Month: June 2024

Hong Kong — A suspected Chinese state-sponsored hacking group has stepped up its targeting of Taiwanese organizations, particularly those in sectors such as government, education, technology and diplomacy, according to cybersecurity intelligence company Recorded Future. 

In recent years, relations between China and Taiwan, a self-governed island across the Taiwan Strait that Beijing claims as its territory, have deteriorated. The cyberattacks by the group known as RedJulliett were observed between November 2023 and April 2024, during the lead up to Taiwan’s presidential elections in January and the subsequent change in administration. 

RedJuliett has targeted Taiwanese organizations in the past, but this is the first time that activity was seen at such a scale, a Recorded Future analyst said, speaking on condition of anonymity out of safety concerns. 

The report said RedJuliett attacked 24 organizations, including government agencies in places like Laos, Kenya and Rwanda, as well as Taiwan. 

It also hacked into websites of religious organizations in Hong Kong and South Korea, a U.S university and a Djiboutian university. The report did not identify the organizations. 

Recorded Future said RedJuliett accessed the servers of those places via a vulnerability in their SoftEther enterprise virtual private network, or VPN software, an open-source VPN that allows remote connections to an organization’s networks. 

RedJuliett has been observed attempting to break into systems of more than 70 Taiwanese organizations including three universities, an optoelectronics company and a facial recognition company that has contracts with the government. 

It was unclear if RedJuliett managed to break into those organizations: Recorded Future only said it observed the attempts to identify vulnerabilities in their networks. 

RedJuliett’s hacking patterns match those of Chinese state-sponsored groups, according to Recorded Future. 

It said that based on the geolocations of IP addresses, RedJulliett is likely based out of the city of Fuzhou, in China’s southern Fujian province, whose coast faces Taiwan. 

“Given the close geographical proximity between Fuzhou and Taiwan, Chinese intelligence services operating in Fuzhou are likely tasked with intelligence collection against Taiwanese targets,” the report said. 

“RedJuliett is likely targeting Taiwan to collect intelligence and support Beijing’s policy-making on cross-strait relations,” the Recorded Future report said.

Taiwan’s Ministry of Foreign Affairs did not immediately comment.

A Chinese Foreign Ministry spokesperson dismissed the allegations.

“I don’t know the specifics of what you mentioned, but I can tell you that it’s not the first time the company you mentioned has fabricated disinformation on so-called Chinese hacking operations. There is absolutely no professionalism or credibility to speak of in what the company does,” the spokesperson, Mao Ning, said.

Microsoft reported in August last year that RedJuliett, which Microsoft tracks under the name Flax Typhoon, was targeting Taiwanese organizations. 

China has in recent years stepped up military drills around Taiwan and imposed economic and diplomatic pressure on the island. 

Relations between Taiwan and Beijing worsened further after the election in January of Taiwan’s new president Lai Ching-te, who China has deemed a “separatist,” after he said in his inauguration speech that Taiwan and China were not subordinate to each other. Like his predecessor Tsai Ing-wen, Lai has said that there is no need to declare Taiwanese independence because it is already an independent sovereign state. 

Like many other countries including the U.S., China has been known to engage in cyberespionage. Earlier this year, the U.S. and Britain accused China of a sweeping cyberespionage campaign that allegedly hit millions of people. 

Beijing has consistently denied engaging in any form of state-sponsored hacking, instead saying that China itself is a major target of cyberattacks. 

According to Recorded Future, Chinese state-sponsored groups will likely continue to target Taiwanese government agencies, universities and critical technology companies via “public-facing” devices such as open-source VPN software, which provide limited visibility and logging capabilities. 

Companies and organizations can best protect themselves by prioritizing and patching vulnerabilities once they become known, Recorded Future’s threat intelligence analyst said.
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AMSTERDAM — Apple’s App Store rules breach EU tech rules because they prevent app developers from steering consumers to alternative offers, EU antitrust regulators said on Monday, a charge that could result in a hefty fine for the iPhone maker.

