In the ever-changing data security sector, privacy regulations undergo continuous change. With increasing data breaches and cyber threats, organisations, particularly those in the financial services sector, need to prioritise data protection and comply with privacy regulations. Your data is valuable, and understanding Australian privacy regulations is crucial for safeguarding your organisation’s sensitive information and maintaining customer trust.

Understanding Australian Privacy Regulations

Firstly, let’s examine Australia’s regulatory environment. Recognised globally for its stringent data privacy laws, Australia imposes specific obligations on businesses, including financial institutions, regarding data management. As well as general compliance with data protection laws, financial institutions in particular have to deal with large quantities of confidential client data which subjects them to additional scrutiny.

Source: Shutterstock

APRA Compliance and Requirements

Financial institutions regulated by The Australian Prudential Regulation Authority (APRA) are required to comply with Australian privacy regulations. Of particular importance is compliance with CPS 234, an information security standard designed to mitigate cyber threats. Compliance involves the implementation of security measures such as asset classification and incident detection, bolstering data security and fostering a more secure digital landscape.

Top 5 Tips for Security Best Practice

1. Start with an Assessment:

• Know your environment
• Evaluate how your organisation handles data security and privacy risks
• Identify possible vulnerabilities, compliance gaps, and critical data

2. Protect Critical Data:

• Regularly conduct access reviews
• Implement Multifactor Authentication
• Control access based on roles
• Review security controls regularly to protect sensitive data
• Limit access to authorised employees to avoid personal information being shared or misused

3. Monitor and Review Data Access:

• Use reliable controls to monitor and audit systems
• Ensure effective tracking of data access, modifications, and transfers within your organisation’s network.
• Regularly review audit logs to detect suspicious activities, unauthorised access attempts, and potential risks to sensitive data.

4. Encrypt Sensitive Data:

• Apply suitable encryption for data storage and transmission
• Cleanse the data as needed
• Monitor data usage through auditing

5. Employee Training and Awareness:

• Cyber security is crucial in the financial industry due to increased online banking and digital transactions.
• Protecting customers’ sensitive financial information against cyber threats is a top priority for financial organisations.
• Conduct security awareness training to educate employees on privacy regulations, cyber security threats, and the importance of following cyber security best practices. This helps create an organisational culture of privacy and security awareness

Safeguarding Data while Optimising Business Operations

Understanding your organisation’s day-to-day operations will set the foundation for optimising business operations and security decision-making. Context is key in this process, as a one-size-fits-all approach fails to consider the unique risk profile of each business.

As a cyber security professional, collaborating with key stakeholders (legal, compliance, and IT teams) is vital. Together, you can create a comprehensive privacy compliance strategy that aligns with your organisation’s objectives and optimises business operations. Balancing data protection and business operations is essential for a robust security framework.

Here are some tips to achieve this balance:

• Privacy by design: Make sure privacy is a big part of your systems and processes right from the beginning. Build your systems with privacy in mind, so they work seamlessly to keep data safe.
• Data Minimisation: Only collect the necessary personal information needed for your business. Avoid asking for unnecessary data that could increase the risk of a data breach or privacy violation.
• Regular Audits and Assessments: Regularly check your systems to find privacy gaps or weaknesses. This proactive approach helps address issues before they become significant problems.
• Incident Response Plan: Develop a plan outlining steps to be taken in case of a data breach or privacy incident. Include processes for notifying affected individuals, regulators, and stakeholders.

Source: Shutterstock

Strengthening your Organisation’s Security

Improving cyber security isn’t just a prudent decision but an imperative one. As privacy regulations continue to evolve, it’s crucial to maintain a persistent approach to cyber security and data protection compliance. Unfortunately, it’s not a one-time activity.

Understanding Australian privacy regulations and adhering to industry standards is essential for maintaining data security and consumer trust. By incorporating privacy principles into system design, conducting regular assessments, and implementing incident response plans, you can enhance your organisations compliance by following cyber security best practices.

Managed security services are valuable for safeguarding your IT assets. The Missing Link understand the importance of cyber security and are dedicated to assisting businesses in securing their operations and data.

The Missing Link offer more than standard services. They provide advanced threat detection, incident response, and security reporting that fit your business. Their cyber security solutions are made to keep your organisation, data, systems, network, and users safe. This helps strengthen your security capability and gives you peace of mind as you drive your business forward.

How secure is your organisation?

If you want to boost your cyber security but don’t know how to begin, take The Missing Link’s cyber security self-assessment. This will help you measure your capabilities across critical functions such as cyber defense, security governance, architecture, and risk management.

Take the free security assessment today!

The post Securing Data: A Guide to Navigating Australian Privacy Regulations appeared first on Tech Wire Asia.

In a digital age dominated by AI, Malaysian consumers increasingly lean towards AI-assisted brand interactions, with 47% expressing a preference for such interactions over human ones, surpassing the global average of 39%. However, despite this burgeoning consumer demand, Adobe’s latest State of Digital Customer Experience report reveals a significant disparity between consumer preferences and brand readiness in Malaysia.

The report underscores a consumer appetite for AI-enabled tools and services, particularly when exploring new products and services. Yet, Malaysian brands are lagging behind their global counterparts in harnessing the latest AI innovations to enhance customer experience (CX). Only 8% of Malaysian brands utilize generative AI to bolster CX initiatives, a stark contrast to the 18% globally. Moreover, just 6% of Malaysian brands are establishing upskilling initiatives to leverage generative AI, trailing behind the global average of 11%.

