E-Commerce Company Jumia Launches Drone Deliveries in Ghana

Africa’s largest e-commerce company, Jumia, launched the first commercial drone delivery service on the continent this week, offering delivery of products across Ghana.

After more than three months of testing in the town of Omenaku, Jumia and California-based instant-delivery service Zipline have started delivering products to homes.

The service is available nationwide in the West African country. Jumia says it has made 100 delivery flights so far.

“Today, we believe it’s a great enabler for service for far-flung areas in Africa, very quickly in good speed and also with a great amount of sustainability and safety,” said Apoorva Kumar, Jumia’s chief operations officer.

A March 2022 Forbes report shows that Africa lags in access to energy and road networks, but the continent has made significant strides in internet penetration, which is estimated at 70%. So digital entrepreneurs are using technology to solve problems that are typically reserved for more traditional forms of infrastructure.

However, economists such as Ken Gichinga say that poor addressing systems for homes are still a major obstacle to drone delivery.

“Droning, if it is marked well with geo-mapping, can open up the industry in terms of delivery, but for good delivery we need to have a proper addressing system,” Gichinga said. “We don’t have them like in the west, proper addressing systems.”

According to the United Nations conference on trade and development, Africa also is lagging in key aspects of e-trade because of connectivity issues, lack of payment systems, and various government policies.

Less than 40% of African countries have adopted data privacy legislation, economist Wohoro Ndohho told VOA. If consumers fear their personal information will be shared with the wrong party, he said, the drones-for-delivery business may not take off.

“Africa is ready for drones to the extent that, in one sense, it leads to the whole question of building infrastructure,” he said. “For example, what is done in Rwanda, another part of Africa where they have used drones in delivery of medicine, but there must be an underlying legal system that support taking advantage of drones.”

Jumia operates in 11 African countries, with more than 30 warehouses. The group hopes to expand drone delivery services across the continent in the future.

Twitter Tests Long-Awaited Edit Button, Will Roll Out to Paid Subscribers

Twitter is internally testing a widely requested edit button, a feature that will be rolled out to paid subscribers in the coming weeks, the social media company said Thursday.

For years, Twitter users have demanded the ability to edit their tweets after publishing in order to fix errors like typos. Those requests have led to jokes online that Twitter would rather introduce any other product, such as newsletters, before giving users their top-requested feature.

Soon, those demands will be met. Users will be able to edit their tweets “a few times” within 30 minutes of publication, Twitter said in a blog post.

Edited tweets will have an icon and timestamp to display when the post was last edited. Users will be able to click on the label of an edited tweet to view the edit history and previous versions of the post.

Twitter has experimented with versions of an edit button. Subscribers of Twitter Blue, the company’s paid subscription product, currently have access to a feature that holds tweets for up to one minute, allowing users to review the tweet and “undo” it before the post is published.

VOA Interview NASA Astronaut Victor Glover

VOA’s Kane Farabaugh spoke with NASA Astronaut Victor Glover ahead of Monday’s scheduled Artemis launch from Cape Canaveral, Florida. While the launch was postponed, NASA’s quest to return to the moon and eventually send humans to Mars remains a priority for the U.S. space agency.

Musk Cites Whistleblower as New Reason to Exit Twitter Deal

Elon Musk and Twitter lobbed salvos at each other Tuesday in the latest round of legal filings over the billionaire Tesla CEO’s efforts to rescind his offer to buy the social media platform. 

Musk filed more paperwork to terminate his agreement to buy Twitter, this time based on information in a whistleblower complaint filed by Twitter’s former head of security. Twitter fired back by saying his attempt to back out of the deal is “invalid and wrongful.” 

In an SEC filing, Musk said his legal team notified Twitter of “additional bases” for ending the deal on top of the ones given in the original termination notice issued in July. 

In a letter to Twitter Inc., which was included in the filing, Musk’s advisers cited the whistleblower report by former executive Peiter Zatko — also known by his hacker handle “Mudge.” 

Zatko, who served as Twitter’s head of security until he was fired early this year, alleged in his complaint to U.S. officials that the company misled regulators about its poor cybersecurity defenses and its negligence in attempting to root out fake accounts that spread disinformation. 

The letter, addressed to Twitter’s Chief Legal Officer Vijaya Gadde, said Zatko’s allegations provide extra reasons to end the deal if the July termination notice “is determined to be invalid for any reason.” 

Billionaire Musk has spent months alleging that the company he agreed to acquire undercounted its fake and spam accounts, which means he doesn’t have to go through with the $44 billion deal. Musk’s decision to back out of the transaction sets the stage for a high-stakes legal battle in October. 

In a separate SEC filing, Twitter responded to what it called Musk’s latest “purported termination,” saying it’s “based solely on statements made by a third party that, as Twitter has previously stated, are riddled with inconsistencies and inaccuracies and lack important context.” 

The company vowed to go through with the sale at the price agreed with Musk. 

 

Excitement Over Cryptocurrency Tinged With Fear

The price of Bitcoin and other cryptocurrencies has fallen dramatically in recent months. Still, many investors are excited about the future of digital currencies despite the risks. VOA’s Michelle Quinn reports from San Francisco.

US Navy Turns to Driverless Ships for Indo-Pacific Strategy

As the U.S. military continues to consider China’s military strength in the Indo-Pacific region, the U.S. Navy is turning to driverless ships to multiply its forces. VOA’s Jessica Stone takes us along for a closer look at this military innovation. Camera: Keith Lane

Elon Musk Subpoenas Twitter Whistleblower Ahead of Trial

Elon Musk’s legal team is demanding to hear from Twitter’s whistleblowing former security chief, who could help bolster Musk’s case for backing out of a $44 billion deal to buy the social media company. 

Former Twitter executive Peiter Zatko — also known by his hacker handle “Mudge” — received a subpoena Saturday from Musk’s team, according to Zatko’s lawyer and court records. 

The billionaire Tesla CEO has spent months alleging that the company he agreed to acquire undercounted its fake and spam accounts — and that he shouldn’t have to consummate the deal as a result. 

Zatko’s whistleblower complaint to U.S. officials alleging Twitter misled regulators about its privacy and security protections — and its ability to detect and root out fake accounts — might play into Musk’s hands in an upcoming trial scheduled for Oct. 17 in Delaware. 

Zatko served as Twitter’s head of security until he was fired early this year. 

 

NASA Moon Rocket on Track for Launch Despite Lightning Hits 

NASA’s new moon rocket remained on track to blast off on a crucial test flight Monday, despite a series of lightning strikes at the launch pad.

The 322-foot (98-meter) Space Launch System rocket is the most powerful ever built by NASA. It’s poised to send an empty crew capsule into lunar orbit, a half-century after NASA’s Apollo program, which landed 12 astronauts on the moon.

Astronauts could return to the moon in a few years, if this six-week test flight goes well. NASA officials caution, however, that the risks are high and the flight could be cut short.

In lieu of astronauts, three test dummies are strapped into the Orion capsule to measure vibration, acceleration and radiation, one of the biggest hazards to humans in deep space. The capsule alone has more than 1,000 sensors.

Officials said Sunday that neither the rocket nor capsule suffered any damage during Saturday’s thunderstorm; ground equipment also was unaffected. Five lightning strikes were confirmed, hitting the 600-foot (183-meter) towers surrounding the rocket at NASA’s Kennedy Space Center. The strikes weren’t strong enough to warrant major retesting.

“Clearly, the system worked as designed,” said Jeff Spaulding, NASA’s senior test director.

More storms were expected. Although forecasters gave 80 percent odds of acceptable weather Monday morning, conditions were expected to deteriorate during the two-hour launch window.

On the technical side, Spaulding said the team did its best over the past several months to eliminate any lingering fuel leaks. A pair of countdown tests earlier this year prompted repairs to leaking valves and other faulty equipment; engineers won’t know if all the fixes are good until just a few hours before the planned liftoff.

After so many years of delays and setbacks, the launch team was thrilled to finally be so close to the inaugural flight of the Artemis moon-exploration program, named after Apollo’s twin sister in Greek mythology.

“We’re within 24 hours of launch right now, which is pretty amazing for where we’ve been on this journey,” Spaulding told reporters.

The follow-on Artemis flight, as early as 2024, would see four astronauts flying around the moon. A landing could follow in 2025. NASA is targeting the moon’s unexplored south pole, where permanently shadowed craters are believed to hold ice that could be used by future crews.

