Economy

Economy news. Economy refers to the system of production, distribution, and consumption of goods and services within a society. It encompasses everything from individual spending and business operations to government policies and international trade. The economy is influenced by numerous factors, including supply and demand, inflation, employment rates, and fiscal policies

From basement to battlefield: Ukrainian startups create low-cost robots to fight Russia

Northern Ukraine — Struggling with manpower shortages, overwhelming odds and uneven international assistance, Ukraine hopes to find a strategic edge against Russia in an abandoned warehouse or a factory basement.

An ecosystem of laboratories in hundreds of secret workshops is leveraging innovation to create a robot army that Ukraine hopes will kill Russian troops and save its own wounded soldiers and civilians.

Defense startups across Ukraine — about 250 according to industry estimates — are creating the killing machines at secret locations that typically look like rural car repair shops.

Employees at a startup run by entrepreneur Andrii Denysenko can put together an unmanned ground vehicle called the Odyssey in four days at a shed used by the company. Its most important feature is the price tag: $35,000, or roughly 10% of the cost of an imported model.

Denysenko asked that The Associated Press not publish details of the location to protect the infrastructure and the people working there.

The site is partitioned into small rooms for welding and body work. That includes making fiberglass cargo beds, spray-painting the vehicles gun-green and fitting basic electronics, battery-powered engines, off-the-shelf cameras and thermal sensors.

The military is assessing dozens of new unmanned air, ground and marine vehicles produced by the no-frills startup sector, whose production methods are far removed from giant Western defense companies.

A fourth branch of Ukraine’s military — the Unmanned Systems Forces — joined the army, navy and air force in May.

Engineers take inspiration from articles in defense magazines or online videos to produce cut-price platforms. Weapons or smart components can be added later.

“We are fighting a huge country, and they don’t have any resource limits. We understand that we cannot spend a lot of human lives,” said Denysenko, who heads the defense startup UkrPrototyp. “War is mathematics.”

One of its drones, the car-sized Odyssey, spun on its axis and kicked up dust as it rumbled forward in a cornfield in the north of the country last month.

The 800-kilogram (1,750-pound) prototype that looks like a small, turretless tank with its wheels on tracks can travel up to 30 kilometers (18.5 miles) on one charge of a battery the size of a small beer cooler.

The prototype acts as a rescue-and-supply platform but can be modified to carry a remotely operated heavy machine gun or sling mine-clearing charges.

“Squads of robots … will become logistics devices, tow trucks, minelayers and deminers, as well as self-destructive robots,” a government fundraising page said after the launch of Ukraine’s Unmanned Systems Forces. “The first robots are already proving their effectiveness on the battlefield.”

Mykhailo Fedorov, the deputy prime minister for digital transformation, is encouraging citizens to take free online courses and assemble aerial drones at home. He wants Ukrainians to make a million of flying machines a year.

“There will be more of them soon,” the fundraising page said. “Many more.”

Denysenko’s company is working on projects including a motorized exoskeleton that would boost a soldier’s strength and carrier vehicles to transport a soldier’s equipment and even help them up an incline. “We will do everything to make unmanned technologies develop even faster. [Russia’s] murderers use their soldiers as cannon fodder, while we lose our best people,” Fedorov wrote in an online post.

Ukraine has semi-autonomous attack drones and counter-drone weapons endowed with AI and the combination of low-cost weapons and artificial intelligence tools is worrying many experts who say low-cost drones will enable their proliferation.

Technology leaders to the United Nations and the Vatican worry that the use of drones and AI in weapons could reduce the barrier to killing and dramatically escalate conflicts.

Human Rights Watch and other international rights groups are calling for a ban on weapons that exclude human decision making, a concern echoed by the U.N. General Assembly, Elon Musk and the founders of the Google-owned, London-based startup DeepMind.

“Cheaper drones will enable their proliferation,” said Toby Walsh, professor of artificial intelligence at the University of New South Wales in Sydney, Australia. “Their autonomy is also only likely to increase.”

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Demand for rare elements used in clean energy could help clean up abandoned coal mines in US

MOUNT STORM, West Virginia — Down a long gravel road, tucked into the hills in West Virginia, is a low-slung building where researchers are extracting essential elements from an old coal mine that they hope will strengthen the nation’s energy future.

