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.
The United States and Nigeria have launched the Bilateral Liaison Group on Illicit Finance and Cryptocurrencies to counter cybercrime and misuse of digital assets. Led by the US Department of Justice and Nigerian authorities, this new initiative aims to strengthen both countries’ capabilities in investigating and prosecuting cyber and crypto-related financial crimes as digital finance expands globally.
The group’s formation comes soon after the release of Tigran Gambaryan, Binance’s head of financial crime compliance, who was detained in Nigeria since February on money laundering charges. His release due to health concerns follows rising tensions, and this new collaboration may help ease strained relations as both nations work toward secure cyberspace operations.
Aligned with US goals for global cyber enforcement, this liaison group aims to streamline coordination between the two countries’ enforcement bodies. This joint effort underscores the importance of cross-border cooperation to address the unique challenges posed by digital assets in the fight against financial crime.
The Commerce Department’s IoT Advisory Board has recommended that car dealers display privacy disclosures on vehicle windshields, urging government agencies and Congress to mandate this requirement. The report, developed with the officials from the National Institute of Standards and Technology (NIST), suggests including easy-to-understand privacy information on vehicle windshields, such as whether vehicles collect personal data and options for universal opt-outs.
This initiative aims to enhance consumer protection amid growing concerns over data privacy in connected cars. The board noted automakers often need to inform consumers about data practices adequately. Despite opposition from the Alliance for Automotive Innovation, the recommendation was adopted after a briefing highlighted the potential benefits of such labelling for consumer awareness.
“So many consumers tell us they had no idea their car is ‘a smartphone on wheels’ that can transmit data to the manufacturer and other companies,” said Amico, who runs Privacy4Cars, a privacy technology company which helps consumers and businesses better understand data privacy concerns related to connected cars.
The report will be considered by a federal working group tasked with determining whether legislation or executive action is needed to implement the recommendations, including regulating third-party data sharing and simplifying privacy policies. The advisory board emphasised that this initiative could set a global standard for IoT device privacy. A few countries, e.g. Singapore, have created comprehensive standards around consumer Internet of Things devices, such as cybersecurity labelling schemes.
President Biden signed a landmark national security memorandum to strengthen how AI is employed across defence and intelligence operations. The directive outlines strict protections on AI use, preventing autonomous systems from making high-stakes decisions like nuclear launches and immigration rulings. Jake Sullivan, the national security adviser, highlighted the need for the US to maintain its competitive edge in AI to safeguard national security.
‘Few technologies will be as critical to our future security as AI,’ Sullivan said at the National Defense University in Washington. He underscored the administration’s aim to roll out AI protections faster than other global powers and underscored a balance between open market competition and secure innovation.
The memorandum also directs federal agencies to bolster the security and diversity of chip supply chains and prioritise gathering intelligence on foreign AI operations targeting the US sector. These insights will support AI developers in protecting their products from adversarial threats.
However, with many recommendations set to take effect post-2025, it’s uncertain if the next administration will uphold these regulations. Experts emphasise that while AI is kept out of nuclear launch decisions, it still influences the data presidents receive, raising questions about reliance on AI for critical decision-making.
In the meantime, the administration will convene a global safety summit in San Francisco next month to address AI risks and foster international cooperation. This move adds to Biden’s executive order from last year, which aimed to limit AI’s risks to consumers, workers, and minority groups.
Chinese e-commerce giant Alibaba has agreed to a $433.5 M settlement to resolve a US class-action lawsuit accusing the company of monopolistic practices. The lawsuit, filed in 2020, claimed that Alibaba misled investors by denying any anti-monopoly or unfair competition violations while allegedly pressuring merchants to stick to a single platform.
Although Alibaba denies any wrongdoing, the company opted for the settlement to avoid the costs and potential disruptions associated with prolonged legal battles. The settlement, which covers investors in Alibaba’s American depositary shares between 13 November 2019, and 23 December 2020, is pending approval from US District Judge George Daniels in Manhattan.
Lawyers for the plaintiffs have praised the deal, describing it as “an exceptional result” considering the potential damages in the case. Had the investors continued litigating, they could have sought up to $11.63 B in damages, far beyond the settlement amount. Approval of the settlement would mark the end of a major legal challenge for Alibaba, as it seeks to move forward from a period of regulatory scrutiny.
