China finds itself at the heart of global scrutiny once more. Following its recent shift in tech policy, including the move to phase out AMD and Intel microprocessors in governmental applications, serious allegations have emerged from the U.S. and the UK. Authorities in these countries have leveled charges, imposed sanctions, and accused Beijing of orchestrating a vast cyberespionage campaign, reportedly affecting millions, including lawmakers, academics, journalists, and companies, notably in the defense sector.

Termed Advanced Persistent Threat 31, or “APT31,” this hacking ensemble is characterized by officials as a branch of China’s Ministry of State Security. A broad spectrum of individuals and entities has been identified as targets, encompassing White House personnel, U.S. senators, British legislators, and international officials critical of Beijing, as reported by Reuters.

Although specific victims have not been fully disclosed, it’s clear that over the past decade, these hackers have penetrated defense contractors, dissidents, and various sectors in the U.S., such as steel, energy, and apparel. They’ve also targeted leaders in 5G and wireless technology, extending even to the spouses of prominent U.S. officials and lawmakers.

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Deputy U.S. Attorney General Lisa Monaco stated that the operation aimed to stifle criticism of the Chinese regime, compromise government institutions, and steal trade secrets.

A recent indictment of seven alleged Chinese hackers has brought to light the magnitude of their operations, detailing breaches involving work accounts, personal emails, and more, impacting millions in the U.S. British officials have also highlighted APT31’s hacking of key UK lawmakers and have connected another group of Chinese spies to a significant breach of Britain’s electoral commission.

International reactions and repercussions on the “China hacking”

In response, Chinese officials in the UK and U.S. have dismissed these allegations as unfounded and slanderous.

Amidst these disclosures, the UK and U.S. have sanctioned individuals and entities believed to be linked to China’s state security apparatus and involved in these cyber operations.

This situation intensifies the already heightened tensions between Beijing and Washington over cybersecurity, with each side increasingly accusing the other of espionage. China has retorted with allegations of U.S. cyber intrusions into major Chinese corporations, such as Huawei Technologies.

One notable incident highlighted by U.S. prosecutors involved targeting staffers from a U.S. presidential campaign in 2020, corroborating Google’s reports of malicious emails sent to President Joe Biden’s campaign team, though no breach was confirmed.

The hacking of a significant American public opinion research firm in 2018, during the U.S. midterm elections, underscores the hackers’ strategic interest in political entities for their invaluable intelligence and data.

John Hultquist, chief analyst for U.S. cybersecurity intelligence firm Mandiant, has pointed out the substantial value political organizations offer to espionage efforts, underlining the critical insights and extensive data they provide to actors like APT31 in search of geopolitical intelligence.

The global stage of cyber warfare

The narrative has broadened beyond the initial U.S. and UK accusations against China regarding cyberespionage. The New Zealand government has also come forward, expressing its concerns to the Chinese government about a state-backed cyberattack on New Zealand’s parliament in 2021, discovered by the country’s intelligence services. This incident contributes to the intricate landscape of international cyber tensions.

This exposure of unauthorized access to New Zealand’s parliamentary systems through malicious cyber activities aligns with the allegations of cyberespionage by Britain and the U.S. against China. New Zealand and Australia have both denounced these extensive cyber operations.

New Zealand’s Foreign Minister, Winston Peters, has criticized such foreign interference as unacceptable. He highlighted that New Zealand has conveyed its concerns about cyber activities attributed to Chinese government-sponsored groups targeting democratic institutions in New Zealand and the UK to the Chinese ambassador.

The Chinese Embassy in New Zealand has not yet commented on these accusations.

We reject outright the groundless and irresponsible accusations against China on cyber attacks or intrusions, and have lodged serious démarches to New Zealand’s relevant authorities, expressing strong dissatisfaction and resolute opposition.

Cybersecurity is a global challenge.…

— Wang Xiaolong (@AmbChina2NZ) March 26, 2024

The New Zealand Communications Security Bureau (GCSB), in charge of cybersecurity and signals intelligence, has linked a state-sponsored Chinese entity, known as Advanced Persistent Threat 40 (APT40), to the malicious cyber activities against New Zealand’s parliamentary services and parliamentary counsel office in 2021. The GCSB associates APT40 with the Ministry of State Security, noting that while no sensitive or strategic information was compromised, the attackers extracted technical data, potentially enabling further intrusive activities.

According to the GCSB, a notable portion of the malicious cyber events targeting nationally significant organizations last year were traced back to state-sponsored actors, not exclusively China. The bureau also criticized similar cyber activities linked to Russia.

Judith Collins, the minister responsible for the GCSB, stated that cyberespionage efforts targeting democratic institutions are universally condemnable.

Towards a unified stance against cyber intrusions

This development follows charges, sanctions, and accusations by American and British officials against Beijing, accusing it of conducting a widespread cyberespionage campaign that allegedly affected millions globally, including lawmakers, academics, journalists, and businesses, such as defense contractors. The group behind these activities, identified as Advanced Persistent Threat 31 or “APT31,” is said to be an extension of China’s Ministry of State Security, with a broad list of global targets reported by officials from the two countries.

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A joint statement from Australia’s Foreign Minister Penny Wong and Home Affairs Minister Clare O’Neil criticized the continuous cyber targeting of democratic institutions, emphasizing the adverse impact on democratic and open societies like Australia. They stated that such behavior is unacceptable and must cease.

In 2019, Australian intelligence attributed a cyberattack on its national parliament and the country’s three largest political parties before the general election to China, though the Australian government has not officially confirmed the perpetrator.

Well, it looks like the cyber saga is thickening, with China in the hot seat for allegedly orchestrating a vast network of cyberespionage that spans continents. The U.S., UK, New Zealand, and Australia are ramping up their cybersecurity defenses and calling out China’s actions on the global stage. It’s a classic case of “your move, China,” as the international community tightens its ranks against these cyber intrusions.