Experts Worry Digital Footprints Will Incriminate US Patients Seeking Abortions

The U.S. Supreme Court’s overturning of protections for abortion rights has intensified scrutiny of the personal data that technology firms collect. Apple, Facebook and Google typically comply with legal requests for user data. For women who live in states where most abortions are now illegal, their smartphones and devices could be used against them. Tina Trinh reports.
Videographer: Saqib Ul Islam, Greg Flakus Video editor: Tina Trinh

California Phasing Out Gas Vehicles in Climate Change Fight 

California set itself on a path Thursday to end the era of gas-powered cars, with air regulators adopting the world’s most stringent rules for transitioning to zero-emission vehicles.

The move by the California Air Resources Board to have all new cars, pickup trucks and SUVs be electric or hydrogen by 2035 is likely to reshape the U.S. auto market, which gets 10% of its sales from the nation’s most populous state.

But such a radical transformation in what people drive will also require at least 15 times more vehicle chargers statewide, a more robust energy grid and vehicles that people of all income levels can afford.

“It’s going to be very hard getting to 100%,” said Daniel Sperling, a board member and founding director of the Institute of Transportation Studies at the University of California-Davis. “You can’t just wave your wand, you can’t just adopt a regulation — people actually have to buy them and use them.”

Democratic Governor Gavin Newsom told state regulators two years ago to adopt a ban on gas-powered cars by 2035, one piece of California’s aggressive suite of policies designed to reduce pollution and fight climate change. If the policy works as designed, California would cut emissions from vehicles in half by 2040.

More to come

Other states are expected to follow, further accelerating the production of zero-emissions vehicles.

Washington state and Massachusetts already have said they will follow California’s lead and many more are likely to — New York and Pennsylvania are among 17 states that have adopted some or all of California’s tailpipe emission standards that are stricter than federal rules. The European Parliament in June backed a plan to effectively prohibit the sale of gas and diesel cars in the 27-nation European Union by 2035, and Canada has mandated the sale of zero-emission cars by the same year.

California’s policy doesn’t ban cars that run on gas — after 2035 people can keep their existing cars or buy used ones, and 20% of sales can be plug-in hybrids that run on batteries and gas. Though hydrogen is a fuel option under the new regulations, cars that run on fuel cells have made up less than 1% of car sales in recent years.

The switch from gas will drastically reduce emissions and air pollutants. Transportation is the single largest source of emissions in the state, accounting for about 40% of the state’s greenhouse gas emissions. The air board is working on different regulations for motorcycles and larger trucks.

California envisions powering most of the economy with electricity, not fossil fuels, by 2045. A plan released by the air board earlier this year predicts electricity demand will shoot up by 68%. Today, the state has about 80,000 public chargers. The California Energy Commission predicted that needs to jump to 1.2 million by 2030.

The commission says car charging will account for about 4% of energy by 2030 when use is highest, typically during hot summer evenings. That’s when California sometimes struggles to provide enough energy because the amount of solar power diminishes as the sun goes down. In August 2020, hundreds of thousands of people briefly lost power because of high demand that outstripped supply.

That hasn’t happened since, and to ensure it doesn’t going forward, Newsom, a Democrat, is pushing to keep open the state’s last-remaining nuclear plant beyond its planned closure in 2025. Also, the state may turn to diesel generators or natural gas plants as a backup when the electrical grid is strained.

More than 1 million people drive electric cars in California today. Their charging habits vary, but most people charge their cars in the evening or overnight, said Ram Rajagopal, an associate professor of civil and environmental engineering at Stanford University who has studied car charging habits and energy grid needs.

If people’s charging habits stay the same, once 30% to 40% of cars are electric, the state would need to add more energy capacity overnight to meet demand, he said. The regulations adopted Thursday require 35% of vehicle sales to be electric by 2026, up from 16% now.

But if more people charged their cars during the day, that problem would be avoided, he said. Changing to daytime charging is “the biggest bang for the buck you’re going to get,” he said.

Both the state and federal government are spending billions to build more chargers along public roadways, at apartment complexes and elsewhere to give people more charging options.

The oil industry believes California is going too far. It’s the seventh-largest oil-producing state and shouldn’t wrap its entire transportation strategy around a vehicle market powered by electricity, said Tanya DeRivi, vice president for climate policy with the Western States Petroleum Association, an industry group.

“Californians should be able to choose a vehicle technology, including electric vehicles, that best fits their needs based on availability, affordability and personal necessity,” she said.

Some difficulties seen

Many car companies, like Kia, Ford and General Motors, are already on the path to making more electric cars available for sale, but some have warned that factors outside their control like supply chain and materials issues make Californians’ goals challenging.

“Automakers could have significant difficulties meeting this target, given elements outside of the control of the industry,” Kia Corp.’s Laurie Holmes told the air board before its vote.

As the requirements ramp up over time, automakers could be fined up to $20,000 per vehicle sold that falls short of the goal, though they’ll have time to comply if they miss the target in a given year.

The new rules approved by the air board say that the vehicles need to be able to travel 150 miles (241 kilometers) on one charge. Federal and state rebates are also available to people who buy electric cars, and the new rules have incentives for car companies to sell electric cars at a discount to low-income buyers.

But some representatives of business groups and rural areas said they fear electric cars will be too expensive or inconvenient.

“These regulations are a big step backwards for working families and small businesses,” said Gema Gonzalez Macias of the California Hispanic Chambers of Commerce.

Air board members said they are committed to keeping a close eye on equity provisions in the rules to make sure all California residents have access.

“We will not set Californians up to fail, we will not set up the other states who want to follow this regulation to fail,” said Tania Pacheco-Warner, a member of the board and co-director of the Central Valley Health Policy Institute at California State University-Fresno.

For First Time, Facebook, Twitter Take Down Pro-US Influence Operation

This summer, for the first time, Facebook and Twitter removed a network of fake user accounts promoting pro-Western policy positions to foreign audiences and critical of Russia, China and Iran, according to a new report.

The accounts, which violated the companies’ terms of service, “used deceptive tactics to promote pro-Western narratives in the Middle East and Central Asia” and were likely a series of covert campaigns spanning five years, according to the report from Stanford University and Graphika, a social media analytics firm.

Twitter and Facebook, which shared their data about the accounts with the researchers, haven’t publicly identified what entities or organizations were behind the campaigns, the researchers said. Twitter identified the U.S. and Britain as the campaigns’ “presumptive countries of origin,” and Meta, the parent company of Facebook and Instagram, identified the U.S. as the country of origin, according to the report.

In recent years, internet firms have shut down online influence operations stemming from authoritarian regimes in China, Russia and Iran. The discovery of a U.S.-based online influence operation using many of the same techniques, such as fake people and fake followers to push a narrative, raises questions about who is behind the effort, its goals and whether the operation is effective.

When asked Thursday by VOA whether the U.S. military had created the fake accounts, Air Force Brigadier General Pat Ryder, the Pentagon’s press secretary, said officials would need to look at the data provided by Facebook or Twitter. He said that the U.S. military does conduct “military information support operations around the world.”

“Obviously, I’m not going to talk about ongoing operations or particular tactics, techniques and procedures, other than to say that we operate within prescribed policies,” he said.

Linking to media, other sites

The researchers noted that the fake social media accounts often posted links to sham media sites as well as “sources linked to the U.S. military,” such as websites in Central Asia that name U.S. Central Command as their sponsor.

In addition, these inauthentic accounts linked to articles from Voice of America, the federally funded international broadcaster, and its sister organization, Radio Free Europe/Radio Liberty, the report said. Sham media sites copied stories from BBC Russia, VOA and other sources.

Several suspended social media accounts were linked to sham media accounts operating in Persian, such as Dariche News, which claimed to be an independent media outlet and had some original content. But, the report added, “many of their articles were explicit reposts from U.S.-funded Persian-language media, including Radio Free Europe/Radio Liberty’s Radio Farda and VOA Farsi.”

USAGM responds

On Thursday, the United States Agency for Global Media, the agency that oversees VOA and RFE/RL, said it didn’t have knowledge of these accounts.

“USAGM maintains only its own official social media accounts and websites, using the highest standards to ensure that official accounts are fact-based, accessible and verifiable,” said Lesley Jackson, a spokesperson, in an email.

USAGM doesn’t work with other U.S. government agencies or other groups to promote news content through fake social media accounts, Jackson confirmed. 

“With its mission to inform, engage and connect people around the world in support of freedom and democracy, USAGM will always promote the free flow of credible information to those in need and stand against misinformation, disinformation and censorship,” Jackson said.