They aren’t mining the coal that powered the steel mills and locomotives that helped industrialize America — and that is blamed for contributing to global warming.

Rather, researchers are finding that groundwater pouring out of this and other abandoned coal mines contains the rare earth elements and other valuable metals that are vital to making everything from electric vehicle motors to rechargeable batteries to fighter jets smaller, lighter or more powerful.

The pilot project run by West Virginia University is now part of an intensifying worldwide race to develop a secure supply of the valuable metals and, with more federal funding, it could grow to a commercial scale enterprise.

“The ultimate irony is that the stuff that has created climate change is now a solution, if we’re smart about it,” said John Quigley, a senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania.

The technology that has been piloted at this facility in West Virginia could also pioneer a way to clean up vast amounts of coal mine drainage that poisons waterways across Appalachia.

The project is one of the leading efforts by the federal government as it injects more money than ever into recovering rare earth elements to expand renewable energies and fight climate change by reducing planet-warming greenhouse gas emissions.

For the U.S., which like the rest of the West is beholden to a Chinese-controlled supply of these valuable metals, the pursuit of rare earth elements is also a national security priority.

Those involved, meanwhile, hope their efforts can bring jobs in clean energy to dying coal towns and clean up entrenched coal pollution that has hung around for decades.

In Pennsylvania alone, drainage from coal piles and abandoned mines has turned waterways red from iron ore and turquoise from aluminum, killing life in more than 8,000 kilometers of streams. Federal statistics also show about 1,200 square kilometers of abandoned and unreclaimed coal mine lands host more than 200 million tons of coal waste.

The metals that chemists are working to extract from mine drainage here are lightweight, powerfully magnetized and have superior fluorescent and conductive properties.

One aim of the Department of Energy is to fund research that proves to private companies that the concepts are commercially viable and profitable enough for them to invest their own money.

Hundreds of millions of dollars from President Joe Biden’s 2021 infrastructure law is accelerating the effort.

Department officials hope that by the middle of the 2030s this infusion will have spawned full-fledged commercial enterprises.

The two most advanced projects funded by the department are the one in West Virginia treating mine drainage and another processing coal dug up by lignite mining in North Dakota.

The first could be an important source of a number of critical metals, such as yttrium, neodymium and gadolinium, used in catalysts and magnets. The latter could be a major source of germanium and gallium, used in semiconductors, LEDs, electrical transmission components, solar panels and electric vehicle motors.

Researchers at each site are designing a commercial-scale operation, based on their pilot projects, in hopes of landing a massive federal grant to build it out.

The alternative would be to develop new mines, disturb more land, get permits, hire workers, build roads and connect power supplies, tasks that take years.

“With acid mind drainage, that’s already done for you,” said Paul Ziemkiewicz, director of the Water Research Institute at West Virginia University.

Ziemkiewicz began the mine drainage project almost a decade ago, helped by federal subsidies. He had envisioned it as a way to treat runoff, recover critical minerals and raise money for more mine cleanups in West Virginia.

But the Biden administration’s ambitious funding for clean energy and a domestic supply of critical minerals broadened that goal.

At the facility, drainage from a one-time coal mine — now closed and covered by a grassy slope — emerges from two pipes, and dumps about 3,028 liters per minute into a retention pond.

From there the water is routed through massive indoor pools and a series of large tanks that, with the help of lime to lower the acidity, separate out most of the silicate, iron and aluminum. That produces a pale powdery concentrate that is about 95% rare earth oxides, plus water clean enough to return to a nearby creek.

The Department of Energy is funding research on coal wastes in various states.

“There are literally billions of tons of coal ash and coal waste lying around, across the country. And so if we can go back in and remine those, there’s decades worth of materials there,” said Grant Bromhal, the acting director of the Department of Energy’s Division of Minerals Sustainability.

Not only coal, but old copper and phosphate mines also hold potential, Bromhal said.

The country won’t be able to recover metals from all of them right away, but technologies the department is helping develop can satisfy a substantial part of demand in the next 20 to 30 years, Bromhal said.

“So if we get into the tens of percents or 50%, I think that’s in the realm of possibility,” he said.

