The USA is considering stricter trade regulations amidst its efforts to restrict China’s access to advanced semiconductor technology, according to a report by Bloomberg News.
In response to resistance, US officials have notified allies about potential stringent trade restrictions targeting companies that facilitate China’s technological advancements, such as Tokyo Electron and ASML Holding NV.
One of the measures under review is the Foreign Direct Product Rule (FDPR), introduced in 1959 to oversee the trade of US technologies. This provision empowers the US government to block the sale of products made using American technology, even if they are manufactured abroad.
Sources cited by Bloomberg report that US officials are in discussions with counterparts in Tokyo and The Hague, proposing this as a probable course of action if allied nations do not strengthen their own measures against China.
ASML declined to comment on these discussions, while Tokyo Electron stated it cannot comment on geopolitical matters. Requests for comment from Tokyo Electron, ASML Holding, and the US Department of Commerce were not immediately answered.
The Content Origin Protection and Integrity from Edited and Deepfaked Media Bill, also known as the COPIED Act, was introduced on 11 July 2024 by US lawmakers, Senators Marsha Blackburn, Maria Cantrell and Martin Heinrich. The bill is expected to safeguard the intellectual property of creatives, particularly journalists, publishers, broadcasters and artists.
According to the bill, images, videos, audio clips and texts are considered deepfakes if they contain ‘synthetic or synthetically modified content that appears authentic to a reasonable person and creates a false understanding or impression’. If moved into legislation, the bill restricts online platforms where US-based customers frequent, and annual revenue of at least $50 million is generated or where 25 million active users are registered for three consecutive months.
Under the bill, companies that deploy or develop AI models must install a feature allowing users to tag such images with contextual or content provenance information, such as their source and history, in a machine-readable format. After that, it would be illegal to remove such tags for any other reason than research, use these images to train subsequent AI models or generate content. Victims will then have the right to sue offenders.
The COPIED Act is backed by several artist-affiliated groups, including SAG-AFTRA, the National Music Publishers’ Association, the Songwriters Guild of America (SGA), the National Association of Broadcasters as well as The US National Institute of Standards and Technology (NIST), the US Patent and Trademark Office (USPTO) and the US Copyright Office. The bill also has received bipartisan support.
Representative Cathy McMorris Rodgers stated that intelligence officials at the March hearing warned of dangers from foreign-controlled apps like TikTok, which could misuse American data. Despite the law, China has not intended to relinquish control over such applications, suggesting potential nefarious uses against Americans.
TikTok criticised the legislative process, claiming it was secretive and rushed. The Justice Department is set to respond to the legal challenges by 26 July, with a court hearing scheduled for 16 September.
The courts halted a previous attempt to ban TikTok by former President Trump in 2020. The current efforts focus on national security concerns, citing the app’s extensive data collection and the risks posed by Chinese ownership.
Republican lawmakers have requested an intelligence assessment from the Biden administration regarding Microsoft’s $1.5 billion investment in UAE-based AI firm G42. Concerns have been raised over the potential transfer of sensitive technology and G42’s historical ties to China. Representative Michael McCaul and John Moolenaar, leaders of key committees, have called for a briefing with White House national security adviser Jake Sullivan before the deal progresses.
The lawmakers highlighted the need for clear regulations on exporting sensitive AI models, fearing that such technology might be shared with adversaries like China. They have requested an assessment of G42’s connections to China’s Communist Party and government. The probe follows a recent visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to Beijing, where AI cooperation was discussed.
Microsoft has stated that it works closely with the US government to prioritise national security. The White House National Security Council confirmed ongoing dialogue with lawmakers to address the risks associated with digital infrastructure. Meanwhile, G42 and the UAE embassy have not commented on the matter.
Why does this matter?
Concerns about China’s influence in the Middle East persist despite G42’s claim that it divested Chinese investments and accepted US constraints to collaborate with American firms. The New York Times reported that the Microsoft deal, influenced by the Biden administration, aimed to limit China’s technological reach. The Commerce Department is also considering rules to restrict the export of proprietary AI technology to ensure national security.
