US sees India as key partner in countering China's tech dominance | US pushes allies to impose more chip restrictions on China | China nurtured high-rolling crime families before cracking down
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The Biden administration views India as a strategic partner in countering China's technological dominance, leveraging cooperation on critical technologies and India's tech talent, despite challenges and historical ties to Russia. The Washington Post
A US official visits Japan and the Netherlands to urge further restrictions on China's production of advanced semiconductors, following earlier measures imposed by all three countries to curb China's access to critical chipmaking equipment and technology. Reuters
The Kokang families, deeply integrated into both legitimate and illicit businesses, were significant players in regional stability and Chinese infrastructure projects. Their fall underscores the complex ties between criminal enterprises and political dynamics in the China-Myanmar border region. The Washington Post
ASPI
India could help the US to tech victory over China
The Wall Street Journal
Sadanand Dhume
Can India help the US win its race against China for technological dominance? The Biden administration seems to think so. Following national security adviser Jake Sullivan’s visit to New Delhi, the White House on Monday released an ambitious fact sheet listing current and proposed areas of US-India cooperation on critical and emerging technologies. The statement doesn’t mention China but shared concerns about Beijing’s ambitions underpin the effort. Over the past four decades, China has transformed itself into a science and technology powerhouse. According to the Australian Strategic Policy Institute, China leads the US in research in 53 out of 64 critical and emerging technologies, including advanced aircraft engines, electric batteries, machine learning and synthetic biology.
China is back as Australia’s dominant export market
The Strategist
David Uren
Despite previous economic tensions, China's share of Australian exports has surged, highlighting its enduring attractiveness. Meanwhile, Australia has diversified its import sources, reducing dependence on Chinese goods. This includes a notable shift away from Chinese telecommunications equipment, computers, and consumer electronics, with increased imports from South Korea, Singapore, Malaysia, Taiwan, India, and Vietnam, reflecting concerns over excessive reliance on China.
World
Why a drone war in Asia would look different from the one in Ukraine
The Economist
Twenty years ago, drones were rare in conflict, with the U.S. owning only 163 in 2003. Today, drones dominate battlefields globally, notably in the Russia-Ukraine war where Ukraine uses 3,000 drones monthly. Unlike the Ukraine conflict, a drone war over Taiwan would differ significantly due to logistical challenges. While small, short-range drones and loitering munitions (kamikaze drones) have become common, their limited range poses a problem for conflicts like Taiwan, where distances are greater.
G7 countries vow to establish collective cybersecurity framework for operational tech
The Record by Recorded Future
Jonathan Greig
The G7 countries have agreed to establish a collective cybersecurity framework for operational technologies used by manufacturers and operators, focusing on the global supply chain of critical energy systems like electricity, oil, and natural gas. The G7 leaders emphasised the need for secure integration of digital clean energy technologies and committed to enhancing resilience in the energy sector. They also discussed the creation of a G7 Cybersecurity Working Group, addressing issues such as ransomware, cyberattacks by China, and Russian attacks in Ukraine.
Australia
Telstra joins United Nations AI panel after dumping carbon offset ‘sham’
The Australian
Jared Lynch
Telstra says it has joined a “select group of global organisations” on a United Nations panel to “champion and advance the ethical development and application” of artificial intelligence. Australia’s biggest telco announced it had signed up to the group, a week after it withdrew from the federal government’s Climate Active carbon-neutral labelling program after the initiative attracted strong criticism that it was a “sham” and fraud on taxpayers and the environment.
Australian regulator blames lack of multi-factor authentication for Medibank hack
The Record by Recorded Future
Daryna Antoniuk
As a result of the Medibank hack, the attackers leaked and published on the dark web the personal data of 9.7 million current and former customers. According to the report released this week by the Office of the Australian Information Commissioner, the attack was likely caused because the company neglected basic cybersecurity measures, including requiring its workers to use multi-factor authentication to log onto its VPN.
China
China cultivated high-rolling crime families before turning on them
The Washington Post
Shibani Mahtani, Christian Shepherd and Pei-Lin Wu
A Washington Post investigation found that Kokang’s criminal networks — principally led by the Wei, Bai and Liu families, according to U.N. officials, Chinese court records and analysts — had for more than a decade enjoyed close relations with Chinese officials, primarily in neighboring Yunnan province, along with support from Beijing and the military government in Myanmar. Evidence of the Kokang families’ deep cooperation with Chinese state officials has partially been scrubbed from the Chinese internet and social media but some of it was archived and verified by The Post.
Huawei, Tencent near deal to exclude WeChat from revenue sharing
Bloomberg
Pei Li
Huawei is close to allowing Tencent's WeChat app to run completely on its Harmony mobile platform without taking any revenue share. This move aims to maintain Huawei's recent lead over Apple in China. The deal, in which Huawei will agree not to charge Tencent any fee for in-app transactions within the WeChat universe, comes after months-long negotiations between the two Shenzhen-based tech behemoths, according to people with knowledge of the matter.