Tactics

The online influence campaigns’ tactics were similar to those of other such campaigns and included doctoring photos to create fake accounts and using hashtags and petitions to attempt to build support.

One set of accounts in Central Asia focused on Russia’s military activities in the Middle East and Africa, but shifted in February to the war in Ukraine, “presenting the conflict as a threat to people in Central Asia,” the report said.

The accounts linked to a petition, whose authorship was unclear, “calling for the Kazakh government to ban Russian TV channels,” the report said.

The researchers said that the tactics of the inauthentic accounts didn’t really work to generate engagement. Most of the posts and tweets received only a handful of likes or retweets. A majority of the accounts had fewer than 1,000 followers.

Pentagon correspondent Carla Babb contributed to this report. 

Ukrainian Company Repairs Broken Drones to Help Military

Unmanned aerial vehicles, or drones, are playing a huge part in the war in Ukraine. But keeping them in the air can be challenging. One Ukrainian company is doing just that and more. Kateryna Markova has the story. Camera – Viktor Petrovych.

‘Silicon Lifeline’: Report Reveals Western Technology Guiding Russia’s Weapons in Ukraine

Microelectronics produced in the United States and allied countries are crucial components of Russian weapons systems used in the Ukraine invasion, according to a report by Britain’s Royal United Services Institute.

The RUSI report, Silicon Lifeline: Western Electronics as the Heart of Russia’s War Machine, says more than 450 foreign-made components have been found in Russian weapons recovered in Ukraine. The report’s authors say Moscow acquired critical technology from companies in the United States, Europe and Asia in the years before the invasion.

Ukraine says Russia fired more than 3,650 missiles and guided rockets into its territory in first five months of the war. Most of the weapons rely highly on Western-made microelectronic technologies, according to report co-author Gary Somerville, a research fellow at RUSI’s Open-Source Intelligence and Analysis Research Group.

“It doesn’t appear that they actually have the ability to reproduce – at least to the same level of sophistication and at scale – a lot of these critical microelectronics. These are the ones that would be absolutely essential for, for example precision-guided munitions which have very sophisticated processing units,” Somerville told VOA.

That includes Russia’s Iskander 9M727 cruise missile, one of its most advanced weapons. RUSI researchers recovered some missiles in the field inside Ukraine and inspect the microelectronics inside.

They found several Western-sourced components, including digital signal processors, flash memory modules and static RAM modules made by U.S.-based companies including Texas Instruments, Advanced Micro Devices and Cypress Semiconductor, along ethernet cabling that originated from American, Dutch and German companies.

Russia’s Kh-101 cruise missiles, some of which targeted the Ukrainian capital Kyiv, were found to contain 31 foreign components.

Common chips

All the microelectronics companies cited in the report said they comply with trade sanctions and they have stopped selling components to Russia. There is no suggestion in the report that the companies broke any export control laws.

“How is Russia possibly getting hold of this stuff? When we actually looked through a lot of these components, they are quite prosaic and in many ways ubiquitous, they can be found in any sort of electronics really – microwaves, dishwashers,” Somerville said.

Such microelectronics were freely available to Russia before its invasion of Ukraine.

However, RUSI also identified at least 81 components classified as “dual-use” by the U.S. Commerce Department and subject to U.S. export controls.

They include a high-performance CMOS static RAM microchip originally made by U.S.-based Cypress Semiconductor, found inside a handheld navigational system used by Russia’s special forces to pinpoint their position and estimate coordinates for precision artillery and air strikes.

“The component is a high-speed, ultra-low-power memory chip148 that is classified as a dual-use good for export purposes,” according to the RUSI report.

Two-thirds of the foreign components found in Russian weapons systems were manufactured by U.S.-based companies. Japan was the second-biggest supplier.

Export bans

Many of the microelectronics found in the weapons were decades old and, following Russia’s invasion of Ukraine in February, many states have banned the export of such components to Russia.

Somerville pointed to Russia’s history of using elaborate methods to procure technology, Somerville said.

“It’s through the use of a number of front companies that, on the surface when you conduct a due diligence check, appear to be legitimate — but in reality are actually, or can be somewhat affiliated with, large Russian companies that are actually members of the military-industrial complex,” he said.

The report details how Russia also uses false end-user certificates and transshipment companies based in third countries, including several in Hong Kong, to obscure the final destination.

It cites Russian customs records showing that in March 2021, one company imported $600,000 worth of electronics manufactured by Texas Instruments through a Hong Kong-based distributor. Seven months later, the same company imported another $1.1 million worth of microelectronics made by Xilinx, according to RUSI.

U.S. and allied sanctions imposed on Russian weapons manufacturers and companies supplying them with components must be tightened, Somerville said.

“What the sanctions and effective enforcement of these sanctions can do is raise the costs on Russia to acquire these particular microelectronics,” he said.

The report’s authors say Russia is now scrambling to procure microelectronics in bulk, and that its military could be permanently weakened if the supply can be cut off.

Some of the information in this report was provided by Reuters.

US Boosting Domestic Solar Industry, Reducing Reliance on China

China’s global dominance in the solar industry is a supply chain and national security risk, according to some industry observers, and one of the reasons that the United States has been trying to boost domestic solar manufacturing capacity.

U.S. President Joe Biden Tuesday signed into law the sweeping Inflation Reduction Act, which includes tax incentives for the development of a more robust solar industry. The White House aims to triple domestic solar manufacturing by 2024.

The law responds to longstanding calls by some in the solar industry for U.S. action to boost domestic manufacturing and to level the playing field between the United States and China. Many U.S. firms complain that China can manufacture solar panels and other hardware more cheaply than they can.

China has been expanding solar panel production and innovation that has helped drive down global manufacturing costs, according to a July International Energy Agency (IEA) report.

Another industry observer, the National Renewable Energy Laboratory, said it saw prices drop sharply over a 10-year period starting in 2010.

However, the risks of a global dependence on China have become apparent during the pandemic. The high cost of shipping from China has led to price increases. The price of polysilicon, the material used to make solar cells, quadrupled in the last year because an oversupply caused manufacturers to slow down production, which then led to a shortage when demand for the product increased. Forty percent of the global polysilicon manufacturing comes from China’s Xinjiang region.

“This level of concentration in any global supply chain would represent a considerable vulnerability; solar PV (photovoltaics) is no exception,” stated the IEA report’s executive summary.

China dominates manufacturing

China is involved in manufacturing more than 80% of solar components, according to the IEA.

“If we don’t have the supply chain here in the U.S., we look at it as a national security concern,” said Mamun Rashid, chief executive officer of California-based Auxin Solar, one of the few U.S. manufacturers of solar panels.

“If you have a renewable energy grid and it is powered by solar and the solar equipment is being deployed and you don’t have the ability to supply it yourself at any moment, the faucet can be turned off,” explained Rashid.

Beijing dismissed the concerns and accused the U.S. of thinly veiled protectionism that will harm Chinese businesses.

“China urges the U.S. to stop hobbling Chinese enterprises, quit the erroneous practice of disrupting the supply chain and industrial chain, and create favorable conditions for China-U.S. cooperation on clean energy and climate change,” Chinese embassy spokesperson Liu Pengyu told VOA.

This year, a succession of actions in Washington has directly or indirectly impacted the solar industry in China and the U.S.

In February, the U.S. extended tariffs on solar products containing crystalline silicon from China. Additionally, the Uyghur Forced Labor Prevention Act, banning products including solar components from China’s Xinjiang region, went into effect in June.

China has been criticized over its treatment of its Muslim Uyghur minority and others in Xinjiang province by rights organizations and Western governments. The U.S. accuses Beijing of forced labor practices among its Uyghur minority in the Xinjiang region, which China has denied, saying its employment programs have helped improve the financial situation for Uyghurs.

China reacts to US action

China has taken issue with Uyghur-related legislation enacted by Washington.

“Having implemented the so-called ‘Uyghur Forced Labor Prevention Act’ on the pretext of ‘forced Labor’ in Xinjiang, the U.S. is illegally suppressing and unilaterally sanctioning China’s PV industry without justification,” Liu said in an emailed response to VOA.

“This is seriously against the law of the market and WTO (World Trade Organization) rules and detrimental to the international trade order and the stability of global PV industrial and supply chains and global climate response,” the Chinese embassy’s Liu told VOA, adding, “The U.S. needs to immediately stop spreading lies and stop enforcing this malicious legislation.”

