October 2021 - БРУСНИЧКА

ARCHIVES October 2021

China Hits Reset on Belt and Road Initiative

Green energy is the new focus of China’s one-of-a-kind Belt and Road Initiative or BRI, that aims to build a series of infrastructure projects from Asia to Europe.

The eco-friendlier version of BRI has caught the attention of some 70 other countries that are getting new infrastructure from the Asian economic powerhouse in exchange for expanding trade.

The reset on China’s eight-year-old, $1.2 trillion effort comes after leaving a nagging layer of smog in parts of Eurasia, where those projects operate.

Now the county that’s already mindful of pollution at home is preparing a new BRI that will focus on greener projects, instead of pollution-generating coal-fired plants. It would still further China’s goal of widening trade routes in Eurasia through the initiative’s new ports, railways and power plants.

The Second Belt and Road announced in China on October 18, coincides with the 2021 United Nations Climate Change Conference, or COP26, which runs from Sunday through November 12 in Glasgow, Scotland. China could use the forum to detail its plans.

“China’s policy shift towards a more green BRI reflects China’s own commitment to reach net zero carbon emissions by 2060 and its efforts to implement a green transition within China’s domestic economy,” said Rajiv Biswas, Asia-Pacific chief economist with the market research firm IHS Markit.

“Furthermore, China’s policy shift…also reflects the increasing policy priority being given towards renewable energy and sustainable development policies by most of China’s BRI partner countries,” he said.

The Belt and Road helps lift the economies of developing countries from Kazakhstan to more modern ones, such as Portugal. BRI also unnerves China’s superpower rival, the United States, which has no comparable program.

History of focusing on fossil fuel

China has a history of putting billions of dollars in fossil fuel projects in other countries since 2013, the American research group Council on Foreign Relations says in a March 2021 study.

From 2014 to 2017, it says, about 90% of energy-sector loans by major Chinese banks to BRI countries were for fossil fuel projects and China was “involved in” 240 coal plants in just 2016. In 2018, the study adds, 40% of energy lending went to coal projects. Those investments, the group says, “promise to make climate change mitigation far more difficult.”

South and Southeast Asia are the main destinations for coal-fired projects at 80% of the total Belt and Road portfolio, the Beijing-based research center Global Environmental Institute says.

Global shift toward green energy

Chinese President Xi Jinping said last year China would try to peak its carbon dioxide emissions before 2030. The Second Belt and Road calls for working with partner countries on “energy transition” toward more wind, solar and biomass, the National Energy Administration and Shandong provincial government said in an October 18 statement. 

Some countries are pushing China to offer greener projects due to environmental pressure at home, though some foreign leaders prefer the faster, cheaper, more polluting options to prove achievements while in office, said Jonathan Hillman, economics program senior fellow at the Center for International & Strategic Studies research organization.

“There was a period in the first phase of the Belt and Road where projects were being shoveled out the door and with not enough attention to the quality of those projects,” he said.

Poorer countries are pressured now to balance providing people basic needs against environmental issues, said Song Seng Wun, an economist in the private banking unit of Malaysian bank CIMB. The basics still “take priority,” he said, and newer coal-fired plants help.

“Although I would say environmental issues (are) important, I think a lot of people don’t realize how much more efficient these more modern coal plants are, so I think we must have a balance,” Song said.

In the past few years however, cancellation rates of coal-fired projects have exceeded new approvals, Hillman said. “The action honestly has come more from participating countries,” he said. “They’ve decided that’s not the direction they want to go.”

In February, Chinese officials told the Bangladesh Ministry of Finance they would no longer consider coal mining and coal-fired power stations. Greece, Kenya, Pakistan and Serbia have asked China to dial back on polluting projects, Hillman said.

“The next decade will show to what extent the Belt and Road will drive green infrastructure,” London-based policy institute Chatham House says in a September 2021 report.

Belt-and-Road renewable energy investments reached a new high last year of 57% of its total for energy projects in 2020, according to IHS data.

New pledges at COP26?

COP26 is expected to showcase the environmental achievements of participating countries as they try to meet U.N. Paris Climate Change commitments, Biswas said.

China’s statements ahead of the conference so far differ little from past statements. But China’s energy administration said on October 18 that its second Belt and Road “emphasizes the necessity of increased support for developing countries” in terms of money, technology and ability to carry out green energy projects.

