The battle between China and the U.S. over the fate of video sharing app TikTok raises questions for the tech industry worldwide. What might the struggle over TikTok portend for global companies? Michelle Quinn reports.Producer: Matt Dibble
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Category: eNews
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US Judge Blocks Order to Remove WeChat From App Stores
A U.S. judge early Sunday blocked the Commerce Department from requiring Apple Inc and Alphabet Inc’s Google to remove Chinese-owned messaging app WeChat for downloads by late Sunday. U.S. Magistrate Judge Laurel Beeler in San Francisco said in an order that WeChat users who filed a lawsuit “have shown serious questions going to the merits of the First Amendment claim [and] the balance of hardships tips in the plaintiffs’ favor.” On Friday, the Commerce Department had issued an order citing national security grounds to block the app from U.S. app stores owned by Tencent Holdings, and the Justice Department had urged Beeler not to block the order. Beeler’s preliminary injunction also blocked the Commerce order that would have barred other transactions with WeChat in the United States that could have degraded the site’s usability for current U.S. users. The U.S. Commerce Department did not immediately comment. WeChat has had an average of 19 million daily active users in the United States, analytics firms Apptopia said in early August. It is popular among Chinese students, Americans living in China and some Americans who have personal or business relationships in China. The Justice Department said blocking the order would “frustrate and displace the president’s determination of how best to address threats to national security.” But Beeler said, “while the general evidence about the threat to national security related to China [regarding technology and mobile technology] is considerable, the specific evidence about WeChat is modest.” She added, “The regulation — which eliminates a channel of communication without any apparent substitutes — burdens substantially more speech than is necessary to further the government’s significant interest.” WeChat is an all-in-one mobile app that combines services similar to Facebook, WhatsApp, Instagram and Venmo. The app is an essential part of daily life for many in China and boasts more than 1 billion users. The WeChat Users Alliance that had sued praised the ruling “as an important and hard-fought victory” for “millions of WeChat users in the U.S.” Michael Bien, a lawyer for the users, said “the United States has never shut down a major platform for communications, not even during war times. There are serious First Amendment problems with the WeChat ban, which targets the Chinese American community.” He added the order “trampled on their First Amendment guaranteed freedoms to speak, to worship, to read and react to the press, and to organize and associate for numerous purposes.”
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Newspaper: Facebook Tells Irish Court That Probe Threatens Its EU Operations
Facebook has told Ireland’s High Court it cannot see how its services could operate in the European Union if regulators freeze its data transfer mechanism, the Sunday Business Post reported, citing court documents seen by the paper.The U.S. social media giant last week said that the Irish Data Protection Commission, its lead EU regulator, had made a preliminary decision that the mechanism it uses to transfer data from the EU to the United States “cannot in practice be used.”Facebook requested and secured a temporary freeze on the order and a court review in the Irish High Court, which is due to consider the issue in November. In an affidavit submitted to the court to request that the order be frozen, Yvonne Cunnane, Facebook Ireland’s head of data protection and associate general counsel, said it was not clear how the company could continue providing services in the EU if the Irish order is enforced, the Sunday Business Post reported.”It is not clear to (Facebook) how, in those circumstances, it could continue to provide the Facebook and Instagram services in the EU,” the newspaper quoted the affidavit as saying.The affidavit has not been made public, a High Court spokesman said, and a Facebook spokeswoman did not immediately respond to an emailed request for comment.In a Sept. 9 blog post that first confirmed the investigation by the Irish regulator, Facebook said it “relied on the mechanism in question – under what are known as standard contractual clauses (SCCs) – to transfer data to countries outside the EU and that a ban would have “a far reaching effect on businesses that rely on SCCs.”The Irish investigation follows a ruling by the Court of Justice of the European Union in July on when SCCs can be used legally.The ruling was in response to EU concerns that the surveillance regime in the United States might not respect the privacy rights of EU citizens when their personal data is sent to the United States for commercial use.
