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5G Choices: A Pivotal Moment in World Affairs
It is disappointing that the Brits are doing the wrong thing on 5G, having not exhausted other possibilities. Instead they have doubled down on a flawed and outdated cybersecurity model to convince themselves that they can manage the risk that Chinese intelligence services could use Huawei’s access to U.K. telco networks to insert bad code. But if your telcos have a 5G operation and maintenance contract with a company beholden to the intelligence agencies of a foreign state, and that state does not share your interests, you need to consider the risk that you are paying a fox to babysit your chickens.
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Protecting Anonymity of Glassdoor Commenter
The Electronic Frontier Foundation (EFF) is asking a state court to protect the identity of an anonymous Glassdoor commenter who is being targeted by their former employer. EFF filed a motion to quash a subpoena for identifying information of its client after the cryptocurrency exchange company known as Kraken filed suit against several anonymous reviewers seeking to identify them based upon a claim that they breached their severance agreements. Speakers’ opinions about their former workplace are protected by the First Amendment, EFF says.
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Sea Level Rise to Cause Major Economic Impact If No Climate Action Is Taken
Rising sea levels, a direct impact of the Earth’s warming climate, is intensifying coastal flooding. The findings of a new study show that the projected negative economy-wide effects of coastal flooding are already significant until 2050, but are then predicted to increase substantially towards the end of the century if no further climate action on mitigation and adaptation is taken.
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U.S. Charges Huawei with Conspiracy to Steal Trade Secrets, Racketeering
Chinese telecommunication giant Huawei and a number of its subsidiaries were charged with conspiracy to steal trade secrets and racketeering in a federal indictment made public Thursday. The charges also accuse the company of flouting U.S. sanctions by operating subsidiaries in North Korea and Iran. The indictment represents the latest U.S. effort to clamp down on a Chinese telecom company that American officials say has plundered the intellectual property of its rivals in a bid for market dominance.
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Senior Huawei Official Acknowledges Ability to Clandestinely Access Mobile Networks
A senior Huawei official has conceded that the company can clandestinely access users’ mobile networks. “Huawei itself has provided evidence that it builds backdoors into its products,” Herb Lin writes. “In particular, the [Wall Street] Journal [on 12 February 2012] quoted a senior Huawei official as saying that network access without operator permission ‘is extremely implausible and would be discovered immediately.’ This statement is extremely significant in understanding what Huawei equipment can and cannot do.” Lin adds: “Huawei has not said that network access without operator permission is technically impossible—only that it is implausible and would be discovered immediately. These are very different claims.”
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The Silent Threat of the Coronavirus: America’s Dependence on Chinese Pharmaceuticals
As the new coronavirus, called 2019-nCoV, spreads rapidly around the globe, the international community is scrambling to keep up. In the midst of all of this, a potential crisis simmers in the shadows: The global dependence on China for the production of pharmaceuticals and medical equipment. Today, about 80 percent of pharmaceuticals sold in the U.S. are produced in China. This number, while concerning, hides an even greater problem: China is the largest and sometimes only global supplier for the active ingredient of some vital medications. The U.S. must develop a response plan for the inevitable shortages in the near-term and take necessary actions to reclaim control of our medical supply chain. Continuing to overlook this long-known vulnerability will only lead to catastrophe.
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U.S.: Chinese Government Hackers Behind Equifax Breach
Chinse government hackers stole the personal information of nearly 150 million Americans in 2017, when they successfully hacked Equifax. China has been using its vast network of intelligence agencies to conduct a sustained campaign aiming to collect data on the citizens of the United States and other countries, and systematically steal scientific research and innovation, in order to weaken Western economies and accelerate China’s march toward global scientific and economic hegemony.
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Organized Cybercrime: Not Your Grandfather’s Mafia
Does the common stereotype for “organized crime” hold up for organizations of hackers? New research is one of the first to identify common attributes of cybercrime networks, revealing how these groups function and work together to cause an estimated $445-600 billion of harm globally per year.