Trade law investigation

Separately, while the Inflation Reduction Act provides tax credits to further develop the U.S. solar industry, Rashid is pushing for the U.S. to enforce its trade laws.

“You’re dealing with China. It’s not a free market economy. You can never out-subsidize China, so that won’t be enough,” said Rashid.

Auxin Solar’s concerns about the pricing of Chinese products prompted a U.S. Department of Commerce investigation earlier this year into whether some solar panels coming to the U.S. from Cambodia, Malaysia, Thailand and Vietnam were actually Chinese products and that Beijing was attempting to dodge U.S. anti-dumping tariffs.

Many U.S. solar projects were halted, fearing the impact of retroactive tariffs. In response, Biden announced a two-year tariff freeze on solar components from the four Southeast Asian countries.

“When you have product that’s selling in the market that’s lower than (what) your bill of materials cost, something is wrong there. The U.S. worker hasn’t even had a chance to enter the race and they’ve lost the race,” Rashid said.

In a press release, U.S. Commerce officials said their findings will be applied when the two-year period ends in 2024.

In the coming years, “based on current manufacturing capacity under construction,” the IEA predicts China will account for some 95% of solar components made for the global supply chain.

Steven Gute contributed to this report.

India’s Vast Rural Areas Plug into Digital Economy

In India, an initiative to bring internet access across the country has helped millions plug into new digital technologies. One of them is a payments system that is transforming the way business is being done in the vast rural areas of the country. Anjana Pasricha has a report.

India’s Vast Rural Areas Plug into Digital Economy  

In the past year, there has seen a dramatic transformation in the way customers pay for their purchases in Banuri, a village in the Himachal Pradesh state of North India. Whether at a small grocery store or a street cart, instead of handing over cash, they use a simple system that involves scanning a code on a smartphone to make an online payment.

“Even if someone buys only half a kilogram of vegetables, he can pay digitally. We do the smallest of transactions,” said Nishant Sharma, a vegetable vendor in Banuri as he hands over a cauliflower to a customer that costs 75 cents. “It is much easier than handling cash.”

In recent years, a government initiative called “Digital India” has helped millions plug into new digital technologies as internet access expands to distant areas. One of them is a payments system that is transforming the way retail business is transacted in vast rural areas and small towns, where more than two thirds of India’s 1.4 billion people live.

Much like glitzy city stores, street vendors to small shops are making the switch to digital payments. But instead of credit or debit cards, they use India’s Unified Payment Interface popularly known as UPI. It is a payment system that involves no merchant fees and can be used for the smallest of transactions to make instant transfers across bank accounts. It was developed under the initiative of India’s Central Bank.

“It is the ease of the technology and overall reduction in transaction cost that has made this system popular. It takes place with the click of a button, it is cost-effective, and easy to manage,” said economist N.R. Bhanumurthy, Vice Chancellor at D.R. Ambedkar School of Economics University in Bengaluru. “It is certainly a huge transformation from what we did in the past and has changed the way we do business.”

Its expansion has also been helped by a massive push in recent years to bring more people into the banking system. More than 80% of adults now have bank accounts, compared to just one-third of adults some years ago. Affordable smartphones that cost as little as $50 are in the hands of about 750 million people. The COVID-19 pandemic, when cash transactions were discouraged, also prompted many to switch to digital payments.

“The Digital India Movement can bring about revolutionary changes in India and the lives of the common man,” Prime Minister Narendra Modi said at an Independence Day address on Monday. According to the Indian leader, 40% of the real-time digital transactions made in the world now take place in India.

Whether in big towns, cities, or small villages, India’s retail sector is dominated by millions of small stores and shops, who for decades only did business in cash.

The speed and scale with which they are embracing the new payment system is evident in Banuri village. The owner of a chemist shop, Akhilesh Sharma, said about 70% of his customers pay online. It has eased his life.

“Whenever I open PhonePe or Google Pay app, all the transactions are done in my business account,” said Sharma. “In cash, I have to count the money at the end of the day, and it is a little long process. Then I have to go to bank and deposit the cash.”

Economists say digital payments boost business by facilitating transactions. Small town and village residents, especially younger customers, are also discovering the benefits of going cashless.

“I don’t have to worry about carrying money,” said Vikas Sharma, a resident of Palampur. “Earlier when I went to a crowded place, I worried about getting my wallet stolen. Now all I need is my phone.”

Digital transactions are just one of the benefits that the internet has brought people living in outlying areas. For older people such as a retired government employee, Romesh Dogra, the biggest benefit is connecting via video calls with his three daughters who live outside his district.

“I get energized daily when I talk to my grandchildren,” said Dogra, a retired official. “I can watch them growing up. Life has become good.”

There are still gaps to plug in — internet speeds can pose a challenge, especially in villages and small towns. And while the numbers of people with access to the internet have doubled to nearly 700 million in the last five years, millions are still not connected. But with rapid progress, it may not take long for India’s digital footprint to expand.

Ukraine Cyber Chief Visits ‘Black Hat’ Hacker Meeting in Las Vegas

Ukraine’s top cyber official addressed a room full of security experts at a hackers convention following a two-day trip from Kyiv to a casino in Las Vegas.

During his unannounced visit, Victor Zhora, deputy head of Ukraine’s State Special Communications Service, told the so-called Black Hat convention Wednesday that the number of cyber incidents that have hit Ukraine tripled in the months following Russia’s invasion of his country in late February.

“This is perhaps the biggest challenge since World War II for the world, and it continues to be completely new in cyberspace,” Zhora told an audience at the annual conference.

Ukraine faced a number of “huge incidents” in cyberspace from the end of March to the beginning of April, Zhora said, including the discovery of the “Industroyer2” malware that could manipulate equipment in electrical utilities to control the flow of power.

Russian hackers also hit Ukraine at the onset of the war though a cyberattack that took down regional satellite internet service.

Since the beginning of the year, Ukraine had detected over 1,600 “major cyber incidents,” Zhora said.

Zhora told Reuters in an interview that Microsoft, Amazon and Google had offered pro bono cloud computing services to the Ukrainian government as it moves its data out of the country, away from the destruction wreaked by Russian bombs and missiles.

Some of Ukraine’s data archives are being held within data centers across “multiple [European] countries,” he added, without elaborating.

Zhora said his trip to Las Vegas took two days. He traveled to neighboring Poland to stay a night before flying to the United States.

Zhora said he would not waste time on the slot machines at the sprawling Mandalay Bay casino, where the Black Hat conference is being held: “It would be inappropriate for me to gamble here while Ukrainian soldiers are defending our land.” 

Facebook Use Plunges Among US Teens, Survey Finds

U.S. teens have left Facebook in droves over the past seven years, preferring to spend time at video-sharing venues YouTube and TikTok, according to a Pew Research Center survey data out Wednesday.

TikTok has “emerged as a top social media platform for U.S. teens” while Google-run YouTube “stands out as the most common platform used by teens,” the report’s authors wrote.

Pew’s data comes as Facebook-owner Meta is in a battle with TikTok for social media primacy, trying to keep the maximum number of users as part of its multibillion-dollar, ad-driven business.

The report said some 95% of the teens surveyed said they use YouTube, compared with 67% saying they are TikTok users.

Just 32% of teens surveyed said they log on to Facebook — a big drop from the 71% who reported being users during a similar survey some seven years ago.

Once the place to be online, Facebook has become seen as a venue for older folks with young drawn to social networks where people express themselves with pictures and video snippets.

About 62% of the teens said they use Instagram, owned by Facebook-parent Meta, while 59% said they used Snapchat, researchers stated.

“A quarter of teens who use Snapchat or TikTok say they use these apps almost constantly, and a fifth of teen YouTube users say the same,” the report said.

In a bit of good news for Meta’s business, its photo and video sharing service Instagram was more popular with U.S. teens than it was in the 2014-2015 survey.

Meanwhile, less than a quarter of the teens surveyed said they ever use Twitter, the report said.

The study also confirmed what casual observers may have suspected: 95% of U.S. teens say they have smartphones, while nearly as many of them have desktop or laptop computers.

And the share of teens who say they are online almost constantly has nearly doubled to 46 percent when compared with survey results from seven years ago, researchers noted.

The report was based on a survey of 1,316 U.S. teens, ranging in age from 13 years old to 17 years old, conducted from mid-April to early May of this year, according to Pew.

