China’s largest AI conference kicks off today | Japan launches their first policy on AI-use |Photos of Australian children used in AI training dataset without consent
Good morning. It's Thursday 4th July.
The Daily Cyber & Tech Digest focuses on the topics we work on, including cybersecurity, critical technologies, foreign interference & disinformation.
Follow us on Twitter and on LinkedIn.
China’s largest artificial intelligence conference kicks off in Shanghai today. the event’s theme of “Governing AI for Good and for All” highlights the country’s efforts to lead the creation of vital AI standards amid stifling US sanctions and rising tensions between Beijing and Washington. South China Morning Post
Japan’s Defense Ministry unveiled its first basic policy on the use of artificial intelligence on Tuesday, as the Self-Defense Forces grapple with concerns about recruitment and its abilities to harness the power of new technologies. The Japan Times
Human Rights Watch discovered 190 photos of children that were taken from the internet without consent of their families. The Guardian
ASPI
Space operations in the deep black of xGEO
The Strategist
Malcolm Davis
Australia should assess the benefits of contributing to building a space economy and ensuring space security and sustainability beyond the near-Earth region. It would do this with allies. The discussion should be part of AUKUS Pillar 2, in preparation for the 2026 National Defence Strategy and Integrated Investment Program. It should also inform broader civil and defence space cooperation with the United States and other partners.
Safeguarding Australia’s sensitive academic research
The Strategist
Andrew Horton
The advent of the AUKUS partnership heralds a transformative era in Australia’s strategic posture and scientific landscape, propelling us into the vanguard of cutting-edge research and development. However, this newfound prominence also exposes a critical vulnerability: the susceptibility of our academic institutions to foreign espionage and intellectual property theft, a menace that threatens to undermine our economic prosperity and strategic autonomy.
Australia
Photos of Australian children used in dataset to train AI, human rights group says
The Guardian
Josh Taylor
Photos of Australian children have been included in the dataset used by several AI image-generating tools without the knowledge or consent of them or their families, research by Human Rights Watch has found. HRW found children whose images were in the dataset were easily identifiable, with some names included in the accompanying caption or the URL where the image was stored.
Manufacturers hope Future Made in Australia will level the playing field
The Australian
Greg Bearup
They are among the nation’s leading manufacturers, working in cutting-edge industries crucial to Australia’s economic and geostrategic security, and they have a simple message for Anthony Albanese: a future can be made here but your policy needs fine tuning to make it work. The Prime Minister sought to enlighten and inspire manufacturing bosses about the $23bn Future Made in Australia plan. The grand aim of the package is to bolster industries critical to our national security and our transition towards a carbon-neutral economy, while also securing an economic future.
myGov passkey logins among world’s first
InnovationAus.com
Brandon How
myGov has become one of the world’s first digital government services to roll out passkeys, removing the need for users to use a password to log into the platform. Passkeys allow users to use the native security features on a mobile device, such as fingerprint scanning, facial recognition, login PINs or swipe patterns, to access their myGov account. Mr. Shorten said that the switch to password-less logins will help protect people from the 6,000 scams attempting to impersonate myGov last year.
Medical research group Harry Perkins Institute investigates major cyber security breach
ABC News
David Weber
The Harry Perkins Institute of Medical Research in Perth is investigating a major cyber security incident. But a spokesperson for the institute would not comment to the ABC on a report that a ransomware "gang" had stolen data and was demanding $500,000.
Australia: insect wing research fuels microdrone tech
OpenGov Asia
Alita Sharon
Research into the unique properties of insect wings is driving the development of innovative micro drones, potentially leading to the creation of ‘robobees’ for artificial pollination. The remarkable flight capabilities of insects like bumblebees, which challenge traditional aerodynamic theories, and the intricate wing structures of various insects, provide valuable insights for the advancement of next-generation microdrones.
