Monday, Feb 010, 2025 // (IG): BB // GITHUB // SN R&D
China Retaliates Against U.S. Tariffs with $14 Billion in Trade Penalties
Bottom Line Up Front (BLUF): China has imposed retaliatory tariffs on $14 billion worth of U.S. goods, including liquefied natural gas, coal, crude oil, and farm equipment, in response to President Donald Trump’s new 10% tariffs on Chinese imports. Beijing also launched an antitrust investigation into Google and Illumina, blacklisted U.S. clothing brands, and restricted exports of key rare earth metals, critical for defense and renewable energy industries. With no immediate negotiations planned, analysts warn the U.S.-China trade conflict is escalating and could lead to broader economic disruptions.
Analyst Comments: The targeted export restrictions on rare earth metals could be particularly damaging, as the U.S. relies heavily on China for these critical materials used in semiconductors, EV batteries, and military equipment. If tensions continue to rise, expect further tariff escalations, supply chain disruptions, and geopolitical uncertainty in global markets. The April 1 deadline for the U.S. Trade Representative’s review of China’s trade commitments could be the next flashpoint, potentially leading to even stricter trade policies.
FROM THE MEDIA: China’s response to Trump’s latest 10% tariffs on Chinese imports, with Beijing implementing 10-15% levies on U.S. energy, automotive, and industrial goods. China also intensified its regulatory pressure on U.S. companies, launching investigations into Google and biotech firm Illumina, while blacklisting major American clothing brands. Additionally, China restricted exports of five rare earth metals, which are crucial for U.S. defense and technology sectors. Experts note that while China’s share of U.S. imports has declined since the first Trump-era tariffs, it still holds strategic leverage in critical supply chains. With Trump signaling no rush for negotiations, the trade conflict appears poised to deepen.
READ THE STORY: FT
Musk’s DOGE Team Under Fire for Security Risks in U.S. Government IT Overhaul
Bottom Line Up Front (BLUF): Elon Musk’s Department of Government Efficiency (DOGE) has reportedly gained access to critical U.S. government IT systems, including those managing Social Security, Medicare, and national infrastructure. Reports suggest that unvetted staffers, some with troubling cybersecurity histories, are making rapid and risky changes, potentially exposing federal networks to foreign adversaries like China and Russia. Lawmakers and security experts warn that the “move fast, break things” approach could create long-term national security vulnerabilities.
Analyst Comments: The allegations surrounding DOGE’s handling of federal IT infrastructure highlight the dangers of prioritizing speed over security. If reports of unauthorized access and poor cybersecurity practices are accurate, the risk of cyber espionage or accidental data leaks grows significantly. Given that China-linked hackers have already breached U.S. government networks, this rushed overhaul could weaken key protections and make sensitive data more vulnerable. Expect increased legal scrutiny, potential rollbacks of DOGE’s actions, and a push for stronger oversight on government IT modernization efforts.
FROM THE MEDIA: Reports suggest that unqualified staffers may have gained access to sensitive government databases, using personal email accounts for official business and possibly violating federal privacy laws. The Treasury Department, Energy Department, and other agencies handling classified data are reportedly affected. Lawmakers like Sen. Ron Wyden (D-OR) have labeled this a “national security nightmare,” while Sen. Susan Collins (R-ME) has questioned Musk’s level of influence over federal technology. Cybersecurity experts warn that reversing any damage and securing affected systems could take years.
READ THE STORY: Axios // The Register
Leaked Russian Report Reveals Growing Rift with Ex-Soviet Allies
Bottom Line Up Front (BLUF): A leaked Russian government report reveals deep concerns about Moscow’s weakening influence over former Soviet nations due to Western sanctions and growing economic ties between Central Asia and the West. The document, presented in April 2024 by Prime Minister Mikhail Mishustin, acknowledges that U.S. and EU pressure has pushed Russia’s neighbors toward alternative trade alliances, undermining Moscow’s efforts to establish a Eurasian trade bloc. While Belarus remains a strong ally, countries like Kazakhstan and Armenia are distancing themselves from Russia, highlighting fractures within Moscow’s regional strategy.
Analyst Comments: Russia’s long-term ambition to create a self-sufficient Eurasian economic bloc is facing significant setbacks. Western sanctions have successfully limited Russia’s financial and trade influence, driving Central Asian nations to seek alternative economic and diplomatic partnerships. The report’s candid admission that even historically close allies are reevaluating their ties underscores Moscow’s geopolitical vulnerability. If these trends continue, Russia may struggle to maintain its sphere of influence, leading to increased competition with China and Turkey, both of which are expanding their economic and cultural ties in the region.