Google Wallet is set to introduce support for American biometric passports, a move highlighted by code leaker Assemble Debug. Initially launching in the US, users will scan their passports into Google Wallet to create a digital ID pass. The pass enables identity verification via NFC scanners or QR codes, although carrying a physical passport is still recommended. The feature, expected in an upcoming update, aligns with Google’s expansion into digital IDs, a space where Apple Wallet is also advancing with similar capabilities.
While not yet live, the integration of passport support was included in Google Wallet’s beta version, signalling imminent implementation. The development follows Google Wallet’s recent additions, including support for 29 more banks this June, focusing heavily on payment functionalities. In the US, digital driver’s licenses from states like Georgia and Arizona are already part of Google Wallet, facilitating airport use, among other services. Additionally, Google Wallet has integrated access control credentials from HID Global, broadening its utility beyond traditional payments.
Resonac Holdings Corp., a prominent Japanese chip material maker, announced plans to establish a US-JOINT consortium alongside nine other Japanese and US firms. The initiative, headquartered in Silicon Valley, aims to advance semiconductor technologies crucial for generative AI and autonomous driving applications. The consortium will focus primarily on developing cutting-edge semiconductor packaging technologies, traditionally centred in Asia.
According to Resonac, the move to Silicon Valley will facilitate closer collaboration with major semiconductor device manufacturers, enhancing technology development and addressing technical challenges not fully covered by existing US consortiums. The facility is slated to be fully operational by next year, emphasising the consortium’s commitment to accelerating innovation in semiconductor packaging.
Among the consortium’s members are six Japanese companies, including Towa Corp. and Tokyo Ohka Kogyo Co., along with four US firms, such as Azimuth Industrial Co. and KLA Corp.
Why does this matter?
The establishment of US-JOINT reflects a broader trend in the semiconductor industry, where competition to develop state-of-the-art chips intensifies amid the rapid expansion of generative AI and data centres. The consortium’s formation underscores international efforts to foster technological advancements for future digital innovations.
Bitcoin experienced a significant drop to a two-month low recently, driven by uncertainty surrounding the US presidential elections and the impact of supply from a defunct Tokyo-based crypto exchange. The cryptocurrency fell over 2% to $57,843, its lowest since 2 May, marking a loss of more than 6% this week.
The market has been under pressure, particularly after the first debate between US presidential candidates Joe Biden and Donald Trump, which raised concerns about potential candidacy changes that could affect crypto policies. Market analyst Josh Gilbert from eToro highlighted the speculation that a new candidate might not be as crypto-friendly as Biden.
Bitcoin had surged earlier in the year, reaching a record $73,803.25 in mid-March following the US exchange-traded funds launch. However, the cryptocurrency has since lost over 21% of its value. Political uncertainties in France and Britain and the changing dynamics of the US election have contributed to this decline.
In addition, reports that Mt. Gox, a former leading crypto exchange, is repaying its creditors have created anticipation that these creditors might sell their bitcoins, further impacting the market. Despite the current downturn, some analysts, like Tony Sycamore from IG, believe that bitcoin could still retest its March highs and reach up to $80,000. Meanwhile, Ether also declined, trading over 1% lower at $3,213 and down more than 22% from its mid-March highs.
The recent decision by the US Supreme Court to overturn the long-standing ‘Chevron deference’ doctrine will have significant implications for the Biden administration’s cybersecurity agenda, particularly regarding the protection of critical infrastructure. The ruling shifts the power to interpret and enforce laws related to cybersecurity from executive agencies to Congress and the courts, marking a departure from the previous approach that relied on agency-led initiatives to enhance cybersecurity practices.