But what does the future hold? Well, if history has taught us anything, it’s that with every action comes a reaction. China might double down on its cybersecurity measures and retaliate, or perhaps, just perhaps, this international spotlight could usher in a new era of cyber diplomacy. In a world where technology continues to blur the lines between the possible and the impossible, who’s to say what the future might hold? One thing’s for sure: the global dialogue on cybersecurity is heating up.

The post Global concerns rise over alleged cyber hacking activities linked to China appeared first on Tech Wire Asia.

In a twist of events, Advanced Micro Devices Inc (AMD) finds itself at a standstill as it faces hurdles from the US government in its endeavor to sell AI chips explicitly tailored for the Chinese market. This roadblock, part of Washington’s broader crackdown on exporting advanced technologies to China, sheds light on the intricate interplay between global trade dynamics and national security concerns.

AMD’s aspiration to secure approval from the US Commerce Department to sell the AI processor to Chinese customers has hit a snag. The chip in question, the MI309, is designed to cater specifically to the demands of the Chinese market, representing AMD’s ambitious foray to capture the attention of Chinese consumers and businesses alike.

Despite designing the chip with lower performance metrics to comply with US export restrictions, officials have still deemed it too powerful. Consequently, AMD finds itself in a quandary, with US authorities mandating the acquisition of a license from the Commerce Department’s Bureau of Industry and Security before the sale can go ahead.

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“AMD had hoped to gain a green light from the Commerce Department to sell the AI processor to Chinese customers since it performs at a lower level than what the company sells outside of China,” Bloomberg reported. 

The MI309 and its hurdles

One of the pivotal moments in AMD’s journey came with the realization that its presence in China’s AI chip sector lagged behind that of its competitors, most notably Nvidia. In response, AMD intensified its efforts to capture market share and establish itself as a formidable contender in China’s burgeoning AI chip market. But the path forward was uncertain as regulatory scrutiny and export restrictions loomed.

Despite the daunting challenges, AMD pressed forward, unveiling its latest innovation, the Instinct MI309 chip, tailored specifically for the Chinese market. With its advanced features and tailored design, the MI309 chip represented a bold step forward for AMD, signaling its commitment to innovation and growth in adversity. However, the journey was far from smooth sailing, as the MI309 chip encountered regulatory hurdles and faced scrutiny from US authorities.

What will AMD do about its AI chip hurdles?

While AMD remains tight-lipped about its next steps, the Bureau of Industry and Security too has refrained from commenting on the matter, leaving the situation uncertain. The ambiguity surrounding AMD’s potential course of action has naturally fueled speculation about its future trajectory and ability to navigate the intricate web of regulatory frameworks.

AMD received licenses from the Commerce Department last August to sell its advanced AI chips, including its flagship MI250 data center GPU, to Chinese customers like cloud giants Alibaba, Tencent, and Baidu. AMD was poised to grab market share from rival Nvidia, which had most of its AI chip sales to China blocked by previous US export rules.

In fact, AMD’s opportunity in China looked huge, as the country aims to build a US$400 billion semiconductor industry to support its tech ambitions in areas like AI, 5G, and supercomputing. Chinese companies were hungry for advanced AI accelerators to power large language models, computer vision, and other cutting-edge applications.

But in early October, the Biden administration imposed new export controls restricting shipments of high-end AI chips and chip-making tools to China. The rules were intended to cut off China’s access to technologies that could aid its military capabilities. The new rules blindsided AMD and its Chinese partners. 

The MI250 and other advanced AMD AI chips appeared to fall under the new restrictions, halting the company’s AI chip sales to China. For now, the mystery persists over the identity of the Chinese client eyeing AMD’s AI chips, a crucial factor in the company’s potential licensing prospects. 

Meanwhile, Chinese tech giants like Tencent and Baidu have fortified their chip reserves from Nvidia, anticipating regulatory hurdles. On another front, Huawei is forging ahead with its AI semiconductor development, aiming to bridge the gap left by US restrictions and bolster China’s chip sovereignty.

The post AMD’s Chinese AI chip plan halted by US govt: What’s next? appeared first on Tech Wire Asia.

Semiconductor Manufacturing International Corporation (SMIC) is China’s premier advanced semiconductor foundry. Despite facing tumultuous trade winds that have buffeted the Chinese chip industry in recent years, SMIC has remained undeterred. Confronted with crippling sanctions aimed at stifling its capabilities by limiting access to crucial tools and expertise, it has responded with a display of resilience. 

Investing substantially in homegrown innovation, SMIC has showcased its capacity to thrive independently. So much so that experts have begun to acknowledge the limitations of US sanctions in crippling the Chinese chip giant, and it is evident that SMIC’s trajectory remains unwaveringly upward. In a recent DigiTimes article, Robert Castellano, president of The Information Network, highlighted the pivotal roles played by SMIC and Huawei in Beijing’s response to US sanctions, citing them as significant beneficiaries of local semiconductor industry subsidy policies. 

Castellano emphasized that both companies have emerged as crucial participants in China’s efforts to counteract the impact of sanctions, underscoring their strategic significance in the nation’s semiconductor landscape. “Projects, such as the expansion of Huawei’s Shanghai Qingpu R&D base and SMIC’s 12-inch wafer fab, have been listed as key investment projects,” DigiTimes noted.

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In the face of formidable US trade sanctions and technology export restrictions, the Chinese semiconductor foundry has not only weathered the storm with minimal revenue impact but is also boldly expanding its 12-inch wafer production lines. Moreover, the proportion of revenue from SMIC’s 12-inch wafer production has increased from 64.4% in the fourth quarter of 2022 to 74.2% in the same period of 2023, an increase of nearly 10%.

