Willkommen – welcome to the Germany category of this blog. This is where I share anything that relates to Germany, business issues, the German people or culture. Often posts that appear in this category will appear in other categories as well. So if Berghain launched a new brand collaboration with Volkswagen. And that I thought was particularly interesting or noteworthy, that might appear in branding as well as Germany.
So far, I haven’t had too much German related content here at the moment. That’s just the way things work out sometimes.
Where I have talked about Germany much of my discussions have focused around innovation or design due to German history and reliance on its manufacturing sector. It hasn’t deindustrialised to the same extent as the UK did during the 1980s.
However it hasn’t been all good. A classic example is how German car manufacturers. They had been behind the curve on both electric and hydrogen powered vehicles compared to China, the US and Korea. While German strength is in traditional engineering areas such as software have been much more hit and miss.
I don’t tend to comment on local politics because I don’t understand it that well, but I am interested when it intersects with business. An example of this would be legal issues affecting the media sector for instance.
If there are German related subjects that you think would fit with this blog, feel free to let me know by leaving a comment in the ‘Get in touch’ section of this blog here.
Why brands are burning NFTs | Vogue Business – Burning NFTs, which are tokens stored on a blockchain, is the process of permanently removing a token from circulation. This can be done to eliminate unsold or problematic inventory from an NFT drop, or it can be used to engage collectors and fans through “upgrades” that replace an original NFT with something else. For fashion and beauty brands, burning NFTs could offer a way to manipulate scarcity, and therefore price. It could also lead to more intriguing NFT projects, in which consumers must weigh risk and reward by burning an NFT in exchange for something else. These scenarios, among others, are already playing out among artists and gaming startups, paving the way for fashion. Already, Adidas is using a burn mechanism to change the state of its NFTs when NFT owners make a purchase. Apparel brand Champion recently partnered with Daz 3D’s NFT collection, Non-Fungible People, and will use burning to enable peoples’ profile picture NFTs to digitally dress in Champion gear, while Unisocks invites NFT owners to burn them in exchange for physical products. – burning NFTs sounds like a dangerous precedent
Environment | Gallup Historical Trends – interesting longitudinal data set. Environmental messaging effectiveness is proportional to consumer disposable income and financial security at the time
When will the music stop? | Financial Times – bill being called due on financialisation and post-industrialisation of western economies and a move from globalisation to regionalisation
US embassy warns TU Dublin about risks of ties with Chinese university | Ireland | The Sunday Times – China wants Ireland to host international campus of Harbin University. Ireland should be looking at the experience of Hungary who were made to foot the bill for a campus that only benefit Chinese students – In 2020 HIT was added to an “entity list” by the US Department of Commerce, which identifies people or organisations that it believes are involved in activities contrary to US security or foreign policy interests. Last week the American embassy in Dublin said it was still concerned about HIT’s ties with the People’s Liberation Army and its efforts to acquire foreign technology in support of its defence aims
British research ‘could help China build superweapons’ | News | The Times – The number of research collaborations between scientists in the UK and Chinese institutes with deep connections to the country’s defence forces has tripled to more than 1,000 in six years, a figure that lays bare the scale of cooperation with the hostile state. The university funding includes £60 million from sources now sanctioned by the US government for supplying the Chinese military with fighter jets, communications technology and missiles. The article was published with this opinion piece: Is getting into bed with President Xi for science . . . or just sleazy? | News | The Times – It is 1914 and our scientists, encouraged by government and big business, have been co-operating with their German opposites on machine-gun technology, ballistics and aeroplane design — all in the name of exciting new technology and with a rising country with an important market and close ties with the UK. Now return to the present, but with an eye to the future. As The Times reveals today, UK scientists are working closely with Chinese scientists from institutes intimately associated with weapons development
Why gamers hate crypto, and music fans don’t – gamers feel that they are being ripped off, music fans look at NFTs like as if they are souvenirs or trading cards. This has important implications for mechanisms governing the metaverse
Alexa whistleblower demands Amazon apology after being jailed and tortured | Amazon | The Guardian – A whistleblower who exposed illegal working conditions in a factory making Amazon’s Alexa devices sayshe was tortured before being jailed by Chinese authorities. Tang Mingfang, 43, was jailed after he revealed how the Foxconn factory in the southern Chinese city of Hengyang used schoolchildren working illegally long hours to manufacture Amazon’s popular Echo, Echo Dot and Kindle devices. Now, after spending two years in prison, he is appealing to the higher courts to clear his name. He has taken the difficult decision to talk publicly, despite being aware of the risks of reprisals, because he believes Amazon and its founder, Jeff Bezos, have a responsibility to support his appeal and that the Observer also has a responsibility to highlight his case – the Alexa whistleblower didn’t only expose labour issues in its Chinese factories. By implication, the Alexa whistleblower also exposed the inhuman nature of Amazon’s calculations in making the Alexa. Taking an Alexa apart you can see how Amazon skimped on parts like an on / off switch on the Alexa microphone, but the Alexa whistleblower exposed so much more.