Adobe: most are yet to adopt the data-driven technology tools and capabilities needed to deliver personalisation at scale and keep pace with customer preferences.

While there’s a glimmer of hope as some brands in Malaysia demonstrate awareness of the organizational implications of adopting AI, with 22% briefing senior leadership, the overall progress remains sluggish. However, there’s a silver lining as Malaysian brands are poised to elevate their generative AI capabilities in the coming year, with 33% prioritizing it as their primary CX focus.

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Consumers leading on AI in Malaysia

“Consumers are swiftly embracing generative AI-led experiences. While brands in Malaysia are lagging in terms of AI adoption, our findings indicate that this will soon evolve as Malaysia, as well as other Asian markets, are well poised for an accelerated uptake amid continued realization of the direct benefits that generative AI offers and its strong position as a technological hub,” Simon Dale, VP of Adobe Asia said. 

Dale added that when it comes to business strategies, most brands in Malaysia acknowledge that improving the CX is of top or significant priority. “This is driving brands to focus on evolving their digital experiences, underscored by a strategic emphasis on flexible and highly personalized interactions,” he added.

Nevertheless, bridging the gap between consumer expectations and brand initiatives poses a significant challenge. Malaysian consumers desire unified, seamless experiences across online and in-person interactions, yet most brands struggle to deliver personalized experiences at scale. Data-driven technology tools and capabilities necessary for personalization remain underutilized, impeding brands’ ability to keep pace with evolving consumer preferences. 

“More than two-thirds of consumers in Malaysia (77%) want brands to offer the same level of personalization online and in-person, and they want unified, seamless experiences in every interaction. However, meeting this expectation remains a top brand challenge,” the Adobe report reads. That’s not it. Privacy and security concerns loom large, with consumers wary of data misuse and lack of transparency in data practices. 

Despite 69% of Malaysian consumers expressing willingness to boycott brands that aren’t transparent about data use, only 26% of brands perceive this as impacting retention. This disconnect underscores the need for brands to prioritize transparency and establish robust data privacy policies.

“Consumers have emphasized that their most impactful brand experiences are relevant and personalized to their preferences. As brands continue to digitalize at full speed to meet expectations, it is crucial that they also strategically navigate data privacy and security concerns so as not to jeopardize their relationship with customers,” noted Dale.

After all, as brands delve into generative AI, consumer apprehensions about data privacy intensify. Many fear unauthorized data use and excessive data collection, highlighting the critical need for brands to implement stronger AI guardrails and internal usage policies. In conclusion, while Malaysian consumers embrace AI-driven brand interactions, Malaysian brands are struggling to keep pace, falling short in leveraging AI innovations to meet consumer expectations. 

As the digital landscape evolves, Malaysian brands must prioritize AI adoption, transparency in data practices, and robust internal policies to bridge the gap and foster trust with consumers in an increasingly AI-driven world.

The post Malaysia’s AI divide: consumers embrace, brands lag appeared first on Tech Wire Asia.

In the corridors of power in Washington, the clout of corporate giants often speaks volumes. In 2023, two notable Chinese-founded companies, ByteDance and Shein, made headlines for their substantial lobbying efforts. As scrutiny intensified over their Chinese ties, TikTok’s parent company, ByteDance, and the fast fashion giant Shein significantly ramped up their lobbying expenditures in the US.

According to data from OpenSecrets, Shein experienced a staggering 657% surge in lobbying spending, reaching a total of US$2.12 million in 2023 compared to the previous year. Despite this substantial increase, it’s noteworthy that Shein’s lobbying budget remained less than a quarter of ByteDance’s expenditure, which stood at a whopping US$8.74 million for the same period. 

These figures underscore the growing importance of influencing US policymakers for companies with international stakes, particularly those facing scrutiny due to their origins. Tighter regulation and possible bans that continue to loom over TikTok’s future in the US pushed ByteDance to ramp up its lobbying efforts last year. Since 2019, ByteDance has spent a total of US$21.27 million.

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The parent company of the immensely popular video-sharing app TikTok also ensured it maintained a formidable presence in lobbying, employing 45 lobbyists throughout 2023. This figure, essentially unchanged from previous years, highlights the company’s ongoing efforts to navigate the complex regulatory landscape in the US, where concerns about data privacy, national security, and censorship have often dominated the discourse surrounding Chinese tech firms.

ByteDance spends millions lobbying, outpacing prior years amid crackdown on TikTok’s China ties. Source: Open Secret.

TikTok boasts over 150 million American users, and therefore, US lawmakers harbor suspicion regarding the app’s data accessibility to the Chinese government and its potential role in expanding China’s influence. On the other hand, Shein, known for its rapid rise in the fashion e-commerce space, made a strategic move by increasing its lobbying team, hiring 14 lobbyists in 2023 compared to just eight the year before. 

This surge in lobbying personnel reflects Shein’s proactive approach to addressing regulatory challenges and uncertainties, especially against a potential initial public offering (IPO) in the US market.

Why are Chinese entities increasing their lobbying efforts in the US?

Source: Open Secrets.

The increased lobbying activities of ByteDance and Shein coincide with a broader trend of Chinese companies facing heightened scrutiny and regulatory challenges in the US. Allegations of espionage, data privacy concerns, and geopolitical tensions have fueled calls for stricter oversight and regulation of Chinese tech firms operating on American soil.

Additionally, Shein’s decision to bolster its lobbying efforts amid an uncertain IPO outlook underscores the significance of regulatory clarity and favorable legislative conditions for companies seeking US capital markets.

