China

Buying Influence: How China Manipulates Facebook and Twitter (nytimes.com) 57

The New York Times: Flood global social media with fake accounts used to advance an authoritarian agenda. Make them look real and grow their numbers of followers. Seek out online critics of the state -- and find out who they are and where they live. China's government has unleashed a global online campaign to burnish its image and undercut accusations of human rights abuses. Much of the effort takes place in the shadows, behind the guise of bot networks that generate automatic posts and hard-to-trace online personas. Now, a new set of documents reviewed by The New York Times reveals in stark detail how Chinese officials tap private businesses to generate content on demand, draw followers, track critics and provide other services for information campaigns. That operation increasingly plays out on international platforms like Facebook and Twitter, which the Chinese government blocks at home. The documents, which were part of a request for bids from contractors, offer a rare glimpse into how China's vast bureaucracy works to spread propaganda and to sculpt opinion on global social media. They were taken offline after The Times contacted the Chinese government about them.

On May 21, a branch of the Shanghai police posted a notice online seeking bids from private contractors for what is known among Chinese officialdom as public opinion management. Officials have relied on tech contractors to help them keep up with domestic social media and actively shape public opinion via censorship and the dissemination of fake posts at home. Only recently have officials and the opinion management industry turned their attention beyond China. The Shanghai police are looking to create hundreds of fake accounts on Twitter, Facebook and other major social media platforms. The police department emphasizes that the task is time sensitive, suggesting that it wants to be ready to unleash the accounts quickly to steer discussion. Bot-like networks of accounts such as those that the Shanghai police want to buy have driven an online surge in pro-China traffic over the past two years. Sometimes the social media posts from those networks bolster official government accounts with likes or reposts. Other times they attack social media users who are critical of government policies.

China

Beatings, Doxxings, Harassment: the War Over Chinese Wikipedia (fastcompany.com) 50

The Wikimedia Foundation banned seven high-level users in September and temporarily demoted a dozen others for abuses "unprecedented in scope and nature." Slashdot reader harrymcc explains: The foundation accused these volunteers of biasing it in favor of the Chinese government's viewpoint. This incident involves beatings, doxxings, and harassment designed to ensure pro-Beijing content.
harrymcc is also technology editor at Fast Company, which got more details from Wikimedia's VP of of Community Resilience & Sustainability, Maggie Dennis: Dennis said a monthlong investigation found that the veteran editors were "coordinating to bias the encyclopedia and bias positions of authority" around a pro-Beijing viewpoint, in part by meddling in administrator elections and threatening, and even physically assaulting, other volunteers...

Wikipedians in China have it especially hard, because the government blocks the site and makes accessing it a crime... But as with the dedicated mainland users of blocked apps like Instagram, Telegram, and Twitter, the prohibition hasn't deterred hundreds of volunteers, who tunnel through the Great Firewall with VPNs, and now make up a small but die-hard part of the Chinese Wikipedia community. Despite China's blockade, the site remains one of the ten most active language versions of Wikipedia, thanks largely to growing numbers of editors based in Taiwan and Hong Kong...

[A]mid acute worries over China's influence in both places, the community's mix of users and viewpoints has grown increasingly combustible. In 2014, when mainland editors were in the majority, there were few references to the Hong Kong protests; more recently, swarms of "pro Beijing" editors and "pro democracy" editors have battled over how exactly to depict those and simliar events. Were the students at a particular rally in Hong Kong protesters or were they rioters? Is a state-backed news outlet a reliable source?

In some cases, the Foundation found, the fights had spread beyond online harassment into real-life threats, and worse... Dennis says there is no evidence the banned editors were backed by the government...

[U]ntil September, the Foundation had only issued 86 bans since 2012, and typically only one at a time. Suddenly, the Foundation's bans and penalties had knocked out a third of the Chinese edition's administrators.

China "is home to the world's largest population of internet users and to the world's most sophisticated apparatus for policing them," the article notes.

It argues that the banned users "liked to defend Beijing's point of view, but they also liked their influence over the Wiki community; and a pro-China stance allowed them to more easily fly under the government's radar. To protect their fiefdom, they sometimes resorted to personal threats, harassment, and assault." Since the ban, they've now launched a "hard fork" of Chinese Wikipedia which already has 400,000 articles, "tailored to appease government censors so that anyone on the mainland can access it."