Chinese companies on BRI projects may eventually be required to reduce environmental risks, Biswas said. Those companies would in turn follow principles released in 2018 to ensure that their projects generate less carbon. A year later, as international criticism grew, Chinese President Xi added a slate of Belt and Road mini-initiatives, including some that touched on green projects.

But the 2019 plans were non-binding and untransparent, Hillman said. At COP26, he said, “I would take any big announcements with more than a grain of salt.”

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US Lawmakers Vote to Tighten Restrictions on Huawei, ZTE

The U.S. Senate voted unanimously on Thursday to approve legislation to prevent companies that are deemed security threats, such as Huawei Technologies Co. Ltd. or ZTE Corp., from receiving new equipment licenses from U.S. regulators. 

The Secure Equipment Act, the latest effort by the U.S. government to crack down on Chinese telecom and tech companies, was approved last week by the U.S. House in a 420-4 vote and now goes to President Joe Biden for his signature. 

“Chinese state-directed companies like Huawei and ZTE are known national security threats and have no place in our telecommunications network,” Republican Senator Marco Rubio said. The measure would prohibit the Federal Communications Commission from reviewing or issuing new equipment licenses to companies on its “Covered Equipment or Services List.” 

In March, the FCC designated five Chinese companies as posing a threat to national security under a 2019 law aimed at protecting U.S. communications networks. 

The affected companies included the previously designated Huawei and ZTE, as well as Hytera Communications Corp., Hangzhou Hikvision Digital Technology Co., and Zhejiang Dahua Technology Co. 

The FCC in June had voted unanimously to advance a plan to ban approvals for equipment in U.S. telecommunications networks from those Chinese companies even as lawmakers pursued legislation to mandate it. 

The FCC vote in June drew opposition from Beijing. 

“The United States, without any evidence, still abuses national security and state power to suppress Chinese companies,” Zhao Lijian, a spokesperson at China’s Foreign Ministry, said in June. 

Under proposed rules that won initial approval in June, the FCC could also revoke prior equipment authorizations issued to Chinese companies. 

A spokesperson for Huawei, which has repeatedly denied it is controlled by the Chinese government, declined to comment Thursday but in June called the proposed FCC revision “misguided and unnecessarily punitive.” 

FCC Commissioner Brendan Carr said the commission has approved more than 3,000 applications from Huawei since 2018. Carr said Thursday the bill “will help to ensure that insecure gear from companies like Huawei and ZTE can no longer be inserted into America’s communications networks.” 

On Tuesday, the FCC voted to revoke the authorization for China Telecom’s U.S. subsidiary to operate in the United States, citing national security concerns. 

 

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Facebook Inc. Rebrands as Meta to Stress ‘Metaverse’ Plan

Facebook CEO Mark Zuckerberg said his company is rebranding itself as Meta in an effort to encompass its virtual-reality vision for the future — what Zuckerberg calls the ” metaverse.” 

Skeptics point out that it also appears to be an attempt to change the subject from the Facebook Papers, a leaked document trove so dubbed by a consortium of news organizations that include The Associated Press. Many of these documents, first described by former Facebook employee-turned-whistleblower Frances Haugen, have revealed how Facebook ignored or downplayed internal warnings of the negative and often harmful consequences its social network algorithms created or magnified across the world.

“Facebook is the world’s social media platform and they are being accused of creating something that is harmful to people and society,” said marketing consultant Laura Ries. She compared the name Meta to when BP rebranded to “Beyond Petroleum” to escape criticism that it harmed the environment. “They can’t walk away from the social network with a new corporate name and talk of a future metaverse.”

What is the metaverse? Think of it as the internet brought to life, or at least rendered in 3D. Zuckerberg has described it as a “virtual environment” you can go inside of — instead of just looking at on a screen. Essentially, it’s a world of endless, interconnected virtual communities where people can meet, work and play, using virtual reality headsets, augmented reality glasses, smartphone apps or other devices.

It also will incorporate other aspects of online life such as shopping and social media, according to Victoria Petrock, an analyst who follows emerging technologies.

Zuckerberg says he expects the metaverse to reach a billion people within the next decade. It will be a place people will be able to interact, work and create products and content in what he hopes will be a new ecosystem that creates millions of jobs for creators.

