• Beijing's Typhoons Wreaking Havoc: US-China Chip War Heats Up as Hackers Target Critical Infrastructure

  • Dec 31 2024
  • Length: 3 mins
  • Podcast

Beijing's Typhoons Wreaking Havoc: US-China Chip War Heats Up as Hackers Target Critical Infrastructure

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  • This is your Beijing Bytes: US-China Tech War Updates podcast.

    Hey there, I'm Ting, and welcome to Beijing Bytes, your go-to source for the latest US-China tech war updates. Let's dive right in.

    The past two weeks have been a whirlwind of cybersecurity incidents, new tech restrictions, and policy changes that are reshaping the landscape of US-China technology competition. Just a few days ago, the FBI and other US federal agencies sounded the alarm on China's Volt Typhoon crew, which has been conducting reconnaissance and enumeration of American electric companies since early 2023. This isn't your typical cyber espionage; Volt Typhoon is pre-positioning itself to disrupt critical infrastructure and cause societal chaos[1].

    But that's not all - another Beijing hacking unit, Salt Typhoon, has broken into American telecommunications networks in what's being called the "worst telecom hack in our nation's history." The attacks are ongoing, and we still don't know the full scope of what they're doing, as Jeff Greene, CISA's executive assistant director for cybersecurity, pointed out[1].

    Meanwhile, the US-China chip war is heating up. The US has imposed new restrictions on semiconductor exports to China, targeting high-bandwidth memory (HBM) sales. This move aims to keep China at least two generations behind the curve, as Chinese manufacturers have not yet mastered HBM2E. Huawei's flagship AI processors, for instance, still rely on Samsung-produced HBM2E[4].

    The Chinese semiconductor industry is feeling the pinch, with imports expanding ahead of new US restrictions. China imported a total of 501.47 billion integrated circuits from January to November, up 14.8% from the same period last year[3]. However, experts like Paul Triolo note that China is pushing forward with its own semiconductor development, focusing on new design architectures and microsystem integration[2].

    The strategic implications of these developments are far-reaching. The US is trying to contain China's rise, but Beijing views this as a whole-of-government effort to suppress its national strategy. The PRC is expanding its domestic efforts to develop new capabilities and maintain independent supply chains, as outlined in the latest Military and Security Developments Involving the People's Republic of China report[5].

    As we head into 2025, one thing is clear: the US-China tech war is only going to intensify. Stay tuned for more updates from Beijing Bytes, and remember, in the world of cybersecurity, vigilance is key. That's all for now; I'm Ting, signing off.

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