FROM THE MEDIA: The report outlines Moscow’s ambition to create a “macroregion” trade bloc to rival the U.S., EU, and China, but admits that Central Asian nations are shifting away from Russian influence. Kazakhstan, for example, has condemned the Ukraine invasion and strengthened economic ties with the West, while Kyrgyzstan remains a key hub for alleged sanctions evasion. The report also points to language and education shifts—with English gaining ground over Russian—as signs of a deeper cultural and economic realignment away from Moscow.
READ THE STORY: FT
Huawei Defies Sanctions with 22% Revenue Growth in 2024
Bottom Line Up Front (BLUF): Defying U.S.-led sanctions, Huawei achieved ¥860 billion ($118.25 billion) in revenue for 2024, marking a 22% increase from the previous year. The company’s ICT sector remains robust, its consumer business is recovering, and its smart car solutions division is expanding rapidly. This growth underscores China’s ability to navigate trade restrictions and maintain technological momentum.
Analyst Comments: Strong domestic demand and alternative supply chains have enabled Huawei to thrive despite international sanctions. The company’s success suggests that China’s semiconductor industry is making progress in mitigating reliance on Western technology. Its expansion into smart automotive solutions could intensify competition with global automakers, raising concerns for U.S. and European policymakers. Looking ahead, Huawei’s resilience may encourage other Chinese firms to pursue similar strategies to counteract trade barriers.
FROM THE MEDIA: Chairman Liang Hua announced last week that the company met its 2024 revenue targets, as reported by Shenzhen Business Daily. Growth was driven by strong performance in ICT, a recovering consumer electronics division, and rapid advancements in smart vehicle technology. This comes despite continued U.S. sanctions restricting access to critical telecom and semiconductor components. The company’s ability to sustain growth highlights China’s determination to bolster domestic technology industries and reduce dependence on Western suppliers.
READ THE STORY: The Register
Marine Bacteria Found to Form Nanotube Networks, Redefining Ocean Ecology
Bottom Line Up Front (BLUF): Scientists have discovered that Prochlorococcus, one of the ocean’s most abundant photosynthetic bacteria, forms nanotube bridge networks to exchange nutrients and information with neighboring cells. This challenges long-held assumptions that these microbes exist as isolated individuals, instead revealing a vast, interconnected microbial network beneath the ocean's surface. These findings could reshape our understanding of marine ecosystems and global carbon and oxygen cycles.
Analyst Comments: The discovery of bacterial nanotube networks suggests that ocean microorganisms function more like cooperative, interconnected systems rather than isolated entities. This has profound implications for marine ecology, particularly in how nutrients and genetic material are exchanged in the open ocean. If these bacteria can share resources more efficiently than previously thought, models of oceanic carbon sequestration and oxygen production may need revision. Further research into the role of nanotube networks in marine ecosystems could provide insights into climate change mitigation and new biotechnological applications.
FROM THE MEDIA: Recent research from the University of Córdoba in Spain, where microbiologists observed Prochlorococcus bacteria forming membrane nanotube bridges to connect with neighboring Synechococcus bacteria. The study confirms that these nanotubes facilitate the exchange of nutrients and molecules, challenging previous assumptions about bacterial isolation in the ocean. Researchers used multiple imaging techniques to verify that the structures were not artifacts and confirmed the presence of these connections even in wild-collected ocean samples. This discovery could reshape marine microbiology, with potential impacts on climate science, biogeochemical cycles, and microbial ecology.
READ THE STORY: Wired
Cloudflare Aims to Reshape the Web for AI, Claims Major Efficiency Gains
Bottom Line Up Front (BLUF): Cloudflare has announced plans to reimagine the internet for the AI era, positioning itself as a key intermediary between content creators and AI-driven platforms. CEO Matthew Prince revealed the company is in early discussions to define business models for AI-generated content access. Additionally, Cloudflare claims to have developed AI inference optimizations that reduce hardware needs, potentially improving efficiency and lowering costs for AI firms. These moves align with its broader strategy of expanding its cloud and content delivery services amid increasing competition.
Analyst Comments: If implemented, this approach could impact AI model training practices and potentially restrict data scraping, a controversial issue in ongoing copyright lawsuits. The company’s AI inference efficiency claims suggest an effort to compete with cloud giants like AWS, Google Cloud, and Microsoft Azure, particularly in the growing AI infrastructure market. However, Cloudflare’s recent service outages and financial losses highlight potential operational risks as it scales these ambitious plans.