Other solutions to obtain more of these metals are retrieving them from discarded devices and shifting sourcing to friendly nations and away from geopolitical rivals or unstable countries, analysts say. For now, there is only a handful of critical or rare earth mineral mines in the United States, although many more are being proposed.

One final subsidy will be required from the federal government: buy the reclaimed metals at a price that guarantees a commercially viable operation, Ziemkiewicz said.

That way China can’t simply buy up the product or use its market dominance to drive down prices and scare away private investors, he said.

Quigley, a former environmental protection secretary of Pennsylvania and a one-time small-city mayor in coal country, hopes to see a facility like Ziemkiewicz’s come to the Jeddo mine tunnel system in northeastern Pennsylvania.

The Jeddo has defied decades of efforts to treat its flow, which drains a vast network of abandoned underground mines.

It is a massive source of pollution in the Chesapeake Bay watershed, producing an estimated 114,000 to 151,000 liters per minute.

Bringing the Little Nescopeck Creek back to life could put people to work cleaning up the stream and creating recreational opportunities from a newly revived waterway, Quigley said.

“This could mean a lot to coal communities, to a lot of people in the coal region,” Quigley said. “And to the country.”

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EU accepts Apple plan to open iPhone tap-to-pay to rivals

Brussels — The EU on Thursday approved Apple’s offer to allow rivals access to the iPhone’s ability to tap-to-pay within the bloc, ending a lengthy probe and sparing it a heavy fine.

The case dates back to 2022 when Brussels first accused Apple of blocking rivals from its popular iPhone tap payment system in a breach of EU competition law.

“Apple has committed to allow rivals to access the ‘tap and go’ technology of iPhones. Today’s decision makes Apple’s commitments binding,” EU competition chief Margrethe Vestager said in a statement.

“From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. So consumers will have a wider range of safe and innovative mobile wallets to choose from,” she said.

The EU previously found that Apple enjoyed a dominant position by restricting access to “tap-as-you-go” chips or near-field communication (NFC), which allows devices to interconnect within a very short range, to favor its own system.

Now competitors will have access to the standard technology behind contactless payments to offer alternative tap-to-pay tools to iPhone users in the European Economic Area (EEA), which includes the EU and also Iceland, Liechtenstein and Norway.

Only customers with an Apple ID registered in the EEA would be able to make use of these outside apps, the European Commission said in a statement.

The changes must remain in force for 10 years and a “monitoring trustee” must be chosen by Apple to report to the commission during that period on their implementation.

Apple had risked a fine of up to 10% of its total worldwide annual turnover. Apple’s total revenue in the year to September 2023 stood at $383 billion.

“Apple Pay and Apple Wallet will continue to be available in the EEA for users and developers, and will continue to provide an easy, secure and private way to pay, as well as present passes seamlessly from Apple Wallet,” the company said in a statement.

The probe’s conclusion comes at a particularly difficult moment in relations between the EU and Apple, especially over the bloc’s new competition rules for big tech.

The Digital Markets Act (DMA) seeks to ensure tech titans do not privilege their own services over rivals, but the iPhone maker says it puts users’ privacy at risk.

One of the DMA’s main objectives is to give consumers more choice in the web browsers, app marketplaces, search engines and other digital services they use.

The EU in June accused Apple of breaching the DMA by preventing developers from freely pointing consumers to alternative channels for offers and content outside of its proprietary App Store.

It also kickstarted another probe under the DMA into Apple’s new fees for app developers.

The company could face heavy fines if the DMA violations are confirmed.

In March, the EU slapped a $1.9 billion fine on Apple in a different antitrust case but the company has appealed the penalty in an EU court.

Brussels also forced Apple last year to scrap its Lightning port on new iPhone models, in a change that was introduced worldwide and not just in Europe.

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Russian election meddlers hurting Biden, helping Trump, US intelligence warns

WASHINGTON — Russia is turning to a familiar playbook in its attempt to sway the outcome of the upcoming U.S. presidential election, looking for ways to boost the candidacy of former President Donald Trump by disparaging the campaign of incumbent President Joe Biden, according to American intelligence officials. 

A new assessment of threats to the November election, shared Tuesday, does not mention either candidate by name. But an intelligence official told reporters that the Kremlin view of the U.S. political landscape has not changed from previous election cycles.

