A new White House executive order prohibits certain U.S. investment in China for technologies including computer chips, requiring government notification for some sectors. The order authorizes the Treasury Department to restrict U.S. investments in Chinese entities involved in the development and production of semiconductors, quantum computing and artificial intelligence systems. The Biden administration says the restrictions apply to “narrow subsets” within the three areas, with a goal of preventing American capital and expertise from advancing technologies that could be used by the Chinese military in ways that could threaten U.S. national security. Continue reading Biden Bans Investment in China Chips, AI and Quantum Tech

Netflix introduced a password sharing option for non-household members in the United States this week. Netflix subscribers can “buy an extra member” for an additional $7.99 per month for streaming users who live outside the home. Simultaneous with the rollout, Netflix said it will start blocking unauthorized users of borrowed passwords. “Your Netflix account is for you and the people you live with — your household,” Netflix emailed its U.S. customers, providing instructions on how to “check who is using your Netflix.” The company is also making paid sharing available in additional international territories. Continue reading Netflix Expands Crackdown on Password Sharing to the U.S.

A new Goldman Sachs report suggests artificial intelligence could trigger “significant disruption” in the global labor market. In the U.S. and Europe, as many as two-thirds of jobs could become automated at least in part, and generative AI could substitute up to one-fourth of current work. Extrapolating the estimates globally indicates generative AI “could expose the equivalent of 300 million full-time jobs to automation,” the report says. Among U.S. workers, of those occupations that present a natural opportunity for AI assistance, somewhere between 25-50 percent of existing duties can be replaced, the Goldman Sachs research team says. Continue reading Report: 300M Global Workers May See Jobs Impacted by AI

Chinese tech and entertainment conglomerate Tencent Holdings posted a 23 percent first quarter profit decline on earnings that inched up only 0.1 percent, its worst results since publicly listing on the Hong Kong Stock Exchange in 2004. China’s COVID-19 resurgence and the ensuing regulatory crackdown of the past year were cited as factors. The world’s largest video game developer said that it is refocusing on quality product as Beijing telegraphs it will limit the number of titles release in the coming months. Authorities suspended video game licenses and put time restrictions on game streaming in an effort to protect the nation’s youth. Continue reading Tencent Reports a Significant Profit Decline on Flat Revenues

A strong showing by Netflix in Asia amidst an otherwise lackluster Q1 report has focused attention on the region, where streaming is just coming into its own in territories that house roughly half the global population. There are still potentially hundreds of millions of untapped subscribers in the Far East. But the area has its own challenges, namely local streaming services that offer a wide variety of regional content. Not to mention deep-pocketed domestic rivals, including Disney+ and Amazon Prime Video are also competing for market share. Continue reading Streaming Battle in Asia as Locals Compete for Market Share

Led by the IRS Criminal Investigation branch, federal agents seized more than $3.6 billion in stolen Bitcoin last week, resulting in its largest seizure ever. Tracking the 119,754 Bitcoin stolen in 2016 from Hong Kong’s Bitfinex currency exchange across several continents, thorough the dark web and many transfer schemes was an amazing feat that says as much about the skill of U.S. law enforcement as it does the breadcrumb trails left by cryptocurrency. Engineered to be traceable (some say transparent), blockchain does offer a degree of anonymity that makes it attractive to crime. Continue reading Feds Mine Crypto Trail and Find $3.6 Billion in Stolen Bitcoin

China is making an investment statement as it attempts to take control of its financial future and set new yen-centric standards for international monetary exchange. Much is being read into Didi Chuxing delisting itself Friday from the New York Stock Exchange, where it raised billions of dollars, capping at $39 billion for the Beijing version of Uber. The message is: with money of its own and a knack for finding more, the world’s No. 2 economy feels it no longer needs Wall Street and says it will relist on the Stock Exchange of Hong Kong. Continue reading Didi Exits NYSE for Hong Kong, China Tightens Tech Control