The article also explores the possibility of having one global version of Wikipedia, rather than separate local editions.
Space

A Domestic Newspaper Warns of the Russian Space Program's 'Rapid Collapse' (arstechnica.com) 76

A long and strikingly critical article that reviews the state of the Russian space program was published in the state-aligned newspaper MK this week. This article was written by Dmitry Popov, who has worked at the publication since 1992. Ars Technica reports: The article, translated for Ars by Rob Mitchell, is titled "The Space Program Is Rotting from Within." It begins with the declaration that Russia's space program has a shortage of competent and highly qualified staff, obsolete facilities and technology, and "systemic leadership weakness." And that's just the opening paragraph. Popov goes on to state that Russian space companies are delinquent on promised deliveries for hundreds of contracts. For example, the Khrunichev Center agreed to deliver 10 booster cores for the Angara A5 rocket five years ago. The first five cores were delivered only in March of this year, and the other five are not yet completed. [...] Popov said Roscosmos is struggling even to build its mainstay vehicles, the Soyuz rockets and Progress spacecraft. Consider a recent docking issue with the Progress vehicle, which carries supplies to the Russian segment of the International Space Station.

Popov further expressed concern about reliance on Germany to help fuel the Soyuz rocket and the Soyuz spacecraft that launches humans. The issue is that vernier thrusters on the Soyuz boosters and in the de-orbit engines of the Soyuz-MS spacecraft use a special grade of highly refined hydrogen peroxide. Production of this hydrogen peroxide in Russia, however, depends on deliveries of chemicals produced by a German company called Evonik Resource Efficiency GmbH. These deliveries are subject to limitation by international sanctions against the Russian Federation. "That is, the West can stop Russian space launches with a single keystroke," Popov wrote.

The article also discusses the Vostochny Cosmodrome, a spaceport in eastern Russia that has been a priority for President Vladimir Putin. However this project, under Rogozin's stewardship, has been beset by construction delays and corruption, such as embezzlement. Of the nearly 1,200 structures planned for construction at the spaceport, only about 200 have been completed, Popov wrote. Construction has yet to begin on more than 40 percent of them. Already, the planned launch of Angara A5 rockets from Vostochny has been delayed from 2021 to 2023, as criminal investigations continue. Popov then turns to Russia's so-called Moon program, which requires development of the Oryol, or "Eagle," spacecraft to fly cosmonauts into deep space. This vehicle was intended to both replace the Soyuz for transporting cosmonauts to the International Space Station and to form part of the lunar program. But aside from that, everything is going swell with Russia's Moon program.

Popov also criticizes Rogozin for over-promising on Russian launch efficiency and under-delivering. For example, Roscosmos said there would be 44 space launches in 2019, and 25 were conducted. In 2020, 40 launches were planned and just 17 conducted. This year, Russia has conducted fewer than half of its planned 47 launches. Roscosmos, therefore, has decided to no longer publish its planned number of launches. The overall portrait Popov paints of Roscosmos is that of a wasteful, increasingly decrepit enterprise where almost no money is being invested into the present or future. Instead, the focus seems to be providing high-paying jobs for a handful of technocrats, whose salaries are worth hundreds of thousands of dollars a year. Meanwhile, the average monthly wages for technical specialists who build the country's rockets and spacecraft range from $500 to $1,000 a month.

Businesses

Regulators Open Probe Into Red Hot 'Buy Now, Pay Later' Industry (cnn.com) 65

Regulators in Washington may crack down on the industry behind "buy now, pay later," the increasingly popular method for consumers to purchase things online. From a report: The Consumer Financial Protection Bureau said Thursday that it is looking to "collect information on the risks and benefits of these fast-growing loans" from five leading BNPL companies: Affirm; Australia's Afterpay, which is getting bought by Square owner Block; PayPal; privately held Swedish fintech Klarna; and Zip, another BNPL firm headquartered in Australia. "Buy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but gets the debt immediately too," said CFPB Director Rohit Chopra in a statement Thursday. The CFPB said it was specifically worried about how quickly consumers can accumulate debt using BNPL services and also about how the BNPL companies may harvest data about their customers. It added that it is working with international partners in Australia, Sweden, Germany and the United Kingdom on the inquiry.
China

Microsoft's Bing Halts Autofill Feature in China, Citing Local Laws (wsj.com) 17

Microsoft's Bing said it has suspended the autofill suggestion feature in China to comply with Chinese laws, while some users in the country said the search engine had become inaccessible. From a report: By Friday, Bing's China website had a notice saying it "was required by the relevant government agency to suspend the search auto suggestion feature in mainland China for 30 days" as per Chinese laws. It didn't explain how the laws regulated the autofill function. Starting around Thursday, some China-based users of Bing found they couldn't open the search engine's website, though others could still use the service.

