Inside Apple’s Controversial Relationship With the Chinese Government

On Monday, the New York Times published an investigative piece about Apple’s relationship with the Chinese government, and how it has to comply with its laws there.

Internal Apple documents reviewed by The New York Times, interviews with 17 current and former Apple employees and four security experts, and new filings made in a court case in the United States last week provide rare insight into the compromises Mr. Cook has made to do business in China. They offer an extensive inside look — many aspects of which have never been reported before — at how Apple has given in to escalating demands from the Chinese authorities.

Report Links Apple Suppliers With Alleged Forced Labor Programs for Uyghur Muslims in China

Seven Apple suppliers have been linked to forced labor programs that are suspected to be related to the alleged Chinese genocide of Uyghur Muslims in the country’s Xinjiang region. That’s according to a new human rights report shared with The Information, picked up on by AppleInsider.

The Apple supply chain partner produce components, coatings, and offer assembly services to the Cupertino tech giant. At least five received thousands of Uyghur and other oppressed minority workers at specific plants that did work for Apple, according to an investigation by human rights groups and The Information. According to the report, evidence suggests that Advanced-Connectek, Luxshare Precision Industry, Shenzhen Deren Electronic Co., Avary Holding, AcBel Polytech, CN Innovations, and Suzhou Dongshan Precision Manufacturing Co. participated in the forced labor programs. To identify those manufacturers and supply partners, the investigation used previously unreported public statements, images, and videos by Chinese government offices and state-run media organizations. That evidence found that the companies participated in what the Chinese call a poverty alleviation program.

Belgium Drops Huawei in Favor of Nokia 5G Contracts

Amid U.S. pressure to exclude Chinese company Huawei from 5G infrastructure, Belgium is moving forward to work with Nokia.

The Belgian capital Brussels is home to the NATO alliance and the European Union’s executive and parliament, making it a matter of particular concern for U. S. intelligence agencies.

“Belgium has been 100% reliant on Chinese vendors for its radio networks – and people working at NATO and the EU were making mobile phone calls on these networks,” said John Strand, an independent Danish telecoms consultant.

“The operators are sending a signal that it’s important to have access to safe networks.”

CISA Believes China Hacked US Government Systems

According to the Cybersecurity and Infrastructure Security Agency, Chinese-affiliated hackers have compromised U.S. government computer systems.

“This beaconing is a result of cyber threat actors successfully completing cyber operations that are often designed around emergent vulnerabilities and reliant on existing exploitation tools,” the advisory states. “CISA observed activity from a Federal Government IP address beaconing out to the threat actors’ [command and control] server.”

Get we just get it together for 10 seconds, please?

China Would Rather TikTok Be Shut Down Than Sold

A report on Friday says that China would rather TikTok be shut down instead of being sold to a U.S. company.

However, Chinese officials believe a forced sale would make both ByteDance and China appear weak in the face of pressure from Washington, the sources said, speaking on condition of anonymity given the sensitivity of the situation.

ByteDance said in a statement to Reuters that the Chinese government had never suggested to it that it should shut down TikTok in the United States or in any other markets.

Here’s what I think this means. China is all about the AI, and based on reports its algorithms seem to be more advanced than even invasive Facebook. China doesn’t want the U.S. to know just how more advanced it’s algorithms are. Read: China export ban of such technology.

Trump’s China App Ban Will Affect Apple Due to WeChat

President Trump’s ban on Chinese apps, in particular WeChat, is going to affect Apple, writes Michael Kan.

Forty-five days from now, the White House can begin punishing US companies and individuals for making “transactions” that are related to WeChat. That means Apple will likely need to pull the product from the iOS app store.

“For Apple, it would be all iPhone sales in China will go to zero because no one in China will buy a WeChatless phone,” tweeted podcaster Carl Zha.

As I understand it, WeChat is THE most popular app in China. It’s what Facebook aspires to be with Messenger. It’s used for everything like messaging, mobile payments, a hub for businesses, etc. Like Mr. Kan notes, it won’t affect Google because apps can be sideloaded on Android. But the App Store is the single repository of iOS apps.

White House in Talks With Intel, TSMC to Build U.S. Chip Foundries

Officials at the White House are reportedly in talks with Intel and TSMC to build semiconductor facilities in the United States.

U.S. tech companies and the government have been trying to reduce the country’s dependence on chip factories in Asia for years, underscored by national security concerns […]

In an April 28 letter obtained by the WSJ, Intel CEO Bob Swan told Defense Department that the company is willing to build a commercial foundry in partnership with the Pentagon “given the uncertainty created by the current geopolitical situation.”

The newspaper reports that TSMC has been in talks with Commerce and Defense department officials and Apple, one of the biggest clients, about building a semiconductor factory in the U.S.

Corporations have spent the last 30 or so years moving manufacturing to China in search of cheap labor. Did they not expect China to start competing with them?

Zoom: Don’t Want to Get Routed Through Chinese Servers? Fork Over Your Cash

One of Zoom’s controversies is how it routes some of its network traffic through China’s servers. If you’re privacy conscious, you can opt out of specific data center regions starting April 18. But this is only for paying customers.

This feature gives our customers more control over their data and their interaction with our global network when using Zoom’s industry-leading video communication services.

I can’t say I agree. It’s not about making privacy a paid feature, it’s that Zoom is exploiting its own insecurity to create a paid feature. Next step: Making end-to-end encryption a paid feature, and leaving free users to fend for themselves.

“Mexico is the China of the Americas”

Here’s another thing to put on your technology watch lists. Due to a combination of the economic consequences of the coronavirus and the trade war between the U.S. and China, many U.S. companies are moving their manufacturing out of China. Consulting firm Kearney publishes its Reshoring Index [PDF].

Kearney predicts companies “will be compelled to go much further in rethinking their sourcing strategies, (and) their entire supply chains.”

Amid other companies, Mexican manufacturing is one possible fork in Apple’s road, along with Vietnam. As Forbes states, the U.S. can’t compete with China on labor costs, and I bet few Western countries can. I don’t know what the cost is to manufacture in Mexico, but the country likely carries less risk than China.

Zoom’s Encryption is Linked to Chinese Servers

Researchers found that Zoom uses its own encryption scheme, sometimes using keys issued by China.

Some of the key management systems — 5 out of 73, in a Citizen Lab scan — seem to be located in China, with the rest in the United States. Interestingly, the Chinese servers are at least sometimes used for Zoom chats that have no nexus in China. The two Citizen Lab researchers, Bill Marczak and John Scott-Railton, live in the United States and Canada. During a test call between the two, the shared meeting encryption key “was sent to one of the participants over TLS from a Zoom server apparently located in Beijing,” according to the report.

I don’t have further commentary on Zoom, other than asking, “How will this end?”