“We have not observed a shift in Russia’s preferences for the presidential race from past elections,” the official told reporters, agreeing to discuss the intelligence only on the condition of anonymity.

The official said that preference has been further cemented by “the role the U.S. is playing with regard to Ukraine and broader policy toward Russia.”

The caution from U.S. intelligence officials comes nearly four years after it issued a similar warning about the 2020 presidential elections, which pitted then-President Trump against Biden.

Moscow was using “a range of measures to primarily denigrate former Vice President Biden and what it sees as an anti-Russia ‘establishment,’” William Evanina, the then-head of the U.S. National Counterintelligence and Security Center, said at the time.

“Some Kremlin-linked actors are also seeking to boost President Trump’s candidacy on social media and Russian television,” he added. 

A declassified post-election assessment, released in March 2021, reaffirmed the initial findings. Russian President Vladimir Putin authorized “influence operations aimed at denigrating President Biden’s candidacy and the Democratic Party” while offering support for Trump, the report said. 

U.S. intelligence officials said they have been in contact with both presidential campaigns and the candidates but declined to share what sort of information may have been shared.

Trump pushback

The Trump campaign Tuesday rejected the U.S. intelligence assessment as backward.

“Vladimir Putin endorsed Joe Biden for President because he knows Biden is weak and can easily be bullied, as evidenced by Putin’s years-long invasion of Ukraine,” national press secretary Karoline Leavitt told VOA in an email.

“When President Trump was in the Oval Office, Russia and all of America’s adversaries were deterred, because they feared how the United States would respond,” she said.

“The only people in America who don’t see this clear contrast between Biden’s ineffective weakness versus Trump’s effective peace through strength approach are the left-wing stenographers in the mainstream media who write false narratives about Donald Trump for a living,” she added.

The Biden campaign has so far not responded to questions from VOA about the new U.S. assessment.

Russian sophistication

Russian officials also have not yet responded to requests for comment on the latest allegations, which accuse the Kremlin of using a “whole of government” approach to see Trump and other American candidates perceived as favorable to Moscow win in November.

“Moscow is using a variety of approaches to bolster its messaging and lend an air of authenticity to its efforts,” the U.S. intelligence official said. “This includes outsourcing its efforts to commercial firms to hide its hand and laundering narratives through influential U.S. voices.”

Russia’s efforts also appear focused on targeting U.S. voters in so-called swing states, states most likely to impact the outcome of the presidential election, officials said.

Some of those efforts have already come to light.

Russia and AI

Earlier Tuesday, the U.S. Department of Justice announced the seizure of two internet domains and of another 968 accounts on the X social media platform, part of what officials described an artificial intelligence-driven venture by Russian intelligence and Russia’s state-run RT news network.

A Justice Department statement said Russian intelligence and RT used specific AI software to create authentic-looking social media accounts to mimic U.S. individuals, “which the operators then used to promote messages in support of Russian government objectives.”

A joint advisory, issued simultaneously by the U.S., Canada and the Netherlands, warned Russia was in the process of expanding the AI-fueled influence operation to other social media platforms.

The U.S. intelligence official who spoke to reporters Tuesday described such use of AI as a “malign influence accelerant,” and warned the technology had already been deployed, likely by China, in the run-up to Taiwan’s elections this past January.

China waiting

For now, though, U.S. intelligence officials see few indications Beijing is seeking to interfere in U.S. elections, as it did in 2020 and 2022. 

China “sees little gain in choosing between two parties that are perceived as both seeking to contain Beijing,” said the U.S. intelligence official, noting things could change.

“The PRC is seeking to expand its ability to collect and monitor data on U.S. social media platforms, probably to better understand and eventually manipulate public opinion,” the official said. “In addition, we are watching for whether China might seek to influence select down-ballot races as it did in the 2022 midterm elections.”

The Chinese Embassy in Washington, which has denied previous U.S. allegations, responded by calling the U.S. “the biggest disseminator of disinformation.”

“China has no intention and will not interfere in the US election, and we hope that the US side will not make an issue of China in the election,” spokesperson Liu Pengyu told VOA in an email.

‘Chaos agent’

The new U.S. election threat assessment warns that in addition to concerns about Russia and China, there is growing evidence Iran is seeking to play the role of a “chaos agent” in the upcoming U.S. vote.