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Britain Knows It’s Selling Out Its National Security to Huawei
Allowing Chinese telecom company Huawei access to a country’s 5G infrastructure makes that country vulnerable to espionage, sabotage, and blackmail. Yet, last Tuesday, in defiance of sustained U.S. pressure, Britain said it would allow Huawei to be involved in rolling out the U.K. 5G mobile network. “Upon closer inspection, the British government’s reasoning, and the basic assumptions underlying it, are eerily lightweight and sometimes openly self-contradictory.” Thorsten Benner writes. “London’s justification for cooperating with the Chinese telecommunications company is riddled with obvious contradictions.”
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U.S. to U.K.: Reconsider Huawei Deal or Risk Intelligence Sharing
Following the U.K. government’s decision on Tuesday to allow Huawei access to Britain’s 5G communication infrastructure, the United States, in no uncertain terms, has told Prime Minister Boris Johnson to reconsider the decision. Secretary of State Mike Pompeo said that the Chinese company – subsidized by the Chinese government and with close ties to China’s intelligence and military establishments — posed a “real risk” and that United States would have to evaluate the consequences for intelligence-sharing. “This is an extension of the Chinese Communist Party with a legal requirement to hand over information to the Chinese Communist Party,” Pompeo said. “American information only should pass through trusted networks, and we’ll make sure we do that.”
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Huawei and 5G: U.K. Had Little Choice but Say Yes to Chinese – Here’s Why
For the time being, the British government can hardly be enjoying the fallout from its Huawei decision. To date, much focus has been on the confidentiality of communications over mobile networks, and risks of spying. A bigger issue is the need to keep the mobile phone network running. We are in an era where everything from Uber and Deliveroo to most credit card machines cannot function without it. The nightmare scenario is a hostile state-affiliated actor shutting down or damaging the mobile networks. It may have effectively been impossible for the U.K. to say no to Huawei, but the current compromise is far from ideal.
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Allowing Our Infrastructure to Be Infected by Huawei Is a Far Bigger Risk Than the Coronavirus
The government of Prime Minister Boris Johnson, defying heavy pressure from the United States, on Tuesday announced that it would allow Huawei access to the U.K. 5G communication infrastructure. “Imagine the situation the other way round,” Charles Moore writers. “Would China allow a British or American company to get itself near the heart of its secret systems? Of course not. The Huawei case is actually worse than that, because whereas British or American companies have independent lives of their own, a country like China does not. Huawei is an arm of the Chinese state, and Beijing would never allow it otherwise.”
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Britain Grants China's Huawei Limited Role in 5G Network Rollout
Britain will allow China’s Huawei Technologies to help build the country’s next-generation cellular network, dealing a blow to a U.S. campaign to launch a worldwide boycott of the telecom equipment giant. The British government said Tuesday it would permit Huawei to build less critical parts of the country’s new high-speed 5G wireless network.
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U.S.: “Serious consequences” If U.K. Allows Huawei Access to Britain’s 5G Network
President Donald Trump has warned British Prime Minister Boris Johnson of “serious consequences” if he allows the Chinese telecom giant Huawei a role in building Britain’s 5G phone network, according to officials on both sides of the Atlantic. Supporters of allowing Huawei access to U.K. communication infrastructure say that the espionage and disruption risk Huawei poses can be mitigated by limiting Huawei’s access to “non-core” segments of Britain’s communication system, but U.S. intelligence officials and their counterparts at Britain’s GCHQ, the eavesdropping spy agency and the country’s largest intelligence service, say restricting Huawei to the non-core “edges” of the new network would make little difference to the security risk.
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Lawmakers Raising Alarm over Huawei’s Risk to National Security – in the U.S. and Abroad
Huawei is heavily subsidized by the Chinese government, so its products are much cheaper than the equipment produced by the company’s Western competitors – thus allowing the Chinese company to insinuate itself into a the communication infrastructure of countries where the Chinese intelligence agencies are interested in augmenting their information-gathering capabilities. U.S. lawmakers are angry at the Pentagon’s objections to Commerce Department regulations which would have made it more difficult for U.S. companies to sell to Huawei. “Huawei is an arm of the Chinese Communist Party and should be treated as such,” the senators write to the secretary of defense. “It is difficult to imagine that, at the height of the Cold War, the Department of Defense would condone American companies contracting with KGB subsidiaries because Moscow offered a discount.”