The success or failure of Shein’s lobbying endeavors could have far-reaching implications for its IPO aspirations and the broader landscape of Chinese companies seeking to establish a foothold in the US market.

In conclusion, the increased lobbying expenditures of ByteDance and Shein shed light on the evolving dynamics of corporate influence and regulatory challenges faced by Chinese-founded companies in the US. As these companies navigate a complex web of political, economic, and regulatory pressures, their lobbying efforts testify to the strategic importance of engaging with policymakers and stakeholders to safeguard their interests and ensure continued growth and success in an increasingly competitive global marketplace.

The post This is how much ByteDance and Shein spent on US lobbying in 2023 appeared first on Tech Wire Asia.

In the ever-accelerating space of AI, superpowers often grapple with the profound implications of non-allied entities gaining momentum, especially in military applications. That’s most apparent between the US and China, marked by a tit-for-tat strategy to curtail each other’s developmental strides. Just after the US added advanced computing chips to its export control arsenal, China retaliated by prohibiting certain firms from dealing with Micron Technology and imposing export restrictions on essential metals for advanced chip production. 

But that was 2023.

This week, we are witnessing the latest twist in this tech saga unfold, as reports suggest the Biden administration is now contemplating requiring US cloud service providers to unmask all foreign AI developers. The proposal mandates explicitly firms like Amazon and Google to gather, store, and scrutinize customer data, resembling the weight of stringent “know-your-customer” regulations akin to those shaping the financial sector. 

“We’re beginning the process of requiring US cloud companies to tell us every time a non-US entity uses their cloud to train a large language model,” US Commerce Secretary Gina Raimondo said at an event on January 27. Raimondo, however, did not name any countries or firms, but the maneuver is anticipated not only to intensify the technological trade war but also to signify a notable step toward the politicization of cloud provision.

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For Raimondo, the aim is simple: to eradicate national security threats posed by AI development–an effort experts believe would likely focus on firms from China. If enacted, these measures would almost certainly strangle a vital pathway for Chinese firms to reach the core of data centers and servers essential for nurturing and accommodating their AI goals. 

Of AI, cloud computing, and US-China tech war

Although the US broadened chip controls in October, focusing on Chinese firms in 40+ nations, a gap remains. That is why it is paramount for the US to address how Chinese companies can still leverage chip capabilities through the cloud. From start to finish, cloud computing is inherently political, Trey Herr, director of cyber statecraft at the Atlantic Council, told Raconteur. He said that its reliance on extensive physical infrastructure tied to specific jurisdictions makes it susceptible to local politics, adding that conversations about cloud security inevitably take on political dimensions.

In October 2023, Biden mandated the US Department of Commerce mandate disclosures, aiming to uncover foreign actors deploying AI for cyber-mischief. The Commerce Department, building on stringent semiconductor restrictions for China, is now exploring the regulation of the cloud through export controls. Raimondo said the concern is Chinese firms gaining computing power via cloud giants like Amazon, Microsoft, and Google.

“We want to make sure we shut down every avenue that the Chinese could have to get access to our models or to train their models,” she said in an interview with Bloomberg last month. In short, China’s strides in AI and cutting-edge technologies are a paramount worry for the administration. After all, despite Washington’s efforts to curtail China’s progress through chip export restrictions and sanctions on Chinese firms, the nation’s tech giants continue to make substantial breakthroughs, challenging the effectiveness of US constraints.

Nevertheless, regulating such activities in the US is still being debated because cloud services, which do not involve the physical transfer of goods, fall outside export control domains. Thea Kendler, assistant secretary for export administration, mentioned the potential need for additional authority in this space during discussions with lawmakers last month.

Addressing further loopholes, the Commerce Department also plans to conduct surveys on companies developing large language models for their safety tests, as mentioned by Raimondo on Friday. However, specific details about the survey requests were not disclosed.

What are cloud players saying?

As with previous export controls, US cloud providers fear that limitations on their interactions with international customers, lacking reciprocal measures from allied nations, may put American firms at a disadvantage. However, Raimondo said that comments on the proposed rule are welcome until April 29 as the US seeks input before finalizing the regulation.

What is certain is that the cloud will persist as an arena for trade war extensions and geopolitical maneuvers. 

The post Biden’s new firewall to halt China’s AI development via US cloud firms appeared first on Tech Wire Asia.

In the dynamic telecommunications landscape, TD Tech stands as a testament to the intricate interplay of collaboration, evolution, and strategic partnerships. Established in 2005 as a joint venture between Siemens (51% stake) and Huawei (49% stake), TD Tech found its roots in the shared vision of pioneering wireless technology solutions. However, the landscape shifted in 2007 when Siemens sold half of its stake to Nokia, introducing a new player to the collaborative equation. 

That marked a pivotal moment, steering TD Tech on a new trajectory under joint ownership. Siemens gradually divested its remaining shares in 2013, leaving Nokia as the major shareholder in TD Tech. This strategic move altered the company’s ownership structure and set the stage for further developments in its market presence and product offerings.

A notable chapter in TD Tech’s narrative emerged in 2021 when the company diversified its portfolio by venturing into rebranded phones from Huawei. One such model, the M40 5G, utilized a 7-nanometer chip from Taiwan’s MediaTek instead of Huawei’s Kirin processors. Due to Washington’s sanctions, companies are prohibited from providing Huawei with advanced chips containing US-origin technology, including MediaTek processors, manufactured by Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker. 