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Robert W. Gore, Inventor of Gore-Tex Fabric, Dead at 83
Robert W. Gore, whose invention of what created the breathable-yet-waterproof fabric known as Gore-Tex revolutionized outdoor wear and helped spawn uses in numerous other fields, has died. He was 83.Gore, who was president of W. L. Gore & Associates for almost 25 years and company chairman for 30 years, died on Thursday following a prolonged illness at his home in Delaware, company spokesperson Amy Calhoun confirmed Saturday. Gore discovered a new form of a polymer in 1969 at a company lab in Newark, Delaware. His father, who began the company, asked Bob Gore to research a new way to manufacturer plumber’s tape at a low cost using PTFE, commonly known as DuPont’s Teflon, The News Journal of Wilmington reported.The son figured out that by stretching PTFE with a sudden yank, the polymer expanded by 1,000 percent. The resulting product, known as ePTFE, created a microporous structure. The introduction of Gore-Tex technology came seven years later.“It was truly a pivot point in this company’s history,” Greg Hannon, W.L. Gore & Associates’ chief technology officer, said last year. “Without which we would be much less significant of an organization than we are today.”The membrane within Gore-Tex fabric has billions of pores that are smaller than water droplets, leading to waterproof but breathable raincoats, shoes and other clothing. The patents ultimately led to countless other uses with medical devices, guitar strings and in space travel, the company said.Gore was born in Utah, the oldest of five children to Bill and Vieve Gore, who both founded the company in 1958. Bill Gore had previously joined DuPont’s workforce and ultimately came to Delaware. Bob Gore earned his bachelor’s degree in chemical engineering from the University of Delaware and advanced degrees from the University of Minnesota. He succeeded his father as the company’s president and CEO in 1976. Gore and his family contributed funds for buildings and engineering laboratories at the University of Delaware.Gore is survived by his wife, Jane, as well as children, grandchildren and great-grandchildren. Memorial plans weren’t immediately announced by the company.
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Trump Administration Announces Bans of TikTok, WeChat
The Trump administration issued a sweeping ban Friday that will begin barring downloads and use of the Chinese-owned mobile apps WeChat and TikTok from U.S. app stores as of midnight Sunday. The announcement is the latest escalation in America’s tech fight with China.Officials from the U.S. Commerce Department cited national security and data privacy concerns over the move to ban the two popular internet platforms that serve more than 100 million people in the United States.Starting Monday, both apps will be removed from app stores and users will not be able to download the apps to their phones. For users who have the apps already installed, they will not be able to receive updates to the platforms. This restriction will quickly make the app obsolete on smartphones, as the inability to update will make it incompatible with Apple and Google smartphone software, which currently dominate the tech market.The order includes moves to render WeChat useless within the United States by banning American companies from hosting internet traffic or processing transactions from within the app as of midnight Sunday.WeChat serves millions of U.S. users who predominantly rely on the app to stay in touch and conduct business with people and companies in China.Like most social networking sites, both TikTok and WeChat collect user data, including location and messages to track what kind of targeted ad content is most applicable to them.As of now, TikTok will escape the most drastic sanctions until similar restrictions go into effect November 12 unless the company is able to resolve the administration’s national security concerns by the deadline. The order follows weeks of wrangling with the company, which recently struck a deal with U.S.-based software maker Oracle, the details of which have yet to be announced.The app, which has become especially popular among younger users, has proved useful in some political contexts, including for mischief.TikTok users made headlines earlier this year by working to inflate the expected turnout for a rally President Donald Trump held in Tulsa, Oklahoma — and making the actual attendance seem especially low by comparison.The deadline to comply with restrictions falls just after the November 3 presidential election in the United States.Prior to striking the deal, representatives of TikTok, which is owned by China’s ByteDance, were in talks with Microsoft. The partnership between Microsoft and ByteDance fell through earlier this month after reports estimated that the company would shell out up to $30 billion for the acquisition of the app.“We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” Microsoft said in a blog post Sunday. “We would have made significant changes to ensure the service met the highest standards for security, privacy, online safety and combating disinformation, and we made these principles clear in our August statement.”The move to ban the use of the apps in the United States follows an August 6 executive order by Trump, in which he argued that TikTok and WeChat collect data from American users that could be accessed by the Chinese government. Over the past several weeks, Trump has pressured the app’s owner to sell TikTok’s U.S. operations to a domestic company to satisfy these concerns.TikTok spokesman John Gartner said in a statement that the company is “disappointed” by the move and that it would continue to challenge the “unjust executive order.”The American Civil Liberties Union denounced the move as well, saying that the order is an infringement on Americans’ rights to free expression.While the Trump administration has accused the apps of collecting data used by the Chinese government to surveil Americans, the government has not provided specific evidence to support the allegations.ByteDance has repeatedly denied that it has partnered with the Chinese government to siphon U.S. user information.
