The corporate law, part of China’s broader strategy to strengthen its influence over foreign companies, could give Beijing unprecedented access to sensitive information held by U.S. corporations. According to sources familiar with the matter, these “representatives” are likely to have strong ties to Chinese authorities or even be active CCP members. This setup has sparked concern over intellectual property theft, surveillance, and coercion of employees.

Espionage Fears and National Security Risks

The inclusion of employee representatives within corporate boards raises significant security concerns, especially for tech giants like Microsoft, which employs over 10,000 people in China. One anonymous U.S. House aide explained, “They can tell a [Chinese intelligence] agent, ‘This is the person you need to talk to. If you want to coerce them, here’s who they are… I have access to employee data. This is their wife. This is where they live. This is where their kid goes to school.’”

Paul Rosenzweig, a former Homeland Security official, warned that China’s strategy has shifted from external control of corporations to embedding operatives internally. “Now they’re adding an internal control, an employee representative. If you wanted to be ungenerous, you could call him a Communist Party spy,” he said.

Microsoft in the Crosshairs

Microsoft’s presence in China is under heightened scrutiny, not only because of the number of employees it has in the country but also because of the nature of its software, which is deeply integrated into critical infrastructure in the United States. The company has already faced significant cyber threats from Chinese hackers. Last year, Chinese cyber actors infiltrated the email accounts of Commerce Secretary Gina Raimondo and other U.S. officials through Microsoft systems, exacerbating the concerns surrounding the company’s operations in China.

Microsoft executive Brad Smith, during a congressional hearing earlier this year, suggested that the company is largely immune from certain Chinese laws. “There are two types of countries in the world,” Smith said. “Those that apply every law they enact, and those who enact certain laws but don’t always apply them. And in this context, China, and that law, is in the second category.”

However, this stance has not comforted lawmakers. Rep. Carlos Gimenez (R-Fla.) warned that the company’s entanglements in China are becoming increasingly perilous, saying, “Sooner rather than later, all of these corporations are going to find that they’re going to be absorbed into the CCP and into China.” He urged firms to extricate themselves from the region, highlighting the potential dangers of continuing operations under the new legal framework.

Broader Implications for Foreign Companies

The new corporate law could apply to a range of foreign firms beyond Microsoft. Other multinational corporations, particularly those in technology and defense-related industries, are likely to face similar risks. The law’s provisions allow the CCP to wield greater control over internal corporate affairs, potentially giving China an edge in technology transfers and intellectual property theft.

The law’s timing is particularly concerning given that U.S. firms, including Microsoft, are developing advanced technologies like artificial intelligence, which could be critical in maintaining global competitive advantage. According to a House aide, “The corporate law is one method through which China could put pressure on them to keep the AI lab… What they’re going to do is just steal all the data, every single bit of data.”

Political Responses

U.S. lawmakers have been vocal in their opposition to China’s growing influence over foreign businesses. Sen. Marsha Blackburn (R-Tenn.) described China’s latest corporate move as part of an ongoing strategy of intellectual property theft. “Beijing’s latest move, which will likely embed CCP officials further into companies, shows how far the government’s grasp extends,” she said.

Rep. John Moolenaar (R-Mich.), chairman of the House Select Committee on China, added that no company in China can be considered truly private. He warned American firms to be vigilant: “The Chinese Communist Party will settle for nothing less than complete control at your expense.”

Massive Intellectual Property Theft Concerns

China’s new corporate law represents a watershed moment in the country’s relationship with foreign businesses. By embedding CCP-linked representatives within corporate boards, the Chinese government is extending its reach into the internal workings of U.S. firms, raising concerns about security and intellectual property theft. For companies like Microsoft, which have long sought to balance their global interests, this latest development may force a critical reassessment of their presence in China.

As Derek Scissors, chief economist of the China Beige Book, noted, “The company law will be interpreted in whatever way the CCP deems fit at the time, so none of the revisions matter.” Firms now face an uncomfortable choice: adapt to China’s rules or risk exposure to espionage and coercion.

