Світ

The Treasury Department on Monday finalized a new rule meant to prevent U.S.-based people and companies from investing in the development of a range of advanced technologies in China, thereby preventing Beijing from accessing cutting-edge expertise and equipment.

The rule, which implements an executive order signed by President Joe Biden in 2023, focuses particularly on advanced semiconductors and microelectronics and the equipment used to make them, technology used in quantum computing, and artificial intelligence systems.

When it takes effect on January 2, the rule will prohibit certain transactions in semiconductors, microelectronics and artificial intelligence. It also establishes mandatory reporting requirements for transactions that are not banned outright.

In the field of quantum computing, the rule is more far-reaching, banning all transactions “related to the development of quantum computers or production of any critical components required to produce a quantum computer,” as well as the development of other quantum systems. Unlike the fields of AI and semiconductors, the rule does not allow for transactions that can be completed so long as they are reported to the government.

The rule also announced the creation of the Office of Global Transactions within Treasury’s Office of Investment Security, which will administer the Outbound Investment Security Program.

Justification and opposition

“Artificial intelligence, semiconductors, and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications like cutting-edge code-breaking computer systems or next generation fighter jets,” Paul Rosen, assistant secretary for investment security, said in a statement.

“This Final Rule takes targeted and concrete measures to ensure that U.S. investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security,” Rosen said.

Beijing has repeatedly complained about U.S. technology policy, arguing that the U.S. is dedicated to preventing China’s rise as a global power. In a press conference on Tuesday, Chinese Foreign Ministry spokesperson Lin Jian reiterated China’s longstanding objections to U.S. efforts to withhold advanced technology from Chinese companies.

“China deplores and rejects the U.S.’s Final Rule to curb investment in China,” Lin said. “China has protested to the U.S. and will take all measures necessary to firmly defend its lawful rights and interests.”

Not just equipment

The language of the rule frequently notes that it applies to transactions with “countries of concern,” but the specific language in the text makes it plain that the targets of the rule are companies and individuals doing business in mainland China as well as the “special administrative districts” of Hong Kong and Macao.

The Final Rule’s ban on transactions is not limited to the physical transfer of finished goods and machinery in the specified fields. Explanatory documents released on Monday make it clear that several intangible benefits are also covered.

Countries of concern “are exploiting or have the ability to exploit certain United States outbound investments, including certain intangible benefits that often accompany United States investments and that help companies succeed,” an informational statement accompanying the rule said. “These intangible benefits include enhanced standing and prominence, managerial assistance, investment and talent networks, market access, and enhanced access to additional financing.”

Signaling to US companies

The onus will be on U.S. companies to comply with the new rule, Stephen Ezell, vice president for global innovation policy at the Information Technology & Innovation Foundation, told VOA.

“This is the U.S. government signaling to U.S. entities and investors that they need to think twice about making investments on the prohibited transaction side of the equation that would advance China’s capabilities in these areas,” Ezell said.

He added that the impact of the rule on investment in Chinese technology companies would have effects far beyond any reduction in funding.

“It’s not just the dollars,” he said. “A key target here is getting at the intangible benefits that come with those investments, such as managerial capability, talent networks.” He described that loss as “very significant.”

Closing loopholes

In an email exchange with VOA, Daniel Gonzales, a senior scientist at the RAND Corporation, explained that the purpose of the rule was, in part, to prevent U.S. investment firms from supporting Chinese firms in the development of certain kinds of technology.

“These rules were put in place after many episodes where U.S. [venture capital] companies helped to transfer or nurture advanced technologies that have relevant military capabilities,” Gonzales wrote. “One particular case was that of TikTok and its AI algorithms, which were developed with the help of Sequoia Capital of California.”

Sequoia did not break any laws in assisting TikTok, Gonzales said. But “it has since become known to U.S. authorities that TikTok does possess an AI algorithm that has a variety of applications, some of which have military implications. This new rule is intended to close this loophole.”