China
China kicks off largest AI conference in Shanghai as tech rivalry with the US heats up
South China Morning Post
Ann Cao & Che Pan
China’s largest artificial intelligence conference will kick off in Shanghai this Thursday, with mainland enterprises expected to present innovations that could help the country narrow the gap with the United States in the technology’s development. Premier Li Qiang will deliver the opening speech at the 2024 World Artificial Intelligence Conference, which concludes on Saturday, as the event’s main theme of “Governing AI for Good and for All” highlights the country’s efforts to lead the creation of vital AI standards amid stifling US sanctions and rising tensions between Beijing and Washington.
China leading generative AI patents race, UN report says
Reuters
Emma Farge
China is far ahead of other countries in generative AI inventions like chatbots, filing six times more patents than its closest rival the United States, U.N. data showed on Wednesday. Generative AI is exploding with more than 50,000 patent applications filed in the past decade, according to the World Intellectual Property Organization, which oversees a system for countries to share recognition of patents. More than 38,000 GenAI inventions were filed by China between 2014-2023 versus 6,276 filed by the United States over the same period, WIPO said.
The tools of global spycraft have changed
The Economist
A few years ago intelligence analysts observed that internet-connected cctv cameras in Taiwan and South Korea were inexplicably talking to vital parts of the Indian power grid. The strange connection turned out to be a deliberately circuitous route by which Chinese spies were communicating with malware they had previously buried deep inside crucial parts of the Indian grid (presumably to enable future sabotage).
The underground network sneaking Nvidia chips into China
The Wall Street Journal
Raffaele Huang
More than 70 distributors are openly advertising online what they purport to be Nvidia’s restricted chips, and the Wall Street Journal got in direct contact with 25 of them. Many of the verified sellers said they have supplies amounting to dozens of the high-end Nvidia chips each month. The flow of Nvidia chips is so steady that most of those sellers take preorders and promise delivery in weeks, the Journal found.
BYD to open Thai factory as new EU tariffs on China EVs kick in
Nikkei Asia
Francesca Regalado
Chinese electric vehicle champion BYD plans to mark the opening of its first factory in Southeast Asia on Thursday -- a $486 million facility in Thailand's Rayong province -- with hefty price cuts for local buyers. The opening also comes on the first day that Chinese EV makers face new tariffs in Europe, one of China's most important export markets.
China designates pilot areas for 'vehicle-road-cloud integration' for smart cars
Reuters
China's industry ministry has selected 20 localities, including Beijing and Shanghai, as participants in a pilot programme for application of "vehicle-road-cloud integration" for intelligent connected vehicles. The country aims to build a unified and shared standard system for "vehicle-road-cloud integration" - aimed at putting smart connected vehicles on the road - by 2026, the ministry said in a statement on Wednesday.
Chinese firms eye Morocco as way to cash in on US electric vehicle subsidies
Associated Press
Sam Metz
After the United States passed new subsidies designed to boost domestic electric vehicle production and cut into Beijing’s supply chain dominance, Chinese manufacturers began investing in an unlikely place: Morocco. Similar investments have been announced in other countries that share free trade agreements with the United States, including South Korea and Mexico.
China’s internet watchdog calls for ‘favourable’ environment ahead of third plenum
South China Morning Post
William Zheng
China’s top internet watchdog has called on regulators and internet companies to create a “favourable” environment ahead of a crucial Communist Party meeting this month. The statement also warned regulators and internet companies to properly handle “the relationship between security and development”.
USA
Biden revoked 8 licenses for China's Huawei in 2024, document shows
Reuters
Alexandra Alper
The Biden administration has revoked eight licenses this year that had allowed some companies to ship goods to Chinese telecoms equipment giant Huawei, according to a document seen by Reuters, as it seeks to pressure the resurgent company. The details shed new light on measures the Biden administration is taking to thwart Huawei, as the company has started to rebound despite Washington's efforts to cripple it on national security grounds.