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Officials: Trump to Block US Downloads of TikTok, WeChat on Sunday
The U.S. Commerce Department said it will issue an order Friday that will bar people in the United States from downloading Chinese-owned messaging app WeChat and video-sharing app TikTok starting on September 20.Commerce officials said the ban on new U.S. downloads of TikTok could be still rescinded by President Donald Trump before it takes effect late Sunday as TikTok owner ByteDance races to clinch an agreement over the fate of its U.S. operations.ByteDance has been talks with Oracle Corp and others to create a new company, TikTok Global, that aims to address U.S. concerns about the security of its users’ data. ByteDance still needs Trump’s approval to stave off a U.S. ban.Commerce officials said they will not bar additional technical transactions for TikTok until Nov. 12, which gives the company additional time to see if ByteDance can reach a deal for its U.S. operations. “The basic TikTok will stay intact until Nov. 12,” Commerce Secretary Wilbur Ross told Fox Business Network.The department said the actions will “protect users in the U.S. by eliminating access to these applications and significantly reducing their functionality.”Oracle shares fell 1.6% after the news in pre-market tradingThe Commerce Department order will “deplatform” the two apps in the United States and bar Apple Inc’s app store, Alphabet Inc’s Google Play and others from offering the apps on any platform “that can be reached from within the United States,” a senior Commerce official told Reuters.The order will not ban U.S. companies from doing businesses on WeChat outside the United States, which will be welcome news to U.S. firms like Walmart and Starbucks that use WeChat’s embedded ‘mini-app’ programs to facilitate transactions and engage consumers in China, officials said.The order will not bar transactions with WeChat-owner Tencent Holdings’ other businesses, including its online gaming operations, and will not prohibit Apple, Google or others from offering TikTok or WeChat apps anywhere outside the United States.The bans are in response to a pair of executive orders issued by Trump on August 6 that gave the Commerce Department 45 days to determine what transactions to block from the apps he deemed pose a national security threat. That deadline expires on Sunday.Commerce Department officials said they were taking the extraordinary step because of the risks the apps’ data collection poses. China and the companies have denied U.S. user data is collected for spying.Ross said in a written statement “we have taken significant action to combat China’s malicious collection of American citizens’ personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of U.S. laws and regulations.”The order is set to be published at 8:45 a.m. EDT (1245 GMT) on Friday, Commerce said.Popular appsThe Trump administration has ramped up efforts to purge “untrusted” Chinese apps from U.S. digital networks and has called TikTok and WeChat “significant threats.”TikTok has 100 million users in the United States and is especially popular among younger Americans.WeChat has had an average of 19 million daily active users in the United States, analytics firms Apptopia said in early August. It is popular among Chinese students, ex-pats and some Americans who have personal or business relationships in China.WeChat is an all-in-one mobile app that combines services similar to Facebook, WhatsApp, Instagram and Venmo. The app is an essential part of daily life for many in China and boasts more than 1 billion users.The Commerce Department will not seek to compel people in the United States to remove the apps or stop using them but will not allow updates or new downloads. “We are aiming at a top corporate level. We’re not going to go out after the individual users,” one Commerce official said.Over time, officials said, the lack of updates will degrade the apps usability.”The expectation is that people will find alternative ways to do these actions,” a senior official said. “We expect the market to act and there will be more secure apps that will fill in these gaps that Americans can trust and that the United States government won’t have to take similar actions against.”Commerce is also barring additional technical transactions with WeChat starting Sunday that will significantly reduce the usability and functionality of the app in the United States.The order bars data hosting within the United States for WeChat, content delivery services and networks that can increase functionality and internet transit or peering services.”What immediately is going to happen is users are going to experience a lag or lack of functionality,” a senior Commerce official said of WeChat users. “It may still be usable but it is not going to be as functional as it was.” There may be sporadic outages as well, the official said.Commerce will bar the same set of technical transactions for TikTok, but that will not take effect until Nov. 12 to give the company additional time to see if ByteDance can reach a deal for its U.S. operations. The official said TikTok U.S. users would not see “a major difference” in the app’s performance until Nov. 12.Commerce will not penalize people who use TikTok or WeChat in the United States.The order does not bar data storage within the United States for WeChat or TikTok.Some Americans may find workarounds. There is nothing that would bar an American from traveling to a foreign country and downloading either app, or potentially using a virtual private network and a desktop client, officials conceded.