The European Commission, which also acts as the European Union’s antitrust and technology regulator, said it had sent its preliminary findings to Apple following an investigation launched in March.

The charge against Apple is the first by the Commission under its landmark Digital Markets Act which seeks to rein in the power of Big Tech and ensure a level playing field for smaller rivals. It has until March next year to issue a final decision.

EU antitrust chief Margrethe Vestager cited issues with Apple’s new terms.

“As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them,” she told a conference.

The Commission said under most of the business terms, Apple allows steering only through ‘link-outs’, meaning that app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract.

It also criticised the fees charged by Apple for facilitating via the App Store the initial acquisition of a new customer by developers, saying they went beyond what was strictly necessary for such remuneration.

Apple said it had made a number of changes in the past several months to comply with the DMA after getting feedback from developers and the Commission.

“We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” the company said in an email.

The EU executive said it was also opening an investigation into the iPhone maker over its new contractual requirements for third-party app developers and app stores and whether these were necessary and proportionate.

DMA breaches can cost companies fines as much as 10% of their global annual turnover.
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Shanghai, China — The German vice-chancellor assured China on Saturday that the “doors” remained “open” to discuss EU surcharges on Chinese electric vehicles, without reassuring Beijing which promised to “firmly defend” its manufacturers.

Also, the Minister of Economy and Climate, Robert Habeck is making a visit that seems like a last chance to avoid a trade war between the Old Continent and the second world power, an important economic partner of Germany.

A task further complicated by the political context, the German leader reproached China on Saturday for its economic support for Russia against a backdrop of the invasion of Ukraine, stressing it was “harming” relations between Beijing and Brussels.

China regularly denounces these upcoming surcharges on electric vehicles as being “purely protectionist.”

“These are not punitive customs duties,” Habeck assured Zheng Shanjie, director of the Chinese Economic Planning Agency (NDRC) Saturday, according to a recording sent to AFP by the Chinese Embassy in Germany.

“This is not a punishment,” he insisted.

Up to 28% increase

Without compromise by July 4, the European Commission will impose up to 28% increase in customs duties on imports of Chinese electric vehicles, accusing Beijing of having, according to it, distorted competition by massively subsidizing this sector.

These surcharges would become definitive from November.

“For Europe, I can say that the doors are open and the invitation or offer for discussion has been made several times. Now it must be accepted,” Habeck said at a news conference in Shanghai.

From Brussels, Olof Gill, the EU spokesperson, assured that European Trade Commissioner Valdis Dombrovskis and Chinese Trade Minister Wang Wentao “had a frank and constructive call on Saturday regarding the anti-subsidy investigation of the EU on electric cars produced in China.”

“Both sides will continue to engage at all levels in the coming weeks,” he added.

China vows to defend ‘rights’

Earlier Saturday, the tone had been firm on the Chinese side.

“If the EU shows sincerity, China wants to start negotiations as soon as possible” on the surcharges, Trade Minister Wang told him, according to the English-speaking state television CGTN.

“But if the EU persists in this course, we will take all necessary measures to defend our interests. This will include lodging a complaint with the dispute settlement mechanism of the World Trade Organization (WTO). We will firmly defend the legitimate rights and interests of Chinese enterprises.”

Beijing had already announced Monday that it had launched an anti-dumping investigation into imports of pork and pork products from the European Union.

German and European manufacturers are strongly affected by cheaper Chinese competition. Imports of Chinese electric vehicles into Germany increased tenfold between 2020 and 2023.

China argues that the success of its electricity sector is due to innovation and efficient supply chains, not subsidies.

“(EU) protectionism will not protect (its manufacturers’) competitiveness and will only slow down the global fight against climate change and the promotion of a green transition,” Zheng told Habeck.

“We expect Germany to show leadership within the EU and take the right measures,” implying the cancellation of surcharges, he insisted, according to the New China agency.