Race for Semiconductors Influences Taiwan Conflict 

China has blocked many of Taiwan’s exports in retaliation for U.S. House Speaker Nancy Pelosi’s visit to Taiwan on August 2, but certain goods including semiconductors and high-tech products have been spared because of China’s reliance on those products from Taiwan, experts say.

“It is unlikely that Beijing will take serious trade actions against electronic exports from Taiwan. Doing so would be China shooting itself in its own foot,” Dexter Roberts, a senior fellow at the Atlantic Council, told VOA.

Taiwan makes 65% of the world’s semiconductors and almost 90% of the advanced chips.

By comparison, China produces a little over 5% while the U.S. produces approximately 10%, according to market analysts. South Korea, Japan, and the Netherlands are the other sources of the product, which is at the heart of many electronic devices and machinery.

Though China produces some semiconductors, it depends heavily on supplies from Taiwan for advanced chips. Taiwan’s TSMC makes most of the advanced chips in the world and counts Advanced Micro Devices, Apple and Nvidia among its customers.

Semiconductor Manufacturing International Corp. (SMIC) in China, which has 5% of the global fabrication market, produces 14-nanometer chips. There is also evidence that SMIC has 7-nm technology, according to a TechInsights blog. These are considered less advanced than the 3-nm chips produced by TSMC.

Beijing may not block the flow of semiconductors even if the military confrontation escalates, analysts say.

“Taiwan-based TSMC is the biggest world producer of chips, and China and the rest of the world need TSMC semiconductors. Hence, I don’t expect China to target electronic exports,” said Lourdes Casanova, Gail and Rob Canizares director of the Emerging Markets Institute at Cornell University.

Though China’s People’s Liberation Army says it is rehearsing to impose a military blockade around Taiwan, it will be careful not to hurt semiconductor companies like TSMC, Casanova said.

“The stoppage of supply of TSMC semiconductors would be the worst scenario for China and for many other countries. TSMC’s semiconductors are used by Foxconn, another Taiwanese firm, which is the main manufacturer of the iPhone in plants based in China and elsewhere,” she said.

Fear of invasion

A military invasion of Taiwan could disrupt supplies of semiconductors and seriously hamper dozens of high-tech companies that depend on them. TSMC Chairman Mark Liu voiced that fear when he said a military invasion would make TSMC factories inoperable.

“Our interruption would create great economic turmoil in China — suddenly their most advanced component supply disappears. It is an interruption, I must say, so people will think twice on this,” Liu said.

“Nobody can control TSMC by force … because it is a sophisticated manufacturing facility that depends on the real-time connection with the outside world,” such as Europe, the U.S. and Japan, for materials, chemicals and engineering software, he said.

Even with China’s ban on certain imports from Taiwan, analysts said, Taiwan is unlikely to retaliate because it is heavily dependent on Beijing in terms of trade and investment.

“Companies like TSMC are deeply reliant simultaneously on both the U.S. and China markets. Unless the situation in the Taiwan Strait badly deteriorates and turns to outright open hostilities, Taiwan will try to avoid taking any drastic action which would be cutting off chips to China,” said Roberts, author of The Myth of Chinese Capitalism.

 

China’s domestic manufacturing

China has been pushing to boost its domestic semiconductor manufacturing capacity. Beijing has pledged $150 billion to expand the industry and be more self-reliant. Plans are in place for new semiconductor factories.

Just last year, China’s chip manufacturing grew by 33.3%, according to China’s National Bureau of Statistics.

“China’s rapid growth in semiconductor chip sales is likely to continue due in large part to the unwavering commitment from the central government and robust policy support in the face of deteriorating U.S-China relations,” the Semiconductor Industry Association said in a blog.

Much of what will be produced in China is expected to be chips containing more mature technologies, analysts say.

US action

Under President Joe Biden, the U.S. has intensified efforts to strengthen its chip-making capabilities and reduce the reliance on external sources.

On Tuesday, Biden signed the much-awaited CHIPS and Science Act, which allocates around $52 billion to promote the production of microchips, the powerful driver for high-end electronics used in a wide range of products, including smartphones, electric vehicles, aircraft and military hardware.

Biden said the legislation would help “win the economic competition in the 21st century.”

U.S. Commerce Secretary Gina Raimondo said last month that it was necessary to reduce the dependence on supplies from Taiwan.

“Our dependence on Taiwan for chips is untenable and unsafe,” she said on July 22. “This is a Sputnik moment for America,” Raimondo said, referring to the CHIPS Act. “I mean that very sincerely. And this is a project we’re working on.”

Taiwan’s TSMC website states it is building a fabrication plant in the U.S. state of Arizona with the aim of starting production in 2024. It will produce semiconductor wafers using 5-nm technology.  During her recent controversial visit to Taiwan, Pelosi met TSMC’s Liu. TSMC is expected to be one of the beneficiaries of the $52 billion CHIPS and Science Act.

The U.S. is also countering China’s semiconductor industry in different ways. It recently broadened its ban on sales of chip-making equipment to China, according to Tim Archer, the chief executive officer of Lam Research Corp., a California supplier of silicon wafer fabrication gear.

The restriction would affect the shipment of machinery to produce 14 nm chips in China. This is an extension of the earlier ban, which prevented the supply of machinery for making advanced technology nodes of 10 nanometers. The idea is to cover a wider range of semiconductor equipment going to China.

South Korea, a U.S. ally, has indicated it would also cut off the chip supply to China in case Washington imposed global sanctions on it. Cutting off supplies would put China and Russia at a major technological disadvantage and hamper their manufacture of advanced military hardware. 

Biden Signs Semiconductor Bill Boosting US Competitiveness

U.S. President Joe Biden has signed the CHIPS and Science Act, which aims to boost U.S. competitiveness against China by allocating billions of dollars toward domestic semiconductor manufacturing and scientific research.

“The United States must lead the world in the production of these advanced chips. This law will do exactly that,” Biden said in remarks during the signing ceremony Tuesday. The president is recovering from COVID-19 and coughed repeatedly during his remarks.

He called the bipartisan legislation a “once in a generation investment” in the country and said it will create good jobs, grow the economy and protect U.S. national security.

Biden noted stiff competition with China in the chips industry. “It’s no wonder the Chinese Communist Party actively lobbied U.S. business against this bill,” he remarked.

Biden was joined on stage for the event by House Speaker Nancy Pelosi, Senate Majority Leader Charles Schumer, Commerce Secretary Gina Raimondo, and Joshua Aviv, CEO of Spark Charge, an electric vehicle charging network.

Schumer called the legislation the “largest investment in manufacturing science and innovation in decades” and thanked Republican Senator Todd Young for his partnership for over three years working on semiconductor-related legislation, beginning with what was then called the Endless Frontier Act.

The proposed act went through various iterations before it was passed as the $280 billion CHIPS and Science Act on a 243-187 vote in the House of Representatives and a 64-33 vote in the Senate in July.

Last year, a semiconductor shortage affected the supply of automobiles, electronic appliances and other goods, causing higher inflation globally and pummeling Biden’s public approval rating among American voters.

Catching up in the chips race

The CHIPS Act includes $52 billion in incentives for domestic semiconductor production and research, as well as an investment tax credit for semiconductor manufacturing. Advocates say it will allow the U.S. to catch up in the global semiconductor manufacturing race currently dominated by China, Taiwan and South Korea.

Following the passage of the bill, the White House noted that Micron, a leading U.S. chip manufacturer, will announce a $40 billion plan to boost domestic chip production while Qualcomm and GlobalFoundries will unveil a $4.2 billion expansion of a chip plant in New York.

The U.S. share of global semiconductor manufacturing capacity has decreased from 37% in 1990 to 12% today, largely because other governments have offered manufacturing incentives and invested in research to strengthen domestic chipmaking capabilities, according to a state of the industry report by the Semiconductor Industry Association.

Now China accounts for 24% of the world’s semiconductor production, followed by Taiwan at 21%, South Korea at 19% and Japan at 13%, the report said.

The CHIPS Act also includes $4.2 billion to fund defense initiatives and the U.S. mobile broadband market, particularly efforts to promote non-Chinese 5G equipment manufacturing.

Broadly, the legislation lays out a strategy for Washington as it aims for global technological and economic dominance – gaining production autonomy by leveraging allies, including South Korea and Japan and eliminating political dependencies on the global semiconductor supply chain.

That strategy puts the U.S. on a collision course with China, which also aims to be the global leader in semiconductors. In 2015, Beijing launched the Made in China 2025 project, which aimed to increase chip production from less than 10% of global demand at the time to 40% in 2020 and 70% in 2025.