Nokia, in the thick of geopolitical challenges, clarified that TD Tech operates independently and is not linked to Nokia’s operations or supply chains in China. A year and a half later, in April 2023, Nokia revealed plans to leave TD Tech. The Finnish telecommunications equipment giant said its decision was driven by TD Tech’s expanded business scope, which now includes handsets, modems, and other devices. That broadened scope no longer aligns with Nokia’s strategic focus as a B2B technology innovation leader.

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“Nokia decided to divest its 51% stake in TD Tech for an estimated price of EUR 285 million (US$ 305.7 million), with an estimated gain of EUR 227 million (as of June 30; US$ 243.58 million), to New East New Materials, a company involved in raw materials manufacturing for the flexible packaging industry. However, the finalization of the deal was subject to conditions that included a pre-emption right (refusal of sale) of the joint venture partner, which is Huawei in this case,” Nokia said in September 2023.

New buyers from China to partner with Huawei

Over the weekend, reports surfaced that the Finnish telecom equipment giant had secured new buyers for its significant stake in a Beijing joint venture with Huawei. The deal, which faced protests from the Chinese company last year, is now back on track. Nokia’s attempt to sell its majority stake to Shanghai-listed ink maker New East New Materials in 2023 faced a hurdle when Huawei threatened to stop technology licensing to TD Tech. 

The prospective deal eventually fell apart. Analysts speculated that Huawei was likely unwilling to relinquish control of TD Tech, seeing it as a strategic asset to navigate US sanctions and enhance efficiency in specific market segments, as noted by Yang during that period. 

Now, according to a disclosure published on Friday by the State Administration for Market Regulation (SAMR), under the latest agreement, wireless technology firm TD Tech will be jointly controlled by Huawei and a group of entities that include the government-owned Chengdu High-Tech Investment Group and Chengdu Gaoxin Jicui Technology Co, as well as venture capital firm Huagai.

The equity distribution among the new stakeholders remains undisclosed, pending final government approval. Regulators said they harbor no antitrust worries about the deal and are open to public input until January 28. According to the SAMR, Huawei and TD Tech jointly oversee less than 10% of China’s smartphone market, though the specific timeframe for this data was not provided.

China’s market regulator has solicited public opinion on Huawei and Chengdu Hi-Tech Investment Group’s proposal for a complete acquisition of TD Tech.

**MARKETLYT –>** China's market regulator is soliciting public opinion on the proposed acquisition plans by Huawei and Chengdu Hi-Tech (000628 CH) to acquire TD Tech.

**Market Impact Rating –>** 89

**MARKETLYT Analysis –>**
The request for public opinion on the…

— Instant headlines & Analysis (@marketlyt) January 19, 2024

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Amid Huawei’s groundbreaking advancements in 5G technology, the US authorities have intensified efforts to fortify export restrictions, aiming to curtail chip access for Chinese company subsidiaries abroad. In their quest, regulators honed in on semiconductor chips, particularly those crafted by Nvidia for the Chinese market. However, history suggests that those affected by restrictions often seek inventive ways to bypass them. This trend holds even for Nvidia’s clientele in China.

In an intriguing disclosure reported by Reuters, the past year witnessed a covert affair where Chinese military bodies, state-backed AI research hubs, and universities orchestrated a discreet acquisition of prohibited Nvidia semiconductors, barred from export to China. According to the Reuters examination of tender documents, the transactions directed by obscure Chinese suppliers underscore Washington’s persistent challenges. 

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Despite stringent bans, the US grapples with the intricate task of entirely severing China’s pathway to cutting-edge US chips and tools that could propel advancements in AI and sophisticated military computing. In simple terms, it’s not against the law in China to buy or sell high-end US chips. Therefore, publicly available documents have revealed that numerous entities in China have purchased Nvidia semiconductors even after restrictions were put in place. 

For context, Nvidia makes chips called graphic processing units (GPUs), which are known to be much better than other products when handling AI tasks. They can efficiently process large amounts of data required for machine learning. These chips include the A100 and the more powerful H100, which were banned from export to China and Hong Kong in September 2022. 

Additionally, the slower A800 and H800 chips, developed by Nvidia specifically for the Chinese market, were also banned last October. The fact that Chinese firms still want and can get these banned Nvidia chips highlights the limited options available to them. Even though companies like Huawei work on alternative products, Nvidia’s GPUs are in high demand. Before the bans, Nvidia had a 90% share of China’s AI chip market.

Source: X.com

Who in China is still buying chips from Nvidia?

Reuters data shows buyers ranged from prestigious universities to entities facing US export restrictions—the Harbin Institute of Technology and the University of Electronic Science and Technology of China. These institutions have faced accusations of military involvement or affiliation with a military body against US national interests. 

In May, the Harbin Institute of Technology in China acquired six Nvidia A100 chips for training a deep-learning model. In December 2022, the University of Electronic Science and Technology of China purchased one A100, with its intended use remaining undisclosed. “The Reuters review found neither Nvidia nor retailers approved by the company were among the suppliers identified. It was not clear how the suppliers procured their Nvidia chips,” the news agency company noted.

Reuters also noted that numerous government departments submitted more than 100 requests to buy A100 chips, and even after the October ban, there have been dozens of requests for the A800. “Tenders published last month also show Tsinghua University procured two H100 chips while a laboratory run by the Ministry of Industry and Information Technology procured one,” it added.

According to military records, there was also a branch of the People’s Liberation Army in Wuxi, Jiangsu province, which sought 3 A100 chips in October and one H100 chip this month. However, details in military records are often blacked out, and Reuters couldn’t find out who won the bids or why they made the purchases.