AI deals lift US venture capital funding to highest level in two years, data shows
Reuters
Krystal Hu
U.S. venture capital funding surged to $55.6 billion in the second quarter, marking the highest quarterly total in two years. Investors' ongoing excitement around building and adopting AI technology, which could potentially bring significant returns, has fueled the recovery of venture capital funding.
Americas
Brazil authority suspends Meta's AI privacy policy, seeks adjustment
Reuters
Brazil's National Data Protection Authority has decided to suspend with immediate effect the validity of Meta's, opens new tab new privacy policy for the use of personal data to train generative artificial intelligence systems in the country. The authority, an arm of Brazil's Justice Ministry, set a daily fine of 50,000 reais in case of non-compliance.
North Asia
Japan’s Defense Ministry unveils first basic policy on use of AI
The Japan Times
Jesse Johnson
The Defense Ministry unveiled its first basic policy on the use of artificial intelligence on Tuesday, as Japan looks to stave off a manpower shortage and keep pace with China and the United States on the technology’s military applications. The focus on AI comes as the Self-Defense Forces grapple with concerns about recruitment and its abilities to harness the power of new technologies.
Japan declares victory in effort to end government use of floppy disks
Reuters
Rocky Swift
Japan's government has finally eliminated the use of floppy disks in all its systems, two decades since their heyday, reaching a long-awaited milestone in a campaign to modernise the bureaucracy. By the middle of last month, the Digital Agency had scrapped all 1,034 regulations governing their use, except for one environmental stricture related to vehicle recycling.
Japan to help Southeast Asia develop AI in local languages
Nikkei Asia
Hiroyuki Akiyama
Japan will help Southeast Asian countries train large language models in their local languages, spurring the advancement of artificial intelligence in the region. Prime Minister Fumio Kishida is slated to announce the public-private initiative on Friday at the Asia Business Summit. Kishida sees AI and decarbonization as areas where Japan can offer unique assistance to the Association of Southeast Asian Nations.
Southeast Asia
Hackers offer surprise apology after ransomware attack on Indonesian government data centres
ABC News
Erwin Renaldi and Natasya Salim
The hackers behind a major cyber attack on the Indonesian government have issued a surprise apology and offered to release the stolen data. The attack last month on the government's data centres disrupted airport immigration checks and affected more than 230 government agencies and services across the country. "We hope that our attack made it clear to you how important it is to finance the industry and recruit qualified specialists. Our attack did not carry a political context, only a pentest [penetration test] with post-payment", the statement said.
Indonesia's first battery plant opens in major step for EV ambitions
Nikkei Asia
Ismi Damayanti
Indonesia's first battery plant opened its doors on Wednesday, marking a major milestone in the country's efforts to build a complete EV manufacturing ecosystem. The plant in Karawang, West Java province, was developed by HLI Green Power, a joint venture between South Korean battery producer LG Energy Solution and carmaker Hyundai Motor that will also operate the facility. President Joko Widodo, who attended the launch ceremony, said the facility will make Indonesia a "global player in the EV supply chain."
Thailand's homegrown AI project aims to resist U.S. tech giants
Nikkei Asia
Kenya Akama
Thailand's project to create a generative artificial intelligence tool based on the local language is showing progress, as the country seeks to maintain a competitive advantage at home against encroaching U.S. tech giants. Thailand's National Electronics and Computer Technology Center teamed with three AI groups to launch the project in April 2023.
Half of Singapore’s e-commerce scams now happen on WhatsApp, Facebook, or Instagram
Rest of World
Nicholas Young
Singapore’s nearly 6 million residents are among the most frequently targeted by scammers — with an increase of nearly 50% from the previous year, according to the police. Nearly 10,000 such cases were reported last year, twice the number from the previous year. Meta’s platforms — Facebook, WhatsApp, and Instagram — accounted for nearly half of them.
