US

US report highlights China’s growing military capabilities

A US intelligence report has identified China as the top military and cyber threat, warning of Beijing’s growing capabilities in AI, cyber warfare, and conventional weaponry.

The report highlights China’s ambitions to surpass the US as the leading AI power by 2030 and its steady progress towards military capabilities that could be used to capture Taiwan.

It also warns that China could target US infrastructure through cyberattacks and space-based assets.

The findings, presented to the Senate Intelligence Committee, sparked tensions between Washington and Beijing. Chinese officials rejected the report, accusing the US of using outdated Cold War thinking and hyping the ‘China threat’ to maintain military dominance.

China’s foreign ministry also criticised US support for Taiwan, urging Washington to stop backing separatist movements.

Meanwhile, Beijing dismissed accusations that it has failed to curb fentanyl shipments, a key source of US overdose deaths.

The report also notes that Russia, Iran, and North Korea are working to challenge US influence through military and cyber tactics.

While China continues to expand its global footprint, particularly in Greenland and the Arctic, the report points to internal struggles, including economic slowdowns and demographic challenges, that could weaken the Chinese government’s stability.

The intelligence report underscores ongoing concerns in Washington about Beijing’s long-term ambitions and its potential impact on global security.

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

Does Section 230 of the US Communication Decency Act protect users or tech platforms?

Typically, Section 230 of the US Communication Decency Act is considered to protect tech platforms from liability for the content provided. In a recent article, the Electronic Frontier Foundation argues that Section 230 protects users to participate in digital life.

The piece argues that repealing or altering Section 230 could inadvertently strengthen the position of big tech firms by removing the financial burden of litigation that smaller companies and startups cannot bear. Without these protections, smaller services might crumble under expensive legal challenges, stifling innovation and reducing competition in the digital landscape.

Such a scenario would leave big tech with even greater market dominance, which opponents of Section 230 seem to overlook. Additionally, the article addresses the misconception that eliminating Section 230 would enhance content moderation.

It clarifies that the law enables platforms to implement and enforce their standards without fear of increased liability, encouraging responsible moderation. EFF’s article argues that by allowing users and platforms to self-regulate, Section 230 prevents the US government from overreaching into defining acceptable speech, upholding a cornerstone of democratic values.

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

US tightens controls on China’s tech sector amid security fears

The United States has added six subsidiaries of China’s leading cloud computing firm, Inspur Group, along with dozens of other Chinese entities, to its export restriction list.

Washington accuses the companies of aiding China’s military by developing supercomputers and advanced AI technologies. The move is part of a broader strategy to curb China’s progress in high-performance computing, quantum technology, and hypersonic weapons development.

Other companies from Taiwan, Iran, Pakistan, South Africa, and the UAE were also included in the latest restrictions. China has strongly condemned the US decision, calling it an attempt to ‘weaponise trade and technology.’

The Chinese foreign ministry has vowed to take necessary measures to protect its firms, while the Beijing Academy of Artificial Intelligence, which was also targeted, called for the restrictions to be withdrawn.

Companies added to the US Entity List require special licences to access American technology, which are unlikely to be granted. The restrictions could impact major Chinese tech firms linked to AI and computing, such as Huawei and Sugon.

The United States Commerce Department argues that these measures are necessary to prevent China and other countries from using American technology for military applications. Officials insist they will not allow adversaries to strengthen their military capabilities with US-made components.

The latest crackdown follows a 2023 decision to blacklist Inspur Group, which led to scrutiny of its business ties with major US chipmakers such as Nvidia and AMD. Washington also aims to block Iran’s procurement of drone and missile technology as part of its broader national security efforts.

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China warns US against ‘hegemonic thinking’

China’s foreign ministry has criticised the US for viewing China through a ‘hegemonic mentality’ after Washington labelled it the top military and cyber threat.

Ministry spokesperson Guo Jiakun accused the US of pushing the ‘China threat’ narrative as a means to contain and suppress the country.

The latest exchange highlights ongoing tensions between the two global powers, particularly over security, technology, and military influence. Beijing has consistently rejected US claims regarding cyber espionage and military expansion, arguing that such accusations are politically motivated.

Relations between China and the US have remained strained, with disputes spanning trade, Taiwan, and cybersecurity.

Despite diplomatic efforts to stabilise ties, the two nations continue to challenge each other’s policies and strategic moves on the global stage.

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PsiQuantum targets functional quantum machine by 2029

Quantum computing firm PsiQuantum is reportedly raising at least $750 million in a new funding round led by BlackRock, pushing the startup’s pre-money valuation to $6 billion.

The round remains ongoing, but it signals strong investor confidence in PsiQuantum’s ambitious timeline to deliver a fully functional quantum computer by 2029, or sooner.

The US, California-based company uses photonics and semiconductor techniques to produce quantum chips in partnership with GlobalFoundries at a facility in New York.

It has also secured collaborations with the governments of Australia and the US to build quantum computers in Brisbane and Chicago.

The Chicago project will anchor the new Illinois Quantum and Microelectronics Park, marking a major milestone in the commercialisation of quantum technologies.

PsiQuantum faces stiff competition from tech giants like Google, Microsoft, Amazon, and Nvidia, all of whom are making significant strides in quantum research.

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Chinese refiners hesitate as US targets Venezuela oil buyers

Chinese oil traders and refiners have temporarily halted purchases of Venezuelan crude after the United States threatened to impose 25% tariffs on countries importing from Caracas.

The sudden announcement by President Donald Trump created uncertainty in the market, leaving buyers cautious as they await further clarity on how the order will be enforced.