For context, in the final quarter of 2023, SMIC International witnessed a notable surge in revenue, soaring by over 3.5% to surpass the US$1.678 billion mark, marking the sole quarter of revenue growth throughout the previous year. However, despite surpassing revenue projections, a substantial decline in gross margin resulted in a steep decline of net profit by 54.7%, plummeting to approximately US$175 million. 

A Kirin chip in the new Huawei Mate 60 Pro smartphone demonstrates China’s semiconductor industry progress. (Photo by Rebecca BAILEY/AFP).

Regarding the drop in net profit, SMIC attributed it to several factors, such as the industry downturn, low market demand, high industry inventory, and intense competition among competitors. These factors led to lower capacity usage and fewer wafer shipments for the company. Moreover, SMIC invested heavily during the reporting period, resulting in higher depreciation expenses than the previous year. 

As a result, SMIC predicts a 2% increase in revenue for the first quarter of 2024 compared to the previous quarter, totaling around US$1.71 billion. This surpasses the market’s anticipated revenue of US$1.67 billion, indicating that the US sanctions have not significantly affected the company’s revenue, according to the article by DigiTimes.

The US is not stopping SMIC & Huawei

Last year, SMIC gained international attention when analysts revealed the company’s involvement in helping Huawei to develop highly advanced domestically produced chips in China. SMIC’s swift capacity expansion has also attracted considerable notice. In 2023, the company’s capital expenditure reached US$7.47 billion, marking a 17.6% increase from 2022. 

However, SMIC recently announced that it anticipates capital expenditure to remain relatively unchanged compared to last year. Yet, SMIC is advancing steadily in developing advanced 7nm and 5nm nodes, which Huawei has selected for its mobile processors and AI-centric Ascend series. Progress on both nodes remains smooth, promising enhanced performance for Huawei’s Kirin mobile chips and Ascend GPUs.

There are indications that SMIC’s 5nm chips could be ready for deployment this year, further closing the gap between China’s semiconductor industry and Western fabs. While SMIC is also eyeing advancements in 3nm technology, it’s likely at least a year away from fruition, if not longer, according to various reports.

The post SMIC defying US sanctions with 5nm innovation and Huawei alliance appeared first on Tech Wire Asia.

Despite Chinese cloud companies investing heavily in AI development, the uptake among Chinese businesses has not been as high as the industry would like it to be. While there could be many reasons for this, Chinese cloud companies are hoping 2024 will see better growth opportunities and more firms taking up their products and services.

Chinese cloud companies like Alibaba Cloud, Huawei and Tencent have each released AI models and products this year. Chinese tech company Baidu as well as several other Chinese companies have also developed and released more AI models.

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According to a report by Canalys released in December 2023, Alibaba Cloud, Huawei Cloud and Tencent Cloud are the top three cloud vendors in Mainland China in Q3 2023. The Chinese cloud companies collectively grew 22% to account for a combined 73% share of customer spending. In Q3 2023, cloud revenue generated via channels in the Chinese market accounted for 25% of total revenue, against 23% in the previous quarter.

But the report also stated that the Chinese cloud services market remains conservative, relying heavily on government and state-owned enterprises to drive growth.

“The innate complexity of AI technology presents challenges in terms of adoption and deployment,” Canalys said, “yet simultaneously unlocks opportunities for a broader AI ecosystem.”

Alibaba Cloud has slashed the prices of its cloud services by up to 55%.

Alibaba Cloud slashes pricing

Given the slow adoption of AI among Chinese businesses, Alibaba Cloud has cut the prices of its cloud services by up to 55%. According to a report by Bloomberg, the company will be slashing its prices by as much as 55%. The price reductions are expected to span over 100 products offered by the Chinese cloud provider.

The price cut is one of the most aggressive moves taken by Alibaba. While there have been price cuts announced in the past by other cloud service providers, none have ever reached a cut as high as the Chinese cloud company.

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Alibaba Cloud is probably hoping the price cuts will make its product not only more affordable to Chinese businesses but will also allow them to stay ahead of rivals Tencent and Baidu.

The price slashing is expected to cause a ripple effect in the cloud services industry, which could trigger a price war. Reports by Bloomberg are already indicating that rivals JD.com responded within the same day of Alibaba’s announcement by unveiling its own round of price cuts as well.

Analysts from Bloomberg Intelligence also stated that the price cuts are pretty much a declaration of a cloud price war. Alibaba has struggled over the past year to revamp its vast e-commerce, logistics and cloud empire in the face of fierce competition and geopolitical risks. The company is looking to revive growth after two years of regulatory scrutiny and Covid-era economic turbulence.

It remains to be seen if Huawei, Tencent and other Chinese cloud companies will reduce their prices for their services. However if Alibaba Cloud is capable of doing so and capturing a larger market size in China, the competitors would need to join in or find other ways to boost their customer base.

Has Alibaba Cloud started a price war with other Chinese cloud companies? (Image by Shutterstock).

Chinese cloud companies kick off the global price war?

In 2024, Canalys expects global cloud infrastructure services spending to increase by 20%, compared with 18% in 2023. Currently, the biggest cloud companies in the world are AWS, Microsoft Azure and Google Cloud.

“The integration of generative AI into mainstream software products is accelerating, potentially leading to quicker commercialization of generative AI applications. Google recently introduced its rebranded Gemini large language model into Workspace applications, such as Gmail and Docs. At the same time, Microsoft launched Copilot for Microsoft 365 last November, embedding its generative AI platform into Word, Excel and other office applications,” said Yi Zhang, Analyst at Canalys.

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However, could the price slashes in China have an impact on the global cloud services pricing? Given the weakening currencies in Asia Pacific, businesses in the region could opt for a cloud service provider that is capable of giving them the best value they can get.

Alibaba Cloud has a strong presence in APAC, especially in Southeast Asia. A similar price reduction in the region could trigger a price war not just from Chinese cloud companies but global companies as well.