One key takeaway from this development is how it has revealed the inadequacies in the cybersecurity practices of critical infrastructure organisations. Despite the rise in cyber threats targeting these entities, many have failed to implement baseline security measures like multifactor authentication, making them vulnerable to attacks. The absence of stringent regulations mandating such practices has exacerbated these organisations’ cybersecurity challenges.
The Biden administration’s strategy of leveraging existing agency rules to bolster cybersecurity measures is now facing a regulatory overhaul. The government must implement a more comprehensive legislative approach to address cybersecurity gaps.
Looking ahead, the repeal of the Chevron deference doctrine is set to usher in a new era of cybersecurity regulation, with a stronger emphasis on congressional involvement in shaping cybersecurity policies. The increased engagement of legislative affairs staffers, lobbyists, and advocates in the regulatory process shows a shift towards a more collaborative and evidence-based approach to cybersecurity governance.
Why does it matter?
As the landscape of cybersecurity regulation evolves in response to this landmark decision, critical infrastructure sectors are expected to face renewed scrutiny regarding their cybersecurity preparedness. The need for robust cybersecurity frameworks and proactive measures to safeguard vital infrastructure assets has never been more pressing. Therefore, the implementation of comprehensive and effective cybersecurity regulations is becoming imperative.
China leads the world in generative AI patent requests, significantly outpacing the United States, according to the UN’s World Intellectual Property Organization (WIPO). The technology, which has surged in public awareness since late 2022, was linked to approximately 54,000 inventions over the past decade. More than a quarter of these were filed just last year, highlighting the rapid growth and interest in generative AI.
WIPO’s report, the first of its kind, aims to track trends in generative AI development through patent applications. Over 38,200 generative AI inventions originated from China in the past decade, far surpassing the nearly 6,300 from the USA. South Korea, Japan, and India followed with significantly fewer patents. Generative AI, which includes tools like ChatGPT, Google Gemini, and Baidu’s Ernie, is utilised across various industries, including life sciences, manufacturing, and telecommunications.
Despite the many patents, WIPO cautions that quantity does not equate to quality. It remains uncertain which patents will hold market value or have a transformative impact on society. While the US and China are often seen as rivals in AI development, US tech companies currently lead the production of cutting-edge AI systems. In 2023, US-based institutions produced 61 notable machine-learning models, compared to 21 from the EU and 15 from China. The US also leads in AI foundation models and private AI investments.
According to research conducted by Proofpoint, the volume of mobile political spam ahead of the 2024 election has tripled compared to the 2022 midterms. The study indicates a growing trend among US voters to seek information through digital platforms, which can increase their vulnerability to cybercriminal activities.
With 60% of American adults favouring digital media for news consumption and 86% using smartphones, tablets, or computers, there is a notable reliance on digital channels. Nearly all US voters (97%) have access to mobile messaging services. Despite the widespread trust in mobile messaging, Proofpoint warns that the surge in smishing, impersonation, and unwanted spam messages is nowadays eroding this confidence.
While many voters are cautious about fake news on social media, fewer recognise the significant risks associated with mobile messaging and email impersonation tactics. Notably, incidents of election-related smishing attacks have risen by over 7% in the past nine months compared to the previous period.
The increase in mobile political messaging, commonly used by campaigns and interest groups, has coincided with a rise in malicious activities. For instance, following former President Donald J. Trump’s guilty verdict in his ‘hush money’ trial, there was a notable 240% increase in unwanted political messaging within 48 hours, with reported volumes reaching tens of millions.
Why does it matter?
Proofpoint emphasised the importance of voters proactively defending themselves against impersonation attacks during this election season. They advise voters to be cautious with unsolicited messages, particularly those urging immediate action. The company also called on mobile operators to prioritise the protection of their users. Maintaining a healthy level of scepticism is crucial for all parties involved.
To mitigate the risks associated with malicious mobile messaging, voters are advised to refrain from opening attachments or clicking on links in such messages. Instead, it is recommended that you enter known URLs into web browsers directly. Thoroughly scrutinising all election-related digital communications is essential to verify their authenticity.