Habeck blames Beijing

Such an epilogue seems improbable, with Habeck again blaming Beijing on Saturday for the surge in its trade with Moscow.

“The Russian war of aggression and Chinese support for the Russian government are already harming trade and economic relations between Europe and China,” he said he told his Chinese interlocutors.

China has pledged not to supply weapons to Russia and calls for respect for the territorial integrity of all countries — including Ukraine. But China has never condemned Moscow for its invasion.

Habeck assured Saturday that many “dual-use” goods (both civil and military) were used by Russia after passing through “third countries” — implying China.

“We therefore cannot accept” that the Russian invasion is supported with these products, insisted the German vice-chancellor, calling on Beijing to ban their export to its Russian neighbor.

German car manufacturers still fear a major trade conflict with Beijing, which would undermine their activity in this crucial market. For Mercedes, Volkswagen or BMW, China represents up to 36% of sales volumes.
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Xichang, China — A French-Chinese satellite blasted off Saturday on a hunt for the mightiest explosions in the universe, in a notable example of cooperation between a Western power and the Asian giant.

Developed by engineers from both countries, the Space Variable Objects Monitor, or SVOM, will seek out gamma-ray bursts, the light from which has traveled billions of light years to reach Earth.

The 930-kilogram (2,050-pound) satellite carrying four instruments — two French, two Chinese — took off around 3 p.m. aboard a Chinese Long March 2-C rocket from a space base in Xichang, in the southwestern province of Sichuan, AFP journalists witnessed.

Gamma-ray bursts generally occur after the explosion of huge stars — those more than 20 times as big as the sun — or the fusion of compact stars.

The extremely bright cosmic beams can give off a blast of energy equivalent to over a billion billion suns.

Observing them is like “looking back in time, as the light from these objects takes a long time to reach us,” Ore Gottlieb, an astrophysicist at the Flatiron Institute’s Center for Astrophysics in New York, told AFP.

“Several mysteries”

The rays carry traces of the gas clouds and galaxies they pass through on their journey through space — valuable data for better understanding the history and evolution of the universe.

“SVOM has the potential to unravel several mysteries in the field of [gamma-ray bursts], including detecting the most distant GRBs in the universe, which correspond to the earliest GRBs,” Gottlieb said.

The most distant bursts identified to date were produced just 630 million years after the Big Bang — when the universe was in its infancy.

“We are … interested in gamma-ray bursts for their own sake, because they are very extreme cosmic explosions which allow us to better understand the death of certain stars,” said Frederic Daigne, an astrophysicist at the Institut d’Astrophysique de Paris.

“All of this data makes it possible to test the laws of physics with phenomena that are impossible to reproduce in the laboratory on Earth,” he said.

Once analyzed, the data could help to better understand the composition of space, the dynamics of gas clouds or other galaxies.

The project stems from a partnership between the French and Chinese space agencies, as well as other scientific and technical groups from both nations.

Space cooperation at this level between the West and China is uncommon, especially since the United States banned all collaboration between NASA and Beijing in 2011.

Race against time

“U.S. concerns on technology transfer have inhibited U.S. allies from collaborating with the Chinese very much, but it does happen occasionally,” said Jonathan McDowell, an astronomer at the Harvard-Smithsonian Center for Astrophysics in the United States.

In 2018, China and France jointly launched CFOSAT, an oceanographic satellite mainly used in marine meteorology.

And several European countries have taken part in China’s Chang’e lunar exploration program.

So, while SVOM is “by no means unique,” it remains “significant” in the context of space collaboration between China and the West, said McDowell.

Once in orbit 625 kilometers (388 miles) above the Earth, the satellite will send its data back to observatories.

The main challenge is that gamma-ray bursts are extremely brief, leaving scientists in a race against time to gather information.

Once it detects a burst, SVOM will send an alert to a team on duty around the clock.

Within five minutes, they will have to rev up a network of telescopes on the ground that will align precisely with the axis of the burst’s source to make more detailed observations.
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