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China Data Leak Points to Massive Global Collection Effort
A Chinese firm with suspected ties to the Chinese government has been amassing a database of detailed personal information on 2.4 million people, including more than 50,000 Americans, according to findings by an independent researcher and an Australia-based cybersecurity firm. Christopher Balding, an American professor who taught at Peking University’s HSBC School of Business in Shenzhen for nine years, analyzed the data with Internet 2.0, a cybersecurity firm based in Canberra. They published their findings this week. Balding said the database was leaked to him in 2019. The cache, called the Overseas Key Information Database (OKIDB), contains the personal information of roughly 2.4 million people. Many of them are influential policymakers who can exert influence in their fields of specialty. According to their report, the database was compiled by China’s Zhenhua Data Information Technology Co. The company was founded in 2017 and had offices in Shenzhen and Beijing. Its mission, according to a screen shot of their website, which was deleted not long ago, is to “aggregate global data and help the great rejuvenation of the Chinese nation.” Zhenhua Data’s marketing and recruiting documents characterize the company as a patriotic firm, with the military as its primary target customer. Cybersecurity firm Internet 2.0 was able to recover the records of about 250,000 people from the leaked data, including 52,000 Americans, 35,000 Australians and nearly 10,000 British citizens. These include politicians and businessmen, scientists, tech experts, academics, bankers, journalists and lawyers. Information about family members, such as the 11-year-old daughter of Canadian Prime Minister Justin Trudeau, was also recovered. FILE – An iPhone with Twitter, Facebook and other apps, May 21, 2013.Analysts say the data was extracted from social media platforms such as Twitter, Facebook and LinkedIn, as well as news reports and criminal records. Balding told VOA that apart from open source, there was also data extracted from illegal sources. “We estimate about 80 percent of the data is what we call open source. There’s also data that appears to be hacked or stolen data that comes from other sources, nonpublic sources,” Balding said. In a FILE – The logo for LinkedIn Corporation, a social networking networking website for people in professional occupations, is shown in Mountain View, California, Feb. 6, 2013.”It allows China to know which institutions or individuals they should be targeting. This is why, for instance, intelligence agencies in multiple countries have warned about Chinese recruitment through platforms such as LinkedIn,” Balding told VOA. He added that the database also appears to be targeting policymakers, including influential figures in think tanks and relatives of key politicians. By doing this, China hopes to exert influence on these individuals and possibly shift policies to its liking, Balding said. According to The Washington Post, which obtained part of OKIDB, the database also targets military officials. For example, there is detailed information on former Chief of Naval Operations John Richardson; his service history and complete training were highlighted in Chinese. Former U.S. Acting Secretary of the Navy Thomas Modly is also in the database, along with the names of his wife and four children, his educational background and his work history in the private sector. A representative from Zhenhua Data told The Guardian that “the report is seriously untrue,” adding “there is no database of 2 million people,” while denying any links to the Chinese government or military. Analysts say it is not surprising that a consultancy would collect detailed data on prominent figures in different sectors. What matters is how the data is used. Arun Vishwanath, chief technology officer at Avant Research Group, a cybersecurity research firm, told VOA there are two concerns with a data operation of such scale and scope. “One is propaganda, information and disinformation, and the other is being used for targeted attacks, which could have all manner of consequences,” Vishwanath said. “We all need to have better cyber hygiene. We all need to be safer with how we share information online to store information about ourselves online. So this is a responsibility that each of us as individuals share,” he said.
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ByteDance Plans TikTok IPO To Win US Deal as Deadline Looms, Sources Say
President Donald Trump has threatened a US ban on TikTok could happen as early as next week
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Social Media Firms Deleting Evidence of War Crimes, Human Rights Watch Says
Social media companies are taking down videos and images that could be vital in prosecuting serious crimes, according to a new report from Human Rights Watch. Facebook, YouTube and Twitter are increasingly using artificial intelligence algorithms to remove material deemed offensive or illegal. Human Rights Watch says vital evidence is being missed or destroyed. Henry Ridgwell reports.
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US Sanctions 2 Russians in Crypto Theft Scheme
The U.S. government announced sanctions Wednesday on two Russian nationals for their role in the theft of at least $16.8 million worth of cryptocurrency.In the phishing scheme, which was conducted in 2017 and 2018, Danil Potekhin and Dmitrii Karasavidi allegedly created web sites that looked like legitimate currency exchange sites. Victims would enter their information, which was then used to access real accounts.The two, who were identified by the Treasury Department and the Department of Homeland Security, then allegedly laundered the stolen cryptocurrencies through multiple virtual currency exchanges using fake profiles.“The individuals who administered this scheme defrauded American citizens, businesses and others by deceiving them and stealing virtual currency from their accounts,” Treasury Secretary Steve Mnuchin said in a statement. “The Treasury Department will continue to use our authorities to target cybercriminals and remains committed to the safe and secure use of emerging technologies in the financial sector.”According to the statement, the government seized millions of dollars in virtual currency and U.S. dollars in an account owned by Karasavidi.