Ukraine - Russia
A Bugatti car, a first lady and the fake stories aimed at Americans
BBC
Paul Myers, Olga Robinson, Shayan Sardarizadeh and Mike Wendling
A network of Russia-based websites masquerading as local American newspapers is pumping out fake stories as part of an AI-powered operation that is increasingly targeting the US election. Bugatti issued a sharp denial, calling it "fake news", and its Paris dealership threatened legal action against the people behind the false story.
Europe
EU takes aim at China's Temu and Shein with proposed import duty, FT reports
Reuters
The European Union is drawing up plans to impose customs duties on cheap goods bought from Chinese online retailers including Temu, Shein, and AliExpress. The European Commission later this month will suggest scrapping a current 150 euros threshold under which items can be bought duty free, the report said. Under current EU regulations, packages purchased online from a non-EU country are not subject to customs duties if their value is under 150 euros.
Africa
MTN Nigeria plans West Africa’s largest data centre
Developing Telecoms
Vaughan O'Grady
Operator MTN Nigeria is widely reported in the African press to be building a 1,500-rack Tier IV data centre in Lagos, which would make it West Africa’s largest data centre. As ever, the need for expanded data processing capabilities has been put down to significant growth in data usage and the emergence of new services.
Big Tech
CUDA is Nvidia's secret sauce — and now it's in the sights of European regulators
Business Insider
Hasan Chowdhury
Nvidia has had a blistering ride in its journey to become a $3 trillion heavyweight in the AI industry. Now, authorities want to know if it has got there fairly. French regulators are set to charge the Silicon Valley chip giant over concerns that it has engaged in anti-competitive behavior.
Tesla China shipments expected to slump for fourth time in 2024
Bloomberg
Tesla Inc. suffered a 24.2% year-on-year fall in shipments from its factory in Shanghai, marking the fourth time this year output has fallen for the electric car leader amid a price war in China. The drop comes ahead of closely watched global second-quarter production and delivery figures for Tesla, due later on Tuesday in the US.
Nvidia, Microsoft, Meta warn investors AI is a risky financial bet
Bloomberg
Brody Ford
At least a dozen major tech companies have issued or updated AI-related warnings in their financial filings this year. The warnings present a sober assessment of risks, a much-needed counterpoint to breathless boosterism about artificial intelligence. Google parent Alphabet Inc. said that use of its AI tools “may negatively affect human rights, privacy, employment, or other social concerns,” leading to lawsuits or financial damage.
Artificial Intelligence
OpenAI’s ChatGPT Mac app was storing conversations in plain text
The Verge
Jay Peters
Until Friday, OpenAI’s recently launched ChatGPT macOS app had a potentially worrying security issue: it wasn’t hard to find your chats stored on your computer and read them in plain text. That meant that if a bad actor or malicious app had access to your machine, they could easily read your conversations with ChatGPT and the data contained within them.
Byte-sized diplomacy: AI-enabled elections or deepfake democracy?
The Interpreter
Miah Hammond-Errey
Australia’s Home Affairs Minister Clare O’Neil warned last month that “technology is weakening democratic fundamentals such as free and fair elections and open political debate”. Populations worldwide are worried, Australians among the most.
Events & Podcasts
The Sydney Dialogue
ASPI
The Sydney Dialogue was created to help bring together governments, businesses and civil society to discuss and progress policy options. We will forecast the technologies of the next decade that will change our societies, economies and national security, prioritising speakers and delegates who are willing to push the envelope. We will promote diverse views that stimulate real conversations about the best ways to seize opportunities and minimise risks.
Defending against economic cyber-espionage: saving a norm that never was?
ASPI
As side-event to the UN Open-Ended Working Group (OEWG) on security of and in the use of ICTs, the Australian Strategic Policy Institute - in collaboration with the US State Department’s Bureau for Cyberspace and Digital Policy – is pleased to invite you to a panel discussion on ICT-enabled theft of intellectual property.
The Daily Cyber & Tech Digest is brought to you by the Cyber, Technology & Security team at ASPI.