The Taiwan factor

Taiwan — a self-governed island that Beijing claims to be its breakaway province — is the main producer of the world’s most high-tech chips. It lies at the heart of the semiconductor showdown, the latest battlefront in the increasingly tense U.S.-China strategic rivalry.

Taiwan accounts for 92% of the global production of 10 nm or smaller semiconductors, essentially creating what some observers have characterized as a “silicon shield” that ensures American support in the event of a Chinese attack, as well as a deterrence against such a move.

In a visit to Taipei that angered Beijing earlier this month, U.S. House Speaker Nancy Pelosi met with Mark Liu, chairman of Taiwan Semiconductor Manufacturing Co., the world’s biggest chipmaker.

Pelosi delivered all but one Democratic vote in the House of Representatives for the CHIPS Act. “Mr. President with the stroke of your pen, America declares our economic independence,” she said in her remarks Tuesday. “We strengthen our national security, and we enhance our family’s financial future.”

Following Pelosi’s Taiwan visit, Beijing halted key communication channels with Washington and conducted live-fire military drills, raining Dongfeng ballistic missiles into the waters near Taiwan’s eastern, southern, and northern coasts.

While most experts don’t believe a war over Taiwan is imminent, many fear a conflict there would disrupt semiconductor production and have disastrous effects on global manufacturing.

Australia to Permit Offshore Wind Farms 

Offshore wind farms are to be permitted for the first time in Australia. The Climate Change Minister Chris Bowen has declared part of the Victoria coast an offshore wind zone and a 60-day community consultation process will soon begin.

The Australian government has designated the country’s first offshore wind zone, which gives developers permission to increase their planning and consultation for wind farm projects.

Australia currently has no offshore wind generation, which was seen as too expensive and hard to build compared to onshore wind or solar projects.

The Climate Change Minister Chris Bowen says there is no time to lose.

“We are way behind the game, way behind the rest of the world in producing wind off our coastline. Again, we have a lot of catching up to do. Offshore wind is jobs-rich and energy-rich,” he said.

The first official offshore wind zone is off the Gippsland coast in the state of Victoria. There are plans to install up to 200 wind turbines, with the closest located 7 kilometers from the coastline. It would be one of the world’s largest wind farms. Construction could begin in 2025.

Other areas will follow off the coasts of New South Wales, Tasmania and Western Australia.

Erin Coldham, the acting chief executive of the Danish-owned Star of the South wind project in the Bass Strait in Victoria, says the project will help reduce Australia’s reliance on fossil fuels.

“In the region where we are looking to put a project in Gippsland, it is a region that has been generating power for over 100 years and been working in the offshore oil and gas business. But those communities know those opportunities will not be around forever. So, there is a really strong sense of enthusiasm for technologies like offshore wind to continue that tradition into the future,” said Coldham.

Wind turbines have been identified as a key part in Australia’s plan to generate more than 80% of its energy needs with renewable sources by 2030.

In 2020, 24% of Australia’s electricity came from renewable energy, up from 21% in 2019.

Solar is Australia’s largest source of green power. A quarter of Australian homes have rooftop solar systems — the highest uptake in the world.

But despite this, Australia has been one of the world’s worst per capita emitters of greenhouse pollution. Coal and gas still generate most of its electricity. Analysts have said that for years it has been regarded as a climate laggard.

But that perception is now changing.

For the first time, Australia has a legislated target to cut greenhouse gas output.

Last week, new laws were passed by the federal parliament in Canberra that will cut carbon emissions by 43% by 2030.

 

Biden Celebrates Semiconductor Legislation to Boost US Competitiveness Against China

President Joe Biden virtually joined Michigan Governor Gretchen Whitmer Tuesday to celebrate the CHIPS and Science Act, which aims to boost U.S. competitiveness against China by allocating billions of dollars toward domestic semiconductor manufacturing and scientific research.

“This bill makes it clear the world’s leading innovation will happen in America. We will both invent in America and make it in America,” Biden said. He was scheduled to join the event in person but had to remain in isolation after testing positive for COVID-19 again on Saturday in what his physician described as a “rebound” case.

In the coming days, Biden is expected to sign the legislation, which passed in a 243-187 vote in the House of Representatives and 64-33 vote in the Senate last week.

The $280 billion act includes $52 billion in incentives for domestic semiconductor production and research, as well as an investment tax credit for semiconductor manufacturing. Advocates say it will allow the U.S. to catch up in the global semiconductor manufacturing race currently dominated by China, Taiwan and South Korea.

Last year, a semiconductor shortage affected the supply of automobiles, electronic appliances and other goods, causing higher inflation globally and pummeling Biden’s public approval among American voters.

Michigan, a major hub for the American auto industry, has been one of the states hardest hit by the semiconductor shortage.

“This bill will mean humming factories and lower costs on electronics, medical devices, farm equipment and cars for working families,” Whitmer said.

The act includes $4.2 billion to fund defense initiatives and the U.S. mobile broadband market, particularly efforts to promote non-Chinese 5G equipment manufacturing.

Catching up with China

The U.S. share of global semiconductor manufacturing capacity has decreased from 37% in 1990 to 12% today, largely because other governments have offered manufacturing incentives and invested in research to strengthen domestic chipmaking capabilities, according to a state of the industry report by the Semiconductor Industry Association.

Now China accounts for 24% of the world’s semiconductor production, followed by Taiwan at 21%, South Korea at 19% and Japan at 13%, the report said.

With the CHIPS Act, the administration hopes to bring as much semiconductor manufacturing to the U.S. as practically possible, said Bonnie Glick, director of the Krach Institute for Tech Diplomacy at Purdue University.

“And what can’t be reasonably onshore, either because it’s cost prohibitive or other allied countries simply do it better, we can ally-shore manufacturing and support that,” she told VOA.

The two allies the administration has leveraged are South Korea and Japan, both of which Biden visited in May. In Seoul, he toured a Samsung computer chip factory that is the model for a $17 billion facility that the South Korean technology giant is setting up in the U.S. state of Texas.

Last week, the U.S. and Japan launched a new joint international semiconductor research hub under a “bilateral chip technology partnership” to bolster manufacturing for 2-nanometer chips as early as 2025.

Washington has also persuaded Taiwan Semiconductor Manufacturing Ltd. (TSMC) to open a U.S. foundry to produce advanced semiconductors. The $12 billion facility in the state of Arizona was completed last month and is scheduled to start production of 5 nm chips by 2024. TMSC also has plants in China.

“We’re back in the game,” Biden said Tuesday. “Remember, we invented these chips, we modernized these chips, we made them work, and there’s a lot more we can get done.”

The CHIPS Act has laid out a clear strategy for Washington, said Volker Sorger, director of the Devices & Intelligent Systems Laboratory at the George Washington University.

“Gain autonomy and eliminate political dependencies on these global supply chain values,” Sorger told VOA.

That strategy puts the U.S. on a collision course with China, which also aims to be the global leader in semiconductors. In 2015, Beijing launched the Made in China 2025 project, which aimed to increase chip production from less than 10% of global demand at the time to 40% in 2020 and 70% in 2025.

The Made in China 2025 program and the People’s Liberation Army’s goal of military-civil fusion make it “overtly clear that Beijing is seeking to dominate global technology and supply chains through anti-competitive trade practices and infiltration of dual-use technology research,” Glick said.

The U.S. government has been pushing for stricter export regulations to China by prohibiting export of equipment needed for manufacturing chips at 14 nm and below. “That would mark an escalation from the previous ban covering 10 nm and below,” Glick added.

Taiwan’s strategic importance

Taiwan — a self-governed island that Beijing claims to be its breakaway province — lies at the heart of the increasingly tense U.S.-China rivalry.

Taipei has dominated manufacture of the world’s most high-tech chips, accounting for 92% of the global production of 10 nm or smaller semiconductors, essentially creating what some observers have characterized as a “silicon shield” that ensures American support in the event of a Chinese attack, as well as a deterrence to such a move.

A military conflict over Taiwan could disrupt TMSC’s semiconductor production and have disastrous effects on global manufacturing.

U.S.-China tensions are already spooking technology investors. TSMC shares fell nearly 3% on Tuesday as U.S. House of Representatives Speaker Nancy Pelosi landed in Taipei in a visit she said demonstrated American solidarity with the Taiwanese people.

Beijing has condemned the visit, the first by a U.S. House speaker in 25 years, as a threat to peace and stability in the Taiwan Strait.