Most of these requests indicate that the chips are used for AI. However, the amounts purchased are small and insufficient to create a complex AI model from scratch. For instance, to build a model similar to OpenAI’s GPT, you’d need more than 30,000 Nvidia A100 cards, according to research firm TrendForce. Nevertheless, even a few of these chips can handle intricate machine-learning tasks and improve existing AI models.

In one case, the Shandong Artificial Intelligence Institute awarded a contract worth 290,000 yuan (US$40,500) to Shandong Chengxiang Electronic Technology for five A100 chips last month. Many of these contracts specify that the suppliers must deliver and install the products before receiving payment. Most universities also published notices confirming the completion of transactions.

Tsinghua University, often called China’s MIT, has been actively submitting requests and has acquired around 80 A100 chips since the ban in 2022, Reuters noted. In December, Chongqing University sought a new A100 chip through a tender, and the delivery was completed this month, as indicated in a notice.

Jensen Huang, President and CEO of Nvidia Corporation, returns to the hearing room during a US Senate bipartisan Artificial Intelligence (AI) Insight Forum at the US Capitol in Washington, DC, on September 13, 2023. (Photo by ANDREW CABALLERO-REYNOLDS / AFP)

The rise of the underground market amidst US bans

The export control first announced in October 2022 has given rise to an informal underground market in China, with vendors being cautious and aiming to avoid attention from both US and Chinese authorities. After all, the global surge in demand for high-end chips, driven by the widespread success of OpenAI’s ChatGPT and the booming field of AI, led to the skyrocketing need for Nvidia’s microprocessors.

In June last year, Reuters spoke with ten vendors in Hong Kong and mainland China who described being able to procure small numbers of A100s easily. Their information highlighted the intense demand in China for the chips and the relative ease with which Washington’s sanctions can be circumvented for small-batch transactions.

Those vendors, who bought the chips outside the US, were quoting HK$150,000 ($19,150) per card, according to Ivan Lau, co-founder of Hong Kong’s Pantheon Lab, who was then trying to purchase 2-4 new A100 cards to run the startup’s latest AI models. “They told us that there will be no warranty or support.”

In the most recent documents Reuters got hold of, Chinese vendors have said they snatch up excess stock that finds its way to the market after Nvidia ships large quantities to big US firms or import through companies locally incorporated in places such as India, Taiwan, and Singapore.

Responding to the reports, Nvidia states that it follows all the laws related to exporting its products and expects its customers to do the same. A spokesperson for the company mentioned that if they discover a customer has illegally sold their products to others, they will take swift and necessary action. The US Department of Commerce chose not to comment. 

Chris Miller, a professor at Tufts University and the author of “Chip War: The Fight for the World’s Most Critical Technology,” mentioned that expecting the US export restrictions on chips to be foolproof is impractical. He highlighted that since chips are small and easily transportable, making the restrictions completely effective is challenging.

According to Miller, the primary goal is to hinder China’s progress in AI development. By creating obstacles in acquiring large quantities of advanced chips, it becomes more difficult for them to build extensive clusters capable of training sophisticated AI systems.

The post Are China’s government and military still acquiring Nvidia chips despite the US ban? appeared first on Tech Wire Asia.

Over a decade ago, China-based Huawei Technologies kickstarted its costly, years-long effort to secure its presence in the North American market. In the initial stages of its endeavors, the Chinese telecommunication giant swiftly increased lobbying expenses in Washington because the US was actively looking into whether the company’s presence provided opportunities for Chinese espionage and imperiled America’s telecommunications infrastructure.

But since it started getting scrutinized in 2012, Huawei has denied all claims, especially on its alleged ties to the military in China. Washington, however, has been having a hard time buying that. After all, Huawei was the world’s largest supplier of telecom equipment and the second-largest maker of mobile phones. Its technology touches virtually every corner of the globe, and its massive R&D budget has made it a leader in 5G technology.

That is why Washington started raising concerns about Huawei’s potential to incorporate espionage features in its equipment, which was widely deployed in numerous cell towers and network infrastructure across the US. Despite the company’s assertions that its products were not a threat, by 2022, American regulators had prohibited Huawei from selling its products in the US. They took steps to limit its access to advanced technology.

Still, Huawei continued its foray into lobbying in the US as it still held ambitious plans for market expansion. The company had always planned to establish a stronger foothold in the American telecommunications landscape. Still, it also became apparent that navigating the complex regulatory environment and addressing concerns related to national security were paramount.

Unsurprisingly, Huawei’s lobbying efforts faced formidable challenges, particularly as the company became a focal point in the US-China trade tensions. On top of espionage, allegations of cybersecurity threats and growing skepticism from policymakers posed significant hurdles. 

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In due course, Huawei became ensnared in a complex network of restrictions, notably being added to the Entity List by the US Department of Commerce. Despite challenges, Huawei adopted a multi-faceted approach to counter the negative narrative. The company invested heavily in building relationships with lawmakers, government agencies, and industry influencers. After all, Huawei has aimed to dispel concerns about its ties to the Chinese government and present itself as a responsible and transparent player in the global technology landscape. 

Huawei also launched extensive public relations campaigns to improve its image. These campaigns highlighted the company’s contributions to technological innovation, job creation, and efforts to bridge the digital divide.

Eventually, the company initiated a gradual reduction in its lobbying endeavors, culminating in a complete cessation, as reported by Bloomberg last week.

How much did Huawei spend lobbying in the US?