The Age of the Unique Baby Name – The Atlantic – I would see the internet accelerating this trend in order to stop their kid from having an identity like JoeSmith928765354@icloud.com which in turn feeds into salience and distinctiveness – individual as brand
How to deal with farmers’ love of plastic | Financial Times – I too grew up on a farm in the 1970s and 1980s. Spare baling twine was gathered up to create fake electric fencing, hold things together and even support gates. Fertiliser bags were reused to carry turf or waterproof equipment. Silage covers were used to waterproof equipment and any small tear off pieces found went into the range (a solid fuel heating stove).
The above video is based on CBInsights State of Venture 2021 report. An increase in venture funding would in general be a good thing, if it was being spent on the right kind of innovation to solve the right problems. It isn’t. And if there were enough good entrepreneurs and ideas to take advantage of it. There aren’t. Instead this looks like the dotcom bubble and the subprime mortgage sector pre bust together, at once. And that’s likely to be part of your pension funds. Why Is Silicon Valley Still Waiting for the Next Big Thing? – The New York Times
Experts Warn of “Quantum Apocalypse” – its like the plot of the hacking movie Sneakers. The plot centres around trying to gain possession of a black box called ‘Setec Astronomy’which is an anagram of ‘too many secrets’ is able to crack all current cryptographic schemes. The crypto that secures your credit card transactions or my computer laptop hard drive. Quantum Apocalypse is when someone gets quantum computing to a point were it can complete the same feat
Innovation
99% of common chemicals aren’t sustainable – Futurity – people think that oil is just about petrol and diesel and will have a rude shock. Oil companies and the petrochemical sector still have a future ahead of them. As do mines and quarries.