Gonzales said the U.S. government’s concern with quantum computing is also born of worries about Chinese offensive capabilities.

“Chinese researchers are working on developing quantum computer algorithms that can break encryption codes used by the U.S. government and the U.S. financial sector to protect private and confidential information,” he wrote. “China has several startup companies working to develop more powerful quantum computers. This new rule is intended to prevent the leakage of U.S. quantum technology to China through U.S. VCs.”
…

NAIROBI, KENYA — Some companies are coming up with creative ways of making electric vehicles a more realistic option in power-challenged areas of Africa.

Countries in Africa have been slow adopters of battery-powered vehicles because finding reliable sources of electricity is a challenge in many places.

The Center for Strategic and International Studies described Africa as “the most energy-deficient continent in the world” and said that any progress made in electricity access in the last five years has been reversed by the pandemic and population growth.

Onesmus Otieno, for one, regrets trading in his diesel-powered motor bike for an electric one. He earns his living making deliveries and ferrying passengers around Nairobi, Kenya’s capital, with his bike.

The two-wheeled taxis popularly known as “boda boda” in Swahili are commonly used in Kenya and throughout Africa. Kenyan authorities recently introduced the electric bikes to phase out diesel ones. Otieno is among the few riders who adopted them, but he said finding a place to charge his bike has been a headache.

Sometimes the battery dies while he is carrying a customer, he said, while a charging station is far away. So, he has to end that trip and cancel other requests.

To address the problem, Chinese company Beijing Sebo created a mobile application that allows users of EVs to request a charge through the app. Then, charging equipment is brought to the user’s location.

Lin Lin, general manager for overseas business of Beijing Sebo, said because the company produces the equipment, it can control costs.

“We can deploy the product … in any country they need, and they don’t need to build or fix charging stations,” Lin said. “We can move to the location of the user, and we can bring electricity to electric vehicles.”

Lin said the mobile charging vans use electricity generated from solid waste and can charge up to five cars at one time for about $7 per vehicle — less for a motorbike.

Countries in Africa have been slow to adopt electric vehicles because there is a lack of infrastructure to support the technology, analysts say. The cost of EVs is another barrier, said clean energy expert Ajay Mathur.

”Yes, the capital cost is more,” Mathur said. “The first cost is more, but you recover it in about six years or so. We are at the beginning of the revolution.”

Electric motor bike maker Spiro offers a battery-swapping service in several countries to address the lack of EV infrastructure.

But studies show that for many African countries, access to reliable and affordable electricity remains a challenge. There are frequent power cuts, outages and voltage fluctuations in several regions.

Companies such as Beijing Sebo and Spiro are finding ways around the lack of power in Africa.

”We want to solve the problem of charging anxiety anywhere you are,” Lin said. 

This story originated in VOA’s Mandarin Service.
…

Washington — A China-linked disinformation operation is using so-called “Spamouflage” networks to ramp up Beijing’s propaganda aimed at social media users in the West who regularly promote cryptocurrency-related content on X.  

Spamouflage accounts are bots pretending to be authentic users that promote narratives that align with Beijing’s talking points issues, such as the COVID-19 pandemic, China’s human rights record, the war in Ukraine and the conflict in Gaza.

The cryptocurrency accounts were discovered by a joint investigation between VOA Mandarin and DoubleThink Lab, a Taiwan-based social media analytics firm.  

DoubleThink Lab’s analysis uncovered 1,153 accounts that primarily repost news and promotions about cryptocurrency and are likely bots deployed by engagement boosting services to raise their clients’ visibility on social media.  

The findings suggest that some official Chinese X accounts and the Spamouflage operation have been using the same amplification services, which further indicate the link between the Chinese state and Spamouflage.

Beijing has repeatedly denied any attempts to spread disinformation in the United States and other countries.

From cryptocurrency to Spamouflage

A review of the accounts in the VOA-DTL investigation shows that the majority of the posts were about cryptocurrency. Users regularly repost content from some of the biggest cryptocurrency accounts on X, such as ChainGPT and LondonRealTV, which belongs to British podcaster Brian Rose.