The announcement comes amid an existential crisis for Facebook. It faces heightened legislative and regulatory scrutiny in many parts of the world following revelations in the Facebook Papers.

In explaining the rebrand, Zuckerberg said the name “Facebook” just doesn’t encompass everything the company does anymore. In addition to its primary social network, that now includes Instagram, Messenger, its Quest VR headset, its Horizon VR platform and more.

“Today we are seen as a social media company,” Zuckerberg said. “But in our DNA, we are a company that builds technology to connect people.”

Facebook the app, along with Instagram, WhatsApp and Messenger, are here to stay; the company’s corporate structure also won’t change. But on December 1, its shares will start trading under a new ticker symbol, “MVRS.”

Metaverse, he said, is the new way. Zuckerberg, who is a fan of classics, explained that the word “meta” comes from the Greek word “beyond.”

A corporate rebranding won’t solve the myriad problems at Facebook revealed by thousands of internal documents in recent weeks. It probably won’t even get people to stop calling the social media giant Facebook — or a “social media giant,” for that matter.

But that isn’t stopping Zuckerberg, seemingly eager to move on to his next big thing as crisis after crisis emerges at the company he created.

Just as smartphones replaced desktop computers, Zuckerberg is betting that the metaverse will be the next way people will interact with computers — and each other. If Instagram and messaging were Facebook’s forays into the mobile evolution, Meta is its bet on the metaverse.

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US State Department Creates Bureau to Tackle Digital Threats

The State Department is creating a new Bureau of Cyberspace and Digital Policy to focus on tackling cybersecurity challenges at a time of growing threats from opponents. There will also be a new special envoy for critical and emerging technology, who will lead the technology diplomacy agenda with U.S. allies.

On Wednesday, Secretary of State Antony Blinken said the organizational changes underscore the need for a robust approach for dealing with cyber threats. 

“We want to make sure technology works for democracy, fighting back against disinformation, standing up for internet freedom, and reducing the misuse of surveillance technology,” Blinken said in a speech on modernizing American diplomacy. 

Blinken said the new bureau will be led by an ambassador-at-large. The chief U.S. diplomat is also seeking a 50% increase in State Department’s information technology budget. 

The announcement comes as hackers backed by foreign governments, such as Russia and China, continue to attack U.S. infrastructures and global technology systems to steal sensitive information.

Earlier this year, the Office of the Director of National Intelligence said that more countries are relying on cyber operations to steal information, influence populations and damage industry, but the U.S. is most concerned about Russia, China, Iran and North Korea.

The U.S. technology giant Microsoft said on Monday that the same Russia-backed hackers responsible for the 2020 SolarWinds breach of corporate computer systems are continuing to attack global technology systems, this time targeting cloud service resellers.

A senior State Department official told reporters on Wednesday that Washington has been clear with Moscow that cyber criminals targeting the U.S. is “not acceptable.” The United States has asked the Russian government to “take action against that type of criminal behavior.” 

Confronting cyberattacks continues to be “a high priority” in U.S. relations with Russia, the senior official said.

China is also considered to be one of the United States’ main cyber adversaries, having coordinated teams both inside and outside of the government conducting cyberespionage campaigns that were large-scale and indiscriminate, according to analysts.

Over the past year, experts have attributed notable hacks in the U.S., Europe and Asia to China’s Ministry of State Security, the nation’s civilian intelligence agency, which has taken the lead in Beijing’s cyberespionage, consolidating efforts by the People’s Liberation Army. 

In addition to expanding the State Department’s capacity on cybersecurity, Blinken also unveiled other steps to modernize American diplomacy, including the launch of a new “policy ideas channel” that allows American diplomats to share their policy ideas directly with senior leadership, building and retaining a diverse workforce, as well as a plan to “reinvigorate the in-person diplomacy and public engagement.” 

The organization changes to beef up resources and staffers to tackle international cybersecurity challenges came after the State Department completed an extensive review of cyberspace and emerging technology.

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Five Things Facebook Has to Worry About After Whistleblower Disclosures

The past several weeks have been difficult for the social media behemoth Facebook, with a series of whistleblower revelations demonstrating that the company knew its signature platform was exacerbating all manner of social ills around the globe, from human trafficking to sectarian violence.   