The US has been systematically working to limit China’s access to advanced semiconductor technology, as have many US allies. According to Bloomberg, the US has withdrawn licenses that allowed both American companies to continue selling some semiconductors to Huawei under certain circumstances. The chips in question were reportedly for Huawei phones and laptops.

“It’s blocking any chips sold to Huawei,” said House Foreign Affairs Committee Chairman Michael McCaul. “Those are two companies we’ve always worried about being a little too close to China.”

The move underscores the ongoing tensions between the US and China, tension which shows no sign of abating.

According to Nikkei Asia, Tesla drivers are increasingly being turned away from venues and premises that are run by or affiliated with the government. The list of places includes exhibition centers, cultural centers, local authority agencies, government affiliates, and highway operations, in addition to military bases that were already off limits.

“If you have a meeting there, the meeting organizer will actually give you notice ahead of time and ask that you don’t drive or hire a Tesla car,” one individuals said about the Grand Halls, a state-backed conference center in Shanghai’s North Bund district. “You cannot enter the venue with a Tesla car.”

There has been growing concern in China about data security as it pertains to the data Teslas collect. As Nikkei points out, Tesla has tried to address these concerns by opening a data center in China and promising that all data collected by Teslas in-country would be stored there, rather than be stored overseas.

The timing of the increased restrictions on Tesla is interesting, especially in light of Musk’s recent visit to China. During that visit, he and Premier Li Qiang discussed the company’s expansion in China, with Li Qiang praising Tesla’s contribution to the country’s EV market.

Despite the show of goodwill, it appears Tesla may be the latest casualty in the escalating tension between the US and China. The US recently passed legislation that would force Chinese company ByteDance to divest its US TikTok operations or face a ban, citing national security concerns. China has long warned that a ban on TikTok would would be met with retaliation.

If the US/China tensions continue to escalate, Tesla and its customers won’t be the last to face increased restrictions.

Musk’s journey to Beijing marks a pivotal moment for Tesla as it navigates China’s complex regulatory environment. By partnering with Baidu, known for its substantial advancements in mapping and autonomous driving technology, Tesla aims to integrate local expertise in navigating the regulatory landscape and refining its technology to meet stringent local standards.

Strategic Partnership with Baidu

The collaboration with Baidu is expected to enhance Tesla’s mapping and navigation capabilities, which are essential for operating its semi-autonomous driving technology. This move is seen as a strategic alignment with a local powerhouse to ensure the adaptation of Tesla’s technology with China’s unique geographic and regulatory requirements.

“Baidu’s deep understanding of Chinese road and traffic conditions will be invaluable in tailoring our Full Self-Driving technology to China’s specific needs,” said a Bloomberg commentator. This partnership is not just about leveraging Baidu’s capabilities but is a robust response to the geopolitical and technological challenges foreign companies face in China.

Musk’s Vision for Electric Vehicles

During his visit, Musk expressed optimism about the future of electric vehicles. “It’s good to see electric vehicles making progress. All cars will be electric in the future,” he remarked, underscoring his commitment to leading the global transition towards sustainable transportation. His visit also included discussions with high-level Chinese officials, indicating the importance of Tesla’s business in China not just for sales but as a critical component of its global supply chain and manufacturing capabilities.

Regulatory Hurdles and Technological Integration

The primary goal of Musk’s visit was to navigate the regulatory landscape to facilitate the approval of Tesla’s Full Self-Driving system in China. China’s regulatory environment is notoriously stringent, with specific national security and data privacy concerns. Tesla’s engagement at this high level suggests a proactive approach to compliance and collaboration.

The partnership with Baidu is a critical element in overcoming these obstacles. By aligning with a respected and well-connected local entity, Tesla aims to gain regulatory favor and a strategic ally in its long-term goals. “This partnership will allow us to combine our advanced technologies with Baidu’s capabilities in artificial intelligence and autonomous driving, setting a new standard for autonomous vehicles in China,” added the Tesla spokesperson.