But these accounts have also shared content from at least 17 Spamouflage accounts that VOA and DTL have been tracking.

VOA recently reported on Spamouflage networks’ adoption of antisemitic tropes and conspiracy theories.

Spamouflage was first detected by the U.S.-based social media analytic firm Graphika, who coined the name because the operation’s political posts were interspersed with innocuous but spam-like content such as TikTok videos and scenery photographs that camouflage the operation’s goal of influencing public opinions.

All cryptocurrency accounts have reposted content from a Spamouflage account named “Watermelon cloth” at least once. A review of the account revealed that “Watermelon cloth” regularly posted content critical of social inequalities in the United States, the Ukrainian and Israeli governments, and praised China’s economic achievements and leadership role in solving international issues.  

In one post, the account peddled the conspiracy theory that Washington was developing biological weapons in Ukraine.

“The outbreak of the Russo-Ukrainian war brought out an ‘unspeakable secret’ in the United States. US biological laboratory in Ukraine exposed,” the post said. X recently suspended Watermelon cloth’s account.

Since Watermelon cloth’s first posting in March 2023, its content has been reposted nearly 2,600 times, half of which were by the cryptocurrency accounts. Most of the remaining reposts were either by Spamouflage or other botlike accounts, according to data collected by DoubleThink Lab. The investigation also found that the cryptocurrency accounts’ amplification on average almost tripled the view number of a post.  

Robotic behavior

All 1,153 cryptocurrency accounts have demonstrated patterns that strongly suggest they are bots instead of human users.

They were created in batches on specific dates. On April 6 alone, 152 of them were registered on X.

Over 99% of their content were reposts. A study of their repost behaviors on September 24 shows that all the reposts took place within the first hour after the original content was posted. Within each wave of reposts, all took place within six seconds, an indication of coordinated action.

At least one such account offered engagement boosting services in its bio with two Telegram links for interested customers. VOA Mandarin contacted the service seller through the links but did not receive a response.

Chinese official accounts amplified

The cryptocurrency group has also promoted posts from Chinese official accounts, including several that belong to Chinese local governments, state media and at least one Chinese diplomat.

The Jinan International Communication Center was the third most amplified account whose posts the cryptocurrency groups have shared. Its content was reposted over 2,200 times.

The Jinan International Communication Center was established in 2022 to promote the history and culture of Jinan, capital of the Shandong province in Eastern China, to the rest of the world as part of Beijing’s “Tell China’s Story Well” propaganda initiative.

A local state media account boasted in an article last year that Jinan was the third most influential Chinese city on X, which was then called Twitter.

Other Chinese cities, including Xiamen and Ningbo, and provinces, such as Anhui and Jilin, had their official accounts amplified by the cryptocurrency group.

Other amplified accounts include Xi’s Moments, a state media project propagating Chinese leader Xi Jinping’s speeches and official activities; China Retold, a media group organized by pro-Beijing politicians in Hong Kong; and the English-language state-owned newspaper China Daily.

Zhang Heqing, a cultural counselor at the Chinese Embassy in Pakistan, was the sole Chinese diplomat whose posts were promoted by the cryptocurrency group.

DoubleThink Lab wrote in an analysis of the data and findings that Chinese official accounts and the Spamouflage operation have “likely” used the same content boosting services, which explains why they were amplified by the same group of cryptocurrency accounts.

The Chinese Embassy in Washington, D.C., declined to answer specific questions about what appears to be a connection between the cryptocurrency group, Chinese official accounts and Spamouflage.

But in a written statement, spokesperson Liu Pengyu rejected the notion that China has used disinformation campaigns to influence social media users in the U.S.

“Such allegations are full of malicious speculations against China, which China firmly opposes,” the statement said.
…

Experts say small modular reactors, called SMRs, are bringing affordable nuclear energy to less wealthy countries. But what are SMRs and why are proponents so excited about them? VOA reporter Henry Wilkins explains
…