FCC Chief Cites Concerns on Spy Threats From Chinese Telecoms Firms ( 42

Federal Communications Commission Chairman Ajit Pai, in a letter sent to lawmakers earlier this week (but released just now), said he shares the concerns of U.S. lawmakers about espionage threats from Chinese smartphone maker Huawei and plans to take "proactive steps" to ensure the integrity of the U.S. communications supply chain. From a report: Pai said he shares concerns over the "security threat that Huawei and other Chinese technology companies pose to our communications networks." Pai said he intends to take action in the "near future," but offered no specifics. Pai's letter follows the introduction of legislation by Republican Senators Tom Cotton and Marco Rubio in February that would block the U.S. government from buying or leasing telecoms equipment from Huawei, the world's third largest smartphone maker, or Chinese telecommunications equipment maker ZTE Corp, citing concerns the companies would use their access to spy on U.S. officials.

China Regulator Bans TV Parodies Amid Content Crackdown ( 61

China's media regulator is cracking down on video spoofs, the official Xinhua new agency reported, amid an intensified crackdown on any content that is deemed to be in violation of socialist core values under President Xi Jinping. From a report: The decision comes after Xi cemented his power at a recent meeting of parliament by having presidential term limits scrapped, and the ruling Communist Party tightened its grip on the media by handing control over film, news and publishing to its powerful publicity department. Xinhua said video sites must ban videos that "distort, mock or defame classical literary and art works," citing a directive from the State Administration of Press, Publication, Radio, Film and Television on Thursday.
United States

Trump Announces $60 Billion Tariff on Chinese High-Tech and Other Goods ( 521

Following months of investigations by the U.S. Trade Representative Robert Lighthizer, the Trump administration announced on Thursday at a White House briefing that the administration intends to place about $60 billion of tariffs on Chinese goods, with the bulk of them likely to be focused on the high-tech industry. The White House will announce a final list of goods subject to the tariffs in the next few weeks. From a report: "We've lost over a fairly short period of time, 60,000 factories in our country. Closed, shuttered, gone. Six million jobs at least, gone. And now they are starting to come back," President Trump said during the briefing. "The word that I want to use is reciprocal -- when they charge 25 percent for a car to go in, and we charge 2 percent for their car to come into the United States, that's not good. That's how China rebuilt itself."

Best Buy Stops Selling Huawei Smartphones ( 86

Best Buy, the nation's largest electronics big box retailer, has ceased ordering new smartphones from Huawei and will stop selling its products over the next few weeks. Best Buy didn't provide any details as to why it has severed ties with Huawei, but it may have to do with security concerns involving the Chinese government. CNET reports: The move is a critical blow to Huawei, which is the world's third-largest smartphone vendor behind Apple and Samsung but has struggled to establish any presence in the U.S. Best Buy was one of Huawei's biggest retail partners, and one of the rare places where you could physically see its phones. Huawei phones aren't sold by any U.S. carriers, where a majority of Americans typically buy their phones. Security concerns have long dogged Huawei in the U.S. In 2012, the House Intelligence Committee released a report accusing Huawei and fellow Chinese vendor ZTE of making telecommunications equipment that posed national security threats, and banned U.S. companies from buying the gear. At the time, the committee stressed that the report didn't refer to its smartphones. But that's changed over the last several months. The directors of the FBI, CIA and NSA all expressed their concerns about the risks posed by Huawei and ZTE.

Chinese Companies Are Buying Up Cash-Strapped US Colleges ( 205

An anonymous reader quotes a report from Bloomberg: Chinese companies are taking advantage of America's financially strapped higher-education system to buy schools, and the latest deal for a classical music conservatory in Princeton, New Jersey, is striking chords of dissonance on campus. Beijing Kaiwen Education Technology Co. agreed in February to pay $40 million for Westminster Choir College, an affiliate of Rider University that trains students for careers as singers, conductors and music teachers. The announcement came just weeks after the government-controlled Chinese company changed its name from Jiangsu Zhongtai Bridge Steel Structure Co. The pending purchase rankles some Westminster faculty and alumni, who question what a longtime maker of steel spans knows about running an elite school whose choirs sang with maestros Leonard Bernstein, Arturo Toscanini and Seiji Ozawa. Alumni are among those suing in New York federal court to block the sale, saying it violates Westminster's 1991 merger agreement with Rider and will trigger the choir college's demise.