Looking Forward

The implications of this partnership extend beyond the immediate technological and regulatory milestones. For Tesla, this is about setting a precedent for how it can operate in restrictive environments globally. China serves as a test bed for adapting Tesla’s business model and technological prowess to fit local markets, which could serve as a blueprint for expansions into other regions.

As Tesla moves forward with its plans in China, the automotive and tech industries watch keenly. This collaboration between Tesla and Baidu signifies a melding of technological strengths and illustrates how strategic partnerships can help advanced technologies find a place in global markets under complex regulatory frameworks.

In the broader context of Tesla’s global strategy, the success of its Full Self-Driving technology in China could catalyze further international expansions, possibly influencing future collaborations with other tech giants and governments. As Musk aptly puts it, the future is electric, and with Tesla’s latest moves, it also seems increasingly interconnected.

The US has been working to restrict tech—especially networking tech—from Chinese firms over concerns about national security. Those efforts have seen the likes of Huawei, ZTE, and others banned from US networks. According to The Wall Street Journal, China is retaliating by giving its own telecom companies a 2027 deadline to phase out and remove chips from AMD and Intel.

China has been pouring billions into its semiconductor industry in an effort to make it competitive with US companies, as well as Taiwan and South Korea. Beijing’s efforts have been hampered by other countries joining the US in restricting its access to advanced chip tech. China has pushed back, trying to pressure the Netherlands to grant it access to ASML’s extreme ultraviolet lithography (EUV) machines.

So far, China’s efforts appear to be having mixed results. Early reports indicated the country’s semiconductor industry was on the verge of collapse as a result of the sanctions. Despite the setbacks, Huawei surprised the industry and US officials when it released the Mate 60 Pro with a 7nm chip made by Chinese firm SMIC. Despite being caught offguard, Commerce Secretary Gina Raimondo voiced her belief that China still lacked the ability to produce such chips at scale.

“I was obviously upset when I saw the [Huawei announcement for the Mate 60],” Raimondo said. “The only good news I can offer is that we have no evidence they can produce 7 nanometers at scale.”

Beijing’s deadline to phase out AMD and Intel from network equipment would seem to indicate that Chinese officials believe they are close to being able to end their dependence on foreign chips.

The move is sure to hit AMD and Intel hard, as WSJ points out, since the two companies provide the bulk of the chips used in China’s networking equipment. The news also comes at a time when Intel is looking to revitalize its foundry business and is trying to gain customers around the world.

The US House voted 352-65 to ban TikTok or force parent company ByteDance to sell it. A number of high-profile executives have expressed interest in buying the platform, most notably Kevin O’Leary and Bobby Kotick.

While some have expressed concern over the precedent a TikTok ban raises, experts are praising the move as one that was needed and long overdue.

“This action may be justified and long overdue, but TikTok is just the tip of a very big iceberg that a single bill can’t sink,” said Chris Olson, President at The Media Trust, in a statement to WPN. “Foreign actors are constantly targeting young Internet users and other vulnerable groups through websites, apps, social media and entertainment platforms with total impunity.

“Few in Washington realize that our digital borders are completely open, allowing anyone to spy on Americans, spread misinformation and manipulate the youth with addictive algorithms as they please. Making a meaningful difference will require far more comprehensive initiatives, both from government officials and industry leaders.”

Similarly, experts say the ban is an important part of addressing cybersecurity concerns, but more is needed.

“TikTok, owned by ByteDance, presents significant cybersecurity concerns for the United States, primarily due to the potential exploitation of its vast user base and the Chinese company’s access to user data,” Lisa Plaggemier, Executive Director of The National Cybersecurity Alliance, said in a statement. “Beyond the immediate privacy implications, there are fears that TikTok could be leveraged as a tool for misinformation campaigns and data collection by foreign actors, particularly the Chinese government. The scale of TikTok’s user engagement, combined with China’s track record of aggressive cyber activities, raises the specter of sophisticated cyber threats targeting American users, including surveillance, data breaches, and manipulation of online discourse.