FROM THE MEDIA: The company aims to establish new compensation models for content owners, ensuring AI firms don’t freely scrape data without proper licensing. Additionally, Cloudflare’s engineers have developed AI inference optimizations—similar to China’s DeepSeek model—that could lower hardware requirements for running AI workloads. Despite reporting 27% revenue growth year-over-year, the company faced a $12.8 million net loss in Q4 2024 and suffered a major outage on February 6 due to human error, highlighting challenges in maintaining reliable services while expanding AI capabilities.
READ THE STORY: The Register
ByteDance's OmniHuman-1 Pushes Deepfake Realism to New Heights
Bottom Line Up Front (BLUF): ByteDance has unveiled OmniHuman-1, an advanced AI system capable of generating hyper-realistic deepfake videos from just a single image and an audio sample. Trained on 19,000 hours of video data, the model can manipulate body proportions, edit existing footage, and produce convincing fake content. While ByteDance has not released the system publicly, experts warn that similar technology may soon be widely available, escalating concerns about misinformation, fraud, and security risks.
Analyst Comments: The increasing sophistication of deepfake technology presents a major challenge for digital security and trust. OmniHuman-1 demonstrates how AI-generated content is quickly surpassing previous detection capabilities, making it harder to identify fakes. Political actors, cybercriminals, and fraudsters could exploit such advancements for disinformation campaigns, financial scams, and identity theft. While some jurisdictions have introduced regulations to combat deepfakes, enforcement remains difficult.
FROM THE MEDIA: Chairman Liang Hua announced last week that the company met its 2024 revenue targets, as reported by Shenzhen Business Daily. Growth was driven by strong performance in ICT, a recovering consumer electronics division, and rapid advancements in smart vehicle technology. This comes despite continued U.S. sanctions restricting access to critical telecom and semiconductor components. The company’s ability to sustain growth highlights China’s determination to bolster domestic technology industries and reduce dependence on Western suppliers.
READ THE STORY: Asia Tech Review // TC
Chinese Espionage Suspected in AI Race as U.S. Charges Ex-Google Engineer
Bottom Line Up Front (BLUF): The U.S. Department of Justice (DOJ) has charged Linwei “Leon” Ding, a former Google engineer, with stealing AI-related trade secrets and transferring them to personal accounts while secretly working with China-based technology firms. This comes amid growing concerns over China’s economic espionage and allegations that companies like DeepSeek may be leveraging stolen intellectual property to compete with U.S. firms. The case highlights the ongoing risks of Chinese cyber-espionage and the need for stronger protections of AI research.
Analyst Comments: China’s aggressive push for AI supremacy has often been linked to intellectual property theft, and the indictment of Ding reinforces the broader concerns about U.S. vulnerabilities. The case also raises questions about whether China-based AI firms, such as DeepSeek, have benefited from stolen research. With AI now considered a critical technology for economic and national security, expect increased scrutiny, tighter export controls, and further espionage-related prosecutions. If espionage allegations continue, U.S. lawmakers may push for stronger restrictions on Chinese AI firms operating in the country.
FROM THE MEDIA: Prosecutors claim Ding transferred more than 1,000 sensitive files related to Google’s AI infrastructure to his personal cloud storage while working secretly with China-based tech firms. The case has sparked concerns about whether companies like DeepSeek, which recently claimed AI advancements comparable to U.S. firms, may have used stolen technology. OpenAI has also accused DeepSeek of using distillation techniques to copy its models. U.S. officials and cybersecurity experts warn that China’s systematic cyber-espionage campaign could undermine American leadership in AI.
READ THE STORY: Just The News
DeepSeek’s iOS App Raises Major Security and Privacy Concerns
Bottom Line Up Front (BLUF): Security researchers at NowSecure have found that DeepSeek’s iOS app, currently one of the most popular on the App Store, suffers from severe security vulnerabilities. The app transmits data in plaintext, uses outdated encryption methods, stores credentials insecurely, and extensively fingerprints users—while also sending user data to China. Additionally, its reliance on ByteDance’s Volcano Engine cloud service raises concerns about connections to TikTok’s parent company. In response, U.S. lawmakers have introduced a bill to ban DeepSeek from government devices.
Analyst Comments: DeepSeek’s security flaws reinforce concerns about Chinese apps collecting and transmitting user data to state-linked entities. Given that the app ranks among the top three most downloaded on the App Store, its widespread use poses a significant privacy risk, particularly for businesses and government agencies. The involvement of ByteDance’s cloud services further complicates matters, as TikTok has already faced scrutiny over its data handling practices. If security weaknesses remain unaddressed, expect increased regulatory actions, app store removals, and heightened scrutiny of Chinese AI applications.s may push for stronger restrictions on Chinese AI firms operating in the country.