The tide shows no sign of receding. New revelations this week have demonstrated that the company’s supposed commitment to freedom of expression takes a back seat to its bottom line when repressive governments, like Vietnam’s, demand that dissent be silenced. They showed that Facebook knew its algorithms were steering users toward extreme content, such as QAnon conspiracy theories and phony anti-vaccine claims, but took few steps to remedy the problem.

 

In statements to various media outlets, the company has defended itself, saying it dedicates enormous resources to assuring safety on its platform and asserting that much of the information provided to journalists and government officials has been taken out of context.   

In a conference call to discuss the company’s quarterly earnings on Monday, Facebook CEO Mark Zuckerberg claimed that recent media coverage is painting a misleading picture of his company.   

“Good faith criticism helps us get better,” Zuckerberg said. “But my view is that what we are seeing is a coordinated effort to selectively use leaked documents to paint a false picture of our company. The reality is that we have an open culture, where we encourage discussion and research about our work so we can make progress on many complex issues that are not specific to just us.”   

The revelations, as well as unrelated business challenges, mean that Facebook, which also owns Instagram and the messaging service WhatsApp, has a lot of things to worry about in the coming weeks and months. Here are five of the biggest. 

A potential SEC investigation 

Whistleblower Frances Haugen, a former product manager with the company, delivered thousands of pages of documents to lawmakers and journalists last month, prompting the wave of stories about the company’s practices. But the documents also went to the Securities and Exchange Commission, raising the possibility of a federal investigation of the company. 

Haugen claims the documents provide evidence that the company withheld information that might have affected investors’ decisions about purchasing Facebook’s stock. Among other things, she says that the documents show that Facebook knew that its number of actual users — a key measurement of its ability to deliver the advertising it depends on for its profits — was lower than it was reporting.   

 

The SEC has not indicated whether or not it will pursue an investigation into the company, and a securities fraud charge would be difficult to prove, requiring evidence that executives actively and knowingly misled investors. But even an investigation could be harmful to the company’s already bruised corporate image. 

In a statement provided to various media, a company spokesperson said, “We make extensive disclosures in our S.E.C. filings about the challenges we face, including user engagement, estimating duplicate and false accounts, and keeping our platform safe from people who want to use it to harm others . . . All of these issues are known and debated extensively in the industry, among academics and in the media. We are confident that our disclosures give investors the information they need to make informed decisions.”   

Antitrust suit 

Facebook is already being sued by the Federal Trade Commission (FTC), which claims that between the company’s main site, Instagram, and WhatsApp, Facebook exercises monopoly power in the social media market. The agency is demanding that the three platforms be split up.   

Facebook has publicly claimed it does not have monopoly power, but internal documents made available by Haugen demonstrate that the company knows it is overwhelmingly dominant in some areas, potentially handing the FTC additional ammunition as it attempts to persuade a federal judge to break up the company.  

Legislative action 

Congress doesn’t agree on much these days, but Haugen’s testimony in a hearing last month sparked bipartisan anger at Facebook and Instagram, especially over revelations that the latter has long been aware that its platform is harmful to the mental health of many teenage users, particularly young girls. 

Several pieces of legislation have since been introduced, including a proposal to create an “app ratings board” that would set age and content ratings for applications on internet-enabled devices.  

  

Others seek to make social media companies like Facebook liable for harm done by false information circulating on the platform, or to force the company to offer stronger privacy protections and to give users the right to control the spread of content about themselves. 

Ramya Krishnan, a staff attorney at the Knight First Amendment Institute and a lecturer in law at Columbia Law School, is one of many academics who have been pushing for lawmakers to require Facebook and other social media platforms to allow researchers and journalists better access to data about their audiences and their engagement.   

“We’ve seen increased interest among lawmakers and regulators in expanding the space for research and journalism focused on the platform, reflecting the understanding that in order to effectively regulate the platforms we need to better understand the effect that they are having on society and democracy,” she told VOA.

 

Internal dissent 

One of the most striking things about the documents released this week is the amount of anger inside Facebook over the company’s public image. The disclosures include reams of internal messages and other communications in which Facebook employees complain about the company’s unwillingness to police content on the site.   

“I’m struggling to match my values to my employment here,” one employee wrote in response to the assault on the U.S. Capitol on January 6, which was partly organized on Facebook. “I came here hoping to effect change and improve society, but all I’ve seen is atrophy and abdication of responsibility.”  