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The long view
Assessing Cyber Risk from External Information
There is a vision for the future of assessing cybersecurity: The goal is a system of cyber metrics that are transparent, auditable, practical, scalable and widely agreed upon. To that end, it is useful—indeed, imperative—to evaluate various approaches to cyber risk quantification with the aim of informing the development of a public standard for measuring cybersecurity.
Bans on Foreign Equipment in U.S. Critical Infrastructure
One executive order does not a trend make, but maybe two do. On May 1, President Trump issued an executive order banning the acquisition, importation, transfer or installation of any bulk electric power system equipment where the secretary of energy has determined, first, that the equipment was manufactured by a company controlled by—or subject to the jurisdiction of—a foreign adversary and, second, that the transaction poses an undue risk to the U.S. bulk-power system, economy or national security. Jim Dempsey writes “The order’s issuance signals that the administration’s efforts to purge from the nation’s telecommunications network any equipment made in China may represent a new approach to critical infrastructure in general.”
Mapping the China Debate
The debate over U.S. foreign policy toward China is often reduced into the usual hawk-versus-dove metaphor. Hawks see U.S.-China great power competition as requiring a more aggressive posture, while doves worry about the downsides of an adversarial relationship. Ganesh Sitaraman writes that this dualist frame glosses over the fact that neither camp has a shared set of views. Rather, both hawks and doves contain a variety of subgroups—and some subgroups disagree with others on critical policy questions. “But without tractable categories for analysis, the debate over policy toward China is too often imprecise and confusing.”
This Disastrous Lockdown Can Never Be Repeated, Even If the Virus Returns
Three months after we entered lockdown, as we tiptoe out to non-essential stores and meet a lonely relative, we can begin to benefit from something previously unavailable – experience. William Hague writes in The Telegraph that instead of having to rely entirely on widely varying mathematical models and fight an unknown virus in a fog of uncertainty, governments can start to see what has actually worked in different places around the world. The most important thing we now know is the true cost of a national lockdown, not just in economic but in human terms. The lockdown was a disaster on many fronts. “Such a disaster cannot under any circumstances be repeated. There can be no second lockdown.”
Economics after the Virus
This novel virus has created a novel economic predicament. In a country after country, the government-imposed lockdowns have resulted in a recession which is fundamentally different from more typical recessions, which are the result of the market-driven business cycle. Arnold Kling, writing in National Affairs about the United States, argues that instead of crafting a new strategy to respond to these unprecedented circumstances, policymakers have dusted off the playbook they used during the 2008 financial crisis. “It is far from clear that these were the right plays to call in 2008,” he writes. “It is even less clear they are the right plays to call now.” He adds: “What is clear, however, is that the COVID-19 pandemic has accelerated the deterioration of the concepts that underpin contemporary macroeconomic-policy thinking in America. That deterioration consists of a growing disconnect between the ideas that ground macroeconomic policy and the realities of the modern economy. The time has come to jettison both the Keynesian and monetarist paradigms that macroeconomic policymakers employ and to pursue an alternative paradigm more suitable to the conditions prevailing in today’s economy. Such a paradigm might be best described in terms of patterns of sustainable specialization and trade, or PSST. This new model offers us a more accurate understanding of the forces at work in our economy — and a more constructive foundation for public policy — than either the Keynesian or the monetarist models do.”
Prudence, Protests, and Pandemics
On 10 April, during one of the manic news briefings which initially characterized the Trump administration’s erratic response to the coronavirus pandemic, a reporter asked the president what “metrics” he would use to make decisions about re-opening the economy. “The metric’s right here,” Trump said, pointing to his head. “That’s my metrics. That’s all I can do. I can listen to 35 people. At the end, I’ve got to make a decision.” — Greg Weiner writes in National Affairs that “Trump’s ruminations in these briefings — which have ranged from the false to the harebrained, from the confused to the dangerous — may encourage caustic reactions. But the remark about metrics ranks as one of the more sensible things he has said on the topic.” Weiner adds: “There is an excellent case that Trump’s judgment is questionable. Certainly, he has derided any notion of expertise as well as the sources — such as experience, as opposed to impulse — from which it could meaningfully arise. His own decisions have been poorer as a result. But Trump’s endorsement of judgment — seasoned, as one hopes it is, and as one must acknowledge the president’s has not been, by experience, evenness of temperament, and due regard for expertise — as the means of making political decisions is not only correct; it is unavoidable.”