Bing -- the last major foreign search engine operating in China after Google pulled its search engine from the country in 2010 -- was still unavailable for some users on Friday in at least nine provinces and regions including Beijing, Guangdong, Hubei, Shanghai and Sichuan, according to checks by The Wall Street Journal. Bing's service disruption is the latest headache for Microsoft in China, where the American technology juggernaut has been caught in increasingly difficult situations this year as Beijing tightens its control of online content.

China

How China Uses Western Influencers As Pawns In Its Propaganda War (techdirt.com) 104

According to the New York Times, China is recruiting YouTubers to report on the country in a positive light and counter the West's increasingly negative perceptions. "The videos have a casual, homespun feel. But on the other side of the camera often stands a large apparatus of government organizers, state-controlled news media and other official amplifiers -- all part of the Chinese government's widening attempts to spread pro-Beijing messages around the planet," the report says. "State-run news outlets and local governments have organized and funded pro-Beijing influencers' travel, according to government documents and the creators themselves. They have paid or offered to pay the creators. They have generated lucrative traffic for the influencers by sharing videos with millions of followers on YouTube, Twitter and Facebook." An anonymous reader shares an excerpt from Techdirt, which summarizes the Times' findings: Typically, the Chinese government support comes in the form of free organized trips around China, particularly in Xinjiang. By showing the influencers a carefully sanitized image of life in the country, the authorities don't need to worry about negative stories. They simply make it easy for the YouTubers to present images of jolly peasants and happy city-dwellers, because that's all they are allowed to see. One of the authors of the New York Times piece, Paul Mozur, noted on Twitter another important way that the authorities are able to help their influencer guests. Once produced, the China-friendly videos are boosted massively by state media and diplomatic Facebook and Twitter accounts: "One video by Israeli influencer Raz Gal-Or portraying Xinjiang as 'totally normal' was shared by 35 government connected accounts with a total of 400 million followers. Many were Chinese embassy Facebook accounts, which posted about the video in numerous languages."

A new report from the Australian Strategic Policy Institute, "Borrowing mouths to speak on Xinjiang," has some more statistics on this practice: "Our data collection has found that, between January 2020 and August 2021, 156 Chinese state-controlled accounts on US-based social media platforms have published at least 546 Facebook posts, Twitter posts and shared articles from [China Global Television Network], Global Times, Xinhua or China Daily websites that have amplified Xinjiang-related social media content from 13 influencer accounts. More than 50% of that activity occurred on Facebook." Mozur says that the use of Western influencers in this way also allows employees of Beijing-controlled media, like the journalist Li Jingjing, to present themselves as independent YouTubers. On Twitter, however, she is labeled as "China state-affiliated media." The Australian Strategic Policy Institute sees this as part of a larger problem (pdf): "labelling schemes adopted by some video-sharing and social media platforms to identify state-affiliated accounts are inconsistently applied to media outlets and journalists working for those outlets. In addition, few platforms appear to have clear policies on content from online influencers or vloggers whose content may be facilitated by state-affiliated media, through sponsored trips, for example."

According to Mozur, China's state broadcaster is actively looking for more influencers, offering bonuses and publicity for those who sign up. In the US, China's consulate general is paying $300,000 to a firm to recruit influencers for the Winter Olympics, ranging from Celebrity Influencers with millions of Instagram or TikTok followers, to Nano Influencers, with merely a few thousand. The ultimate goal of deploying these alternative voices is not to disprove negative stories appearing in Western media, but something arguably worse, as the New York Times report explains: "China is the new super-abuser that has arrived in global social media," said Eric Liu, a former content moderator for Chinese social media. "The goal is not to win, but to cause chaos and suspicion until there is no real truth."

Government

Will Political Polarization Stop US Lawmakers from Regulating Big Tech? (nytimes.com) 82

A media lobbying group wants to see tech platforms reigned in with stronger antitrust laws. But the group's president tells the New York Times the biggest force supporting the status quo is hyperpartisanship.