“Iran seeks to stoke social divisions and undermine confidence in U.S. democratic institutions around the elections,” according to an unclassified version of the assessment. 

It also warned that Tehran “has demonstrated a long-standing interest in exploiting U.S. political and societal tensions through various means, including social media.”

As an example, officials Tuesday pointed to newly declassified intelligence showing Iran trying to exploit pro-Gaza protests across the U.S.

“We have observed actors tied to Iran’s government posing as activists online, seeking to encourage protests, and even providing financial support to protesters,” said National Intelligence Director Avril Haines.

Haines cautioned, though, that Americans who interacted with the Iranian actors “may not be aware that they are interacting with or receiving support from a foreign government.”

Iranian officials have not yet responded to VOA’s request for comment.

 

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LogOn: Unfired earth blocks surpass modern building codes

 A new homebuilding method with ancient roots in adobe offers protection from wildfires, earthquakes, high winds and floods, while being climate friendly and sustainable. The secret ingredient: compressed earth blocks made from mud. Shelley Schlender has the story in this week’s episode of LogOn from Superior, Colorado.

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Australia plans to build secret data centers with Amazon

SYDNEY — Australia said Thursday a $1.35 billion deal with U.S. technology giant Amazon to build three secure data centers for top-secret information will increase its military’s “war-fighting capacity.”

The data centers are to be built in secret locations in Australia and be run by an Australian subsidiary of the U.S. technology company Amazon Web Service, the government said.

The deal is part of Australia’s National Defense Strategy, outlining its commitment to Indo-Pacific security and maintaining “the global rules-based order.” The country has a long-standing military alliance with the United States and is a member, with the United Kingdom, U.S., Canada and New Zealand, of the Five Eyes intelligence alliance.

Australian officials said the project would create a “state-of-the-art collaborative space” for intelligence and defense agencies to store and gain access to sensitive information in a centralized network.

Andrew Shearer, director-general of Australia’s Office of National Intelligence, said in a statement that the project would allow “greater interoperability with our most important international intelligence partners.”

Similar data clouds have been set up in the United States and Britain, allowing the sharing of information among agencies and departments.

Richard Marles, Australia’s deputy prime minister and defense minister, told reporters that highly sensitive national security data will be safely secured in the new system.

“If you consider that any sensor which is on a defense platform, which in turn feeds that data to a high tech capability, such as the Joint Strike Fighter, which will use that to engage in targeting or perhaps to defend itself from an in-coming threat, or … to defend another asset, such as a ship — all of that is top secret data,” Marles said.

The government said the Amazon Web Services storage system will use artificial intelligence to detect suspected intrusions and to retrieve data.

Richard Buckland, a professor in CyberCrime, Cyberwar and Cyberterror at the University of New South Wales, told the Australian Broadcasting Corporation that the storage plan has risks.

“Putting more data together in a central spot and sharing it widely as people intend to do obviously increases the risk of a data breach,” he said.

In a statement, Amazon Web Services’ managing director in Australia, Iain Rouse, said the system would “enable the seamless sharing of classified data between Australia’s National Intelligence Community and the Australian Defense Force.”

The so-called top-secret cloud is scheduled to be in operation by 2027.

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Silicon Valley steps up screening on Chinese employees to counter espionage

Washington — Leading U.S. technology companies reportedly have increased security screening of employees and job applicants, which experts say is necessary to counter the cyber espionage threat from China.

While the enhanced screening is being applied to employees and applicants of all races, those with family or other ties to China are thought to be particularly vulnerable to pressure from the Beijing government.

But at least one Chinese computer science graduate student at a U.S. university is hoping to make his ties to China an asset. Zheng, who does not want to reveal his first name for fear of retaliation from the Chinese government, says he recently changed his focus to cybersecurity in hopes of improving his job prospects in the United States.

“The goal is a bit high, but I think I know more about China as a person born and raised in China. I hope to become a force with my own characteristics in cybersecurity and a role in fighting against Chinese cyber-attacks,” said Zheng, who is seeking political asylum in the United States.

While Zheng said he is not very worried that increased security checks will affect his job prospects, he said many international students in his class worry that they will be shut out from cybersecurity jobs.