While AWS, Google Cloud and Microsoft remain strong in the region, Chinese cloud companies have a soft spot as well among some businesses. Should the company decide to make a similar move here, businesses will be tempted to pick the cheaper option as well.

For now, though, the price cuts seem to be only in China. Perhaps in the future, if the move seems to be beneficial for the company, they could spread to services outside China as well.

The post Chinese cloud companies in pricing war as Alibaba slashes prices appeared first on Tech Wire Asia.

领先的数据中心提供商 EdgeConneX 和朝亚于2021年12月宣布建立战略合作伙伴关系。EdgeConneX 已经是超大规模数据中心部署领域的全球领导者，因其在全球不同市场提供顶级解决方案方面的丰富经验和熟练程度而广受赞誉。朝亚在中国开发和运营前沿的超大规模数据中心园区，以其成熟的高密度、高性能计算（HPC）完备设计而闻名，朝亚擅长提供高效、定制的数据中心解决方案，从而加速客户业务的上市速度。EdgeConneX 与朝亚合作提供最先进的基础设施解决方案，以满足日益数字化的生态系统不断增长的需求。

Tech Wire Asia 采访了 EdgeConneX 亚太区董事总经理 Kelvin Fong 和朝亚首席执行官 James Wei，了解他们对中国如何在 2024 年维持蓬勃发展的数据中心格局的见解。

TWA：是什么推动了中国数据中心行业的增长？

JW：“中国在发展和提升云、人工智能和量子计算等关键技术能力的愿望正在创造合适的条件，让各种技术创新能够在中国蓬勃发展。

“人们越来越需要数字基础设施来支持新的企业应用和用户在线服务，特别是在互联网普及率继续以健康的速度增长的情况下。2023 年初，互联网普及率约为 73.7%。到 6 月份，这一比例已增至约 76.4%。

“此外，人工智能驱动的服务和能力的爆炸式增长需要比以前更多的高密度数据中心支持。随着人工智能技术不断融入日常应用，导致对人工智能训练和推理的电力需求更大。强大的超融合基础设施（HCI）系统可提供更强大的内部部署能力和计算能力。

“由于这些新的高密度系统，机架级的能源需求预计将迅速增加。这推动了更新的解决方案设计和功能，用于提供足够的能源和足够的冷却。”

KF：“中国一直在人工智能研发方面投入巨资。机器学习和深度学习等人工智能技术的实施需要大量的计算能力，因此需要先进的数据中心。

“此外，中国政府一直在推动政务云服务的发展。中国各个电信公司在建设和维护这些政府云基础设施方面发挥着至关重要的作用，满足了对强大数据中心的需求。

“中国蓬勃发展的电子商务行业也产生了大量与在线交易、用户行为和物流相关的数据。中国数字支付和金融分析等金融科技服务的发展推动了对数据存储和处理能力的需求不断增长。

“最后，自动驾驶汽车的开发和测试在很大程度上依赖于数据处理和存储。中国在自动驾驶汽车技术方面一直在进步。此外，实时收集和分析来自传感器和摄像头的大量数据，需要强大的数据中心基础设施。”

TWA：企业如何利用数据中心获得增长机会，同时有效管理计算能力需求和挑战？

KF：“中国企业可以利用数据中心的能力来适应下一代技术，特别是人工智能。数据中心提供人工智能算法、机器学习和数据处理所需的计算资源，使公司能够提取有价值的见解并改进决策流程。

JW：“数据中心还必须跟上技术发展的步伐并采用相关的尖端系统来增强数据中心的能力和性能。”

KF：“中国企业可以利用数据中心作为创新枢纽来促进协作、创造和创新。通过创造一个鼓励实验和开发尖端解决方案的环境，中国企业可以在快速发展的技术领域保持领先地位。”

JW：“企业可以与拥有技术能力的领先数据中心运营商合作，提供具有市场领先能量使用效率（PUE）的高效设计。在此过程中，企业可以采用根据具体要求量身打造的定制数据中心部署，以最大限度地减少效率低下的情况。”

TWA：据您所知，客户是否积极寻求节能解决方案，特别是那些旨在实现低 PUE 值的解决方案？

KF：“低 PUE 值的重要性取决于所涉及的具体技术。例如，在涉及人工智能训练的应用中，延迟不是关键因素，重点往往会转向优化计算机性能，而不是尽量减少延迟。在这类情况下，管理 PUE 值变得至关重要，许多客户探索各种策略，例如采用可再生能源来增强可持续性。

“此外，投资太阳能或风能等可再生能源可以带来长期成本节约。通过采用可再生能源，中国企业可以为更加稳定和可持续的商业模式做出贡献。”

TWA：您如何看待朝亚与 EdgeConneX 之间建立合作伙伴关系来支持中国不断增长的数字基础设施需求？

JW：“[通过]利用彼此最好的数据中心专业知识和能力。EdgeConneX 在全球超大规模部署方面拥有丰富的经验，而朝亚是中国[本土]平台和市场专家，拥有深厚的本地关系。由于朝亚很熟悉中国数据中心生态系统，我们可以快速执行。

“我们共同提供了一个完整的全球超大规模数据中心平台，涵盖 50 多个最热门的市场，随时随地满足企业的扩张需求。”

KF：“随着中国企业踏上全球扩张之旅，与强大的合作伙伴合作对于精简化这个扩张过程至关重要。这一战略联盟有潜力提供宝贵的专业知识、必要资源和专业服务，从而支持中国企业在数字领域的国际化努力。

“汇集我们的优势，我们可以利用双方顶级数据中心无与伦比的知识和能力。朝亚对中国数据中心的生态系统的熟悉程度将使我们能够快速执行。我们的合作伙伴关系将加速我们的集体成功。

“此外，两家公司都在积极培养自己在高性能计算解决方案方面的能力。这种融合符合我们的共同目标，并针对‘东数西算’战略建立了理想的双赢局面。”

要了解更多关于京津数据中心园区的信息，请访问：https://www.edgeconnex.com/locations/asia-pacific/tianjin/

有关大上海数据中心的更多信息，请访问：https://www.edgeconnex.com/locations/asia-pacific/shanghai-data-center-campus/

The post 中国迈向2024年数字化技术先进时代的征程：对话 对话EdgeConneX和朝亚 和朝亚 appeared first on Tech Wire Asia.