The Times reports: The lack of regulation of technology companies is not because elected officials don't understand the internet. That used to be the case, and it helps explain why they have been so slow with oversight measures. Now, though, new questions about technology get mapped onto increasingly intractable political divides. Without the distractions of bizarre questions, what's left is the naked reality that the parties are deeply at odds over how to protect consumers and encourage businesses. Dozens of bills to strengthen privacy, encourage competition and quell misinformation have stalled because of a basic disagreement over the hand of government on businesses.

"Congress has again shown it's all bark and no bite when it comes to regulating Big Tech," said Jeffrey Chester, the executive director of the Center for Digital Democracy, a nonprofit consumer advocacy group, adding: "We've made no progress for decades."

The cost of the government's long education on tech is that regulation is increasingly out of reach. In April 2018, 14 years after founding thefacebook.com and more than five years after Facebook surpassed 1 billion users, Mark Zuckerberg appeared for the first time before Congress... [D]espite bipartisan agreement that tech companies have run roughshod and deserve more oversight, none of the bills discussed in those hearings four years ago have been passed. Turns out, holding a hearing that humbles the most powerful business executives in the world is much easier than legislating. Very bright lines of partisan disagreements appear when writing rules that restrict how much data can be collected by platforms, whether consumers can sue sites for defamation, and whether regulators can slow the march of dominance of Amazon, Apple, Google and Facebook.

The Times points out that, just for example, when it came to the possibility of regulating cryptocurrency, "the divides on regulation broke down along party lines" Wednesday after six crypto executives testified before a House committee. Democrats warned that the fast-growing industry needed clearer oversight. "Currently, cryptocurrency markets have no overarching or centralized regulatory framework, leaving investments in the digital assets space vulnerable to fraud, manipulation and abuse," said Representative Maxine Waters, the Democrat of California who chairs the committee. Other Democrats expressed similar caution....

Republicans hewed to their free-market stripes at the crypto hearing. Representative Pete Sessions, Republican of Texas, told the crypto executives that he was in favor of their work and that regulations the industry has embraced may go too far. Representative Ted Budd, Republican of North Carolina, worried that lawmakers could push innovation in financial technology out of the United States.

Facebook

Two US Senators Urge Federal Investigations Into Facebook About Safety - and Ad Reach (cnbc.com) 6

Two leading U.S. Senators "are urging federal regulators to investigate Facebook over allegations the company misled advertisers, investors and the public about public safety and ad reach on its platform," reports CNBC: On Thursday, Senator Warren urged the heads of the Department of Justice and Securities and Exchange Commission to open criminal and civil investigations into Facebook or its executives to determine if they violated U.S. wire fraud and securities laws. A day earlier, Senator Cantwell, chair of the Senate Commerce Committee, encouraged the Federal Trade Commission to investigate whether Facebook, now called Meta, violated the agency's law against unfair or deceptive business practices. Cantwell's letter was made public on Thursday...

In her letter to the FTC, Cantwell focused on Facebook's claims about the safety of its products, in addition to the allegedly inflated ad projections... She suggested the agency investigate Facebook and, depending what the evidence shows, pursue monetary relief for advertisers and disgorgement of allegedly ill-gotten gains.

Senator Warren points to a whistleblower's recent allegations that Facebook misled both investors and advertising customers about their ad reach, according to the article. But Warren's letter also argued the possibility Facebook violated securities law with "breathtakingly illegal conduct by one of the world's largest social media companies," according to the article. And in addition, Warren "wrote that evidence increasingly suggests executives were aware the metric 'was meaningfully and consistently inflated.'"

Bloomberg adds this quote from Senator Cantwell's letter: "A thorough investigation by the Commission and other enforcement agencies is paramount, not only because Facebook and its executives may have violated federal law, but because members of the public and businesses are entitled to know the facts regarding Facebook's conduct as they make their decisions about using the platform."
Robotics

Tyson Foods To Spend $1.3 Billion To Automate Meat Plants (reuters.com) 135

Tyson Foods plans to spend more than $1.3 billion to increase automation in meat plants over the next three years, Chief Executive Donnie King said on Thursday, as a U.S. labor shortage has limited production while demand is booming. Reuters reports: Meat processors have been unable to find enough workers for the past two years due to the tight labor market and health concerns during the COVID-19 pandemic. Tyson expects to boost production and reduce labor costs by expanding automation, with cumulative savings of more than $450 million projected by fiscal year 2024, King said on a webcast for investors.