Google, OpenAI and Sequoia Capital are among a number of technology and venture capital firms that have stepped up security checks on employees and potential recruits, according to a recent report by The Financial Times.

The newspaper cited sources at those companies saying they were responding to warnings from the U.S. government about a growing threat from Chinese espionage over the past two years.

Chinese cyber espionage concerns

FBI Director Christopher Wray delivered one such message in a speech in April, saying the Chinese government has tried to steal “intellectual property, technology and research” from American industries.

In response, the U.S. government has stepped up security measures over the last two years, including updating its export control regulations to restrict China’s ability to obtain advanced computing chips and artificial intelligence. The strengthened warnings to U.S. companies are part of that response.

Ivan Kanapathy, senior vice president with Beacon Global Strategies, told VOA that Silicon Valley executives share the U.S. government’s concern. “In recent years, emerging technology companies have become more wary; they don’t want to fall victim to China’s technology absorption strategy,” he said.

“Companies can’t afford to help a competitor that will put them out of business. We’ve seen that happen across many industries already. It’s only natural for American and other allied cutting-edge companies to be concerned and take steps to mitigate the risks of PRC state-sponsored espionage,” he said.

Ray Wang, CEO of Silicon Valley-based Constellation Research Inc., said that the theft of American intellectual property has become more rampant since the outbreak of the COVID-19 pandemic and that people with ties to China were often targeted.

“During COVID, many folks with relatives in China were put in compromising positions where they were asked to do things for the Chinese government, or one’s relatives would be put at risk,” Wang said. “China has infiltrated almost every aspect of the U.S., and the U.S. is facing systemic problems.”

Kanapathy said China might also obtain American technology through talent poaching, meaning they recruit someone with experience in a particular technology and ask the person to take the technology to start a new company in China. Although it is ethically questionable, it is sometimes legal.

“China likely also tries to place its own people, including engineers, into certain companies that have desirable technologies. It’s a multipronged strategy,” he said.

In a statement to VOA, Chinese Embassy spokesperson Liu Pengyu acknowledged the accusations but said the U.S. government “is short on delivering solid evidence.”

“We firmly oppose to the groundless accusations and smears towards China and hope the relevant parties can view China’s development objectively and fairly,” he wrote.

Liu also pointed out that the World Intellectual Property Organization last year named China as the world’s highest ranking middle-income economy and 12th overall in terms of independently creating intellectual property rights.

“China’s scientific and technological achievements are never made through ‘stealing.’ The Chinese people, including our intellectuals, made such achievements with our talent and hard work,” he wrote.

Security screening concerns

While the enhanced security reviews usually apply to all employees, Wang said. Google and OpenAI have imposed stricter reviews for Chinese employees, and Microsoft is transferring some of its most important Chinese engineers from China to other regions of the world; NVIDIA has also been highly vigilant in screening.

Microsoft employees in China, mostly involved with cloud computing, were recently offered the opportunity to work in the United States, Australia or Ireland, among other countries, state-run outlet said in a report. The Wall Street Journal reported that Microsoft asked as many as 800 employees, mostly engineers with Chinese nationality working on cloud computing and AI, to consider relocating.

He said companies should exercise caution to avoid triggering xenophobia.

“So almost every new worker, not just Chinese nationals, should undergo the same vetting process. I think it’s really important. As Asian Americans, we have to be very careful about those implications,” he said.

So far, that has not been a problem for Joey Wu, a Chinese software engineer in California. Wu told VOA he has not seen stringent measures exercised against Chinese people, nor has he been treated differently due to his Chinese citizenship.

“I think the U.S. is relatively tolerant and open,” Wu said. “It is not easy for a large technology company to have so many foreign employees. Chinese companies, such as Huawei, are full of Chinese faces, with very few foreigners, and it is unlikely that Americans will be hired to play a more important role.”

Kanapathy pointed out that the founders of many technology companies are from China or India themselves, and these are the people who request security checks on Chinese citizens.

VOA contacted Google, OpenAI and Sequoia Capital for comments but did not receive a response by the time of publication.

VOA’s Adrianna Zhang contributed to this report.

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Alliance sets sights on minerals needed for global shift to green energy

The U.S. government’s representative to the Minerals Security Partnership, an alliance of mostly Western countries that aims to speed the development of energy mineral supply chains, said last month that a Chinese company was using “predatory” tactics to hold down the price of cobalt mined in the Democratic Republic of Congo. Henry Wilkins looks at what this means for Africa.