Source: Shutterstock

Leading data center providers EdgeConneX and Chayora unveiled a strategic partnership in December 2021 to expand their solutions throughout mainland China, including Beijing and Shanghai.  EdgeConneX has carved its niche as a global leader in hyperscale data center deployments, recognized for its extensive experience and proficiency in delivering top-tier solutions across diverse markets worldwide. Chayora is a trailblazer in data center innovation in China, renowned for its proven high-density, High-Performance Computing (HPC)-ready designs. The company excels in delivering efficient, customized data center solutions, allowing unparalleled speed to market. The collaboration between EdgeConneX and Chayora provides state-of-the-art infrastructure solutions in China that cater to the burgeoning demands of an increasingly digitalized ecosystem.

TechHQ spoke with Kelvin Fong, the Managing Director of EdgeConneX Asia Pacific, and James Wei, the CEO of Chayora, to uncover their insights on how China can sustain a thriving data center landscape in 2024.

THQ: What is driving the growth of the data center industry in China?

Source: Shutterstock

JW: “The country’s desire to develop and advance capability in key technologies such as cloud, AI, and quantum computing is creating the right conditions for tech innovations to bloom and flourish in China.

“There is growing demand for digital infrastructure to power new business applications and online services for users, especially as internet penetration continues to grow at a healthy rate. At the start of 2023, internet penetration was about 73.7 percent. By June, it had increased to about 76.4 percent.

“In addition, the explosion of AI-powered services and capabilities requires more high-density data centers than before to support. The continued integration of AI technologies into everyday applications will culminate in greater power demand for AI training and inferencing. Powerful hyper-converged infrastructure (HCI) systems deliver more powerful on-premises and computing capabilities.

“Power demands at the rack level are expected to increase rapidly due to these new high-density systems. This drives newer solution designs and features to provide enough power along with adequate cooling.”

KF: “China has been investing heavily in AI research and development. The implementation of AI technologies, such as machine learning and deep learning, requires significant computational power, driving the need for advanced data centers.

“Furthermore, the Chinese government has been promoting the development of government cloud services. Chinese telecommunications companies play a crucial role in building and maintaining these government cloud infrastructures, contributing to the demand for robust data centers.

“The booming e-commerce industry in China also generates massive amounts of data related to online transactions, user behavior, and logistics. The growth of fintech services in China, such as digital payments and financial analytics, contributes to the increasing demand for data storage and processing capabilities.

“Finally, the development and testing of autonomous vehicles rely heavily on data processing and storage. China has been making strides in autonomous vehicle technology. Further, collecting and analyzing vast amounts of data from sensors and cameras in real-time require robust data center infrastructure.”

THQ: How can businesses utilize data centers for growth opportunities while effectively managing computing power demands and challenges?

KF: “Chinese businesses can harness the power of data centers to accommodate next-generation technologies, particularly AI. Data centers provide the computational resources needed for AI algorithms, machine learning, and data processing, enabling companies to extract valuable insights and improve decision-making processes.

JW: “They must also stay abreast of technological developments and adopt relevant cutting-edge systems to enhance data center capabilities and performance.”

KF: “Chinese businesses can foster collaboration, creativity, and innovation by leveraging data centers as innovation hubs. By creating an environment that encourages experimentation and the development of cutting-edge solutions, they can stay ahead in the rapidly advancing tech landscape.”

JW: “Businesses can partner with leading data center operators with the technical capabilities to deliver efficient design with market-leading power usage effectiveness (PUE). In doing so, they can adopt customized data center deployments tailored to exact requirements to minimize inefficiencies.”

THQ: To your knowledge, are customers actively pursuing energy-efficient solutions, particularly those aimed at achieving a low PUE?

KF: “The importance of low PUE varies depending on the specific technology involved. For instance, in applications that involve AI training, where latency is not a critical factor, the focus tends to shift towards optimizing computer power rather than minimizing latency. In these cases, managing PUE becomes crucial, and many customers explore strategies such as incorporating renewable energy sources to enhance sustainability.

“Furthermore, investing in renewable energy, such as solar or wind power, can lead to long-term cost savings. By adopting renewable energy sources, Chinese businesses can contribute to a more stable and sustainable business model.”

THQ: How do you see the partnership between Chayora and EdgeConneX supporting China’s rising demand for digital infrastructure?

JW: “[By] leveraging the best-of-the-breed data center know-how and capabilities from each other. EdgeConneX has extensive experience in global hyper-scale deployments, while Chayora is the China [native] platform and market expert with deep local relationships. We can execute quickly through Chayora’s familiarity with the Chinese data center ecosystem.

“Together, we provide a complete global hyperscale data center platform spanning over 50 of the hottest markets, spring-boarding businesses’ expansion where and when they need it.”

Source: Shutterstock

KF: “As Chinese enterprises embark on their global expansion journey, collaborating with a robust partner becomes pivotal in streamlining this process. This strategic alliance has the potential to provide invaluable expertise, essential resources, and specialized services, thereby bolstering the internationalization endeavors of Chinese companies operating in the digital sector.

“Pooling our strengths, we can harness the unparalleled knowledge and capabilities of top-tier data centers from both sides. Leveraging Chayora’s familiarity with the intricacies of the China data center ecosystem will enable us to execute swiftly. Our partnership is poised to accelerate our collective success.