“Moreover, TikTok’s popularity among both adults and children amplifies the potential impact of these cyber threats, as sensitive personal information could be compromised, and disinformation campaigns could spread rapidly. The platform’s interactive nature and extensive reach make it an attractive target for malicious actors seeking to undermine national security or advance foreign interests. As such, policymakers face the critical task of balancing the benefits of information sharing and social connectivity with the imperative to protect citizens from cyber vulnerabilities inherent in platforms like TikTok. Continued investment in cybersecurity infrastructure and regulations is essential to mitigate these risks and uphold the integrity of digital ecosystems in an increasingly interconnected world.”

Experts warn that other platforms will need to continue to fight misinformation, especially with TikTok shut down as a channel for such activity.

“A ban on the platform could disrupt the dissemination of false or misleading information to its vast user base, potentially mitigating the harmful effects of viral misinformation campaigns,” James Mawhinney, CEO of Media.com, explained in a statement. “However, it’s crucial to recognize that the issues of disinformation and online manipulation are not confined to TikTok alone. Other platforms, including Facebook, Twitter, and YouTube, have grappled with similar challenges, highlighting the need for comprehensive approaches to combating misinformation across the digital landscape.

“Furthermore, a nation-wide ban on TikTok could have ripple effects across the broader social media ecosystem. With TikTok’s absence, users may flock to alternative platforms in search of similar content experiences, potentially amplifying the user base of competing apps. This influx of users could reshape the dynamics of the social media landscape, influencing trends in content creation, user engagement, and platform competition. Additionally, the ban could prompt other social media companies to reevaluate their own data security practices and ties to foreign entities, as scrutiny over tech regulation intensifies.”

One thing is clear: A TikTok ban represents uncharted waters, and will have repercussions that will ripple out for some time.

According to The Wall Street Journal, Kotick has discussed the possibility of purchasing TikTok with potential partners. He reportedly discussed the deal with OpenAI CEO Sam Altman among others, opening the door to OpenAI using data from TikTok for AI training. 

TikTok has been in US crosshairs for years. The company has had repeated privacy scandals, and its parent company’s strong ties with Beijing have raised ongoing national security concerns. Those concerns have seemingly been validated by the company’s actions, such as using TikTok to surveil Forbes journalists. 

Most recently, the House Energy and Commerce Committee unanimously voted to advance a bill that could lead to a ban on the social media app, according to CNN. TikTok’s efforts to enlist its users in opposition to the bill backfired, leading lawmakers to double-down on their concerns.

Kevin O’Leary has also emerged as a potential buyer, and may be seen as a better option. Kotick’s tenure at Activision included accusations that he turned a blind eye to discrimination and sexual harassment.

The US and its allies have been trying to strangle China’s chip-making industry, cutting off access to advanced technology, especially that which can be used to power AI models. Chinese scientists have been working to circumvent US bans, but China’s tech industry was reportedly on the verge of collapse in late 2022. Despite the challenges it has faced, China has managed to surprise the world, debuting a 7nm chip that critics thought it was incapable of producing.

According to Bloomberg, China’s National Integrated Circuit Industry Investment Fund is in the process of raising the country’s biggest chip fund yet, a whopping $27 billion. The money will be used to help fund advanced semiconductor design and manufacturing and help the country become independent from US tech.

Farfetch plans to use their IPO windfall to dramatically improve their technology which they see as the best way to improve the consumer experience.

Farfetch Founder and CEO José Manuel Ferreira Neves recently discussed Farfetch and the online luxury brand industry on Bloomberg:

Online Luxury is Growing 25 Percent a Year

It’s a very unique opportunity. You have this amazing global industry. It’s $300 billion, the personal luxury goods industry and only 9 percent is online. There are two opportunities here really. One is the growth of online luxury which is going to grow to 25 percent a year for the next seven years. This is a $100 billion opportunity shift in online luxury.