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Meta risks fines over ‘pay for privacy’ model breaking EU rules

Brussels, Belgium — The EU accused Facebook owner Meta on Monday of breaching the bloc’s digital rules, paving the way for potential fines worth billions of euros.

The charges against the US tech titan follow a finding last week against Apple that marked the first time Brussels had levelled formal accusations under the EU’s Digital Markets Act (DMA).

The latest case focuses on Meta’s new ad-free subscription model for Facebook and Instagram, which has sparked multiple complaints over privacy concerns.

Meta’s “pay or consent” system means users have to pay to avoid data collection, or agree to share their data with Facebook and Instagram to keep using the platforms for free.

The European Commission said it informed Meta of its “preliminary view” that the model the company launched last year “fails to comply” with the DMA.

“This binary choice forces users to consent to the combination of their personal data and fails to provide them a less personalized but equivalent version of Meta’s social networks,” the EU’s powerful antitrust regulator said in a statement.

The findings come after the commission kickstarted a probe into Meta in March under the DMA, which forces the world’s biggest tech companies to comply with EU rules designed to give European users more choice online.

Meta insisted its model “complies with the DMA.”

“We look forward to further constructive dialogue with the European Commission to bring this investigation to a close,” a Meta spokesperson said.

Meta can now reply to the findings and avoid a fine if it changes the model to address the EU’s concerns.

If the commission’s view is confirmed however, it can slap fines of up to 10 percent of Meta’s total global turnover under the DMA. This can rise to up to 20 percent for repeat offenders.

Meta’s total revenue last year stood at around $135 billion (125 billion euros).  

The EU also has the right to break up firms, but only as a last resort. 

In EU’s crosshairs

Under the DMA, the EU labels Meta and other companies, including Apple, as “gatekeepers” and prevents them forcing users in the bloc to consent to have access to a service or certain functionalities.

The commission said Meta’s model did not allow users to “freely consent” to their data being shared between Facebook and Instagram with Meta’s ads services.

“The DMA is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access,” the EU’s top tech enforcer, commissioner Thierry Breton, said.

The commission will adopt a decision on whether Meta’s model is DMA compliant or not by late March 2025.

The EU has shown it is serious about making big online companies change their ways.

The commission told Apple last week its App Store rules were hindering developers from freely pointing consumers to alternative channels for offers.

The EU is also probing Google over similar concerns on its Google Play marketplace.

Apple and Meta are not the only companies coming under the scope of the DMA. Google parent Alphabet, Amazon, Microsoft and TikTok owner ByteDance must also comply.

Online travel giant Booking.com will need to adhere to the rules later this year.

Privacy complaints

Meta has made billions from harvesting users’ data to serve up highly targeted ads. But it has faced an avalanche of complaints over its data processing in recent years.

The European data regulator in April has also said the ‘pay or consent’ model is at odds with the bloc’s General Data Protection Regulation (GDPR), which upholds the privacy of users’ information.

Ireland — a major hub for online tech giants operating in the 27-nation bloc — has slapped Meta with massive fines for violating the GDPR.

The latest complaint by privacy groups forced Meta last month to pause its plans to use personal data to train its artificial intelligence technology in Europe. 

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Russian satellite breaks up, forces space station astronauts to shelter

WASHINGTON — A defunct Russian satellite has broken up into more than 100 pieces of debris in orbit, forcing astronauts on the International Space Station to take shelter for about an hour and adding to the mass of space junk already in orbit, U.S. space agencies said. 

There were no immediate details on what caused the breakup of the RESURS-P1 Russian Earth observation satellite, which Russia declared dead in 2022. 

U.S. Space Command, tracking the debris swarm, said there was no immediate threat to other satellites. 

The event took place about noon EDT (1600 GMT) Wednesday, Space Command said. It occurred in an orbit near the space station, prompting U.S. astronauts on board to shelter in their spacecraft for roughly an hour, NASA’s Space Station office said. 

Russian space agency Roscosmos, which operated the satellite, did not respond to a request for comment or publicly acknowledge the event on its social media channels. 