China Approves Giant Propaganda Machine To Improve Global Image ( 154

China has approved the creation of one of the world's largest propaganda machines as it looks to improve its global image, Bloomberg reported on Tuesday, citing a person familiar with the matter. From the report: The new broadcaster will be called "Voice of China," the person said, mimicking the U.S. government-funded Voice of America that started up during World War II to advance American interests. Bloomberg News had previously reported the new entity would be created through merging China Central Television, China Radio International and China National Radio. The combined group was designed to strengthen the party's ability to shape public opinion and would serve as a key vehicle for China to project its image to the world.

AI Can Diagnose Prostate Cancer As Well As a Pathologist ( 58

An anonymous reader quotes a report from Science Business: Chinese researchers have developed an artificial intelligence system which can diagnose cancerous prostate samples as accurately as any pathologist, holding out the possibility of streamlining and eliminating variation in the process of cancer diagnosis. The system may also help overcome shortages of trained pathologists and in the longer term lead to automated or partially-automated prostate diagnosis. Confirmation of a prostate cancer diagnosis normally requires a biopsy sample to be examined by a pathologist. Now the Chinese AI system has shown similar levels of accuracy to pathologists and can also accurately classify the level of malignancy of the cancer, eliminating the variability which can creep into human diagnoses. [Hongqian Guo, who led the research group] took 918 prostate samples from 283 patients and ran these through the AI system, with the software gradually learning and improving diagnosis. The pathology images were subdivided into 40,000 smaller samples of which 30,000 were used to train the software while the remaining 10,000 were used to test accuracy. The results showed an accurate diagnosis in 99.38 per cent of cases, using a human pathologist as a gold standard. Guo said that means the AI system is as accurate as a pathologist. The research was presented at the 33rd European Association of Urology Congress in Copenhagen.

When China Hoards Its Hackers Everyone Loses ( 89

An anonymous reader shares a report: For over a decade Pwn2Own -- happening this week -- has brought together security talent from across the globe in a friendly hacking competition that is a cornerstone of research and advancement on par with Black Hat and Def Con. China's hackers routinely win, sweeping the board -- notably, the Tencent and Keen teams. Pwn2Own is good-natured, and all in the name of researchers finding big bugs, nabbing great bounties and drawing attention to security holes and zero-days that need to be fixed. But this year, according to Pwn2Own manager Brian Gorenc, China is no longer allowing its researchers to compete. Prior to the start of Pwn2Own this week, Gorenc told press "There have been regulatory changes in some countries that no longer allow participation in global exploit contests, such as Pwn2Own and Capture the Flag competitions."

One thing's for certain: yearly champions Tencent's Keen Labs and Qihoo 360's 360Vulcan team are nowhere to be found and Trend Micro, the conference organizer, has confirmed to Engadget that there are no Chinese competitors in this year's competition. [...] It's a worrying development in the direction of isolationism and away from the benefits of competition in the spirit of improving security for all. It comes at a time when relations between the US and China strain under the weight of Huawei security concerns, which are not at all new, but are certainly coming to a head as American companies sever business ties with the firm.


China To Bar People With Bad 'Social Credit' From Planes, Trains ( 170

China says it will begin applying its so-called social credit system to flights and trains and stop people who have committed misdeeds from taking such transport for up to a year. From a report: People who would be put on the restricted lists included those found to have committed acts like spreading false information about terrorism and causing trouble on flights, as well as those who used expired tickets or smoked on trains, according to two statements issued on the National Development and Reform Commission's website on Friday. Those found to have committed financial wrongdoings, such as employers who failed to pay social insurance or people who have failed to pay fines, would also face these restrictions, said the statements which were dated March 2. It added that the rules would come into effect on May 1.
United States

Chinese Hackers Hit US Firms Linked To South China Sea Dispute ( 52

Chinese hackers have launched a wave of attacks on mainly U.S. engineering and defense companies linked to the disputed South China Sea, the cybersecurity firm FireEye Inc. said. From a report: The suspected Chinese cyber-espionage group dubbed TEMP.Periscope appeared to be seeking information that would benefit the Chinese government, said FireEye, a U.S.-based provider network protection systems. The hackers have focused on U.S. maritime entities that were either linked to -- or have clients operating in -- the South China Sea, said Fred Plan, senior analyst at FireEye in Los Angeles.

"They are going after data that can be used strategically, so it is line with state espionage," said Plan, whose firm has tracked the group since 2013. "A private entity probably wouldn't benefit from the sort of data that is being stolen." The TEMP.Periscope hackers were seeking information in areas like radar range or how precisely a system in development could detect activity at sea, Plan said. The surge in attacks picked up pace last month and was ongoing.