China has reaffirmed its support for Apple’s business operations in the country, welcoming further expansion by the US tech company. In a meeting with Apple CEO Tim Cook, Chinese Commerce Minister Wang Wentao stated that Apple is welcome to deepen its presence in the Chinese market, according to a statement from the ministry. This sentiment aligns with earlier discussions between Cook and China’s Minister for Industry and Information Technology in Beijing.
Wang highlighted China’s interest in stabilising Sino-US economic and trade relations, expressing a commitment to returning these ties to a healthier state through ongoing communication between the government and businesses. Such exchanges, he said, could foster a stronger, more stable trade partnership between the two countries.
China’s government also assured foreign companies, including Apple, of continued improvements to its business environment and high-quality services, signalling its openness to international investments. However, Wang emphasised that prioritising national security over trade cooperation could harm these efforts, subtly suggesting that an overemphasis on security concerns may disrupt normal economic interactions.
Missouri’s Attorney General Andrew Bailey announced an investigation into Google on Thursday, accusing the tech giant of censoring conservative speech. Bailey’s statement, shared on social media platform X, criticised Google, calling it “the biggest search engine in America,” and alleged that it has engaged in bias during what he referred to as “the most consequential election in our nation’s history.” Bailey did not cite specific examples of censorship, sparking quick dismissal from Google, which labelled the claims “totally false” and maintained its commitment to showing “useful information to everyone—no matter what their political beliefs are.”
Republicans have long contended that major social media platforms and search engines demonstrate an anti-conservative bias, though tech firms like Google have repeatedly denied these allegations. Concerns around this issue have intensified during the 2024 election campaign, especially as social media and online search are seen as significant factors influencing public opinion. Bailey’s investigation is part of a larger wave of Republican-led inquiries into potential online censorship, often focused on claims that conservative voices and views are suppressed.
Adding to these concerns, Donald Trump, the Republican presidential candidate, recently pledged that if he wins the upcoming election, he would push for the prosecution of Google, alleging that its search algorithm unfairly targets him by prioritising negative news stories. Trump has not offered evidence for these claims, and Google has previously stated its search results are generated based on relevance and quality to serve users impartially. As the November 5 election draws near, this investigation highlights the growing tension between Republican officials and major tech platforms, raising questions about how online content may shape future political campaigns.
Georgia‘s secretary of state’s office recently thwarted a cyberattack aimed at crashing the website used by voters to request absentee ballots. The attack, believed to have originated from a foreign entity, involved hundreds of thousands of IP addresses flooding the system with fake traffic. Despite briefly slowing the site, the attack did not disrupt the ability of voters to request ballots, thanks in part to support from cybersecurity firm Cloudflare.
Officials have yet to confirm the foreign origin, though Gabe Sterling, an election official in Georgia, suggested the attack had “the hallmarks of a foreign power.” The FBI and the US Cybersecurity and Infrastructure Security Agency are involved in the investigation. This incident highlights ongoing attempts by hackers, including foreign-linked groups, to interfere with the democratic process as the US presidential election approaches.
Georgia has previously dealt with cyber threats, including a cyberattack in Coffee County earlier this year, underscoring the continuous risk to election infrastructure. However, no cyber activity has affected the actual casting or counting of votes so far.
Taiwan Semiconductor Manufacturing Company (TSMC) has notified the US government about a potential breach of export controls involving Huawei. TSMC suspects that the Chinese tech company may be attempting to work around US restrictions that ban the chipmaker from producing advanced AI chips for Huawei, a target of American trade curbs since 2020.
The US imposed these controls to limit China’s access to high-end semiconductors, crucial for developing military technologies. While TSMC claims it hasn’t supplied Huawei since mid-2020, a recent customer order for a chip similar to Huawei’s Ascend 910B has raised concerns. The AI chip in question is designed for training large language models, a key area of competition in the tech rivalry between Washington and Beijing.
TSMC promptly reported the situation to the US Commerce Department, although no investigation has been launched against the company. The US and Huawei have yet to comment on the matter.