The documents show that the company is losing employees — particularly those charged with combating hate speech and misinformation — because they don’t believe their efforts have the support of management. 

Advertiser boycott 

Last year the Anti-Defamation League organized a campaign to pressure companies to “pause” their advertising on Facebook in protest over its failure to eliminate hateful rhetoric on the platform. In a statement given to VOA, Jonathan A. Greenblatt, the group’s CEO, said it is preparing to do so again. 

“Mark Zuckerberg would have you believe that Facebook is doing all it can to address the amplification of hate and disinformation,” Greenblatt said. “Now we know the truth: He was aware it was happening and chose to ignore internal researchers’ recommendations and did nothing about it. So we will do something about it, because literally, lives have been lost and people are being silenced and killed as a direct result of Facebook’s negligence.”   

He continued, “We are in talks to decide what the best course of action is to bring about real change at Facebook, whether it’s with policymakers, responsible shareholders, or advertisers,” he said. “But make no mistake: We’ve successfully taken on Facebook’s hate and misinformation machine before, and we aren’t afraid to do it again. It’s time to rein in this rogue company and its harmful products.” 

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International Police Operation Cracks Down on Illegal Internet Drug Vendors

U.S. federal law enforcement agencies and Europol announced dozens of arrests to break up a global operation that sold illegal drugs using a shadowy realm of the internet. 

At a Department of Justice news conference Tuesday in Washington, officials said they arrested 150 people for allegedly selling illicit drugs, including fake prescription opioids and cocaine, over the so-called darknet. Those charged are alleged to have carried out tens of thousands of illegal sales using a part of the internet that is accessible only by using specialized anonymity tools. 

The 10-month dragnet called “Operation HunTor” — named after encrypted internet tools — resulted in the seizure of 234 kilograms of drugs, including amphetamines, cocaine and opioids worth more than $31 million. Officials said many of the confiscated drugs were fake prescription pills laced with the powerful synthetic opioid fentanyl. The counterfeit tablets are linked to a wave of drug overdoses.

“This international law enforcement operation spanned across three continents and sends one clear message to those hiding on the darknet peddling illegal drugs: there is no dark internet,” said U.S. Deputy Attorney General Lisa Monaco. 

Investigators rounded up and arrested 65 people in the United States. Other arrests occurred in Australia, Bulgaria, France, Germany, Italy, the Netherlands, Switzerland, and the United Kingdom. In addition to counterfeit medicine, authorities also confiscated more than 200,000 ecstasy, fentanyl, oxycodone, hydrocodone, and methamphetamine pills. 

“We face new and increasingly dangerous threats as drug traffickers expand into the digital world and use the darknet to sell dangerous drugs like fentanyl and methamphetamine,” said Anne Milgram, administrator of the Drug Enforcement Administration (DEA). “We cannot stress enough the danger of these substances.” 

The international police agency Europol worked alongside the U.S. Justice Department’s Joint Criminal Opioid and Darknet Enforcement team.

 

“No one is beyond the reach of the law, even on the dark web,” said Jean-Philippe Lecouffe, Europol’s deputy executive director.

 

The dark web is preferred by criminal networks who want to keep their internet activities private and anonymous. In this case, it served as a platform for illegal cyber sales of counterfeit medication and other drugs that were delivered by private shipping companies. 

Investigators said the fake drugs are primarily made in laboratories in Mexico using chemicals imported from China. Prosecutors also targeted drug dealers who operated home labs to manufacture fake prescription pain pills. 

“Those purchasing drugs through the darknet often don’t know what they’re getting,” Associate Deputy FBI Director Paul Abbate said. The joint investigation followed enforcement efforts in January in which authorities shut down “DarkMarket,” the world’s largest illegal international marketplace on the dark web. 

Last month, the DEA warned Americans that international and domestic drug dealers were flooding the country with fake pills, driving the U.S. overdose crisis. The agency confiscated more the 9.5 million potentially lethal pills in the last year.

More than 93,000 Americans died from drug overdoses in 2020, the highest number on record, according the U.S. Centers for Disease Control. U.S. health officials attribute the rise to the use of fentanyl, which can be 100 times more potent than morphine. 

U.S. officials said investigations are continuing and more arrests are expected.

 

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