China sets the pace in adoption of AI in healthcare technology | Financial Times – interesting points on a shortage of different specialists in an ageing society already. The rural | city living split is also raising difficulties – China’s demographic bomb has already gone off. This means a declining China rather than a strong China
1969 vintage ad for General Mills Lucky Charms and Cheerios show the power of a character figure. Use of characters in advertising is declining, and is yet one of the most powerful creative devices available to advertising creatives. More on this on Look Out by Orlando Wood
Media
Japanese Olympic sponsors avoid spotlight fearing backlash – Nikkei Asia – so far they have not run any Olympics-linked TV advertisements in Japan. As of Friday, there has been no Olympic-themed ads, including ones using the logo, according to CM Soken Consulting. This compares with ads by about 30 companies that ran roughly 2,650 times from late January through February during the 2018 Pyeongchang Olympics in South Korea. The Olympics has not provided the usual boost to TV sales this time. Japanese sales of TVs since mid-January have been down 5-6% on the year, according to BCN, reflecting the lack of excitement among consumers. The U.S., the U.K., and Australia decided on diplomatic boycotts of the Games by refusing to send government representatives, citing the alleged detention of Uyghur Muslims in Xinjiang and other concerns. Sponsor companies are worried that aggressively supporting the Games could affect their business in those countries. Only a limited number of corporate representatives, including Panasonic Chairman Kazuhiro Tsuga, attended the opening ceremony.”We have no choice but to tone down our PR activity,” said a source at one sponsor company. “This was totally unexpected.” This comes after last year’s Tokyo Summer Olympics, during which sponsor companies dialed down their advertising out of consideration for public opinion critical of holding the Games amid a pandemic – apparently viewing numbers on NBC is down 43% across TV and streaming compared to the 2018 winter olympics hosted in Korea (paywall)
Rupert Murdoch’s News Corp hit by cyber attack | Financial Times – Chinese hacking project. How things have come from Murdoch being seriously invested in Star Asian satellite broadcasting targeting China and based out of Hong Kong to being an ‘enemy’ of China
The rise and fall of Esprit, SF’s coolest clothing brand – Esprit appealed to the youth with a message of lefty, post-racial harmony. Wild prints, bright colors and baggy silhouettes reigned. Their tote bags and T-shirts hung from all the coolest shoulders, adorning fashion plates with the legendary Esprit logo. With the logo’s omnipresence at the time, it may as well have been Supreme for the teens of the late ’80s and early ’90s. – the article skips over some of the awful things that Esprit did to its Chinese emigrant workers in San Francisco.
Esprit Store in Gentings Casino, Malaysia by Ryan Lackey
The success of Esprit was down to its ‘Europeaness’. It had a Benetton kind of vibe, because they shared the same advertising creative and a similar approach to interior retail space design and bright colours. Esprit eventually listed on the Hong Kong Stock Exchange but never got its mojo back. The clean logo was designed by John Casado, who had worked for Apple on the Macintosh icons and New Line Cinema
China
Chinese documentary prompts rare criticism of Xi’s anti-corruption campaign | Financial Times – Analysts said the negative reaction to Zero Tolerance suggests the decade-long campaign has not sealed public confidence in the party’s ability to investigate itself for graft, which remains widespread….“Getting caught doesn’t mean you are more corrupt than others,” said a former official at the Supreme People’s Procuratorate, the highest government agency responsible for investigation and prosecution of criminal cases. “It just means you have bad luck.” – such a good read and reaffirms much of what I saw in China, prior to and during the early Xi premiership. The way it falls is arbitrary in nature and usually linked to power struggles
For Olympic Sponsors, ‘China Is an Exception’ – The New York Times – At the bottom of the slope where snowboarders will compete in the 2022 Beijing Olympics, an electronic sign cycles through ads for companies like Samsung and Audi. Coca-Cola’s cans are adorned with Olympic rings. Procter & Gamble has opened a beauty salon in the Olympic Village. Visa is the event’s official credit card. President Biden and a handful of other Western leaders may have declared a “diplomatic boycott” of the Winter Games, which begin next week, but some of the world’s most famous brands will still be there. The prominence of these multinational companies, many of them American, has taken the political sting out of the efforts by Mr. Biden and other leaders to punish China for its human rights abuses, including a campaign of repression in the western region of Xinjiang that the State Department has declared a genocide. – at the end of the day, brands are more afraid of Chinese consumers and the Chinese government than they are of western governments and activist consumers
Implications of Revenue Models and Technology for Content Moderation Strategies by Yi Liu, Pinar Yildirim , Z. John Zhang :: SSRN – We show that a self-interested platform can use content moderation as an effective marketing tool to expand its installed user base, to increase the utility of its users, and to achieve its positioning as a moderate or extreme content platform. For the purpose of maximizing its own profit, a platform will balance pruning some extreme content, thus losing some users, with gaining new users because of a more moderate content on the platform. This balancing act will play out differently depending on whether users will have to pay to join (subscription vs advertising revenue models) and on whether the technology for content moderation is perfect.