China's Anti-Pollution Initiative Produces Stellar Results ( 84

hackingbear writes: China has declared war on its pollution -- one of the worst on the planet -- and now appears to be winning. Popular Mechanics reports: "Over the past four years, pollution in China's major cities has decreased by an average of 32 percent, with some cities seeing an even bigger drop, according to professor Michael Greenstone of the Energy Policy Institute. This decline comes after several aggressive policies implemented by the Chinese government, including prohibiting the building of new coal plants, forcing existing plants to reduce their emissions, lowering the amount of automobile traffic, and closing down some steel mills and coal mines. Some cities, like Beijing, have achieved even greater reductions in air pollution. Beijing has seen a 35 percent drop in particulates, while the city of Shijiazhuang saw a 39 percent drop. China has prioritized pollution reduction in these cities, with the government spending over $120 billion in Beijing alone."

Trump Issues Order To Block Broadcom's Takeover of Qualcomm ( 227

Bloomberg reports that President Donald Trump issued an executive order today blocking Broadcom from acquiring Qualcomm, "scuttling a $117 billion deal that had been subject to U.S. government scrutiny on national security grounds." From the report: The president acted on a recommendation by the Committee on Foreign Investment in the U.S., which reviews acquisitions of American firms by foreign investors. The decision to block the deal was unveiled just hours after Broadcom Chief Executive Officer Hock Tan met with security officials at the Pentagon in a last-ditch effort to salvage the transaction. "There is credible evidence that leads me to believe that Broadcom Ltd." by acquiring Qualcomm "might take action that threatens to impair the national security of the United States," Trump said in the order released Monday evening in Washington.

Chinese Police Begin Tracking Citizens With Face-Recognizing Smart Glasses ( 112

An anonymous reader quotes Reuters: At a highway check point on the outskirts of Beijing, local police are this week testing out a new security tool: smart glasses that can pick up facial features and car registration plates, and match them in real-time with a database of suspects. The AI-powered glasses, made by LLVision, scan the faces of vehicle occupants and the plates, flagging with a red box and warning sign to the wearer when any match up with a centralized "blacklist".

The test -- which coincides with the annual meeting of China's parliament in central Beijing -- underscores a major push by China's leaders to leverage technology to boost security in the country... Wu Fei, chief executive of LLVision, said people should not be worried about privacy concerns because China's authorities were using the equipment for "noble causes", catching suspects and fugitives from the law. "We trust the government," he told Reuters at the company's headquarters in Beijing.

This weekend while China's President Xi Jinping is expected to push through a reform allowing him to stay in power indefinitely, Reuters reports that the Chinese goverment is pushing the use of cutting-edge technology "to track and control behavior that goes against the interests of the ruling Communist Party online and in the wider world... A key concern is that blacklists could include a wide range of people stretching from lawyers and artists to political dissidents, charity workers, journalists and rights activists...

"The new technologies range from police robots for crowd control, to drones to monitor border areas, and artificially intelligent systems to track and censor behavior online," Reuters reports, citing one Hong Kong researcher who argues that China now sees internet and communication technologies "as absolutely indispensable tools of social and political control."

Scientists Unsure Where Chinese Space Station Will Crash To Earth 78

In 2016, the Chinese space agency lost control of its Tiangong-1, or Heavenly Palace, spacecraft, five years after it blasted into orbit. Scientists have determined that it will come crashing down to Earth in the coming weeks, be they do not know exactly where on Earth it will hit. The Guardian reports: The defunct module is now at an altitude of 150 miles and being tracked by space agencies around the world, with the European Space Agency's center in Darmstadt predicting a fiery descent for it between March 27 and April 8. Hurtling around the Earth at about 18,000mph, the module ranks as one of the larger objects to re-enter the atmosphere without being steered towards the ocean, as is standard for big and broken spacecraft, and cargo vessels that are jettisoned from the International Space Station (ISS), to reduce the risk to life below. The spacecraft's orbit ranges from 43 degrees north to 43 degrees south, which rules out a descent over the UK but includes vast stretches of North and South America, China, the Middle East, Africa, Australia, parts of Europe -- and great swaths of the Pacific and Atlantic oceans. Western analysts cannot be sure how much of the spacecraft will survive re-entry, because China has not released details of the design and materials used to make Tiangong-1. But the spacecraft may have well-protected titanium fuel tanks containing toxic hydrazine that could pose a danger if they land in populated areas.