Rare earths

The CHIPS Act does not include provisions to secure supply chains of rare earths — and other critical minerals used in semiconductors and other high-tech elements — to reduce the nation’s dependence on China, a major producer of these elements.

“I don’t know that we have developed a coherent strategy on accessing both rare and nonrare elements,” Glick said.

Last June, following Biden’s executive order to improve supply chains, the administration released a report concluding that the U.S. was overly reliant on China for critical minerals. Currently, China controls 87% of the global permanent magnet market, 55% of rare earths mining capacity and 85% of rare earths refining.

Earlier this year, the administration announced actions it said would bolster the supply chain of these elements, including a contract for U.S. company MP Materials to process heavy rare earth elements at its California production site — the first processing and separation facility of its kind in the nation.  

Biden Celebrates Semiconductor Legislation to Boost US Competitiveness Against China

US President Joe Biden virtually joined Michigan Governor Gretchen Whitmer on Tuesday to celebrate the CHIPS and Science Act, which aims to boost US competitiveness against China by allocating billions of dollars toward domestic semiconductor manufacturing and research. White House Bureau Chief Patsy Widakuswara has this report.

Kenyan Ministers Say Government Not Banning Facebook

Kenyan ministers said the government has no intention of banning Facebook despite a watchdog last week accusing the social media platform of failing to stop hate speech ahead of Aug. 9 elections.

Kenya’s National Cohesion and Integration Commission (NCIC) last week gave Facebook one week to comply with regulations against ethnic hate speech or risk suspension.

The threat came after a report by rights group Global Witness said Facebook approved hate speech advertisements that promoted ethnic violence ahead of the election.

But Kenya’s Interior Cabinet Secretary Fred Matiangi accused the NCIC of making what he termed a careless decision on the matter.

He assured the public that the platform would not be shut down.

Kenya’s Minister of Information and Technology Joe Mucheru echoed that vow to VOA in a telephone interview Monday.

He said while the issues raised were valid, they did not warrant blocking Facebook.

“That is not within our legal mandate, and we have been working with Facebook and many other platforms,” Muchera said. “Facebook for example has in this electioneering period has deleted over 37,000 inflammatory comments.”

In a statement last week, Facebook admitted having missed hate speech messages in Kenya, where national data shows an estimated 13 million users of the platform.

A spokesperson for Facebook’s parent company, Meta, blamed human and machine error for missing some inflammatory content and said they had taken steps to prevent such content.

Kenya’s cohesion commission said this year’s election had seen less in-person hate speech as it migrated from political rallies to social media.

It said the main perpetrators were followers of Kenya’s two leading presidential candidates — former Prime Minister Raila Odinga and Deputy President William Ruto.

US, Japan to Set Up Research Center for Next Semiconductors

The United States and Japan launched a new high-level economic dialogue Friday aimed at pushing back against China and countering the disruption caused by Russia’s invasion of Ukraine.

The two longtime allies agreed to establish a new joint research center for next-generation semiconductors during the so-called economic “two-plus-two” ministerial meeting in Washington, Japanese Trade Minister Koichi Hagiuda said.

U.S. Secretary of State Antony Blinken, U.S. Commerce Secretary Gina Raimondo, Japanese Foreign Minister Yoshimasa Hayashi and Hagiuda also discussed energy and food security, the officials said in a news briefing.

“As the world’s first- and third-largest economies, it is critical that we work together to defend the rules-based economic order, one in which all countries can participate, compete and prosper,” Blinken told the opening session.

Hagiuda said “Japan will quickly move to action” on next-generation semiconductor research and said Washington and Tokyo had agreed to launch a “new R&D organization” to establish a secure source of the vital components.

The research hub would be open for other “like-minded” countries to participate in, he said.

The two countries did not immediately release additional details of the plan, but Japan’s Nikkei Shimbun newspaper earlier said it would be set up in Japan by the end of this year to research 2-nanometer semiconductor chips. It will include a prototype production line and should begin producing semiconductors by 2025, the newspaper said.

“As we discussed today, semiconductors are the linchpin of our economic and national security,” said Raimondo, adding that the officials had discussed collaboration on semiconductors, “especially with respect to advanced semiconductors.”

Taiwan now makes the vast majority of semiconductors under 10 nanometers, which are used in products such as smart phones, and there is concern about the stability of supply should trouble arise involving Taiwan and China, which views the island as part of its territory.

The United States and Japan said in a joint statement they would work together “to foster supply chain resilience in strategic sectors, including, in particular, semiconductors, batteries, and critical minerals.” They vowed to “build a strong battery supply chain to lead collaboration between like-minded countries.”

On ties with Russia, Hagiuda said he gained U.S. understanding about Japan’s intention to keep its stake in the Sakhalin-2 oil and gas project despite sanctions against Moscow by Washington, Tokyo and others following the Ukraine invasion.

“There are voices calling for withdrawal. But it would mean our stake goes to a third country and Russia earns an enormous profit. We explained how keeping our stake is in line with sanctions, and I believe we gained U.S. understanding,” he said.

Japanese trading houses Mitsui & Co and Mitsubishi Corp hold a combined 22.5% stake in the project.

Congress OKs Bill to Aid Computer Chip Firms, Counter China 

The House on Thursday passed a $280 billion package to boost the semiconductor industry and scientific research in a bid to create more high-tech jobs in the United States and help it better compete with international rivals, namely China. 

The House approved the bill by a solid margin of 243-187, sending the measure to President Joe Biden to be signed into law and providing the White House with a major domestic policy victory. Twenty-four Republicans voted for the legislation. The Senate passed the bill Wednesday, 64-33.

“Today, the House passed a bill that will make cars cheaper, appliances cheaper and computers cheaper,” Biden said. “It will lower the costs of everyday goods. And it will create high-paying manufacturing jobs across the country and strengthen U.S. leadership in the industries of the future at the same time.” 

As the vote was taking place, Biden was discussing the economy with CEOs at the White House. During the event, he was handed a note informing him it was clear the bill would pass — a development that produced a round of applause before the tally was final. 

Most Republicans argued that the government should not spend billions to subsidize the semiconductor industry. GOP leadership in the House recommended a vote against the bill, telling members the plan would provide enormous subsidies and tax credits “to a specific industry that does not need additional government handouts.” 

 

Taxes, regulations

Representative Guy Reschenthaler, a Pennsylvania Republican, said the way to help the industry would be through tax cuts and easing federal regulations, “not by picking winners and losers” with subsidies — an approach that Representative Joseph Morelle, a New York Democrat, said was too narrow. 

“This affects every industry in the United States,” Morelle said. “Take, for example, General Motors announcing they have 95,000 automobiles awaiting chips. So, you want to increase the supply of goods to people and help bring down inflation? This is about increasing the supply of goods all over the United States in every single industry.” 

Some Republicans viewed passing the legislation as important for national security. 

Representative Michael McCaul of Texas, the top Republican on the House Foreign Affairs Committee, said it was critical to protect semiconductor capacity in the U.S. and that the country was too reliant on Taiwan for the most advanced chips. That could prove to be a major vulnerability should China try to take over the self-governing island that Beijing views as a breakaway province 

“I’ve got a unique insight in this. I get the classified briefing. Not all these members do,” McCaul said. “This is vitally important for our national security.” 

The bill provides more than $52 billion in grants and other incentives for the semiconductor industry as well as a 25% tax credit for those companies that invest in chip plants in the U.S. It calls for increased spending on various research programs that would total about $200 billion over 10 years, according to the Congressional Budget Office. 

The CBO also projected that the bill would increase deficits by about $79 billion over the coming decade. 

Senate health, climate package

A late development in the Senate — progress announced Wednesday night by Democrats on a $739 billion health and climate change package — threatened to make it harder for supporters to get the semiconductor bill over the finish line, based on concerns about government spending that GOP lawmakers said would fuel inflation. 

Representative Frank Lucas, an Oklahoma Republican, said he was “disgusted” by the turn of events. 

Despite bipartisan support for the research initiatives, “regrettably, and it’s more regrettably than you can possibly imagine, I will not be casting my vote for the CHIPS and Science Act today,” Lucas said. 

Representative Kevin McCarthy, the Republican leader in the House, likened the bill’s spending to “corporate welfare to be handed out to whoever President Biden wants.” 

Leading into the vote, it was unclear whether any House Democrats would join with Senator Bernie Sanders, a Vermont independent, in voting against the bill; in the end, none did. 