From Xinjiang with love: China show tries to give region a rosier image
The Wall Street Journal
For years, Beijing has denied Western allegations of human-rights violations in Xinjiang, with China portraying the region as infected by a violent strain of religious extremism that needs to be eradicated. Now, at least for a domestic audience, China’s propaganda system is promoting a far more idyllic view of the region. And, so far, it appears to be working. In recent weeks, a television drama, “To the Wonder,” about the love between a Han Chinese writer and a Kazakh man, has grabbed China’s attention, dominating social media and sparking a Xinjiang tourism boom.
China plans new measures to attract venture capital investment
Bloomberg
Foster Wong
China plans to introduce fresh measures to encourage venture capital into the country’s technology sector, including from overseas. International investors will be able to set up yuan funds in China to facilitate domestic investments, while qualified institutions will be encouraged to issue corporate bonds and debt financing instruments to help fund their investments. State-owned enterprises will also be urged to invest in industry leaders with advanced technologies.
USA
US pushes Netherlands, Japan to further restrict chipmaking equipment to China
Reuters
Karen Freifeld
A US official was heading to Japan after meeting with the Dutch government to try to push allies to further restrict China's ability to produce cutting-edge semiconductors, a person familiar with the matter told Reuters on Tuesday. Alan Estevez, the U.S. export policy chief, was trying to build on a 2023 agreement between the three countries to keep chipmaking equipment from China that could help to modernise its military. In a response, Chinese foreign ministry spokesperson Lin Jian said China was opposed to the US engaging in confrontation and "coercing other countries and suppressing China's semiconductor industry".
Silicon Valley steps up staff screening over Chinese espionage threat
Financial Times
Tabby Kinder, Stephen Morris and Demetri Sevastopulo
Silicon Valley companies, including Google, OpenAI and Sequoia Capital, are escalating their security vetting of staff and potential recruits as US officials voice greater concern about the threat of Chinese espionage. Technology giants such as Google and high-profile start-ups like OpenAI have stepped up their screening of personnel, according to several people working directly with the groups. The move comes amid fears that foreign governments are seeking to use compromised workers to access intellectual property and company data.
TikTok faces fresh US pressure over child privacy
BBC
João da Silva
The US Federal Trade Commission has referred a complaint against TikTok and its parent company ByteDance to the Department of Justice over potential violations of children's privacy laws. The investigation suggests that the companies may be violating the Children's Online Privacy Protection Act. TikTok expressed disappointment with the decision, emphasising its efforts to address the concerns. This referral adds to the increasing pressure on TikTok in the US, following legislation requiring ByteDance to sell TikTok or face a ban due to concerns over data sharing with Chinese authorities, which TikTok denies.
US Federal contractors pay multimillion-dollar settlements over cybersecurity lapses
The Record by Recorded Future
Joe Warminsky
Two federal contractors have paid a total of US$11.3 million in civil penalties to the US government after admitting they failed to properly test the cybersecurity of a system for providing financial assistance to low-income people in New York during the COVID-19 pandemic. The Department of Justice said Monday that the agreement with Guidehouse Inc. and Nan McKay and Associates resolves allegations that they violated the False Claims Act, a law more than a century old that is intended to protect the government from contractors who misrepresent the quality of their services.
Americas
Canada lists Iran's Revolutionary Guards as a terrorist group
BBC
Nadine Yousif
Canada has listed Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organisation, after years of pressure from opposition legislators and some members of the Iranian diaspora. Announcing the decision on Wednesday, Public Safety Minister Dominic LeBlanc called it a “significant tool in fighting global terrorism”. The move will mean that thousands of senior Iranian government officials, including top IRGC officials, will be barred from entering Canada.
AI-Generated indigenous art spurs new ethics rules at Canada’s Telus
Bloomberg
Thomas Seal
Canadian telecommunications firm Telus has pledged not to use artificial intelligence to create or replicate Indigenous art, responding to community concerns about cultural misappropriation. This decision reflects the company's effort to balance public trust with AI efficiency. Telus’s commitment highlights broader issues of cultural sensitivity and appropriation in the era of AI technology.
North Asia
North Korea’s Kim declares ‘full support’ for Russian war in Ukraine
The Washington Post
Michelle Ye Hee Lee and Robyn Dixon
Russian President Vladimir Putin, seeking diplomatic and military support, signed a comprehensive agreement with Kim Jong Un during a rare visit to Pyongyang. Isolated by the West over his invasion of Ukraine, Putin is aligning with anti-Western partners like China, Iran, and North Korea. Kim praised the alliance with Moscow and supported Putin’s war in Ukraine. In return, North Korea stands to gain food, fuel, cash, and weapons technology from Russia, crucial for Kim as he faces increasing economic sanctions and isolation due to his nuclear ambitions.