China's Alibaba is Investing Huge Sums in AI Research and Resources -- and It Is Building Tools To Challenge Google and Amazon ( 30

Alibaba is already using AI and machine learning to optimize its supply chain, personalize recommendations, and build products like Tmall Genie, a home device similar to the Amazon Echo. China's two other tech supergiants, Tencent and Baidu, are likewise pouring money into AI research. The government plans to build an AI industry worth around $150 billion by 2030 and has called on the country's researchers to dominate the field by then. But Alibaba's ambition is to be the leader in providing cloud-based AI. From a report: Like cloud storage (think Dropbox) or cloud computing (Amazon Web Services), cloud AI will make powerful resources cheaply and readily available to anyone with a computer and an internet connection, enabling new kinds of businesses to grow. The real race in AI between China and the US, then, will be one between the two countries' big cloud companies, which will vie to be the provider of choice for companies and cities that want to make use of AI. And if Alibaba is anything to go by, China's tech giants are ready to compete with Google, Amazon, IBM, and Microsoft to serve up AI on tap. Which company dominates this industry will have a huge say in how AI evolves and how it is used.

[...] There have been other glimpses of Alibaba's progress in AI lately. Last month a research team at the company released an AI program capable of reading a piece of text, and answering simple questions about that text, more accurately than anything ever built before. The text was in English, not Chinese, because the program was trained on the Stanford Question Answering Dataset (SQuAD), a benchmark used to test computerized question-and-answer systems. [...] One advantage China's tech companies have over their Western counterparts is the government's commitment to AI. Smart cities that use the kind of technology found in Shanghai's metro kiosks are likely to be in the country's future. One of Alibaba's cloud AI tools is a suite called City Brain, designed for tasks like managing traffic data and analyzing footage from city video cameras.

United States

Researchers Provide Likely Explanation For the 'Sonic Weapon' Used At the US Embassy In Cuba ( 112

An anonymous reader quotes a report from IEEE Spectrum: Last August, reports emerged that U.S. and Canadian diplomats in Cuba had suffered a host of mysterious ailments. Speculation soon arose that a high-frequency sonic weapon was to blame. Acoustics experts, however, were quick to point out the unlikeliness of such an attack. Among other things, ultrasonic frequencies -- from 20 to 200 kilohertz -- don't propagate well in air and don't cause the ear pain, headache, dizziness, and other symptoms reported in Cuba. Also, some victims recalled hearing high-pitched sounds, whereas ultrasound is inaudible to humans. The mystery deepened in October, when the Associated Press (AP) released a 6-second audio clip, reportedly a recording of what U.S. embassy staff heard. The chirping tones, centered around 7 kHz, were indeed audible, but they didn't suggest any kind of weapon. Looking at a spectral plot of the clip on YouTube, Kevin Fu, a computer scientist at the University of Michigan, noted some unusual ripples. He thought he might know what they meant.

Fu's lab specializes in analyzing the cybersecurity of devices connected to the Internet of Things, such as sensors, pacemakers, RFIDs, and autonomous vehicles. To Fu, the ripples in the spectral readout suggested some kind of interference. He discussed the AP clip with his frequent collaborator, Wenyuan Xu, a professor at Zhejiang University, in Hangzhou, China, and her Ph.D. student Chen Yan. Yan and Xu started with a fast Fourier transform of the AP audio, which revealed the signal's exact frequencies and amplitudes. Then, through a series of simulations, Yan showed that an effect known as intermodulation distortion could have produced the AP sound. Intermodulation distortion occurs when two signals having different frequencies combine to produce synthetic signals at the difference, sum, or multiples of the original frequencies. Having reverse engineered the AP audio, Fu, Xu, and Yan then considered what combination of things might have caused the sound at the U.S. embassy in Cuba. "If ultrasound is to blame, then a likely cause was two ultrasonic signals that accidentally interfered with each other, creating an audible side effect," Fu says. "Maybe there was also an ultrasonic jammer in the room and an ultrasonic transmitter," he suggests. "Each device might have been placed there by a different party, completely unaware of the other."