Democrats urged to step up

Commerce Secretary Gina Raimondo talked to several of the most progressive members of the Democratic caucus in a meeting before the vote, emphasizing that the proposal was a critical part of the president’s agenda and that Democrats needed to step up for him at this important moment. 

Some Republicans criticized the bill as not tough enough on China, and GOP leaders emphasized that point in recommending a “no” vote. Their guidance acknowledged the threat China poses to supply chains in the U.S. but said the package “will not effectively address that important challenge.” 

But, as McCaul pointed out, China opposed the measure and worked against it. The bill includes a provision that prohibits any semiconductor company receiving financial help through the bill from supporting the manufacture of advanced chips in China. 

Zhao Lijian, a Chinese Foreign Ministry spokesman, commenting before the House vote, said the U.S. “should not put in place obstacles for normal science, technology and people-to-people exchanges and cooperation” and “still less should it take away or undermine China’s legitimate rights to development.”

US Probes Cyber Breach of Federal Court Records System

The U.S. Justice Department is investigating a cyber breach involving the federal court records management system, the department’s top national security attorney told lawmakers Thursday.

Matt Olsen, head of the Justice Department’s National Security Division, alluded to the threat of cyberattacks by foreign nations as he told the U.S. House of Representative Judiciary Committee that the incident was a “significant concern.”

Olsen made the remarks in response to questions from Representative Jerrold Nadler, the panel’s Democratic chairman, who said that “three hostile foreign actors” had attacked the courts’ document filing system.

Nadler said the committee learned only in March of the “startling breadth and scope” of the breach. Olsen said the Justice Department was working closely with the federal judiciary around the country to address the issue.

“While I can’t speak directly to the nature of the ongoing investigation of the type of threats that you’ve mentioned regarding the effort to compromise public judicial dockets, this is of course a significant concern for us given the nature of the information that’s often held by the courts,” Olsen said.

Olsen did not comment on who was behind the attack, but he noted that his division was focused generally on the risk of cyberattacks by foreign nations including China, Russia, Iran and North Korea.

The Administrative Office of the U.S. Courts in January 2021 said it was adding new security procedures to protect confidential or sealed records following an apparent compromise of its electronic case management and filing system.

The Administrative Office, the judiciary’s administrative arm, in a statement on Thursday called cybersecurity a high priority and said it has been taking “significant actions to protect our systems and the sensitive information they contain.”

Further details could not be immediately determined. A Justice Department spokesman said the department as a general policy does not confirm or deny the existence of specific investigations.

The federal judiciary has been working to modernize its electronic case management and filing system and the related online portal known as PACER, which is used to access records, citing the risk of cyberattacks on the aging electronic system.

“We are vulnerable,” U.S. Circuit Judge Amy St. Eve testified at a House committee hearing in May on the judiciary’s budget request. 

Meta Posts First Revenue Drop as Inflation Throttles Ad Sales

Meta Platforms Inc. issued a gloomy forecast after recording its first ever quarterly drop in revenue Wednesday, with recession fears and competitive pressures weighing on its digital ads sales. 

Shares of the Menlo Park, California-based company were down about 4.6% in extended trading. 

The company said it expected third-quarter revenue to be in the range of $26 billion to $28.5 billion, which would be a second consecutive year-over-year drop. Analysts were expecting $30.52 billion, according to IBES data from Refinitiv. 

Total revenue, which consists almost entirely of ad sales, fell 1% to $28.8 billion in the second quarter ended June 30, from $29.1 billion last year. The figure slightly missed Wall Street’s projections of $28.9 billion, according to Refinitiv. 

The company, which operates the world’s largest social media platform, reported mixed results for user growth. 

Monthly active users on flagship social network Facebook came in slightly under analyst expectations at 2.93 billion in the second quarter, an increase of 1% year over year, while daily active users handily beat estimates at 1.97 billion. 

Like many global companies, Meta is facing some revenue pressure from the strong dollar, as sales in foreign currencies amount to less in dollar terms. Meta said it expected a 6% revenue growth headwind in the third quarter, based on current exchange rates. 

Still, the Meta results also suggest that fortunes in online ads sales may be diverging between search and social media players, with the latter affected more severely as ad buyers reel in spending. 

Alphabet Inc., the world’s largest digital ad platform, reported a rise in quarterly revenue on Tuesday, with sales from its biggest moneymaker, Google search, topping investor expectations. 

Snap Inc. and Twitter both missed sales expectations last week and warned of an ad market slowdown in the coming quarters, sparking a broad sell-off across the sector. 

On top of economic pressures, Meta’s core business is also experiencing unique strain as it competes with short video app TikTok for users’ time and adjusts its ads business to privacy controls rolled out by Apple Inc. last year. 

The company is simultaneously carrying out several expensive overhauls as a result, revamping its core apps and boosting its ad targeting with AI, while also investing heavily in a longer-term bet on “metaverse” hardware and software. 

Meta executives told investors they were making progress in replacing ad dollars lost as a result of the Apple changes but said it was being offset by the economic slowdown. 

They added that Reels, a short video product Meta is increasingly inserting into users’ feeds to compete with TikTok, was now generating over $1 billion annually in revenue. 

However, Reels cannibalizes more profitable content that users could otherwise see and will continue to be a headwind on profits through 2022 before eventually boosting income, executives told analysts on Wednesday. 

“They are being greatly affected by everything,” Bokeh Capital Partners’ Kim Forrest said, referring to the economic slowdown as well as competition from TikTok and Apple.  

“Meta has a problem because they’re chasing TikTok and if the Kardashians are talking about how they don’t like Instagram … Meta should really pay attention to that.” 

On Monday, two of Instagram’s biggest users, Kim Kardashian and Kylie Jenner, shared a meme imploring the company to abandon its shift to TikTok-style content suggestions and “make Instagram Instagram again.” 

Not persuaded

CEO Mark Zuckerberg did not appear to be swayed, however. 

About 15% of content on Facebook and Instagram is currently recommended by AI from accounts users do not actively follow, and that percentage will double by the end of 2023, he told investors on the call. 

For now, at least, the metaverse part of Meta’s business remains largely theoretical. In the second quarter, Meta reported $218 million in non-ad revenue, which includes payments fees and sales of devices like its Quest virtual reality headsets, down from $497 million last year. 

Its Reality Labs unit, which is responsible for developing metaverse-oriented technology like the VR headsets, reported sales of $452 million, down from $695 million in the first quarter. 

Although Meta has recently slowed investments as cost pressures increased, executives reassured investors it was still on track to release a mixed-reality headset called Project Cambria later this year, focused on professionals. 

Meta broke out the Reality Labs segment in its results for the first time earlier this year, when it revealed the unit had lost $10.2 billion in 2021. 

Its second-quarter operating profit margin fell to 29% from 43% as costs rose sharply and revenue dipped. 

In November, Chief Financial Officer David Wehner will become Meta’s first chief strategy officer. Susan Li, Meta’s current vice president of finance, will become CFO.

Twitter Accepts Oct. 17 Trial but Is Concerned Musk Will Try to Delay

 Twitter Inc. does not object to Elon Musk’s proposal to start a trial on October 17 over Musk’s bid to walk away from his $44 billion acquisition deal but the social media company wants a commitment to complete the trial in five days, Twitter said in a court filing on Wednesday. 

Musk has said he needs time to complete a thorough investigation of what he says is Twitter’s misrepresentation of fake accounts, which he said breached their deal terms. 

He originally sought a February trial, but on Tuesday proposed an October 17 trial after a judge ruled the proceeding was to start in three months. 

Twitter has called the fake accounts a distraction and pushed for the trial to hold Musk to the deal to start as soon as possible, arguing that delay damages its business. It said in its court filing that Musk had offered no assurance a trial would be completed in five days, as ordered by the judge, Kathaleen McCormick of the Delaware Court of Chancery. 

“Twitter sought that commitment because it believes Musk’s objective remains to delay trial, render impracticable the Court’s expedition order, and thus avoid adjudication of his contractual obligations,” said the Twitter filing. 

Attorneys for Musk, the world’s richest person and chief executive of electric car maker Tesla Inc, did not respond to requests for comment. 

Twitter also dismissed Musk’s claims that the company was dragging its feet in responding to his demands for documents. 

Twitter said Musk is the one holding up the process by refusing to answer the company’s complaint, which it said would clarify the issues and any counterclaims he may assert. 

Shares of Twitter closed up 1.3% at $39.85 on Wednesday. 

Musk agreed to acquire the company for $54.20 a share.