We show that when conducting content moderation optimally, a platform under advertising is more likely to moderate its content than one under subscription, but does it less aggressively compared to the latter when it does. This is because a platform under advertising is more concerned about expanding its user base, while a platform under subscription is also concerned with users’ willingness-to-pay. We also show a platform’s optimal content moderation strategy depends on its technical sophistication. Because of imperfect technology, a platform may optimally throw away the moderate content more than the extreme content. Therefore, one cannot judge how extreme a platform is by just looking at its content moderation strategy. Furthermore, we show that a platform under advertising does not necessarily benefit from a better technology for content moderation, but one under subscription does, as the latter can always internalize the benefits of a better technology. This means that platforms under different revenue models can have different incentives to improve their content moderation technology.
What China thinks of possible war in Ukraine | The Economist – Both see a world order being reshaped by American weariness and self-doubt, creating chances to test and divide the democratic West. Chinese and Russian diplomats and propaganda organs relay and amplify parallel narratives about the benefits of iron-fisted order over American-style dysfunction. Joint military exercises demonstrate growing trust – but China will be very cautious and nationalists want the Russian Far East back where it belongs as part of China
Handspring was a key part of my first agency job. It was the dot com era, Jeff Hawkins, Donna Dubinsky, and Ed Colligan had founded Palm Inc. and left after it was sold to 3Com. They then went on to make modular PDAs with the Handspring Visor – which tapped into the clear plastic designs pioneered by Apple’s iMac. And then they built the PDA with smartphone capability called Treo. 3Com had made a Palm device in 1999 that used the Mobitex mobile data network, which was more analogous to a two way pager with a limited walled garden of content a la vintage AOL. Palm’s version of the Palm PDA has a common connector that could be used to connect external peripherals, such as the OmniSky sled which converted your PDA into an internet connected smartphone.
But it was Handspring who had the ‘heat’ and the wherewithal to provide a neat connectivity slot for its peripherals to sit in, providing a neater experience. Springboard is a documentary about Handspring
Of course, the outcome of PDA based smartphones isn’t all sweetness and light as Scott Galloway shows with our modern mobile device usage.
Myst
Ars Technical are doing some great oral histories of games creation. This one on Myst is very close to my heart. What’s particularly interesting is how the game was developed at a moment in time with the transition to CD ROM media. This resulted in a huge leap forward in what the technology was capable of doing, comparable to the early web in terms of creative disruption. It also made me really, really miss HyperCard.
Jimmy Wang Yu
Taiwanese martial artist, actor and gangster Jimmy Wang Yu carved the way for Jackie Chan and Bruce Lee in Hong Kong cinema. This documentary on him is first rate.
Windows
Interesting CNBC documentary on the hegemonic position of Microsoft Windows in personal computers.
Audi S1 Hoonitron and vehicles of Cyberpunk 2077
Ken Block’s collaboration with Audi has produced some interesting material. Growing up in the 1980s, group B rallying held a fascination for me, so that’s what got me interested in the Block / Audi collaboration at first. But what’s interesting about Block’s prototype electric Audi Quattro S1 is the speed at which Audi is able to put together a prototype working car with modern technologies. All of which implies ever more opportunities for automotive customisation for customers and the potential for additive manufacturing at the luxury end of the market. Hoonitron does sound like a late 1970s Taiwanese or Korean copy of a Sony television set.
While we’re on about car design, there is also this great video on the vehicles in Cyberpunk 2077. 14 out of 10 for pure style.
Tudor Pelagos FXD
Tudor have been on point in their marketing. Their new version of the Pelagos has some lovely design cues, even if its modern day association with the French navy is marketing fluff. PELAGOS FXD – more from the Tudor press room.