U.S. Space Command, which has a global network of space-tracking radars, said the satellite immediately created “over 100 pieces of trackable debris.” 

By Thursday afternoon, radars from U.S. space-tracking firm LeoLabs had detected at least 180 pieces, the company said.  

Large debris-generating events in orbit are rare but of increasing concern as space becomes crowded with satellite networks vital to everyday life on Earth, from broadband internet and communications to basic navigation services, as well as satellites no longer in use. 

The satellite’s breakup was at an altitude of roughly 355 km (220 miles) in low-Earth orbit, a popular region where thousands of small to large satellites operate, including SpaceX’s vast Starlink network and China’s station that houses three of its astronauts. 

“Due to the low orbit of this debris cloud, we estimate it’ll be weeks to months before the hazard has passed,” LeoLabs said in a statement to Reuters. 

The some 25,000 pieces of debris bigger than 10 cm (4 inches) in space caused by satellite explosions or collisions have raised concerns about the prospect of a Kessler effect — a phenomenon in which satellite collisions with debris can create a cascading field of more hazardous junk and exponentially increase crash risks. 

Russia sparked strong criticism from the U.S. and other Western countries in 2021 when it struck one of its defunct satellites in orbit with a ground-based anti-satellite (ASAT) missile launched from its Plesetsk rocket site. The blast, testing a weapon system ahead of Moscow’s 2022 invasion of Ukraine, created thousands of pieces of orbital debris. 

In the roughly 88-minute window of RESURS-P1’s initial breakup, the Plesetsk site was one of many locations on Earth it passed over, but there was no immediate indication from airspace or maritime alerts that Russia had launched a missile to strike the satellite, space tracker and Harvard astronomer Jonathan McDowell said. 

“I find it hard to believe they would use such a big satellite as an ASAT target,” McDowell said. “But, with the Russians these days, who knows.” 

He and other analysts speculated the breakup more likely could have been caused by a problem with the satellite, such as leftover fuel onboard causing an explosion. 

What happens to old satellites?  

Dead satellites either remain in orbit until they descend into Earth’s atmosphere for a fiery demise years later, or in widely preferred — but less common — circumstances, they fly to a “graveyard orbit” some 36,000 km (22,400 miles) from Earth to lower the risk of crashing into active satellites. 

Roscosmos decommissioned RESURS-P1 over onboard equipment failures in 2021, announcing the decision the following year. The satellite has since appeared to be lowering its altitude through layers of other active satellites for an eventual atmospheric reentry. 

The six U.S. astronauts currently on the space station were alerted by NASA mission control in Houston late Wednesday evening to execute “safe haven” procedures, where each crew member rushes into the spacecraft they arrived in, in case an emergency departure is required. 

NASA astronauts Butch Wilmore and Suni Williams boarded their Starliner spacecraft, the Boeing-built capsule that has been docked since June 6 in its first crewed test mission on the station. 

Three of the other U.S. astronauts and a Russian cosmonaut went into SpaceX’s Crew Dragon capsule that flew them to the station in March, while the sixth U.S. astronaut joined the two remaining cosmonauts in their Russian Soyuz capsule that ferried them there in September last year. 

The astronauts emerged from their spacecraft roughly an hour later and resumed their normal work on the station, NASA said. 

The prospects of satellite collisions and space warfare have added urgency to calls from space advocates and lawyers to have countries establish an international mechanism of managing space traffic, which does not currently exist.

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Boeing’s Starliner strands astronauts in space

Two NASA astronauts are stranded in space with no return date set. Plus, a new climate satellite launches into orbit, and a human-made creepy crawler looks to explore Mars. VOA’s Arash Arabasadi brings us The Week in Space.

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Chinese hackers have stepped up attacks on Taiwanese organizations, cybersecurity firm says

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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Apple’s App Store rules breach EU tech rules, EU regulators say

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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Germany assures China that doors still open to discuss EU surcharges

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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China, France launch satellite to better understand universe

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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Trump, Biden woo voters on TikTok. Will it make a difference?

President Joe Biden and former president Donald Trump agree on few things, but a ban of the Beijing-based social network TikTok is one of them. Now with a presidential election at stake, both are joining the platform they previously attempted to take down. Will it make a difference on Election Day? Tina Trinh reports.

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