It was Huawei itself that officially notified the termination of its lobbying activities at the Capitol. The company has also discontinued its operations at the Plano, Texas offices, as confirmed by Trey Smith, the executive vice president at CBRE, a real estate services firm managing leases for the building, in an email to Bloomberg.

Looking back, during its pinnacle, Huawei boasted a squad of nine lobbying firms and a cadre of public relations representatives at its service. Top-level executives frequently orchestrated briefings with congressional offices and prominent news outlets. Federal filings reveal that the company allocated over US$13 million to lobbying efforts in the last decade alone.

The Chinese wireless equipment maker spent tens of millions of dollars trying to win over US policymakers. Source: Bloomberg

For context, in just one quarter of 2019, Huawei’s spending on federal lobbying skyrocketed to US$1.8 million, marking a six-fold surge from the previous year. The company’s total lobbying expenditure in the US for 2021 amounted to US$3.6 million, per official filings. Some of these funds were allocated to extravagant events attended by prominent figures, including seasoned Democratic lobbyist Tony Podesta, who reportedly earned US$1 million from Huawei that year. 

Podesta officially concluded his work for Huawei on December 30, 2022, according to disclosures with the US Senate. “The US market isn’t a likely place for a breakthrough for Huawei in the near future,” Chris Pereira, a former Huawei public relations executive and founder of the consultancy iMpact, told Bloomberg.

With a solid ban in effect and minimal business presence in the US, Huawei has little incentive to continue depleting funds on lobbying efforts in Washington. So much so that the company’s final two registered lobbyists, Jeff Hogg and Donald Morrissey, departed in recent months, as reported by Bloomberg News. 

Morrissey, who lobbied for Huawei and Futurewei, confirmed via LinkedIn that he departed the company in December. He now holds the position of senior director of government affairs at the battery technology company Gotion. Hogg, Huawei’s head of government relations since 2020, left the company in November, per his LinkedIn profile. Requests for comment from Hogg went unanswered.

“The lobbyists’ recent departures follow an exodus of staff from Huawei’s US operations and marks a quiet end to the company’s costly, years-long effort to maintain a presence in the North American market. The firm reached its peak by supplying small mobile firms across the US even as major carriers shunned it. Rising tensions with Beijing eventually all but banned it,” the report by Bloomberg reads.

With Huawei ending its lobbying gam, what’s next in the US-China tussle?

As Huawei gracefully bows out of Washington, it marks the end of a chapter in its American aspirations. Yet, the company is far from bereft of alternatives. Responding to the US ban, China’s government decries unfair practices, while Huawei pivots to cultivate its domestic market and spearhead technological advancements. For now, Huawei’s quest to fill the void left by the US market remains uncertain. 

The upside is that Huawei is anticipated to shine brightly in the smartphone industry in 2024, and the China-based telco giant is poised for a substantial surge in global shipments, marking a projected double-digit growth. A report from research firm TechInsights recently suggests that the company might emerge as a significant surprise in the overseas market.

The post China decouples: Huawei ends US lobbying appeared first on Tech Wire Asia.

In a strategic maneuver blending innovation with geopolitical compliance, Nvidia Corp has recently unwrapped a variant of its gaming processor, the GeForce RTX 4090 D chip, designed to align with stringent US export controls, enabling its lawful sale in the Chinese market. This technological ballet comes at a time when Nvidia, poised for a market splash this month with the RTX 4090 D, concurrently charts a course for the second quarter of the year, initiating mass production of the H20 chip—an AI powerhouse designed to adhere to the intricate dance of US export regulations for China. 

Yet, a challenging crescendo emerges amid this orchestrated symphony of silicon and policy. Reports echo the hesitancy of Chinese companies to embrace the diluted allure of Nvidia’s chips–especially considering the forthcoming release of the downgraded H20. Reports now indicate that Chinese clients are cautiously exploring domestic alternatives, fearing the specter of potential tightening in US restrictions. 

The plot thickens in this delicate dance between technological prowess and geopolitical maneuvering, leaving the stage open for an unpredictable interplay of innovation and regulation.

What has Nvidia been doing for China?

In adherence to the latest US regulations governing chip exports, Nvidia has consistently introduced specialized AI chips and graphics cards explicitly tailored for the Chinese market. It all started with the A800 and H800, introduced as alternatives for Chinese customers in November 2022, about a month after the US first restricted exports of advanced microchips and equipment to China.

Details on Nvidia’s new GPUs, the H20, L20, and L2. Source: SemiAnalysis.

Unfortunately, a year into the October 2022 export control, the US further tightened its restrictions, which led to the barring of the shipments of advanced A800 and H800 AI chips to China. In response to the October 2023 renewed restrictions, Nvidia planned three other chips to comply with new US export rules – the H20, L20, and L2. 

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In November last year, citing two sources familiar with the matter, Reuters reported that Nvidia has communicated to its clientele that the speculated H20 GPU, crafted to navigate through the export control measures imposed by the Biden administration on China, is anticipated to be unavailable until February or March this year.

The H20, L20, and L2 include most of Nvidia’s newest features for AI work. Still, some. Still, some of their computing power measures were cut back to comply with new US rules, according to SemiAnalysis’ analysis of the chips’ specifications. But the question remains: does China even want the downgraded version of Nvidia’s AI chips?

China would instead source a domestic alternative

Nvidia – a sacrificial lamb? Source: X.com.

For a start, according to sources cited by The Wall Street Journal (WSJ), since November 2023, major cloud service providers (CSP) in China, such as Alibaba and Tencent, have been testing samples of Nvidia’s special chips.

These Chinese enterprises have conveyed to Nvidia that the quantity of chips they plan to order in 2024 will be significantly lower than their initial plans.