The company will increasingly use machines, instead of people, to debone chicken, one of its most labor-intensive jobs and a position with high turnover, said David Bray, group president of Tyson's poultry division. A capital investment of $500 million in the area through fiscal year 2024 will generate labor savings equal to more than 2,000 jobs, he said. Profitability in Tyson's chicken unit has declined partly due to the labor shortage and because processing plants are operating below full capacity, Bray said. "We are not servicing our customers to the degree that they expect us to," Bray said.

Businesses

'Decentralization Illusion': Central Bank Group Urges Regulation of DeFi Crypto Platforms (cnbc.com) 60

The central bank of central banks is worried about "decentralized finance." From a report: The Bank for International Settlements, an umbrella group for central banks, said in a report this week that it's concerned there's a "decentralization illusion" in DeFi. DeFi is a rapidly-growing part of the cryptocurrency market that promises to deliver traditional financial products like loans and savings accounts without involvement from regulated middlemen such as banks. But regulators are increasingly concerned about platforms offering DeFi services that may not be as "decentralized" as advertised.

"What we found is that, first, the decentralized aspect tends to be illusive," Agustin Carstens, general manager of the BIS, told CNBC's Julianna Tatelbaum Tuesday. "There are some incentive issues related to the fact that, through this decentralization, at some point you end up with some agents that play an important role, and not necessarily for the best [interests] of users of financial services." The central bank group did not mention any specific names related to its concerns.

Government

Biden's Cyber Leaders Go To Silicon Valley for More Help Fighting Hackers (politico.com) 25

Senior Biden administration officials met in Silicon Valley on Monday with key technology and cybersecurity companies as part of a push for more help from the private sector in fending off increasingly aggressive hackers working for adversarial regimes and criminal gangs. From a report: Homeland Security Secretary Alejandro Mayorkas, Cybersecurity and Infrastructure Security Agency Director Jen Easterly, National Cyber Director Chris Inglis and other officials met with executives from 13 companies, including Google, networking vendor Juniper Networks and security firm Mandiant. Their aim was to deepen relationships between government and industry that security professionals see as vital for protecting the nation's critical infrastructure. The government already has strong relationships with some companies, such as Microsoft, that routinely warn officials about cyberattacks and help neutralize them. But Monday's meeting is part of a charm offensive aimed at growing the ranks of the government's industry allies and improving how efficiently they work together. These partnerships could offer the Biden administration a new weapon against ransomware -- one that doesn't rely on cooperation from Russian President Vladimir Putin, whose nation shelters many ransomware operators and with whom Biden is set to discuss cyber and other issues on Tuesday.
Quake

After 25 Years, Quake 1 Gets Major 'Horde' Mode Update (arstechnica.com) 60

Ars Technica reports: Months after the first-person-shooter classic Quake got a major 25th anniversary re-release, its modern handlers have returned with an update that exceeds all expectations. Thursday's new 770MB patch on all platforms (Xbox, PlayStation, Switch, PC) adds an entirely new co-op combat mode, and it officially opens the game's mod floodgates for players outside the PC ecosystem.

The uncreatively named "Horde" mode works much like a mode of the same name in Gears of War. Instead of progressing through a level from start to finish, players are expected to hunker down inside a somewhat circular arena and then contend with hundreds of enemies spawning from all sides. Kill a full "wave" of foes, and your team will get a moment to breathe, replenish health and ammo (or argue over who gets to use it), and do it all over again.

For the sake of Quake's first-ever official co-op mode (beyond the campaign, which always supported co-op as an option), Bethesda support studio MachineGames has whipped up four brand-new battling arenas, which are pictured above. Each includes at least one "silver key" door, which is full of more powerful weapons and is gated until players earn a key by defeating a tougher "boss wave" of foes. Get through nine enemy waves, and your team gets a "gold key." You can either exit the level at that point or stay and keep fighting increasingly tough foes until your team dies.

In addition, Quake now has a new "add-on" menu, and this week's patch gives it an option for playing the foggy 2012 Quake mod "Honey."
United States

The US Military Has Taken Action Against Ransomware Groups and 'Imposed Costs' (cnet.com) 124

"The U.S. military has gone on the offensive against ransomware groups," reports CNET, "as U.S. companies increasingly become targets of malware attacks, the nation's top cyber defender acknowledged on Saturday." Up until about nine months ago, reining in ransomware attacks was seen as the responsibility of law enforcement agencies, Gen. Paul M. Nakasone, the head of U.S. Cyber Command and director of the National Security Agency, told the New York Times. But attacks like the ones on Colonial Pipeline and JBS beef plants have been "impacting our critical infrastructure," Nakasone said, leading federal agencies to ramp up the gathering and sharing of intelligence on ransomware groups....