Beijing-based ByteDance, parent company of social video app TikTok, which was valued at $180 billion in December, indefinitely put plans on hold for a public offering. The company had been considering an IPO in the United States or Hong Kong but its founder and CEO Zhang Yiming changed his mind after meeting with China’s cyberspace and security regulators who reportedly told him to focus on data-security risks and other issues. Another reason for holding off is that the company did not have a chief financial officer at the time. Continue reading ByteDance Pauses its IPO After Meeting with Chinese Officials

In Hong Kong, the Constitutional and Mainland Affairs Bureau is slated to enact data protection laws against doxing — making personal information public to enable harassment — which was used during the 2019 protests. Facebook, Alphabet’s Google and Twitter privately warned authorities that the new rules could put their staff at risk of criminal prosecutions, and if enacted, they may shut down their services. Punishment would be a fine of up to 1 million Hong Kong dollars (U.S. $128,800) and up to five years in prison. Continue reading Hong Kong Laws Could Drive Out Facebook, Twitter, Google

Although the Ant Group suspended its high-profile IPO last week, Kuaishou Technology, a popular short-video and streaming media platform founded in 2011, is moving ahead. According to sources, the company, whose platform competes with ByteDance’s Douyin (TikTok in China), aims to raise about $5 billion and reach a valuation of about $50 billion by filing for an initial public offering in Hong Kong as soon as January 2021. The company was founded by engineers Su Hua, formerly at Google China, and Cheng Yixiao, a Hewlett Packard veteran. Continue reading Kuaishou, Rival to ByteDance’s Douyin, Plans Hong Kong IPO

With the goal of disrupting the banking business in China and making it easier for small businesses to get loans, Alibaba co-founder Jack Ma created Ant Group. Now, the Alibaba spinoff is set to raise $34 billion by selling shares in Hong Kong and Shanghai in what is expected to be the largest initial public offering (IPO) on record. After the IPO, the company will be worth around $310 billion. At its size, Ant is a target for Chinese regulators at the same time that some government funds are Ant shareholders. Continue reading Alibaba Spinoff Ant Group Preps for a Record $34 Billion IPO

Alibaba Group, China’s most valuable company with a market capitalization of $800+ billion, is paying $3.6 billion to gain more control of Sun Art Retail Group, which operates 480+ large supermarket stores. As in the U.S. and elsewhere, COVID-19 has seen many consumers shift to online shopping for food and other essentials. In 2017, Alibaba acquired a 36 percent stake in Sun Art for about $2.9 billion. With the latest purchase, Alibaba will own about 72 percent of the company and is positioned to compete with Walmart. Continue reading Alibaba Buys Majority Stake in Big-Box Grocery Store Chain

On August 1, security research firm Comparitech, led by Bob Diachenko, discovered a massive data leak of nearly 235 million Instagram, TikTok and YouTube user profiles. The leak was due to an unsecured database, which is quickly becoming a widespread cause of similar breaches. An audit of the dark web found about 15 billion stolen logins from 100,000 such unsecured database breaches. The data leak discovered by Diachenko and his team was spread across several datasets, including two of 100 million each of Instagram users. Continue reading Unsecured Databases Leak 235 Million Social Media Profiles

After weeks of negotiations and following a phone call between President Trump and Microsoft chief executive Satya Nadella, the company stated it will purchase TikTok’s U.S. operations. Microsoft will work to seal the deal — which will also include Canada, Australia and New Zealand — with ByteDance by September 15. Stating appreciation for Trump’s “personal involvement,” Microsoft added that U.S. users’ data would be transferred to and remain in the country. Trump earlier said he would ban TikTok from the U.S. Continue reading With Trump Approval, Microsoft to Acquire TikTok’s U.S. Unit

Since China imposed its new national security law in Hong Kong, numerous technology companies — especially startups — are making plans to leave the city, just as it was developing into a significant regional fintech hub. One reason is that clients and suppliers are concerned that their data and Internet services will be under the surveillance of Chinese authorities. While the startups are already packing up, the bigger technology companies, including Facebook, Google and Twitter, are mulling over their next move. Continue reading Security Regulation Causes Tech Firms to Rethink Hong Kong