FROM THE MEDIA: The app’s poor encryption practices leave sensitive data vulnerable, while its extensive fingerprinting capabilities raise major privacy concerns. Notably, DeepSeek admits in its privacy policy that it sends user data to China, where it is reportedly accessible by state-affiliated entities. The app’s connection to ByteDance’s Volcano Engine cloud service further escalates national security concerns. In response, U.S. lawmakers have proposed the No DeepSeek on Government Devices Act, aiming to prohibit the app from being used within federal agencies.
READ THE STORY: The Register
Trump's Steel and Aluminum Tariffs Shake Global Markets
Bottom Line Up Front (BLUF): President Donald Trump has announced a new 25% tariff on all imported steel and aluminum, adding to existing duties. The move has triggered concerns among global steelmakers, particularly in South Korea, Canada, Brazil, and Mexico, who fear reduced U.S. demand and higher costs. Asian and European markets reacted negatively, with shares of steel producers falling and governments scrambling for exemptions. Analysts warn the tariffs could disrupt global trade patterns, push inflation higher, and weaken economic growth.
Analyst Comments: Trump’s renewed protectionist stance signals a broader shift toward economic nationalism, likely escalating trade tensions with key allies and trading partners. Countries such as South Korea and Australia are already seeking exemptions, but if they are denied, retaliatory tariffs or shifts in trade flows could follow. While U.S.-based producers may benefit in the short term, manufacturers relying on imported metals—including the auto, construction, and defense industries—could face rising costs, ultimately impacting consumers. This move also risks reigniting a trade war with China, potentially affecting other industries beyond metals.
FROM THE MEDIA: South Korean steel firms, including Hyundai Steel and Dongkuk Steel, expressed concerns about price hikes and reduced U.S. exports, while India’s metals index fell by 2.5%. Analysts note that U.S. import reliance remains high—40-45% for aluminum and 12-15% for steel—which could lead to increased domestic prices. Some nations, such as Australia, argue their exports benefit U.S. jobs and security interests, pushing for exemptions. Meanwhile, experts warn the tariffs could weaken global demand and shift steel trade flows toward Europe and Asia, further complicating international supply chains.
READ THE STORY: Reuters
Items of interest
China Initiates Global Call for Next-Generation Cryptographic Algorithms
Bottom Line Up Front (BLUF): The Institute of Commercial Cryptography Standards (ICCS) of China has announced the launch of the Next-generation Commercial Cryptographic Algorithms Program (NGCC) to address the emerging threats posed by quantum computing. The program invites global submissions for public-key cryptographic algorithms, cryptographic hash algorithms, and block cipher algorithms, aiming to standardize robust cryptographic measures for future security challenges.
Analyst Comments: Quantum computing presents a significant challenge to current cryptographic systems, as its advanced computational capabilities could potentially break traditional encryption methods. Recognizing this, the ICCS's proactive initiative seeks to develop and standardize cryptographic algorithms resilient to quantum attacks. By soliciting global contributions, the program emphasizes international collaboration in enhancing cryptographic security. The evaluation process will focus on the security, performance, and additional features of the submitted algorithms, with successful candidates considered for standardization.
FROM THE MEDIA: Unlike traditional deepfakes that often reveal subtle flaws, OmniHuman-1 produces convincing facial expressions, lip-syncing, and full-body movements. The AI system’s ability to modify video footage—including adjusting body proportions and altering gestures—raises concerns about its potential misuse. In 2024, political deepfakes were used to spread misinformation in Taiwan, Moldova, and South Africa, demonstrating the real-world impact of this technology. Financial fraud involving deepfake impersonations also surged, with AI-generated scams contributing to over $12 billion in losses.
READ THE STORY: NICCS
China Has Not Broken Your Encryption (Video)
FROM THE MEDIA: Chinese Scientest have broken RSA with quantum computers, and the actual state of asymmetric encryption security against classical and current generation quantum computers.
China broke HTTPS/RSA encryption with quantum computers - Explained (Video)
FROM THE MEDIA: Chinese scientists who demonstrated that D-Wave’s quantum computers can break RSA encryption and threaten widely used cryptographic methods, emphasizing the urgency for quantum-safe solutions.
The selected stories cover a broad array of cyber threats and are intended to aid readers in framing key publicly discussed threats and overall situational awareness. InfoDom Securities does not endorse any third-party claims made in its original material or related links on its sites; the opinions expressed by third parties are theirs alone. For further questions, please contact InfoDom Securities at dominanceinformation@gmail.com.