Venezuela’s largest oil customer, China, had been processing a significant share of its crude through independent refiners, commonly known as teapots, who now find themselves reassessing their supply strategy.

Beijing strongly opposed the US move, calling it an example of Washington’s ‘illegal unilateral sanctions’ and interference in other nations’ internal affairs. While Chinese refiners are hesitant, industry insiders suggest that purchases may resume once traders understand how to work around the restrictions.

Many teapots, reliant on cheaper crude from Venezuela amid tightening profit margins, are expected to find alternative ways to continue buying, especially if the Chinese government does not formally instruct them to stop.

The United States has ramped up pressure on Chinese imports through additional tariffs and sanctions on entities linked to oil shipments.

Some refiners affected by past US measures have already adapted, with reports indicating that certain state-linked firms continue to bring in Venezuelan crude under agreements tied to debt repayments.

Analysts believe that unless China officially restricts purchases, independent refiners will find ways to maintain their supply, despite the latest US threats.

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

US trade war escalates with new tariffs and secondary duties

US President Donald Trump announced that new automobile tariffs are imminent, though not all levies set for 2 April will be implemented immediately.

The move comes as Washington seeks to balance its aggressive trade policies with potential exemptions for certain nations. While the administration has indicated some flexibility, officials maintain that strong reciprocal tariffs will remain a key priority.

Wall Street responded positively to the prospect of a more selective approach, with US stocks climbing on optimism that the measures may be less severe than initially expected.

New tariffs will target key industries, including autos, pharmaceuticals, and semiconductors, with duties expected to reach 25%. Trump defended the tariffs, stating they are essential for national security and economic independence.

Meanwhile, the White House announced a 25% secondary tariff on any country purchasing oil or gas from Venezuela, a move that sent oil prices rising.

Countries with large trade surpluses and non-tariff barriers are expected to face the most scrutiny, with Washington focusing on a list of high-priority nations dubbed the ‘Dirty 15.’

Despite international concerns, Trump remains steadfast in his efforts to shrink the United States trade deficit, which he claims is fuelled by unfair foreign practices.

While some nations, including the United Kingdom and India, have pushed for exemptions, officials suggest that avoiding tariffs entirely will be difficult.

The administration has also signalled further investigations into other sectors, raising the likelihood of additional trade restrictions in the near future. Experts believe that while some measures may be delayed, the overall direction of US trade policy remains aggressive and unpredictable.

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DNA-testing firm 23andMe faces financial collapse

23andMe has filed for bankruptcy in the US after struggling with declining demand for its ancestry kits and a major data breach in 2023.

The firm, once valued at nearly $6 billion, has seen its market worth plummet, with shares dropping 50% to just 88 cents after co-founder Anne Wojcicki resigned as CEO. The company will continue operating during the sale process, securing $35 million in financing over the weekend.

Concerns have been raised about the fate of genetic data collected from customers, particularly as 23andMe has made multiple deals with pharmaceutical and biotech firms.

While the company insists the bankruptcy will not affect how data is managed, California’s attorney general has urged users to delete their information amid privacy concerns. Experts warn that while accounts can be deleted, some data may still exist in anonymised form.

The firm’s decline has been worsened by its inability to retain customers, as most users only purchase a kit once. The 2023 data breach, exposing the personal details of nearly 7 million users, further damaged its reputation, leading to a $30 million legal settlement.

Wojcicki, who had made several failed buyout attempts, has signalled her intention to bid again, but 23andMe has not disclosed any other potential buyers.

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

US-India trade negotiations intensify over tariff disputes

India is prepared to lower tariffs on over half of US imports worth $23 billion in a bid to ease trade tensions and prevent harsh reciprocal tariffs from Washington.

With US President Donald Trump set to impose new worldwide tariffs from 2 April, Indian officials fear the move could impact 87% of the country’s exports to the United States, prompting urgent negotiations between the two nations.

Trade talks are scheduled to begin this week, led by US Assistant Trade Representative Brendan Lynch.

While India is willing to make significant tariff cuts on a wide range of goods, government sources indicate that the concessions will depend on securing relief from US duties.

Sensitive items such as meat, wheat, maize, and dairy products remain off the table, but reductions may be possible for almonds, pistachios, and certain grains. India is also pushing for a phased reduction of its automobile tariffs, which currently exceed 100%.

Despite efforts by Prime Minister Narendra Modi to strengthen ties with Washington, Trump has repeatedly criticised India’s tariff policies, labelling the country a ‘tariff abuser.’

The Modi administration is weighing broader tariff reforms but faces domestic political challenges in implementing sweeping reductions. Experts suggest that while external pressure from the US might drive some changes, major across-the-board cuts remain unlikely in the short term.

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US retailers resist price hikes amid tariff pressures

US retailers Walmart and Target are engaged in tense negotiations with suppliers over proposed price increases on a wide range of products.

Manufacturers argue that rising costs, driven by tariffs imposed under former President Donald Trump, are making it difficult to maintain prices. Retailers, however, are pushing back to avoid losing market share and discouraging cost-conscious shoppers.

United States businesses such as Nordic Ware and Bogg Bag have seen production costs surge due to tariffs on aluminium and Chinese imports.

While some suppliers are attempting to raise prices, major retailers require a lengthy review process before accepting any increases.

Smaller manufacturers face the risk of having their products replaced with cheaper alternatives if they insist on higher prices.

Toymaker MGA Entertainment is among the firms negotiating price hikes with Walmart and Target, but retailers are resisting, citing concerns over strained consumers.

Some companies are absorbing losses to maintain shelf space, while others are seeking alternative production locations to reduce costs. The outcome of these pricing battles will determine how much shoppers ultimately pay for everyday goods.

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