Fake socialite
A graduation project by an art student from the Central Academy of Fine Arts in Beijing did an experiment that has sparked a debate about class, inequality and the massive wealth gap in modern China. In the video you see her attempt to live 21 days for free in Beijing. She disguised herself as a socialite and slept in the halls of extravagant hotels and enjoyed free food and drinks. What surprised me is that the work hasn’t been suppressed and that she hadn’t been arrested. It also shows how Xi Jingping’s concept of common prosperity is designed to tap into a deep tension in society at the moment.
Paper and glue
MSNBC put together an amazing documentary on French street artist JR who does giant photo collages as street art. Here’s the trailer.
https://youtu.be/7NmxynGAmrM
Hong Kong Christmas
Hong Kong’s relationship with Christmas is a complicated one. A substantial minority of Hong Kongers are practicing Christians. Until the opening up of China in the late 1970s, Hong Kong was a substantial supplier of toys, Christmas decorations and lights. And then there is the multinational community living alongside Hong Kongers, which brings the western commercialism of Christmas. For many Christmas is a ‘pre-lunar new year celebration, both are big on the colour red and the decorations for one used to bleed into the other in public spaces. So I thought the joy of this Christmas street market might appeal to readers here.
The Japan – Soul Train connection can consider to have started with The Three Degrees who seemed to do consistently more successfully in Japan than the US. The Three Degrees The Sound of Philadelphia is better known to people over 40 as the theme tune of the Soul Train TV programme. The popularity of The Three Degrees was such that there was some Japan only releases like Midnight Train.
The Afro Rake discotheque opened in 1974 and a visit to the club convinced TBS to broadcast episodes of Soul Train on a Sunday night, forging a true Japan – Soul Train connection.
In 1980, Yellow Magic Orchestra played Soul Train cementing the Japan – Soul Train connection with a cover version of disco song Tighten Up. YMO also told the viewers of the Japan – Soul Train connection and its large regular audience on TBS.
The Japan – Soul Train connection trickled down into 1970s Japanese club culture like the Afro Rake night club. The Japan – Soul Train connection was made through articles and photographs of the show. This and artists like The Three Degrees built the Japan – Soul Train connection. It was ironic that the Afro Rake made the Japan – Soul Train connection for TBS.
China sportswear: Fujian Tigers earn their stripes in Nike fight | Financial Times – what’s really interesting is the collapse in share of New Balance (down to poor execution over the past five years) and adidas in China. Li Ning have had a boom and a bust and risen again. Anta have acquired brands like Arc’teryx, Suunto, Salomon and Wilson. Salomon and Arc’teryx are particularly interesting because of their use by western special forces units
Consumer behaviour
The ‘Boomer remover’: Intergenerational discounting, the coronavirus and climate change – Rebecca Elliott, 2021 – the emergence of the ‘Boomer remover’ as coherent with a longer history of fascination with the Baby Boomers, a generation that has ‘been watched, commented upon, and invested with hope and despond in equal measure’ (Bristow, 2019, p. 92). This fascination has taken a more negative turn towards ‘Boomer blaming’ in the last 15 years. The Boomers have themselves become social problems, ‘folklore demons’ who, for their sheer number, are feared for the unprecedented burdens they may place on welfare states: a ‘Boomergeddon’ created by a ‘tidal wave of retirements’, combined with longer lifespans (Bristow, 2019, p. 92; Bristow, 2016; Somers, 2017; Walker, 1990, 1996). Fears about the impacts of an ageing population have then been moralized, turned into a critique of the attitudes and behaviours of this particular generation, namely, their perceived individualism run amok and selfish, hedonistic, reckless actions that have ‘robbed’ their children of a prosperous future (Bristow, 2016; White, 2013). The Boomers are maligned for the kind of people they are believed to be, today serving as the ‘archetypal ‘villain’ in the narrative of generational conflict’ (Bristow, 2021, p. 768). Younger generations are then made out to be the true adults in the room, who have to take responsibility for the messes their elders have made (expressed also by some on Twitter, like the user above who suggested young people might ‘show ’em how it’s done’). In this case, broadly available tropes about the Boomers’ perceived sins and deficiencies get attached to ‘older generations’ generally, in a context in which the cohort most at risk of dying from the virus actually seems to be those over the age of 80 – the so-called ‘silent generation’ rather than the Boomers