In short, the new challenge is that significant Chinese CSPs are not interested in buying these chips’ lower-performing versions. A report by TrendForce indicated that Chinese enterprises have been testing the highest-performance version, H20, of Nvidia’s “special edition” AI chips. 

“Some testers have mentioned that this chip enables efficient data transfer among multiple processors, making it a better choice than domestic alternatives for building chip clusters required for processing AI computational workloads,” the report reads. Nevertheless, testers highlight the necessity for additional H20 to offset the performance difference compared to earlier Nvidia chips, leading to increased expenses.

According to the report by the WSJ, the advantage in the performance of Nvidia’s “downgraded” chips over domestic Chinese alternatives is diminishing in the short term, making locally manufactured chips more appealing to buyers. The report indicates that influential entities such as Alibaba and Tencent are shifting some advanced semiconductor orders to domestic companies, leaning towards internally developed chips. 

This shift in sourcing behavior is also noticeable among the other major chip purchasers, including Baidu and ByteDance. According to TrendForce data, around 80% of the high-end AI chips Chinese cloud computing companies use are currently sourced from Nvidia. However, this proportion may decrease to 50% or 60% in the next five years.

In the long term, TrendForce believes Chinese customers will begin to express uncertainty about Nvidia’s ability to consistently supply chips due to the potential tightening of chip export controls by US regulatory authorities. Focusing on independent AI chip development, Chinese CSPs like Baidu and Alibaba actively invest in autonomous AI chip initiatives. 

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Baidu introduced its first self-developed ASIC AI chip, Kunlunxin, in early 2020, with plans for the second generation in 2021 and the third in 2024. After acquiring Zhongtian Micro Systems and establishing T-Head Semiconductor, Alibaba began creating its ASIC AI chips, including the Hanguang 800. 

TrendForce reports that while T-Head initially collaborated with external companies for ASIC chip design, post-2023, Alibaba is anticipated to increasingly rely on internal resources to strengthen the independent design capabilities of its next-gen ASIC chips, particularly for Alibaba Cloud’s AI infrastructure.

The post Nvidia faces dilemma as China shuns downgraded AI chips appeared first on Tech Wire Asia.

In the closing chapters of 2023, Nvidia Corp, the current juggernaut of AI chips, pulled back the curtain on its ambitious venture into tailored innovation for the Chinese market. Navigating a complex terrain, Nvidia faced the formidable task of crafting chips that catered to the distinctive needs of its Chinese clientele and danced within the strict confines of Washington’s export restrictions. In December, 2023, the company unveiled a reimagined gaming chip designed expressly for the gaming landscape in China.

Boasting a “quantum leap in performance, efficiency, and AI-driven graphics,” according to the company, the chip is set to hit Chinese shelves in January, 2024, as confirmed by an Nvidia spokesperson to Reuters. “The GeForce RTX 4090 D has been designed to comply fully with US government export controls,” the spokesperson said.

Performance comparison, including the company’s new chip. Source: Nvidia.

Under the new US export control regulations, Nvidia cannot ship its flagship consumer gaming graphic card, the RTX 4090, to China, the world’s largest semiconductor market, making the RTX 4090 D a notable release. The debut of the GeForce RTX 4090 D signifies Nvidia’s first official launch of a China-focused chip since the Biden Administration’s introduction of export rules in October, 2023.

Will Nvidia’s new chip cause issues in Washington?

The Nvidia GTX 4090 D chip listed on the company’s China website packs approximately 10% fewer processing cores compared to its international counterpart, the 4090, sold in other countries. During Nvidia’s CEO Jensen Huang’s visit to Malaysia last month, he affirmed the company’s commitment to crafting compliant versions of its top-tier products, tailored for the Chinese market. 

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Huang said his company is “extensively engaging” with the US government while developing graphics products that align with the export regulations imposed by the Biden administration, aiming to curb the rapid progress of China’s AI capabilities. The rules also resulted in the blockage of two modified AI chips, the A800 and H800, designed by Nvidia for the Chinese market to comply with the initial export rules unveiled in October 2022. 

On December 11, last year, US Commerce Secretary Raimondo, in an interview with Reuters, clarified that Nvidia has the green light to sell AI chips to China, except those boasting the highest processing power. In contrast to the prohibited RTX 4090, the China-centric RTX 4090 D is reported to be “5% slower in gaming and creating.”

Nvidia RTX 4090D specifications.

Priced at 12,999 yuan (US$1,842), the China-targeted RTX 4090 D commands a premium of 350 yuan (US$50) compared to the second most advanced chip in the product series available to Chinese customers.

Is Nvidia working on any more AI chips for China?

In early November, the semiconductor industry newsletter, SemiAnalysis, suggested that Nvidia, in reaction to the recalibrated export rules unveiled in October 2023, might unveil three new AI chips designed for the Chinese market. Nevertheless, as per Reuters‘ report, Nvidia informed its Chinese customers of a delay in launching one of the chips, pushing the release to the first quarter of this year. 

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Nvidia’s GeForce RTX 4090 D could be the first of the three new AI chips to very distinctly not flout US trade restrictions, and yet allow China to develop its AI programs. As of now, the other two chips have yet to appear on Nvidia’s China website. According to Dylan Patel, chief analyst at SemiAnalysis, one of the China-specific GPUs is over 20% faster than the H100 in LLM inference and is more similar to the new GPU that Nvidia is launching early this year than it is to the H100. 