How Putin rebuilt Russia’s war machine with help from US adversaries
The Wall Street Journal
Warren P. Strobel and Michael R. Gordon
Russia’s military cooperation with Iran, North Korea and China has expanded into the sharing of sensitive technologies that could threaten the US and its allies long after the Ukraine war ends, according to US defense and intelligence officials. Russia and the other nations have set aside historic frictions to collectively counter what they regard as a US-dominated global system, they said.
Japan goes light on AI regulation to court investment
Nikkei Asia
Ryohtaroh Satoh
Japan is looking to lure AI investment by becoming the "most AI-friendly country in the world," with a regulation-light approach. Japan is pursuing a "slightly loose" AI policy compared with the EU. The initial idea that the Japanese government proposed to the AI council focused on targeting specific AI developers seen as having a high social impact and posing high risks, and making it mandatory for them to report such risks to the government or conduct safety assessments.
South Korea to Invest $14.5M in Blockchain Innovation Across Public and Private Sectors
Korea Tech Today
Ga-eul
South Korea plans to invest 20 billion won (approximately $14.5 million) in a blockchain support project to enhance the local blockchain industry and technology. Spearheaded by the Ministry of Science and ICT and the Korea Internet & Security Agency (KISA), the initiative will focus on six public sector projects and support eight private sector initiatives aimed at commercialisation. This comprehensive effort seeks to promote the growth and adoption of blockchain technology across South Korea.
South & Central Asia
US, India must remain at forefront of technology: NSA Doval
The Indian Express
PTI
India and the US must remain at the forefront of developing critical technologies as part of a larger strategic interest, National Security Advisor Ajit Doval said on Tuesday in presence of his American counterpart Jake Sullivan. Doval’s comments came a day after he and Sullivan unveiled a raft of transformative initiatives to deepen India-US cooperation in areas of artificial intelligence, semiconductor, critical minerals, advanced telecommunication and defence space. In his address, Sullivan noted three important buckets for technology partnerships, the first being innovation, the second as production, and the third being deployment.
Southeast Asia
US, Indonesia hold port-focused cybersecurity exercise
The Record by Recorded Future
Jonathan Greig
The US and Indonesia conducted their first cybersecurity tabletop exercise focused on port security from June 10-13 in Surabaya, Indonesia. The exercise simulated major cyber incidents and ransomware attacks targeting port operations and maritime infrastructure. Private sector companies participated, and the discussions aimed at finding ways to mitigate attack effects and enhance maritime cyber resilience, according to the US Department of Homeland Security.
Micron plans HBM expansion in US and mulls production in Malaysia
Nikkei Asia
Cheng Ting-Fang and Lauly Li
Top US memory chip maker Micron Technology is building test production lines for advanced high-bandwidth memory chips in the US and is considering manufacturing HBM in Malaysia for the first time to capture more demand from the AI boom, sources briefed on the matter said. The company is also considering building HBM production capacity in Malaysia, where it already has chip testing and assembly facilities.
Ukraine - Russia
Drones in Ukraine Get Smarter to Dodge Russia’s Jamming Signals
The Wall Street Journal
Alistair MacDonald and Heather Somerville
Drones from Ukraine's ISR Defence now look the same as before Russia's invasion, but their internal components have been continuously updated to evade Russian electronic warfare. As drones play a crucial role in the conflict, both Russia and Ukraine have advanced their electronic warfare capabilities to disrupt drone signals. ISR has improved its drones' navigation, antenna, and video systems to avoid targeted frequencies, while other manufacturers are focusing on making drones more autonomous to reduce reliance on disruptible satellite or operator communications.
Europe
Amazon invests $11 billion to expand cloud and logistics in Germany
Bloomberg
Amazon will invest 10 billion euros as demand for its cloud services and retail goods in Europe's biggest economy keeps growing. The greater part of the sum, 8.8 billion euros, will be spent by 2026 to expand the cloud infrastructure of its computing unit Amazon Web Service, as it sees rising potential in AI-driven technologies in Europe. German Chancellor Olaf Scholz praised the investment that would create more than 4,000 jobs this year.
UK
US intelligence 'not seen much' of Russia attempting to interfere in UK elections
The Record by Recorded Future
Alexander Martin
The U.S. intelligence community has not observed significant Russian interference in the upcoming British general election, according to Senate Intelligence Committee Chairman Mark Warner. He noted that the British elections are a crucial test for democratic integrity. Warner mentioned that Russia is displeased with the UK's strong defense of Ukraine, implying that Russian President Vladimir Putin would like to weaken the UK and U.S. support for Ukraine. British voters will elect 650 Members of Parliament on July 4, with polls indicating a likely majority for the opposition Labour Party, which has pledged continued support for Ukraine.
