam. These shifts align with Taiwanese tech companies’ broader efforts to diversify their operations outside Taiwan, aiming to insulate their supply chains from potential disruptions.
SpaceX’s approach underscores Musk’s complicated relationship with Taiwan, heightened after his comments last year calling Taiwan an “integral part” of China, which sparked backlash from the Taiwanese government. The company’s interest in building a manufacturing hub in Vietnam reflects an increasing trend of high-tech industries seeking stability amid geopolitical tensions, with Southeast Asia emerging as a crucial alternative for production.
The US Commerce Department has fined GlobalFoundries $500,000 for exporting semiconductor chips to SJ Semiconductor, an affiliate of China’s blacklisted chipmaker SMIC, without proper authorisation. GlobalFoundries, based in New York and one of the world’s largest contract chipmakers, reportedly made 74 shipments valued at $17.1M to the Chinese firm without obtaining the required export license. SJ Semiconductor and its parent, SMIC, were placed on the US trade restriction list in 2020 due to SMIC’s alleged links to China’s military.
GlobalFoundries disclosed the unintentional violation, attributing the exports to a data-entry error that occurred before the Chinese firms were listed. The company emphasised its commitment to strict compliance practices, a sentiment echoed by Assistant Secretary for Export Enforcement Matthew Axelrod, who urged American companies to be vigilant in transactions with Chinese entities.
This fine comes amid increased scrutiny of US export policy and enforcement, particularly as Washington works to prevent American technology from enhancing China’s military capabilities. GlobalFoundries is also in line to receive $1.5B in government support to expand semiconductor manufacturing in the United States, part of the Biden administration’s broader push to boost domestic chip production.
Huawei has announced that its latest operating system, HarmonyOS NEXT, will incorporate China’s central bank digital currency, the digital yuan. Officially launched on 22 October 2023, HarmonyOS NEXT will streamline digital yuan access for Huawei’s extensive user base, estimated at nearly 1 billion people. This marks the first in-house operating system developed entirely by Huawei, positioning it as the world’s third most popular operating system after Android and iOS.
With the digital yuan built directly into the operating system, users can access the currency without needing a separate application, simplifying its use. Huawei has also announced improvements in digital wallet management and enhanced interoperability with other financial applications, making the central bank’s digital currency more accessible and practical. Plans to expand the digital yuan’s reach across IoT devices and smart chips signal further integration across a range of technologies.
This integration comes at a time when China’s digital yuan is gaining momentum domestically and internationally. Recently, the International Air Transport Association (IATA) included the digital yuan as the first digital currency it will accept, citing China’s leading position in digital currency adoption. Meanwhile, China is preparing to update its Anti-Money Laundering laws to address risks associated with virtual assets, underscoring the country’s evolving approach to digital finance.
China’s People’s Liberation Army (PLA) has adapted Meta’s open-source AI model, Llama, to create a military-focused tool named ChatBIT. Developed by researchers from PLA-linked institutions, including the Academy of Military Science, ChatBIT leverages an earlier version of Llama, fine-tuned for military decision-making and intelligence processing tasks. The tool reportedly performs better than some alternative AI models, though it falls short of OpenAI’s ChatGPT-4.
Meta, which supports open innovation, has restrictions against military uses of its models. However, the open-source nature of Llama limits Meta’s ability to prevent unauthorised adaptations, such as ChatBIT. In response, Meta affirmed its commitment to ethical AI use and noted the need for US innovation to stay competitive as China intensifies its AI research investments.
China’s approach reflects a broader trend, as its institutions reportedly employ Western AI technologies for areas like airborne warfare and domestic security. With increasing US scrutiny over the national security implications of open-source AI, the Biden administration has moved to regulate AI’s development, balancing its potential benefits with growing risks of misuse.
Canada’s signals intelligence agency has identified China’s hacking activities as the most significant state-sponsored cyber threat facing the country, according to a new threat assessment. The Communications Security Establishment (CSE) highlighted China’s advanced and aggressive cyber campaigns, describing them as highly sophisticated and primarily targeting political and commercial objectives, including espionage, intellectual property theft, and influence operations. This announcement comes amid strained relations between Ottawa and Beijing, fueled by past allegations of Chinese interference in Canada’s electoral process.
The CSE report also noted that Russia’s cyber operations are active in attempts to destabilise Canada and its allies, while Iran poses an additional cyber threat. These findings underscore the ongoing cyber challenges Canada faces from multiple state actors seeking influence and intelligence. The Chinese embassy in Ottawa has not yet commented on the CSE report, and Beijing has historically rejected similar accusations.
Canadian authorities have grown increasingly vocal about foreign interference, with Prime Minister Justin Trudeau previously accusing China of election meddling. Security experts warn that Canada will need to strengthen defenses as geopolitical tensions continue to heighten cyber risks.