“Moreover, both organizations are actively cultivating their proficiency in high-performance computing solutions. This convergence aligns with our shared objectives and establishes the ideal win-win scenario for ‘East Data and West Computing’.”

For more information on the Beijing-Tianjin Data Center Campus, please visit here.

For more information on the Greater Shanghai Data Center, please visit here.

The post China’s journey towards a digitally advanced 2024: In conversation with EdgeConneX and Chayora appeared first on Tech Wire Asia.

In a typical e-commerce landscape where competition is fierce and attention spans are fleeting, companies are constantly seeking innovative ways to remain top-of-mind for consumers. Temu, a Chinese fast-fashion giant backed by Nasdaq-listed PDD Holdings, has recently made headlines with a surprising tactic: splurging on Super Bowl ads in the US. This move has sparked curiosity and speculation about Temu’s position in the US market and its strategy for staying relevant in an ever-evolving industry.

In the fast-paced world of e-commerce in the US, two giants have emerged as frontrunners in the battle for consumer attention: Temu and Shein. Their sleek interfaces, vast product offerings, and attractive deals have captured the hearts—and wallets—of millions of shoppers across America. But competition is also peaking, and Temu has been facing increasing pressure, especially from Shein.

The fast-growing Chinese e-commerce platform has to protect its market share from being constantly eroded. Temu has been forced to reevaluate its approach to maintaining relevance in the fiercely competitive US market. Last weekend, Temu splashed at the Super Bowl, airing its ad six times and dishing out a jaw-dropping US$10 million in giveaways, all in a bid to breathe new life into its waning US presence.

WHAT IS TEMU AND HOW IS IT TAKING OVER THE SHOPPING LANDSCAPE?

Muhammad Zulhusni | 27 October, 2023

The Super Bowl is an event known not only for its electrifying football showdown but also for its highly coveted advertising slots. A 30-second commercial during Sunday night’s game cost about US$7 million. With millions of viewers tuned in from around the world, the Super Bowl presents an unparalleled opportunity for brands to showcase their products and capture the attention of a captive audience.

Source: X.com

Temu’s American shopping base is dwindling, with Second Measure data showing a decline. A late January Morgan Stanley survey revealed nearly a third of users plan to decrease app usage over three months, with only eBay and Etsy showing weaker forecasts. Sales took a nosedive for Temu, plummeting 12.5% in December and 4.8% in January, a stark contrast to its 50% growth in mid-2023. Despite Temu’s struggle, overall US retail sales surged in December.

For Temu, this year’s Super Bowl represented more than just a chance to advertise its latest gadgets—it’s a strategic move to reclaim its position as a frontrunner in the tech industry. These insights, drawn from Bloomberg’s Second Measure data track a slice of US credit and debit card transactions. 

But why the sudden emphasis on splashy advertising, especially in an era dominated by digital marketing and social media influencers? The answer lies in Temu’s recognition of the power of storytelling and emotional connection in shaping consumer perceptions. By investing in high-profile ad placements during one of the most-watched events of the year, Temu aims to create memorable experiences that resonate with audiences long after the final whistle blows.

Temu’s decision to splurge on Super Bowl ads is not without risks. With advertising costs reaching new heights, there’s no guarantee that the investment will yield the desired returns. The company faces fierce competition from other tech giants vying for the spotlight during the big game. While web searches for the app spiked when its ads aired, according to Google Trends data, searches have steadily declined since early July 2023.

Overall, Temu, which made it into the US market in September 2022, spent a staggering US$3 billion last year on marketing, per Bernstein Research. And if its Super Bowl campaign is any indication, it’s not pumping the brakes anytime soon. The spending spree underscores the challenge ahead: Temu aims to attain prominence in the West that has eluded most Chinese-owned enterprises, with only Shein and TikTok managing to carve out substantial niches thus far.

The post Is Temu’s Super Bowl splurge a last-ditch effort amid fading US interest? appeared first on Tech Wire Asia.

While some of the world embraces the benefits of 5G connectivity, China is not wasting any time on developing the next generation of wireless technology, 6G. The planned successor to 5G has been in development for some time, worked on by several companies not exclusively in China.

Expected to be much faster than 5G, 6G will be able to support applications beyond current mobile use scenarios. This includes ubiquitous instant communications, pervasive intelligence and IoT. 6G networks will likely operate on higher radio frequencies, providing more bandwidth and latency at microsecond speeds.

BIDEN’S NEW FIREWALL TO HALT CHINA’S AI DEVELOPMENT VIA US CLOUD FIRMS

Dashveenjit Kaur | 30 January, 2024

In Europe, 6G research project is driven by Ericsson and Nokia, with Ericsson acting as the technical lead while Nokia representing both companies’ endeavors. The Hexa-X project has ramped up its activities since it began in January 2021. While the project has highlighted several benefits, it also pointed out some challenges that organizations may face in the future with a 6G network.

While there is no timeline for 6G deployment, technology and network experts predict the technology to be developed and released by the end of the decade.

Why the US is losing our to China in network technology.

Some of the potential use cases of 6G are:

• Digital twins: 6G will enable the creation of virtual replicas of physical objects, systems, or processes, using sensor data, AI, and edge computing.
• Cobots and robot navigation: Collaboration between robots and humans in domains such as manufacturing, logistics, and education.
• E-health for all: Global access to e-health, including remote and underprivileged populations using non-terrestrial networks and AI/ML functionality.
• Precision health care: The network supports advanced health care scenarios such as in-body devices, robotic first-responders, and remote surgery.
• Smart agriculture: 6G will enable data-driven and sustainable farming practices, using ubiquitous sensors, drones, and digital twins.
• Earth monitor: Boosting sustainability and conserving the environment, the network will enable the global distribution of sensors to monitor environmental indicators and support climate action.
• Multisensory extended reality: Immersive and interactive experiences that stimulate multiple senses including touch, smell, and taste.
• Personalized user experiences: For businesses, delivery of customized and context-aware services and content to users, based on their preferences, needs, and emotions.