Biden’s trade policy is crafted with political rewards in mind | Financial Times – “worker centred” is like the “hard-working families” long invoked in both US and UK politics: you cannot oppose a trade policy supporting workers any more than you can be biased towards feckless loners. But helping all workers equally is not what it means in practice. Nearly 10 months in to the administration, this worker-centred policy shows a disturbing focus on old-style manufacturing-centred protectionism — and not even all manufacturing, just the politically rewarding parts. Although it is also proposing to extend trade-distorting support to new sectors like electric vehicles, the Biden administration has continued the historic US obsession with steel
U.S. Housing as a Global Safe Asset: Evidence from China Shocks by William Barcelona, Nathan Converse, Anna Wong :: SSRN – This paper demonstrates that the measured stock of China’s holding of U.S. assets could be much higher than indicated by the U.S. net international investment position data due to unrecorded historical Chinese inflows into an increasingly popular global safe haven asset: U.S. residential real estate. We first use aggregate capital flows data to show that the increase in unrecorded capital inflows in the U.S. balance of payment accounts over the past decade is mainly linked to inflows from China into U.S. housing markets. Then, using a unique web traffic dataset that provides a direct measure of Chinese demand for U.S. housing at the zip code level, we estimate via a difference-in-difference matching framework that house prices in major U.S. cities that are highly exposed to demand from China have on average grown 7 percentage points faster than similar neighborhoods with low exposure over the period 2010-2016. These average excess price growth gaps co-move closely with macro-level measures of U.S. capital inflows from China, and tend to widen following periods of economic stress in China, suggesting that Chinese households view U.S. housing as a safe haven asset. – capital flight
Will Germany Depart from the Merkel Model on China? Beijing Will Have a Say. – The Diplomat – the appointment of Greens co-leader and former chancellor candidate Annalena Baerbock as foreign minister has made such a break a real possibility. As an outspoken critic of China’s human rights practices and overseas economic coercion, Baerbock will advocate for a comprehensive China strategy that is more European, normative, and “rigor[ous].” She will be reinforced by FDP leader Christian Lindner, who joins the coalition government as finance minister, seen as the most powerful office next to chancellor. Lindner found himself on Beijing’s bad list in 2019 when he visited democratic opposition representatives in Hong Kong en route to the mainland
Xi fails to signal support for a second term for Hong Kong’s Carrie Lam | Financial Times – interesting earlier in the year the political insiders I knew of thought that Lam was going to run for a second time, when I thought that it might the be the security chap who had recently been moved to be her deputy. After this visit, CY Leung might throw his hat in the ring
Ideas
Maersk is no longer just a shipping company — Quartz – Maersk owns more container ships than anyone on earth, but it would be a mistake to think of the company as just a cargo shipping line. It’s also an airline, a trucking company, a port terminal operator, and a freight forwarder. Maersk has gobbled up a piece of virtually every stage of the global supply chain as part of its ambition to become a one-stop shop for logistics.
Yesterday (Dec. 16), Maersk struck a deal that offers a glimpse at the future of its business—and the future of global shipping. Starting next year, Maersk will effectively run the logistics operations of Unilever, one of the world’s largest consumer goods companies. Maersk announced in a press release that it “will be providing operational management of international ocean and air transport” for Unilever from 2022 to 2026.
Normally, Unilever uses its own in-house software, dubbed the “International Control Tower Solution,” to manage its own supply chains. But as of 2022, Unilever will hand off the run of its supply chain software to Maersk. “It’s a strong indicator that Maersk’s expertise extends well beyond sailing ships,” said Eytan Buchman, CMO at the cargo booking platform Freightos, who has written about Maersks’ acquisitions and expansion. “Combined with their other assets and what they’ve been building towards, it’s not a stretch to assume that this is another rung in the ladder towards full end-to-end global supply chain ownership.”