China-linked hackers have reportedly breached telecommunications systems, targeting members of former President Donald Trump’s family and officials from the Biden administration, according to the New York Times. Individuals affected include Trump’s son Eric Trump, son-in-law Jared Kushner, and Senate Majority Leader Chuck Schumer.
Concerns surrounding this hacking group, known as “Salt Typhoon,” have intensified following media reports of their activities. Earlier this month, the Wall Street Journal reported that the group accessed broadband providers’ networks and gathered data from systems used by the federal government for court-authorised wiretapping.
No response was received from the State Department or Trump family representatives regarding Reuters’ requests for comments. The White House, National Security Agency, and Cybersecurity and Infrastructure Security Agency also did not reply immediately. Similarly, the Chinese Embassy in Washington did not respond, though Beijing usually denies involvement in cyberespionage activities.
In China, a new generation of young factory owners is reshaping the country’s manufacturing industry, turning to social media to connect directly with international buyers. Robyn Qiu, a Yale graduate and the daughter of factory owners, is part of this wave, using platforms like Instagram and TikTok to showcase her family’s metal hardware factory in eastern China. Through these videos, which often highlight China’s manufacturing hubs and daily life, Qiu has drawn significant interest from foreign buyers, securing over 500 business inquiries since May.
Second-generation owners like Qiu are tapping into digital marketing to address challenges facing China’s manufacturing sector, including rising labour costs and geopolitical pressures pushing clients to alternative production sites. Qiu’s approach contrasts sharply with her parents’ generation, who relied on middlemen and established buyers, and reflects a desire to elevate China’s standing within the global supply chain. Her strategy includes reducing dependency on middlemen by directly marketing high-tech products like laser levels, positioning her family’s factory as a brand rather than a supplier.
Qiu’s success echoes broader efforts by the “Changerdai” generation — young factory heirs who, unlike the more extravagant “Fuerdai,” focus on advancing their family businesses. Examples of Changerdai’s social media success abound, with viral content such as Qiu’s factory tours or short video dramas from towel makers drawing millions of followers. Guangzhou’s LC Sign factory, for instance, has gained a massive following with humorous videos featuring its LED signage.
By prioritising visibility and brand loyalty, these young entrepreneurs are ensuring their products stand out in a competitive market. In an era of manufacturing oversupply, standing out on social media has become crucial to maintain stable, profitable orders, with the Changerdai leading this new frontier in China‘s manufacturing sector.
China’s Ministry of State Security announced the discovery of foreign spying devices in its waters, including underwater ‘lighthouses’ that could potentially guide foreign submarines. The ministry revealed on its official WeChat account that it had retrieved several types of devices hidden on the ocean floor, gathering real-time data from within China’s claimed territorial waters.
This revelation comes amid rising tensions in the South China Sea, where China and the Philippines dispute territory, increasing the risk of a broader confrontation potentially involving the US. China’s recent military drills around Taiwan have also heightened concerns, as the US and Taiwan have condemned Beijing’s actions.
China claims nearly all of the South China Sea, overlapping areas claimed by other Southeast Asian nations, and has maintained it will not renounce using force over Taiwan. A new phase in the submarine arms race between China and the US and its allies is underway, with Beijing projected to field nuclear-armed submarines by the decade’s end. The ministry affirmed its commitment to defending China’s maritime sovereignty and addressing threats of foreign espionage in its waters.
The Biden administration announced on Monday new rules restricting US investments in specific technology sectors in China, including AI, semiconductors, and quantum computing, citing national security concerns. These rules, effective from 2 January, aim to prevent US capital and expertise from aiding China’s development of military and intelligence capabilities. Issued under an executive order from August 2023, the regulations will be managed by the Treasury’s new Office of Global Transactions.
The targeted technologies are considered crucial to future military and cyber defence. Treasury officials note that US investments often include more than money—managerial support, network access, and intellectual expertise—that could benefit Chinese advancements in sensitive sectors. A senior Treasury official, Paul Rosen, emphasised that these restrictions curb potential US involvement in developing cutting-edge technologies for adversarial nations.
The US Commerce Secretary Gina Raimondo has previously highlighted the importance of these measures, viewing them as essential to slowing China’s progress in military technologies. The new regulations allow for investments in publicly traded Chinese securities; however, existing rules still restrict transactions involving certain Chinese firms deemed to support military development.
Additionally, the rules respond to recent criticism from the House Select Committee on China, which has scrutinised American index providers for funnelling US investments into Chinese companies linked to military advancements. With these regulations, the administration underscores its intent to protect US interests by limiting China’s access to critical technology expertise and capital.