The big question is how is technology going to help brands and retailers really improve the consumer experience in the physical store. This is something at Farfetch that we are very passionate about.

China is an Incredible Opportunity for Online Luxury

China is a very exciting opportunity. Chinese citizens are at the onset of the luxury industry, whether they shop at home or when they’re shopping abroad. Online penetration is very low in China so this means that there is an incredible growth runway for Farfetch in the territory.

That led to our partnership with JD.com where we have our own team. We have the Farfetch China app and website, we have local customer service, local payment systems, and local marketing. It’s a truly localized service. That is what’s driving incredible growth to the Farfetch brand in that region.

José Neves, founder and CEO of @farfetch, told us about the company’s grand ambitions for China at the WWD’s Men’s Wear Summit this week. https://t.co/MrMj7y5VCG

— Jing Daily | 精日传媒 (@JingDaily) March 29, 2018

WeChat is an amazing app with over 900 million users. It is the Instagram, plus WeChat, plus PayPal, etc. of China in one app. That is very powerful and very interesting. Now with our acquisition CuriosityChina we are powering the retail presence of 80 luxury brands. We think that is very interesting for the industry and we think that is probably something that we will see for the western world.

How Farfetch plans to capture the growth in online luxury e-commerce https://t.co/t9HI0igMFV pic.twitter.com/RjvAel79li

— Bloomberg TV (@BloombergTV) September 21, 2018

Brands Now Using Social and Digital Marketing Extensively

I think brands move cautiously and they choose their marketing channels very carefully. As these newer channels have developed the brands have adapted to them and their now using social media and digital media extensively to create desire, to drive discovery of new products obviously transactions as well.

It’s a gradual pace but it’s really exciting that were at that inflection point where the brands see this as a tremendous opportunity.

According to AppleInsider, the stock target cut came after Apple’s recent earnings report. The company revealed that its China iPhone sales declined “only mid-single digits.” Nonetheless, when combined with an 11% year-over-year revenue decline in China, JPMorgan opted to cut the stock price.

“Apple looked to explain the F2Q revenue outlook for a roughly -5% decline y/y through the tougher compares on account of the iPhone supply fill-in during F2Q last year,” wrote JP Morgan in a note seen by AppleInsider, “excluding which revenues are expected to track flat y/y despite a tough macro backdrop.”

“However, putting aside the comparables, the key driver of the weaker outlook for the company in F2Q relative to expectations, which has more reaching consequences to the outlook beyond F2Q, is primarily the headwinds to Macs, iPad, and Wearables,” the note continues.

The firm also raised concerns about Apple’s non-iPhone hardware sales, such as the Mac and iPad.

“While iPhones contribute a large majority of Product revenues for the company, and minor variances even in relation to comparables drive a significant variance in the financials,” the note says, “we believe the bigger concerns from the EPS print will be demand for the other Hardware product categories.”

Given the importance of the Chinese market to Apple’s growth, a decline in sales could spell trouble if the company cannot reverse it.

The US has been passing export restrictions to prevent China from accessing the most advanced semiconductors, and especially those that can be used to power generative AI models. In response, Nvidia has designed chips specifically for the Chinese market, chips that fly under US sanctions but still give China some of the performance it’s seeking.

According to Fortune, US Commerce Secretary Gina Raimondo has laid down the gauntlet, warning Nvidia not to continue the practice:

“I know there are CEOs of chip companies in this audience who were a little cranky with me when I did that because you’re losing revenue,” she said. “Such is life. Protecting our national security matters more than short-term revenue.”

Speaking specifically to Nvidia, she continued:

“If you redesign a chip around a particular cut line that enables them to do AI, I’m going to control it the very next day,” Raimondo said.