How many people in Japan have actually worn a couple’s outfit? | SoraNews24 -Japan News – less than 20 percent of married couples have tried going on a date in a couple’s outfit. But that doesn’t mean that people don’t want to try it! The survey, which was conducted between November 18 and November 26 of this year, asked 800 married people–400 women and 400 men—about their experiences with couple’s outfits. When asked whether they’d ever gone on a date with their spouse in matching outfits, only 18.1 percent said yes. – I thought it was more of a drama trope rather than a trend
Risks to China’s Growth in Luxury Retail | Luxury Daily – China accounts for 35 percent of all luxury sales across the globe. By 2025, those sales could shoot up to 50 percent of all luxury retail revenue, according to Bain Analytics. Luxury sector concerned by China’s GDPR type laws, regulations on biometrics and common propserity
Zegna shares surge in New York after SPAC deal | Vogue Business – The company has struggled during the pandemic, with core revenue falling 23 per cent last year. This year, sales are expected to stay behind pre-pandemic levels at €1.2 billion – positioned very much as a COVID issue but also seems to be down to the wider move of luxury and streetwear going closer
China’s Big New Idea – The Atlantic – “common prosperity,” has been adopted by journalists, scholars, and corporate executives in China with a fervor only a dictator can ignite. State newspapers are routinely plastered with commentary on the topic. On November 11, a shopping holiday known as “Singles Day,” the usual conspicuous excess took a back seat to the common-prosperity spirit. The e-commerce company Alibaba, the holiday’s primary purveyor, focused its marketing on eco-friendly initiatives and charitable programs instead of sales figures. Its management, eager to get into Xi’s good graces, had already pledged billions of dollars in charitable donations to support the leader’s cause, rather than its own shareholders.Until now, common prosperity has mostly been a concept for domestic consumption in China, but it might soon be heading overseas. The idea could become a central node in the ever-expanding lexicon of language Xi is trying to use to increase Beijing’s influence in international affairs and reshape the world order to favor China’s authoritarian interests – I think its more memetic in nature than an ‘idea’ per se, something that could mean whatever people want it to mean in their head
Guidance for preventing, detecting, and hunting for CVE-2021-44228 Log4j 2 exploitation – Microsoft Security Blog – observed the CVE-2021-44228 vulnerability being used by multiple tracked nation-state activity groups originating from China, Iran, North Korea, and Turkey. This activity ranges from experimentation during development, integration of the vulnerability to in-the-wild payload deployment, and exploitation against targets to achieve the actor’s objectives. For example, MSTIC has observed PHOSPHORUS, an Iranian actor that has been deploying ransomware, acquiring and making modifications of the Log4j exploit. We assess that PHOSPHORUS has operationalized these modifications. In addition, HAFNIUM, a threat actor group operating out of China, has been observed utilizing the vulnerability to attack virtualization infrastructure to extend their typical targeting. In these attacks, HAFNIUM-associated systems were observed using a DNS service typically associated with testing activity to fingerprint systems
Huawei documents show Chinese tech giant’s involvement in surveillance programs – The Washington Post – These marketing presentations, posted to a public-facing Huawei website before the company removed them late last year, show Huawei pitching how its technologies can help government authorities identify individuals by voice, monitor political individuals of interest, manage ideological reeducation and labor schedules for prisoners, and help retailers track shoppers using facial recognition. “Huawei has no knowledge of the projects mentioned in the Washington Post report,” the company said in a statement, after The Post shared some of the slides with Huawei representatives to seek comment. “Like all other major service providers, Huawei provides cloud platform services that comply with common industry standards.” The divergence between Huawei’s public disavowals that it doesn’t know how its technology is used by customers, and the detailed accounts of surveillance operations on slides carrying the company’s watermark, taps into long-standing concerns about lack of transparency at the world’s largest vendor of telecommunications gear – I can’t say I am surprised