Don't blame us for people suffering - London hospital hackers
BBC
Joe Tidy
The cyber-criminal group Qilin, responsible for a major ransomware attack on London hospitals, apologised for the harm caused but denied blame, claiming the attack was a political protest against the UK government's actions in an unspecified war. The attack led to over 1,000 postponed operations and appointments, declaring a critical incident. Qilin, suspected to be based in Russia, stated the attack targeted blood test firm Synnovis used by two London NHS trusts. This incident marks the first time Qilin has claimed a political motive for its attacks.
London cinema drops AI-written film after backlash
BBC
James W Kelly
A central London cinema has cancelled a private screening of a film which was entirely written using artificial intelligence (AI) following a public backlash. The Prince Charles Cinema in Soho was due to host the world premiere of The Last Screenwriter, which was created by ChatGPT, on Sunday. However, when concerns were raised by people about "the use of AI in place of a writer", the cinema announced that the screening had been axed.
Middle East
Amid war, Israel opens R&D center to put the country on the map of quantum computing
Times of Israel
Sharon Wrobel
Headed and operated by Tel Aviv-based startup Quantum Machines, the Israeli Quantum Computing Center (IQCC), funded by the Israel Innovation Authority at an investment of NIS 100 million ($27 million), is established to help Israel compete in the global race to develop practical quantum computing capabilities. The official opening ceremony will take place on June 24th as part of Tel Aviv University’s AI and Cyber Week.
Africa
From Swahili to Zulu, African techies develop AI language tools
Japan Times
Bukola Adebayo, Nita Bhalla and Kim Harrisberg
AI tools like OpenAI's ChatGPT and Meta's Llama 2 are captivating millions worldwide, but tech-savvy Africans face frustration as these systems struggle with languages like Hausa, Amharic, and Kinyarwanda, often producing nonsensical responses. Experts warn that the lack of large language models (LLMs) for African languages could exclude millions, widening the digital and economic divide. In response, the Nigerian government is leading an initiative to develop a multilingual LLM to address this issue and promote inclusivity.
Airtel Telesonic unveils submarine cable network
Broadcast Media Africa
Airtel Telesonic has activated the 2Africa Submarine Cable System, enhancing connectivity across Africa by initially linking Kenya, Tanzania, and South Africa. This major subsea project, designed to interconnect Africa, Europe, and Asia, aims to deliver faster and more resilient internet services. Partnering with Alcatel Submarine Networks, Airtel Telesonic emphasises bridging the digital divide in Africa.
Big Tech
Whistleblower alleges Airbnb weakened its policies on extremists and hate groups
NBC News
Brandy Zadrozny
Airbnb weakened its policies against extremists and hate groups last year and dissolved its team tasked with removing them from the platform, a former investigations analyst for the company alleged in a recent whistleblower complaint. Airbnb denied the allegations, saying that it remains committed to removing members of violent extremist groups, organised crime networks and hate groups and that it has hired additional people to do this work.
Artificial Intelligence
OpenAI co-founder Ilya Sutskever announces rival AI start-up
Financial Times
Madhumita Murgia and Hannah Murphy
OpenAI co-founder Ilya Sutskever has launched a new AI start-up, Safe Superintelligence Inc, aimed at developing "safe superintelligence." This move comes just a month after his departure from OpenAI following an unsuccessful coup against CEO Sam Altman. Sutskever co-founded SSI with former OpenAI employee Daniel Levy and AI investor Daniel Gross.
AI frenzy makes Nvidia the world's most valuable company
BBC
Mitchell Labiak
Nvidia has become the world’s most valuable company, reaching a market value of $3.34 trillion after its share price hit an all-time high. This surge, nearly doubling since the start of the year, has positioned Nvidia above Microsoft and Apple. The California-based company's rapid ascent is driven by its dominance in the AI chip market, essential for technologies like OpenAI's ChatGPT.
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.
Connecting the dots on privacy, security, & online safety for young people
Future of Privacy Forum and ASPI
Join us for the live webinar, Connecting the Dots on Privacy, Security, and Online Safety for Young People in Australia, co-hosted by the Australian Strategic Policy Institute and the Future of Privacy Forum on June 26 at 11:00am - 1:00pm Australian Eastern Time. In our increasingly digital world, the boundaries of our expectations related to privacy, security and online safety are stretched more and more – by technology companies, criminals and harm-doers, as well as regulators. Finding a good balance that ensures appropriate protection for members of our community in their use of digital products and services is complicated.
The Daily Cyber & Tech Digest is brought to you by the Cyber, Technology & Security team at ASPI.