The statements mark a significant escalation of the US’ efforts to isolate China’s tech industry.

TikTok has been under fire for the last several years over its privacy practices, and concerns that it serves as a conduit for Beijing’s espionage efforts. While US government agencies and jurisdictions have banned TikTok from government devices, Montana was the first state to implement a total ban.

According to Reuters, US District Judge Donald Molloy has shot down the ban with a preliminary injunction, citing freedom of speech. Judge Molloy says the ban “oversteps state power and infringes on the constitutional rights of users.”

While Montana’s ban targeted TikTok, it did not target TikTok users and made no provision for penalizing them for using it.

Nonetheless, the ruling is a big win for the social media company and illustrates the challenges lawmakers will have taking more aggressive action against the company.

Google has touted the benefits of its latest Tensor G3 chip, especially in the realm of generative AI. For example, in a blog post announcing the new chip, Google said the following:

Our work with Tensor has never been about speeds and feeds, or traditional performance metrics. It’s about pushing the mobile computing experience forward. And in our new Tensor G3 chip, every major subsystem has been upgraded, paving the way for on-device generative AI.

Given that wording, a customer could be forgiven for believing that generative AI processing in the Tensor G3-driven Pixel 8 would be handled on-device. Unfortunately, that is not the case.

As spotted by DroidLife, it appears the reality if far less grand than Google makes it sound, with the Pixel 8 requiring an internet connection to offload generative AI processing to the cloud:

As we’re finding out, essentially all of the Pixel 8 lineup’s generative AI features require a data connection. The presumption is that the devices capture the necessary data, send it to Google’s data centers, and then ship it back to your phone in mere seconds. When attempting to use any of the features without a data connection, like AI Wallpapers or Google Photos’ Magic Editor, you get met with an error message stating you need to check your internet connection.

The revelation is a disappointing one, especially for those who would like to try generative AI features without their data being transmitted to remote servers.

Even more disappointing is Google’s double-speak that seems aimed at making the Tensor G3 seem far more powerful and capable than it really is.

Governments have grown increasingly suspicious of Chinese and Russian software, and Canada is no exception. According to Reuters, Ottawa has banned WeChat and Kaspersky software from government-owned mobile devices.

“The decision to remove and block the WeChat and the Kaspersky applications was made to ensure that government of Canada networks and data remain secure and protected and are in line with the approach of our international partners,” a government statement said.

While WeChat did not return Reuters’ request for comment, Kaspersky expressed its disappoint and took issue with the assertions.

“As there has been no evidence or due process to otherwise justify these actions, they are highly unsupported and a response to the geopolitical climate rather than a comprehensive evaluation of the integrity of Kaspersky’s products and services,” the company told the outlet.

The US and its allies have been working to isolate Huawei from advanced semiconductor tech. Despite sanctions, Huawei surprised the industry when it unveiled the Mate 60 Pro, a 7nm-powered smartphone manufactured by Chinese firm SMIC. Officials have been trying to determine how Huawei was able to produce 7nm chips, something no one believed was possible.

According to Bloomberg, it appears SMIC and Huawei used equipment from ASML to create the chips. The Netherlands had previously followed the US in banning Huawei from access to its most advanced tech, but there is no indication the sanctions were broken.

Instead, the most likely explanation is that SMIC legally purchased some of ASML’s less advanced equipment that can still produce 7nm chips. Although the ban has been extended to include that equipment, it doesn’t go into effect until January 2024.

In the meantime, Huawei and other Chinese firms are clearly showing their resilience and ability to continue being competitive despite sanctions.

