US authorities are considering whether to add Chinese online retailers Shein and Temu to the Department of Homeland Security’s forced labour list, according to a Semafor report. The Trump administration has not reached a final decision and may opt against the move, sources said.
Both companies strongly denied any involvement in forced labour. Shein stated it complies fully with the US Uyghur Forced Labor Prevention Act, while Temu emphasised its strict prohibition of involuntary labour through its Third-Party Code of Conduct.
Discussions on the retailers’ status come as tensions between the US and China escalate. Beijing recently imposed targeted tariffs on US imports and warned companies such as Google about possible sanctions, responding to the latest trade measures introduced by Washington.
China has introduced a series of measures targeting US businesses, including Google, farm equipment makers, and the owner of Calvin Klein, following the implementation of new US tariffs on Chinese goods. Among these measures, China launched an investigation into Google for potential violations of anti-monopoly laws, although no further details were provided. Despite its minimal presence in China, Google continues to collaborate with local advertisers.
China’s Ministry of Commerce also added US firms PVH Corp and Illumina to its ‘unreliable entity’ list, accusing them of actions that harmed Chinese companies. The companies could face significant sanctions, including trade freezes and restrictions on foreign staff. PVH has already been under scrutiny for its ties to the Xinjiang region.
As part of a broader response, China imposed 10% tariffs on US farm equipment, which could impact companies like Caterpillar, Deere & Co., and AGCO. Tesla’s Cybertruck, a model that has yet to receive regulatory approval, could also be affected. These new tariffs, set to take effect on February 10, signal an escalation in trade tensions between China and the US, extending beyond the tech sector.
These moves mark a significant increase in trade restrictions, building on previous actions taken under former US President Biden’s administration. Analysts suggest that these measures may be used as leverage, with the potential for de-escalation if either side chooses to back down.
Google and Epic Games presented arguments before a US appeals court as Google attempted to overturn a jury verdict and a judge’s order requiring changes to its app store. Google’s lawyer argued that the trial judge made errors that unfairly benefited Epic, which had accused the company of monopolising access to apps on Android devices. A San Francisco jury previously ruled that Google had stifled competition.
The judge ordered Google to allow users to download rival app stores within its Play Store and to make its app catalogue available to competitors. Google’s appeal has put the ruling on hold, with its lawyer contending that the company faces strong competition from Apple’s App Store and was unfairly restricted from making that argument. Epic’s lawyer rejected Google’s claims, insisting that its dominance had harmed competition for years.
A judge on the appeals panel challenged Google’s position, highlighting key differences between Apple’s and Android’s business models. Google also argued that Epic’s case should not have gone before a jury, as it did not seek damages. Epic countered that the Play Store changes were necessary and disputed Google’s concerns about privacy and security.
The US Justice Department, Federal Trade Commission, and Microsoft have backed Epic in the case. A decision from the appeals court is expected later in the year, with the possibility of further escalation to the US Supreme Court.
President Donald Trump has signed an executive order directing the creation of a US sovereign wealth fund within a year. The order tasks the Treasury and Commerce Departments with presenting a detailed plan within 90 days, outlining funding sources, investment strategies, and governance. The US, which operates at a deficit, would need congressional approval to establish such a fund.
Trump has long supported the idea of a government investment vehicle, suggesting it could finance major infrastructure projects and other national initiatives. Treasury Secretary Scott Bessent indicated that the fund would be structured to monetise US assets for public benefit. One proposal involves repurposing the US International Development Finance Corp (DFC) to function similarly to sovereign wealth funds found in other nations.
Congressional approval is likely necessary, as such a fund typically relies on surplus revenue. Experts have questioned its viability, given the country’s financial position. Investors expressed surprise, noting that sovereign wealth funds usually stem from accumulated savings rather than deficits. Despite this, Trump remains confident in the initiative.
A surprising element of Trump’s announcement was the suggestion that the sovereign wealth fund could purchase TikTok. The app, which faces regulatory pressure over national security concerns, has been in limbo as its Chinese owner, ByteDance, explores potential sales. Trump stated that a decision on TikTok’s future could be reached in February.
Indian entrepreneur Bhavish Aggarwal is investing $230 million into Krutrim, an AI startup he founded, as part of India’s push to establish itself in the global AI market. The company, which develops large language models (LLMs) for Indian languages, aims to raise a total of $1.15 billion by next year, with Aggarwal seeking additional funding from external investors.
In a significant move, Krutrim has made its AI models open source and announced plans to build India’s largest supercomputer in partnership with Nvidia. The firm recently introduced Krutrim-2, a 12-billion parameter model that has demonstrated strong performance in Indian language processing and code generation. It has also launched BharatBench, a new evaluation framework designed to assess AI models’ proficiency in Indian languages.
The investment follows the launch of Krutrim-1, India’s first large language model, and aligns with broader efforts to position India as a key player in AI, traditionally dominated by the US and China. Krutrim has also begun hosting Chinese AI lab DeepSeek’s models on domestic servers, signalling India’s growing role in the AI ecosystem. With a supercomputer set to go live in March, the company is poised for rapid expansion in the coming months.
OpenAI has announced a new partnership with Kakao to develop AI products for South Korea. This marks OpenAI’s second major alliance in Asia this week, following a similar deal with SoftBank for AI services in Japan. OpenAI CEO Sam Altman, who is on a tour of Asia, also met with leaders from Samsung Electronics, SoftBank, and Arm Holdings. The partnership with Kakao is seen as part of OpenAI’s broader strategy to expand its AI presence in the region, with a focus on messaging and AI applications.