6G use cases are beyond imagination. (Image generated by AI)

China and 6G

In Asia, China leads the development of 6G and aims to start commercializing the technology by 2030. It expects to establish 6G standards by 2025.

China’s 6G efforts are driven by its ambition to upgrade its manufacturing base, promote a more technologically advanced economy, and enhance its global competitiveness. China’s three major telecom operators, China Mobile, China Telecom and China Unicom, are each involved in 6G research and development, as well as the continuing roll-out of 5G networks and applications across the country.

CHINA UNLEASHES AI WAVE, APPROVES 14 LLMS FOR COMMERCIAL USE

Dashveenjit Kaur | 1 February, 2024

China Mobile has launched the world’s first 6G satellite into orbit. According to media reports, the low earth orbit (LEO) satellite is the world’s first to employ 6G design architecture. The satellite is expected to boost experimentation with integrated space to ground communication technology.

China’s 6G test satellite hosts a distributed autonomous architecture for 6G services, which were jointly developed by China Mobile and the Chinese Academy of Sciences’ Innovation Academy for Microsatellites. The system, utilizing domestic software and hardware, supports in-orbit software reconstruction, flexible deployment of core network functions and automated management, enhancing the efficiency and reliability of the in-orbit operation of the satellite core network.

Set at an orbital height of approximately 500 kilometers, the experimental satellite offers advantages such as low latency and high data transfer rates compared with high-orbit satellites positioned 36,000 kilometers above the Earth’s surface.

China Mobile has stated that the 6G satellite is a crucial platform for future integrated space and ground networks. The LEO satellite can address telecom signal coverage gaps in terrestrial mobile networks, providing high-bandwidth satellite internet services globally.

6G is expected to enable innovative, futuristic use-cases that will transform the way people live and work in remarkable ways. The network will also likely open up new opportunities and challenges in sectors such as healthcare, smart energy grids, transport, and so-called Industry 4.0.

The post China launches world’s first 6G satellite appeared first on Tech Wire Asia.

TIKTOK BREAKS RECORDS AS FIRST NON-GAME APP TO EXCEED US$10 BILLION – PLUS PLANS FOR 2024 UNVEILED

Muhammad Zulhusni | 14 December, 2023

TikTok continues to face all types of challenges from the Biden Administration. And every time, the social media giant responds to each challenge and allegation in a positive manner.

With over 150 million users in the US, TikTok continues to be as transparent as it can be in everything it does, despite facing significantly more rigorous investigation than the likes of Facebook or X. While the US government has accused the app of being used for espionage by China, TikTok continues to prove otherwise, highlighting and showcasing all the steps it has taken to ensure the security and privacy of those using its app – and their data.

Most recently, TikTok CEO Shou Zi Chew was grilled by US senators on his ties with China. The Singaporean CEO patiently answered every query, while stating that neither he nor the app shares any data or information with China.

Can we say “McCarthyism much?”

The reality is that while the app does collect data, it’s mostly to improve its algorithms. All social media apps collect data to improve their algorithms. This helps the app improve its performance and cater to users’ needs.

Despite proving that the app does not share data with China, several states in the US have banned the use and download of the app on government devices. Several universities in the US have also banned the use of the app on campus.

In 2022, US President Joe Biden signed legislation blocking most federal government devices from using TikTok. Lawmakers from both sides of the aisle continue to call for the app to be banned wholesale in the US over concerns the government in Beijing might be able to access user data.

Still, the site remains popular with young people in the US, a demographic that the White House is keen to energize for this November’s election. In fact, TikTok is not only capable of influencing the US election, it is also now the most popular source for news by the younger generation.

According to a report by Morning Consult, 47% of TikTok users say they get news from the app, compared to 30% in July 2022. Younger generations have become more accustomed to using this social network to follow the news – particularly in the wake of the “Muskification” of the platform everyone is still deadnaming as Twitter, and the return of extreme right wing accounts to that platform in the name of “free speech.”

US President Joe Biden is officially on TikTok. Election? What election?

Biden joins TikTok

On the surface then, it’s a bizarre twist that US President has now joined TikTok.

That’s right. Take a moment to absorb that information. For all the noise made over the last few years and the concerns they have had over the app, the US President is finally on TikTok.

So why the sudden change? As expected, with the election just months away, the US President is hoping to reach out to younger voters. These voters represent a huge demographic that still uses TikTok and relies heavily on the social media app for all its information.

According to a report by TIME, The account, @Bidenhq, will be run by Biden’s campaign staff alongside other accounts on X, Threads, Facebook, and Truth Social, according to campaign advisers. The President’s TikTok account was unveiled during the SuperBowl over the weekend and already has more than 65,000 followers as of Monday. Biden’s first video on the app also has more than half a million viewers.

“The campaign will continue meeting voters where they are, innovating to create content that will resonate with critical audiences and the core constituencies that make up the President’s diverse and broad coalition of voters,” advisers said. Biden campaign advisers added that they “are taking advanced safety precautions around our devices and incorporating a sophisticated security protocol to ensure security.”

So why the hypocrisy?

Meanwhile, White House spokesperson John Kirby said nothing has changed about TikTok use from a national security perspective. Some users feel Biden’s move to join TikTok is a sign of how badly Democrats want to court young Americans ahead of the election.

“It’s shameful that Biden is embracing TikTok to compensate for bad polls driven by his mental decline,” Senator Tom Cotton posted on X. He also called TikTok a “spy app for the Chinese Communist Party.” Senator Josh Hawley also posted on X, apparently having never heard of irony, saying, “Joe Biden is so desperate to do anything to help his sad reelection bid he’s willing to use a Chinese spy app his own government has outlawed.”