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Software Helps People Waiting in Lines to Social Distance
Indonesia has had more than 220,000 COVID-19 cases and the country still hasn’t reached its peak. Social distancing is an important part of controlling the virus and new technology aims to help people stay safely apart. VOA’s Rendy Wicaksana reports from Bandung, West Java, Indonesia.
Camera: Rendy Wicaksana
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US Charges 5 Chinese, 2 Malaysians in Global Computer Intrusion Campaign
U.S. prosecutors announced criminal charges on Wednesday against five suspected Chinese hackers and two Malaysian businessmen in connection with cyber intrusions in recent years on more than 100 companies and other entities in the United States and in other countries.
The alleged hacking effort, from early 2014 until August 2020, targeted thousands of computers around the world, including the computer networks of several companies in the $1 billion video gaming industry, resulting in millions of dollars in losses, law enforcement officials said.
The five hackers, alleged members of a Chinese hacking group known as APT-41, remain at large. They were identified as Zhang Haoran, 35; Tan Dailin, 35; Jiang Lizhi, 35; Qian Chuan, 39; and Fu Qiang, 37.
The two Malaysian businessmen — Wong Ong Hua, 46, and Ling Yang Ching, 32 – were arrested in Malaysia on Sunday. The U.S. is seeking their extradition, a process that could take months. The duo is accused of conspiring with two of the Chinese hackers to sell video game currency and other items stolen from video game developers in the United States, France, Japan, Singapore and South Korea.
The three other suspects face charges of hacking the computer networks of more than 100 companies, organizations, and individuals in the United States and around the world, including Australia, Brazil, Chile, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
In addition, the three men allegedly compromised government computer networks in India and Vietnam and unsuccessfully attempted to penetrate government networks in Britain, according to an indictment.
The seven men were charged in three indictments handed down in August 2019 and August 2020 and unsealed on Wednesday.
Cybersecurity experts have long identified the APT-41 hacking group as one of the most prolific Chinese threat actors in cyberspace. The hacking group’s activities date back to 2012 when its members targeted the video game industry before moving to traditional espionage, likely at the behest of the Chinese government, John Hultquist, senior director of analysis at cybersecurity firm FireEye’s Mandiant Threat Intelligence group.
“This is a unique actor, who carries out global cyber espionage while simultaneously pursuing a criminal venture,” Hultquist said.
U.S. officials said that while the hacking operation was not state sponsored, it had the tacit approval of the Chinese government.
In one case, “one of the Chinese defendants is accused of boasting to a colleague that he was ‘very close’ to the Ministry of State Security and would be protected ‘unless something very big happens,’” said Deputy Attorney General Jeffrey Rosen. “The hacker and his associate agreed not to ‘touch domestic stuff anymore.’”
Announcing the charges at a virtual press conference, Rosen and other top law enforcement officials called out China for facilitating cybercrime.
“The Department of Justice has used every tool available to disrupt the illegal computer intrusions and cyberattacks by these Chinese citizens,” Rosen said. “Regrettably, the Chinese communist party has chosen a different path of making China safe for cybercriminals so long as they attack computers outside China and steal intellectual property helpful to China.”
In addition to charging the seven men, U.S. authorities said they seized hundreds of accounts, servers, domain names, and command-and-control (C2) “dead drop” web pages used by the defendants to conduct their computer intrusion offenses.
The indictments are the latest in a series of charges against suspected Chinese hackers and come amid growing tensions between the U.S. and China over the coronavirus pandemic, trade, and Hong Kong. In July, a federal grand jury indicted two suspected Chinese hackers with a “global computer intrusion campaign” that lasted 10 years and targeted hundreds of entities, including governments, non-governmental organizations and companies developing coronavirus vaccines and treatments. As with the APT-41 hackers, the two hackers in that case were accused of stealing intellectual property for their own personal financial gain as well as for the benefit of the Chinese government.
U.S. President Donald Trump has repeatedly blamed China for the spread of the coronavirus and top administration officials have publicly accused China of cyber-intrusions and other alleged misbehavior on the global stage in support of its strategic objectives.
In July, Attorney General William Barr accused China of engaging in an “economic blitzkrieg” to supplant the United States as the world’s only superpower, and he warned U.S. businesses not to bow to Chinese pressure in pursuit of profit.
China has long rejected the U.S. accusations.
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