Kakao, which operates South Korea’s dominant messaging app KakaoTalk, plans to integrate OpenAI’s technology into its services as part of its push to grow its AI capabilities. Although Kakao has lagged behind rival Naver in the AI race, the company is positioning AI as a key growth engine. Altman highlighted the importance of South Korea’s energy, semiconductor, and internet sectors in driving demand for AI products, noting that many local companies will play a role in OpenAI’s Stargate data centre project in the US.
In addition to his work with Kakao, Altman met with executives from SK Group and Samsung to discuss AI chips and potential cooperation. SK Hynix, a key player in the production of AI processors, has been in discussions with OpenAI regarding collaboration in the AI ecosystem. Altman also indicated that OpenAI is actively considering involvement in South Korea’s national AI computing centre project, which is expected to attract up to $1.4 billion in investment.
Following the announcement, Kakao’s stock fell by 2%, after a 9% surge the previous day.
US telecom giant AT&T and Finnish network equipment maker Nokia have signed a multi-year agreement to upgrade AT&T’s voice services and 5G network automation. This deal comes after Nokia lost a significant contract to Swedish rival Ericsson in 2023, which led to Ericsson securing a $14 billion deal to build a network for AT&T covering 70% of its US wireless traffic by 2026. Nokia, however, remains involved with AT&T through a smaller agreement for fibre network development and a new contract focused on cloud-based voice applications and network automation.
The deal will enhance AT&T’s core network, enabling new voice services, including the integration of AI and machine learning. Although the financial details of the agreement were not disclosed, Nokia’s involvement is seen as crucial in bolstering its long-standing relationship with AT&T. Nokia’s president of Cloud and Network Services, Raghav Sahgal, emphasised that this agreement will allow for the deployment of new 5G functionalities.
Nokia recently reported stronger-than-expected earnings, driven by higher demand for telecoms equipment, particularly in North America and India. The company remains optimistic about its prospects in 2025, especially with plans to capitalise on the AI boom. Last year, Nokia also agreed to acquire Infinera for $2.3 billion to strengthen its position in the growing data centre and AI markets.
Waabi, a self-driving technology company, announced a partnership with Volvo’s driverless systems unit on Tuesday to develop autonomous big rigs. The collaboration aims to integrate Waabi’s virtual driver system, sensors, and computing into Volvo’s VNL Autonomous truck, which will be produced at Volvo’s New River Valley factory in Virginia.
The partnership comes as truck manufacturers and fleets look for ways to address driver shortages and reduce operational costs. Waabi, backed by Nvidia and Uber, uses its digital simulator, Waabi World, for testing and validation, with plans to launch commercial pilots in Texas within four years.
Unlike Tesla, which relies on a vision-only approach for its self-driving technology, Waabi uses a unique system to simulate real-world driving situations. The company also indicated that the deal with Volvo is not exclusive and they aim to integrate their technology with other truck manufacturers.
Volvo’s venture capital arm invested in Waabi in 2023, joining other backers such as Khosla Ventures and Porsche Automobil Holding. Waabi’s CEO Raquel Urtasun said trucking was a natural starting point for their technology, with plans to expand into areas like robotaxis and humanoid robots in the future.
WhatsApp has identified an advanced hacking campaign targeting nearly 90 users across more than two dozen countries. The attack, linked to Israeli spyware firm Paragon Solutions, exploited a zero-click vulnerability, meaning victims’ devices were compromised without them needing to interact with any malicious files. The messaging platform, owned by Meta, has since taken steps to block the hacking attempts and has issued a cease-and-desist letter to Paragon.
While WhatsApp has not disclosed the identities of those targeted, reports indicate that journalists and members of civil society were among the victims. The company has referred affected users to Citizen Lab, a Canadian watchdog that investigates digital security threats. Law enforcement agencies and industry partners have also been alerted, though specifics remain undisclosed.
Paragon, which was recently acquired by US investment firm AE Industrial Partners, has not commented on the allegations. The company presents itself as a responsible player in the spyware industry, claiming to sell its technology only to governments in stable democracies. However, critics argue that the continued spread of surveillance tools increases the risk of human rights abuses, with spyware repeatedly found on the devices of activists, journalists, and officials worldwide.
Cybersecurity experts warn that the growing use of commercial spyware poses an ongoing threat to digital privacy. Despite claims of ethical safeguards, the latest revelations suggest that even companies with supposedly responsible practices may be engaging in questionable surveillance activities.
Chinese internet users have been captivated by the DeepSeek AI app, which has gained immense popularity since its launch during the Lunar New Year holiday. Users have explored its predictive and analytical capabilities, with some posing questions on politics, economics, and even personal matters. For example, law professor Wang Jiangyu asked how China should respond to US President Donald Trump’s tariffs, receiving a comprehensive seven-point answer that included potential new tariffs on US industries and other strategic moves. The model’s detailed responses have impressed users, though it censors certain politically sensitive topics, such as questions about Xi Jinping or the Tiananmen Square protests.
DeepSeek’s low-cost yet powerful AI has made waves in the tech sector, surpassing ChatGPT in downloads on the Apple App Store. The Hangzhou-based startup has become a source of national pride, with users sharing personal experiences, such as using the app to predict their fortunes or interpret dreams. This surge in popularity has drawn attention to the company’s rapid growth, and its founder, Liang Wengfeng, has emerged as a pop culture figure.
Despite its success, DeepSeek’s claims about the minimal cost of training its latest AI model—less than $6 million in computing power—have raised scepticism among some experts. Nevertheless, the platform’s effectiveness has prompted comparisons to the billions invested by US tech giants in AI development. The app’s rapid rise has also led to investigations by authorities in several countries, including Japan, South Korea, and several European nations, over concerns about its handling of personal data.