While it remains to be seen how much of an impact Biden’s TikTok account will have on the elections, one thing is for certain: TikTok will most likely not be going anywhere. For now, the social media app can be relieved with this “small big” win.

The post After all the drama about security and privacy, Biden joins TikTok  appeared first on Tech Wire Asia.

In the shadowy field of cyber-espionage, one name has emerged as a persistent thorn in the side of US critical infrastructure: Volt Typhoon. For at least five years, this enigmatic group of Chinese hackers has covertly infiltrated critical IT networks across America, sending shockwaves through the nation’s security apparatus. Believed to be backed by the Chinese government, it operates with stealth and precision, targeting a wide array of sectors vital to the nation’s infrastructure. 

No sector is immune from its prying eyes, from communications and energy to transportation systems and water facilities. Who exactly are the members of Volt Typhoon, and what have they been doing in the heart of US critical infrastructure for half a decade? Let’s delve into the clandestine world of cyber-warfare and geopolitical maneuvering.

STATE-SPONSORED CHINESE HACKERS TARGET SOUTHEAST ASIAN GOVTS, MILITARIES: REPORT

Jamilah Lim | 17 December, 2021

What has the Volt Typhoon been doing?

In a joint advisory published on Wednesday, the National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency (CISA), and FBI revealed that the state-sponsored group of hackers from China had infiltrated networks spanning aviation, rail, mass transit, highway, maritime, pipeline, water, and sewage sectors. 

This alarming development signals a strategic shift from their usual cyber-espionage tactics to a focus on pre-positioning for potential destructive cyberattacks in times of conflict or crisis. The advisory, jointly signed by cybersecurity agencies from the UK, Australia, Canada, and New Zealand, follows a similar caution issued by FBI Director Christopher Wray just a week earlier.

I testified to Congress last week about China’s threat to our nation’s critical infrastructure. Today, with our partners, we showed part of this threat in our Volt Typhoon advisory: https://t.co/HIBQ4Ir1LS

What we’ve found to date is likely the tip of the iceberg. pic.twitter.com/VGPkzF2UaL

— Jen Easterly🛡️ (@CISAJen) February 7, 2024

Wednesday’s technical advisory revealed that Volt Typhoon has exploited vulnerabilities in routers, firewalls, and VPNs to infiltrate critical infrastructure nationwide. The Chinese hackers have adeptly utilized stolen administrator credentials to persist in these systems, some for “at least five years.” The advisory cautioned that this persistent access has empowered them to potentially disrupt vital systems, including HVAC systems and energy controls, leading to catastrophic infrastructure failures. Additionally, Volt Typhoon may have accessed surveillance systems at critical facilities, although this remains unconfirmed.

Employing living-off-the-land techniques, the hackers discreetly operated using legitimate tools already in the target system, ensuring long-term persistence while evading detection. The hackers also conducted “extensive pre-compromise reconnaissance” to avoid detection. “For example, in some instances, Volt Typhoon actors may have abstained from using compromised credentials outside of normal working hours to avoid triggering security alerts on abnormal account activities,” the advisory said.

What is the US doing about these Chinese hackers?

FBI Director Christopher Wray testifies before the House (Select) Strategic Competition Between the United States and the Chinese Communist Party Committee on Capitol Hill on January 31, 2024 in Washington, DC. Kevin Dietsch/Getty Images/AFP (Photo by Kevin Dietsch/GETTY IMAGES NORTH AMERICA/Getty Images via AFP).

The revelation of the Volt Typhoon’s infiltration has sent shockwaves through Washington, prompting urgent calls to bolster cybersecurity defenses and reevaluating diplomatic relations with Beijing. Yet, despite heightened awareness and countermeasures, the group’s persistence underscores the formidable challenge posed by state-sponsored cyberthreats.

Wray had emphasized to the House Select Committee the urgent need to address a pervasive cyberthreat from the Chinese Communist Party affecting every American. But that isn’t something new for Washington. In recent years, the US has escalated efforts to thwart criminal and state-sponsored cyber-activities. 

This time, Wray cautioned that Beijing-backed hackers are targeting business secrets to bolster the Chinese economy and obtain personal data for foreign influence endeavors. “China’s hackers are positioning on American infrastructure in preparation to wreak havoc and cause real-world harm to American citizens and communities, if or when China decides the time has come to strike,” Wray added.

Wray described to the US House of Representatives committee the ways in which Volt Typhoon was “the defining threat of our generation” and said the group aims to “disrupt our military’s ability to mobilize” in the early stages of an anticipated conflict over Taiwan, which China claims as its territory.

Jen Easterly, Director of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, echoed that viewpoint. “This is a world where a major crisis halfway across the planet could well endanger the lives of Americans here at home through the disruption of our pipelines, the severing of our telecommunications, the pollution of our water facilities, the crippling of our transportation modes – all to ensure that they can incite societal panic and chaos and deter our ability [to marshal a sufficient response],” she said, according to The Guardian.

As the US grapples with the implications of Volt Typhoon’s activities, questions linger about the broader impact on international cybersecurity and the delicate balance of power in the digital age. Will the revelation of Volt Typhoon’s exploits serve as a wake-up call for greater collaboration and vigilance in the fight against cyberthreats, or will it escalate tensions in an already fraught geopolitical landscape?

One thing is clear: the saga of Volt Typhoon offers a sobering reminder of the ever-evolving nature of cyberwarfare and the need for constant vigilance in safeguarding critical infrastructure against emerging threats. As the battle for control of cyberspace intensifies, the stakes have never been higher, and the need for decisive action has never been more urgent.

The post Unveiling Volt Typhoon: the Chinese hackers within US critical infrastructure for five years appeared first on Tech Wire Asia.