Nvidia made the announcement in an SEC filing:

On October 23, 2023, the United States Government informed NVIDIA Corporation, or the Company, that the licensing requirements of the
interim final rule entitled “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor
End Use; Updates and Corrections”, dated October 18, 2023, applicable to products having a “total processing performance” of 4800 or more
and designed or marketed for datacenters, is effective immediately, impacting shipments of the Company’s A100, A800, H100, H800, and L40S
products. These licensing requirements were originally to be effective after a 30-day period, as first described in the Company’s Current Report
on Form 8-K filed with the U.S. Securities and Exchange Commission on October 17, 2023. Given the strength of demand for the Company’s
products worldwide, the Company does not anticipate that the accelerated timing of the licensing requirements will have a near-term meaningful
impact on its financial results.

As Ars Technica points out, Nvidia had developed a line of chips to comply with US export restrictions when they were announced in September 2022. Unfortunately for the company, the new restrictions announced this week eliminate the export of those new chips as well.

Huawei has already been working to replace Nvidia in the Chinese market. These latest restrictions are sure to add momentum to that company’s efforts.

The US has been engaged in an extended campaign to restrict China’s access to advanced technologies, including the semiconductors necessary for AI development. Actions have included cutting off Chinese firms — such as Huawei — from access to US tech and restricting American firms from doing business with their Chinese counterparts.

According to a new report by Reuters, that strategy may be backfiring, with experts saying Huawei is working to replace Nvidia in the Chinese market, where it has controlled as much as 90% of the AI chip market.

“This U.S. move, in my opinion, is actually giving Huawei’s Ascend chips a huge gift,” Jiang Yifan, chief market analyst at brokerage Guotai Junan Securities, said in a post on his Weibo account.

Analysts say Huawei’s Ascend chips still lag behind Nvidia in performance, but they are comparable in raw computing power. While Huawei clearly has a ways to go before it can fully replace Nvidia, the more the US restricts China’s access to Nvidia’s tech, the more the country and its companies will be motivated to escalate efforts to catch up.

In the meantime, Huawei is the company poised to benefit the most from US efforts, a strange turn of events given how much US regulators have tried to cripple the company.

South Korean companies, such as Samsung, rely on factories in China for much of their production. With the US working to cripple China’s ability to produce advanced semiconductors, the firms were concerned that sanctions would prevent them from using US equipment in their factories in China.

According to Reuters, the US has granted South Korean firms an indefinite waiver, giving them the ability to use said equipment in their Chinese factories without reprisal.

“Through close coordination with relevant governments, uncertainties related to the operation of our semiconductor manufacturing lines in China have been significantly removed,” Samsung said.

“We welcome the U.S. government’s decision to extend a waiver with regard to the export control regulations,” said SK Hynix. “We believe the decision will contribute to the stabilisation of the global semiconductor supply chain.”

According to CNN, VSSE said it was monitoring Cainiao, the company’s logistics division, at a logistics hub in the Liège cargo airport.

“[We] detect and fight against possible spying and/or interference activities carried out by Chinese entities, including Alibaba,” the VSSE said in a statement.

Alibaba denied the allegations.

“We strongly deny the allegations [which are] based on prior conjecture,” Cainiao told CNN. “Cainiao is in compliance with all laws and regulations where it operates.”

Chinese companies are required by law to support Beijing when called upon, including to facilitate China’s espionage efforts. Huawei, ZTE, and others have already been subjected to stiff sanctions by multiple countries because their activities on behalf of Beijing have been labeled a threat to national security.

If the allegations against Alibaba are true, the company may well find itself on the same path as Huawei.

China remains one of the globe’s biggest sources of elements necessary for EV battery production. Not surprisingly, Ford struck a deal with CATL to produce such batteries. Give the state of affairs between the US and China, however, US lawmakers want to know more about the licensing deal between the two companies.

“While we are encouraged to see Ford take a small first step in reevaluating its deal with CATL, we are concerned that Ford has not been fully transparent with our requests for documents and information,” according to the letter that was sent to Ford and shared with TechCrunch.

It is believed that increased scrutiny from lawmakers may have been a motivation behind Ford’s decision to pause work on its $3.5 billion Michigan EV battery plant. Ford planned on using CATL’s battery in that plant.