Chinese Spies Accused of Using Huawei in Secret Australian Telecom Hack – Bloomberg – a key piece of evidence underpinning the U.S. efforts — a previously unreported breach that occurred halfway around the world nearly a decade ago. In 2012, Australian intelligence officials informed their U.S. counterparts that they had detected a sophisticated intrusion into the country’s telecommunications systems. It began, they said, with a software update from Huawei that was loaded with malicious code. The breach and subsequent intelligence sharing was confirmed by nearly two dozen former national security officials who received briefings about the matter from Australian and U.S. agencies from 2012 to 2019. The incident substantiated suspicions in both countries that China used Huawei equipment as a conduit for espionage, and it has remained a core part of a case they’ve built against the Chinese company, even as the breach’s existence has never been made public – so I was working on Huawei when Australia banned them from their national broadband initiative in 2013. My boss who was an ex-government guy had gone back to Australia to lobby for Huawei and three days later the guillotine dropped. This disclosure explains the why. China views Australia as its own personal colony. Am I surprised that the Chinese have a tailored access programme? No, but it shouldn’t be made any easier for them
Merck to invest NT$17 billion in Taiwan over next 5-7 years | DigiTimes – to set up production capacity for semiconductor and display materials and enhance R&D capability in Taiwan over the next 5-7 years, according to Merck Group Taiwan managing director John Lee. The investment is the largest as compared with the investment projects Merck has historically undertaken in Taiwan, Lee said. The investment is part of Level Up, Merck’s global investment plan with a total budget of over EUR3 billion (US$3.4 billion) and investment projects varying among different countries, Lee noted.
Taiwan opposition clings on for political relevance as voters shun Beijing | Financial Times – an overwhelming majority of Taiwanese reject unification with China, and over the past decade, the KMT’s support has gone into a tailspin. According to the Election Study Center at National Chengchi University, the proportion of voters identifying with the KMT has dropped to 18.7 per cent, compared with 31.4 per cent for the ruling Democratic Progressive party. – Not entirely surprising given the example that Beijing has provided with Hong Kong
A celebrity divorce spotlights declining China-Taiwan relations — Quartz – The controversies around the former couple, whose ups and downs are often compared in China to the US reality show Keeping Up With The Kardashians, paint a picture of the increasingly confrontational attitude in China towards Taiwan. For decades, citizens from both sides of the straits have sidestepped the tricky political relations of the Communist-ruled People’s Republic of China, and the democratically governed Republic of China (as Taiwan is formally called), to forge personal and professional ties. Taiwanese businesses have been integral to China’s economic advance, and music stars and actors from Taiwan have long found audiences in the mainland. That coexistence often relied on people on both sides dancing around what it means to be Taiwanese. “But as Chinese ultra-nationalism boils over under Xi [Jinping], there is no longer space for ambiguity between nationality and cultural identity,” said Joshua Yang, a doctoral student who tweets about Taiwanese identity and relations with the PRC. As opportunities for Taiwanese and Chinese residents to connect directly through study, work, or jobs shrink, it could harden attitudes in the mainland even further
Do the costs of the cloud outweigh the benefits? | The Economist – few aspects of modern life have made geeks drool more than the cloud, the cumulus of data centres dominated by three American tech giants, Amazon, Microsoft and Google, as well as Alibaba in China. In America some liken their position of impregnability to that of Detroit’s three big carmakers, Ford, General Motors and Chrysler, a century ago. During the covid-19 pandemic they have helped transform people’s lives, supporting online medical appointments, Zoom meetings and Netflix binges. They attract the brightest engineering talent. Amazon Web Services (aws), the biggest, is now part of business folklore. So it is bordering on heresy to argue, as executives at Andreessen Horowitz, a venture-capital firm, have done recently, that the cloud threatens to become a weight around the necks of big companies.