Nakasone didn't describe the action taken or identify the groups targeted, but said one of the goals is to "impose costs" for ransomware groups. "Before, during and since, with a number of elements of our government, we have taken actions and we have imposed costs," Nakasone said. "That's an important piece that we should always be mindful of."

Social Networks

Those Cute Cats Online? They Help Spread Misinformation (yahoo.com) 171

"Videos and GIFs of cute animals — usually cats — have gone viral online for almost as long as the internet has been around..." writes the New York Times.

"Now, it is becoming increasingly clear how widely the old-school internet trick is being used by people and organizations peddling false information online, misinformation researchers say." The posts with the animals do not directly spread false information. But they can draw a huge audience that can be redirected to a publication or site spreading false information about election fraud, unproven coronavirus cures and other baseless conspiracy theories entirely unrelated to the videos. Sometimes, following a feed of cute animals on Facebook unknowingly signs users up as subscribers to misleading posts from the same publisher. Melissa Ryan, chief executive of Card Strategies, a consulting firm that researches disinformation, said this kind of "engagement bait" helped misinformation actors generate clicks on their pages, which can make them more prominent in users' feeds in the future. That prominence can drive a broader audience to content with inaccurate or misleading information, she said.

"The strategy works because the platforms continue to reward engagement over everything else," Ms. Ryan said, "even when that engagement comes from" publications that also publish false or misleading content.

United States

The US Crackdown on Chinese Economic Espionage is a Mess 65

The US government's China Initiative sought to protect national security. In the most comprehensive analysis of cases to date, MIT Technology Review reveals how far it has strayed from its goals. Technology Review: A visiting researcher at UCLA accused of hiding his connection to China's People's Liberation Army. A hacker indicted for breaking into video game company servers in his spare time. A Harvard professor accused of lying to investigators about funding from China. And a man sentenced for organizing a turtle-smuggling ring between New York and Hong Kong. For years, the US Department of Justice has used these cases to highlight the success of its China Initiative, an effort to counter rising concerns about Chinese economic espionage and threats to US national security. Started in 2018, the initiative was a centerpiece of the Trump administration's hardening stance against China. Now, an investigation by MIT Technology Review shows that the China Initiative has strayed far from its initial mission. Instead of focusing on economic espionage and national security, the initiative now appears to be an umbrella term for cases with almost any connection to China, whether they involve state-sponsored hackers, smugglers, or, increasingly, academics accused of failing to disclose all ties to China on grant-related forms.

To date, only about a quarter of defendants charged under the initiative have been convicted, and about half of those defendants with open charges have yet to see the inside of an American courtroom. Although the program has become a top priority of US law enforcement and domestic counterintelligence efforts -- and an unusual one, as the first country-specific initiative -- many details have remained murky. The DOJ has not publicly defined the initiative or answered many basic questions about it, making it difficult to understand, let alone assess or exercise oversight of it, according to many civil rights advocates, lawmakers, and scholars. While the threat of Chinese intellectual property theft is real, critics wonder if the China Initiative is the right way to counteract it. Today, after months of research and investigation, MIT Technology Review is publishing a searchable database of 77 cases and more than 150 defendants. While likely incomplete, the database represents the most comprehensive accounting of the China Initiative prosecutions to date. Our reporting and analysis showed that the climate of fear created by the prosecutions has already pushed some talented scientists to leave the United States and made it more difficult for others to enter or stay, endangering America's ability to attract new talent in science and technology from China and around the world.
Businesses

Amazon Builds Out Network To Speed Delivery, Handle Holiday Crunch (wsj.com) 14

Online retail giant has nearly doubled its fulfillment capacity since the start of the Covid-19 pandemic. From a report: In the past two years, Amazon.com has added workers at an unprecedented clip to keep up with a pandemic-induced surge in demand. As it has done so, an even bigger expansion drew less attention: The company is close to doubling the size of its fulfillment network. Amazon blanketed the country with more than 450 new facilities used to store, sort and ship items, according to logistics consultant MWPVL International, doubling down on a logistics empire that aims to deliver items in one day or less, and increasingly to do so without the help of third-party shippers.

