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US tech companies are stepping up security screening of employees and potential hires due to concerns about Chinese espionage, the latest development in simmering tensions between the two countries, the Financial Times revealed today.
The moves, from giant companies like Google to well-known startups like OpenAI, come amid concerns that foreign governments are using compromised workers to access intellectual property and corporate data.
Washington is at odds with Beijing over cutting-edge technologies, particularly artificial intelligence and advanced chips, and has imposed export controls to make it harder for China to access the latest technology.
While industrial espionage is not new, the United States has said cases involving Chinese spies appear to have increased in recent years, including the theft of secrets from Google and the theft of intellectual property from Tesla, Micron, Motorola and others.
Europe has also been a target, with a series of high-profile arrests of Chinese spies in April coupled with tales of “honeypots” and influence operations.
European policymakers, spurred on by the United States, are beginning to see China not only as a source of economic opportunity but also as a security threat, especially over Russia’s support for the war in Ukraine. G7 leaders last week accused China of “fueling” the conflict and threatened further sanctions, while the Ukrainian president pressured countries not to take part in the recent peace summit in Switzerland, accusing it of sabotaging the summit. Meanwhile, a new investigation by the Financial Times reveals that Russia is looking for second-hand Western machinery in China to bolster its own war efforts.
Tensions between the US and China have also risen over Taiwan, with Beijing accusing the US of trying to push the island into war.
The G7 has also stepped up its demands over China’s economic policies, with the EU imposing new tariffs on Chinese electric vehicle companies and the U.S. imposing new taxes on clean energy products and other imports from China. China has retaliated with measures including an anti-dumping investigation into chemical imports.
As explained in today’s Lex column (available to premium subscribers), European carmakers are hedged well enough to weather a tit-for-tat battle with China, but other key export industries such as pharmaceuticals, aviation, cosmetics and brandy could be vulnerable.
The battle over TikTok is also ongoing after US President Joe Biden signed legislation requiring the video app to be banned unless it divests from its Chinese parent company by January next year, citing fears that the Chinese Communist Party could use the data of its 170 million American users for espionage and propaganda.
As former US national security adviser HR McMaster explains in today’s FT article, the business world is now a frontline for espionage.
“Much of the research and development that affects national security was once conducted by government programs but is now conducted in the private sector, making these companies truly potential lucrative targets from China’s perspective.”
What you need to know about the UK and European economies
Although inflation is falling, retail data seen by the FT shows that Consumer demand across Europe British retailers remain struggling as discount tactics fail to boost sales, and they also face the added burden of a sharp rise in shoplifting.
Labour’s Shadow Chancellor of the Exchequer Rachel Reeves He suggested that if private equity bosses risked their own capital on deals, the proceeds would be taxed as capital gains rather than income.
The FT editorial board said neither the Conservatives nor Labour had spoken candidly about what needed to be done to fix Britain’s broken society. public service.
Brussels rebukes France The French government has been accused of violating EU budget rules but is already preparing for a more serious clash with Paris if a far-right or far-left party comes to power. French companies On the other hand, he seems to be frightened by the policies of the left-wing coalition and has turned to the far-right RN. Here we explain how a far-right or left-wing government would affect the French economy.
President of Russia Vladimir Putin He thanked North Korean leader Kim Jong Un for his “consistent support” and pledged to work together to strengthen the two regimes’ resistance to Western sanctions.
What you need to know about the world economy
A senior Federal Reserve official said the U.S. economic slowdown was Retail Sales That strengthened the case for a rate cut this year.The longer it takes to cut rates, the greater the risks to growth and financial stability, said veteran investor Mohamed El-Erian.
Enterprise India The Indian government is trying to assess the impact of Prime Minister Narendra Modi’s weakening majority in recent general elections. John Reid, India’s South Asia director, said a coalition government could make it harder to push through reforms in areas such as education and agriculture. Opposition leader Rahul Gandhi told the Financial Times that Modi’s government would “struggle” to survive.
Developed countries are following the emerging countries, MoneyDespite record prices, copperStockpiles of gold, the world’s most important industrial metal, are rising in China, highlighting the turmoil facing the industry due to the country’s economic downturn and a global smelter glut.
Acquisition Industrial Policy In a new era of doubt, protectionism and interventionism, getting the decisions right is hard, says chief economics commentator Martin Wolf. Wolf picks our top 10 economics columns. Summer Books round up.
Need to know: Business
American semiconductor manufacturer NVIDIA Amazon has surpassed Apple and Microsoft to become the world’s most valuable company as investor enthusiasm for AI has reached new heights, but other “AI winners” are facing pressure to back up their growth stories.
Tech Tonic Podcast Series Chinese Technology Finally, we will consider the country’s expansion into “new strategic frontiers” such as space, polar regions, and deep-sea exploration.
sale Electric car In the US, demand for EVs is slowing as customers push back against high prices. Read our latest in-depth analysis of the major restructuring of the US EV market. The latest casualty in the sector is Fisker, which has filed for bankruptcy.
How can the UK become more attractive for new businesses to raise capital? A new FT film discusses what can be done to make the UK more attractive. City Competitiveness As an international capital market.
The world of work
Amazon Workers at a Coventry warehouse are set to hold a vote that could force the company to negotiate with a trade union over pay and working conditions for the first time in the UK.
work remotely The United States has become a kind of ideological battleground, commentator Anjana Ahuja writes, which is why it’s all the more important to pay attention to the evidence that comes from well-designed trials to test hypotheses, expose bad policies, and promote effective policies.
“AI Interviewer Want to hire better people than humans? Listen to the new Working It podcast.
Good News
The British engineers robot Capable of leaping 200 meters, higher than any jumping robot designed to date, the discovery could revolutionize a variety of applications, from planetary exploration to disaster relief and monitoring dangerous or inaccessible locations.
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