WASHINGTON — The United States slapped sanctions on a Chinese cybersecurity company and one of its employees Tuesday, accusing it of compromising more than 80,000 firewalls in a 2020 attack.

The U.S. Treasury Department said in a statement that it had sanctioned Sichuan Silence Information Technology Company and an employee named Guan Tianfeng over the April 2020 attack, which targeted firewalls around the world, including critical infrastructure in the U.S.

Over a three-day period, Guan exploited a vulnerability in a firewall product and proceeded to deploy malware against some 81,000 businesses around the world with the aim of stealing data, including usernames and passwords, while also attempting to infect the computers with ransomware, according to the Treasury Department.

More than 23,000 firewalls were in the United States, of which 36 were protecting “critical infrastructure companies’ systems,” the Treasury said.

“Today’s action underscores our commitment to exposing these malicious cyber activities … and to holding the actors behind them accountable for their schemes,” Bradley Smith, Treasury acting undersecretary for terrorism and financial intelligence, said in a statement.

The Treasury, he said, “will continue to leverage our tools to disrupt attempts by malicious cyber actors to undermine our critical infrastructure.”

Alongside the sanctions, the Department of Justice has also unsealed an indictment against Guan and announced a reward of up to $10 million for information about the employee or company, according to the Treasury Department.
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NAIROBI, KENYA — The United Nations, Microsoft and Kenya’s Ministry of Information last week launched a digital and artificial intelligence center in Nairobi to train African public servants and accelerate the development and use of online services.

Officials said the program — the Timbuktoo GreenTech Hub and Africa Centre for Competence for AI and Digital Skilling — aims to improve the skills of 100,000 government workers.

U.N. Development Program Regional Director Ahunna Eziakonwa said at the launch that better digital skills and resources will enable Africa to achieve technological progress.

“An inclusive public sector digital transformation drives efficiency and effectiveness and helps governments to enhance coordination of resources and information and strengthen data and code policymaking and implementation,” she said.

Kenyan President William Ruto said that more than 20,000 government services can be accessed online and that the digital transformation has made government work easier.

“This will help us streamline public service delivery and enhance transparency and efficiency, minimize opportunities for corruption and maximize visibility and mobilization of public revenue,” he said. “The transformative impact of this single initiative on citizens’ experience in accessing public services, along with the government’s capacity to effectively manage public resources, clearly illustrates the immense value of digital transformation.”

Governance experts say digital services offered online have improved citizens’ trust in public services and made the work of government employees faster, more accurate and more transparent.

However, the frequent power and internet blackouts that plague some African countries sometimes force government workers to resort to traditional paper and file systems.

Some workers have little experience with computers and feel that online glitches are slowing them down.

Michael Niyitegeka, team leader at Refactory, a software academy in Uganda that prepares youth for global tech work, said authorities must push workers to use the technology.

“Leadership has to be extremely firm in knowing how they want to use these technologies and invest in ensuring that people are working with it,” Niyitegeka said.

“We need to work on the entire system so the citizens can be brought to speed, and different users of these technologies as we are building need to be brought on board so that we are building together,” he said. “Otherwise, it will probably become a white elephant.”

Tech experts say that if developed correctly and with proper investment, then digital technology and artificial intelligence can transform communities.
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The Biden administration is shoring up its CHIPS Act funding agreements before President-elect Donald Trump takes office on January 20. Trump has previously disparaged the CHIPS Act and called for higher tariffs instead of subsidies to incentivize companies to build semiconductor factories. What would be the future of TSMC under the Trump administration?

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BEIJING — China on Monday said it has launched an investigation into U.S. chip maker Nvidia over suspected violations of the country’s anti-monopoly law, in a move that will likely be seen as a retaliatory move against Washington’s recent chip curbs.  

The State Administration for Market Regulation (SAMR) said Nvidia is also suspected of violating commitments it made during its acquisition of Mellanox Technologies Ltd, according to terms outlined in the regulator’s 2020 conditional approval of that deal. 

It did not elaborate on how Nvidia might have violated China’s anti-monopoly laws.  

Nvidia did not immediately respond to a request for comment. The company’s shares fell 2.2% in premarket trading after the Chinese regulator’s announcement.  

The investigation comes after the U.S. last week launched its third crackdown in three years on China’s semiconductor industry, which saw Washington curb exports to 140 companies, including chip equipment makers. 

Nvidia has enjoyed booming demand from China, though this has been dented over the past year by U.S. efforts to stop China from acquiring the world’s most advanced chips. 

Before the U.S. curbs, Nvidia dominated China’s AI chip market with more than 90 per cent share. However, it currently faces increasing competition from domestic rivals, chief among them being Huawei. 

When the U.S. firm made a $6.9 billion bid to acquire Israeli chip designer Mellanox Technologies in 2019 there were concerns that China could block the deal due to U.S.-China trade frictions.  

Beijing however later approved the deal in 2020 with multiple conditions for Nvidia and the merged entity’s China operations, including prohibitions on forced product bundling, unreasonable trading terms, purchase restrictions, and discriminatory treatment of customers who buy products separately. 
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