Many of the new buildings are concentrated near big cities, putting more items for sale on the website closer to large population centers. The facilities also include more than two dozen smaller outposts stocked mostly with bestselling items, allowing the company to prepare for supply disruptions while also expanding fast-shipping capabilities, according to MWPVL. During the pandemic, Amazon put on hold its promise to deliver many items to customers in one day. Nevertheless, the company continued to build out a network capable of such a feat. The work prepared Amazon for an unusual holiday shopping season in which a national labor shortage and global supply-chain challenges have constrained the ability of many companies to obtain and deliver certain products in as timely a manner as they did in the past.

Amazon has encouraged customers to shop early this year due to the supply-chain issues, and company executives have said they are "ready to deliver" and have been preparing for the holidays since the start of the year. As of mid-November, more than 98% of parcels that arrived at Amazon's delivery centers, which typically are in close proximity to packages' final destinations, were being delivered the next day, according to estimates from research firm ShipMatrix. At the same time, some items like household products and sporting goods were showing delivery windows of a few days, ShipMatrix said, emphasizing Amazon's message to shop early. Brian Olsavsky, Amazon's chief financial officer, said the company's inventory increased in preparation for the busy period. For the first time in a while, he said, the company is not capacity-constrained.

China

China Looks To Set Up Digital Asset Bourse in Virtual Yuan Push (bloomberg.com) 30

China is considering setting up a digital asset exchange in Beijing as officials push to promote usage of the digital yuan and crack down on cryptocurrencies. From a report: Beijing will explore the possibility of establishing a bourse for digital assets trading, as part of broader efforts to boost financial services in the capital, according to guidelines issued by the State Council. The cabinet called for faster trials of the digital yuan and urged big banks to set up e-CNY operation firms. The statement provided no further details on the planned digital asset exchange.

China has been in process of creating a virtual version of its legal tender since 2014 in an effort to cope with an increasingly digitized economy as well as to fend off potential threats from virtual currencies such as Bitcoin. It banned crypto-exchanges in 2017 and stepped up scrutiny this year to ban crypto mining and all related transactions, in tandem with campaigns to promote the digital yuan.

United States

Saving History With Sandbags: Climate Change Threatens the Smithsonian (nytimes.com) 125

President Warren Harding's blue silk pajamas. Muhammad Ali's boxing gloves. The Star Spangled Banner, stitched by Betsy Ross. Scripts from the television show "M*A*S*H." Nearly two million irreplaceable artifacts that tell the American story are housed in the National Museum of American History, part of the Smithsonian Institution, the biggest museum complex in the world. Now, because of climate change, the Smithsonian stands out for another reason: Its cherished buildings are extremely vulnerable to flooding, and some could eventually be underwater. From a report: Eleven palatial Smithsonian museums and galleries form a ring around the National Mall, the grand two-mile park lined with elms that stretches from the Lincoln Memorial to the U.S. Capitol. But that land was once marsh. And as the planet warms, the buildings face two threats. Rising seas will eventually push in water from the tidal Potomac River and submerge parts of the Mall, scientists say. More immediately, increasingly heavy rainstorms threaten the museums and their priceless holdings, particularly since many are stored in basements. At the American History Museum, water is already intruding.

It gurgles up through the floor in the basement. It finds the gaps between ground-level windows, puddling around exhibits. It sneaks into the ductwork, then meanders the building and drips onto display cases. It creeps through the ceiling in locked collection rooms, thief-like, and pools on the floor. Staff have been experimenting with defenses: Candy-red flood barriers lined up outside windows. Sensors that resemble electronic mouse traps, deployed throughout the building, that trigger alarms when wet. Plastic bins on wheels, filled with a version of cat litter, to be rushed back and forth to soak up the water. So far, the museum's holdings have escaped damage. But "We're kind of in trial and error," said Ryan Doyle, a facilities manager at the Smithsonian. "It's about managing water." An assessment of the Smithsonian's vulnerabilities, released last month, reveals the scale of the challenge: Not only are artifacts stored in basements in danger, but floods could knock out electrical and ventilation systems in the basements that keep the humidity at the right level to protect priceless art, textiles, documents and specimens on display. Of all its facilities, the Smithsonian ranks American History as the most vulnerable, followed by its next door neighbor, the National Museum of Natural History.