Elon Musk Sides With Trump On Trade With China, Citing 25 Percent Import Duty On American Cars ( 331

Elon Musk believes China isn't playing fair in the car trade with the U.S. since it puts a 25 percent import duty on American cars, while the U.S. only does 2.5 percent for Chinese cars. "I am against import duties in general, but the current rules make things very difficult," Musk tweeted. "It's like competing in an Olympic race wearing lead shoes." CNBC reports: Tesla's Elon Musk is complaining to President Donald Trump about China's car tariffs. "Do you think the US & China should have equal & fair rules for cars? Meaning, same import duties, ownership constraints & other factors," Musk said on Twitter in response to a Trump tweet about trade with China. He added that no American car company is "allowed to own even 50% of their own factory" in the Asian country, but China's auto firms can own their companies in the U.S. Trump responded to Musk's tweets later at his steel and aluminum tariff press conference Thursday. "We are going to be doing a reciprocal tax program at some point, so that if China is going to charge us 25% or if India is going to charge us 75% and we charge them nothing ... We're going to be at those same numbers. It's called reciprocal, a mirror tax," Trump said after reading Musk's earlier tweets out loud.

Leaked Files Show How the NSA Tracks Other Countries' Hackers ( 66

An analysis of leaked tools believed to have been developed by the U.S. National Security Agency (NSA) gives us a glimpse into the methods used by the organization to detect the presence of other state-sponsored actors on hacked devices, and it could also help the cybersecurity community discover previously unknown threats. The Intercept: When the mysterious entity known as the "Shadow Brokers" released a tranche of stolen NSA hacking tools to the internet a year ago, most experts who studied the material honed in on the most potent tools, so-called zero-day exploits that could be used to install malware and take over machines. But a group of Hungarian security researchers spotted something else in the data, a collection of scripts and scanning tools the National Security Agency uses to detect other nation-state hackers on the machines it infects. It turns out those scripts and tools are just as interesting as the exploits. They show that in 2013 -- the year the NSA tools were believed to have been stolen by the Shadow Brokers -- the agency was tracking at least 45 different nation-state operations, known in the security community as Advanced Persistent Threats, or APTs. Some of these appear to be operations known by the broader security community -- but some may be threat actors and operations currently unknown to researchers.

The scripts and scanning tools dumped by Shadow Brokers and studied by the Hungarians were created by an NSA team known as Territorial Dispute, or TeDi. Intelligence sources told The Intercept the NSA established the team after hackers, believed to be from China, stole designs for the military's Joint Strike Fighter plane, along with other sensitive data, from U.S. defense contractors in 2007; the team was supposed to detect and counter sophisticated nation-state attackers more quickly, when they first began to emerge online. "As opposed to the U.S. only finding out in five years that everything was stolen, their goal was to try to figure out when it was being stolen in real time," one intelligence source told The Intercept. But their mission evolved to also provide situational awareness for NSA hackers to help them know when other nation-state actors are in machines they're trying to hack.

United States

US Calls Broadcom's Bid For Qualcomm a National Security Risk ( 91

An anonymous reader quotes a report from The New York Times (Warning: source may be paywalled; alternative source): The United States government said Broadcom's proposed acquisition of rival chipmaker Qualcomm could pose a national security risk and called for a full investigation into the hostile bid. The move complicates an already contentious deal and increases the likelihood that Broadcom, which is based in Singapore, will end its pursuit of Qualcomm. Such an investigation is often a death knell for a corporate acquisition. A government panel, the Committee on Foreign Investment in the United States, or Cfius, noted, in part, that the potential risk was related to Broadcom's relationships with foreign entities, according to a letter from a United States Treasury official. It also said that the deal could weaken "Qualcomm's technological leadership," giving an edge to Chinese companies like Huawei. "China would likely compete robustly to fill any void left by Qualcomm as a result of this hostile takeover," the official said in the letter. The letter and the public call for an investigation reflects a newly aggressive stance by Cfius. In most cases, the panel operates in secret and weighs in after a deal is announced. In this instance, Cfius, which is made up of representatives from multiple federal agencies, is taking a proactive role and investigating before an acquisition agreement has even been signed.

China's Xiaomi Confirms It Will Enter US Smartphone Market By the End of This Year or Early Next Year ( 61

Sensing an opening, Chinese smartphone maker Xiaomi says it plans to enter the U.S. smartphone market in late 2018 or 2019. From a report: The news comes just several weeks after rival Huawei, which appeared to have a head start, had its hopes dashed when a partnership with AT&T was scuttled. While both companies said the parting was mutual, the decision came after intense political blowback from U.S. politicians who worried that Huawei's technology poses security risks for U.S. businesses and customers. Today, the Wall Street Journal reported that Xiaomi chair Lei Jun told one of its reporters: "We've always been considering entering the U.S. market. We plan to start entering the market by end 2018, or by early 2019." In general, while Chinese tech companies have become massive primarily by succeeding on their home turf, they are facing challenges in exporting that success to Western markets.

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