Specification details on Nvidia’s new GPUs show that the AI chip giant is “perfectly straddling the line on peak performance and performance density with these new chips to get them through the new US regulations,” he added.

The post Nvidia unveils China-compliant gaming chip amid US export controls appeared first on Tech Wire Asia.

In Malaysia, the cybersecurity landscape is undergoing a significant shift as organizations grapple with a surge in cyberthreats. According to a new survey by IDC on the state of security operations (SecOps) in the Asia-Pacific region, phishing emerges as the predominant concern, with 54% of organizations ranking it as their top threat. The top five hazards in Malaysia include ransomware, unpatched vulnerabilities, identity theft, and attacks targeting the internet of things (IoT). 

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Particularly alarming is the doubling of ransomware incidents across the country, with over 50% of organizations experiencing a two-fold increase in 2023 compared to the previous year. Discussing the data from the SecOps report, Fortinet (which commissioned the report) delved into the evolving threat landscape, highlighting key findings and shedding light on the escalating challenges Malaysian organizations face in cybersecurity.

The survey sheds light on the current state of SecOps by emphasizing the crucial roles played by AI and automation. “Phishing and malware are the primary attack vectors. Other significant vectors include SQL injection, insider threats, and IOT vulnerabilities,” the report reads.

The survey also reveals critical insights into cybersecurity challenges, emphasizing the impact of remote work on insider threats. For instance, 88% of respondents attribute the rise in insider threat incidents to the shift to remote work, citing factors such as insufficient training, lack of employee care, and inadequate communication. 

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The report adds that only 38% of businesses allocate dedicated IT resources for security teams, intensifying the difficulties in reinforcing security measures. The impact of emerging technologies, including hybrid work, AI, and IT/OT system convergence, poses substantial challenges, with cloud technology adoption identified as a primary hurdle affecting organizational vulnerability to cyber threats.

At a briefing in Kuala Lumpur on November 13, 2023, Fortinet’s vice president of marketing & communications, Asia and ANZ, Rashish Pandey, claiimed that in the ever-evolving threat landscape, more organizations are grappling with a spectrum of cyberthreats targeting their digital assets. He therefore recommends (as, in fairness, you’d expect him to) Fortinet’s security operations solutions, underpinned by advanced AI, which addresses the pressing need for automation and provides a comprehensive strategy for incident detection and response. 

“These include a one-hour average time to detect and contain threats, an 11-minute investigation and remediation average, a 597% ROI, doubling of team productivity, and a substantial US$1.39 million reduction in expected breach costs,” Pandey promised.

The cybersecurity in Malaysia: alert fatigue, time constraints, and skill development struggles

Cybersecurity in Malaysia. Source: Bing Image Creator

Regarding threat containment and preparedness, 48% of organizations in Malaysia feel underequipped, emphasizing the urgent need to bolster cybersecurity capabilities. Alarmingly, 75% of organizations neglect regular risk assessments, hindering timely threat detection. The survey also reveals that over 50% of enterprises grapple with alert fatigue, facing an average of 221 incidents daily. 

“Two out of five enterprises grapple with over 500 incidents daily, leading to alert fatigue. The top two alerts faced are suspicious emails (phishing) and malware or virus detections, highlighting the imperative for targeted training on phishing awareness. Additionally, suspicious user behavior, account lockouts, and multiple failed login attempts contribute to alert fatigue,” the report reads.

Workload pressures are evident, with just one SecOps professional for every 230 employees, allowing approximately 10 minutes per alert within an 8-hour workday.

The persistent challenge of false positives, where 62% of alerts are noted as such, underscores the demand for automation. To navigate the dynamic cyberthreat landscape, skills development proves challenging for 98% of respondents, emphasizing the need for evolving skill sets, particularly in automation, multi-tasking, and critical thinking.

Fortinet Malaysia’s country manager, Dickson Woo, says that 70.7% of organizations prioritize faster threat detection through automation in the ever-evolving cybersecurity landscape. “At Fortinet, we recognize the imperative of swift detection and response as the cornerstone of an enhanced cybersecurity posture. Automation plays a crucial role in promptly identifying and responding to cyberthreats, minimizing the window of vulnerability,” he said.

Data breaches, phishing campaigns and more mark Malaysia’s cybersecurity record.

He also explained that customers’ experiences underscore this urgency, with a transformative reduction from an average of 21 days to just one hour for detection, driven by AI and advanced analytics. “This signifies a fundamental step in fortifying cybersecurity defenses, where time to detect and respond is paramount. In this context, automation emerges as the linchpin in navigating the challenges of today’s dynamic threat landscape,” Woo concluded.

According to Fortinet, the upside is the adoption of automation and orchestration tools, which has reached a significant milestone, with 92% of organizations recognizing their value in fortifying cybersecurity strategies.

However, the survey unveils untapped potential and areas for improvement in fully harnessing these technologies. While productivity gains are evident, with 89% of respondents experiencing a substantial 25% improvement in incident detection times through automation, the focus now shifts to plans and optimization. 

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Strikingly, 100% of Malaysian organizations who were surveyed intend to implement automation and orchestration tools within the next 12 months – thoguh that figure might be skewed by the fact the survey was commissioned by an automation tool company. The strategic approach emphasizes a focus on streamlining response triage, accelerating incident containment, and minimizing recovery time as critical areas for optimization, reflecting a proactive stance in enhancing cybersecurity frameworks.

The cyberthreat makeup in Malaysia is swinging more behind phishing.

The post Malaysia faces cyberthreat surge: phishing dominates, ransomware doubles appeared first on Tech Wire Asia.