United Kingdom

Huge Fines and a Ban on Default Passwords in New UK Law (bbc.com) 110

The government has introduced new legislation to protect smart devices in people's homes from being hacked. From a report: Recent research from consumer watchdog Which? suggested homes filled with smart devices could be exposed to more than 12,000 attacks in a single week. Default passwords for internet-connected devices will be banned, and firms which do not comply will face huge fines. One expert said that it was an important "first step". Cyber-criminals are increasingly targeting products from phones and smart TVs, to home speakers and internet-connected dishwashers. Hackers who can access one vulnerable device can then go on to access entire home networks and steal personal data.

In 2017, for example, hackers stole data from a US casino via an internet-connected fish tank. There have also been reports of people accessing home webcams and speaking to family members. And poor security on a home wi-fi router could have been behind the uploading of illegal child abuse images from a home network that led to police accusing an innocent couple of the crime. While there are strict rules about protecting people from physical harm -- such as overheating, sharp components or electric shocks -- there are no such rules for cyber-breaches.

Intel

Intel's Expensive New Plan to Upgrade Its Chip Technology - and US Manufacturing (cnet.com) 131

America's push to manufacturer more products domestically gets an in-depth look from CNET — including a new Intel chip factory outside of Phoenix.

CNET calls it a fork in the road "after squandering its lead because of a half decade of problems modernizing its manufacturing..." With "a decade of bad decisions, this doesn't get fixed overnight," says Pat Gelsinger, Intel's new chief executive, in an interview. "But the bottom is behind us and the slope is starting to feel increasingly strong...." More fabs are on the way, too. In an enormous empty patch of dirt at its existing Arizona site, Intel has just begun building fabs 52 and 62 at a total cost of $20 billion, set to make Intel's most advanced chips, starting in 2024. Later this year, it hopes to announce the U.S. location for its third major manufacturing complex, a 1,000-acre site costing about $100 billion. The spending commitment makes this year's $3.5 billion upgrade to its New Mexico fab look cheap. The goal is to restore the U.S. share of chip manufacturing, which has slid from 37% in 1990 to 12% today. "Over the decade in front of us, we should be striving to bring the U.S. to 30% of worldwide semiconductor manufacturing," Gelsinger says...

But returning Intel to its glory days — and anchoring a resurgent U.S. electronics business in the process — is much easier said than done. Making chips profitably means running fabs at maximum capacity to pay off the gargantuan investments required to stay at the leading edge. A company that can't keep pace gets squeezed out, like IBM in 2014 or Global Foundries in 2018. To catch up after its delays, Intel now plans to upgrade its manufacturing five times in the next four years, a breakneck pace by industry standards. "This new roadmap that they announced is really aggressive," says Linley Group analyst Linley Gwennap. "I don't have any idea how they are going to accomplish all of that...."

Gelsinger has a tech-first recovery plan. He's pledged to accelerate manufacturing upgrades to match the technology of TSMC and Samsung by 2024 and surpass them in 2025. He's opening Intel's fabs to other companies that need chips built through its new Intel Foundry Services (IFS). And he's relying on other foundries, including TSMC, for about a quarter of Intel's near-term chipmaking needs to keep its chips more competitive during the upgrades. This three-pronged strategy is called IDM (integrated design and manufacturing) 2.0. That's a new take on Intel's philosophy of both designing and making chips. It's more ambitious than the future some had expected, in which Intel would sell its factories and join the ranks of "fabless" chip designers like Nvidia, AMD and Qualcomm that rely on others for manufacturing...

Shareholders may not like Gelsinger's spending-heavy strategy, but one community really does: Intel's engineers... Gelsigner told the board that Intel is done with stock buybacks, a financial move in which a company uses its cash to buy stock and thereby increase its price. "We're investing in factories," he told me. "That's going to be the use of our cash...."

"We cannot recall the last time Intel put so many stakes in the ground," said BMO Capital Markets analyst Ambrish Srivastava in a July research report after Intel announced its schedule.

Intel will even outpace Moore's law, Gelsinger tells CNET — more than doubling the transistor count on processors every two years. "I believe that you're going to see from 2025 to 2035 a very healthy period for Moore's Law-like behavior."

Although that still brings some risk to Intel's investments if they have to pass the costs on to customer, a Linley Group analyst points out to CNET. "Moore's Law is not going to end when we can't build smaller transistors. It's going to end when somebody says I don't want to pay for smaller transistors."

Slashdot Top Deals