Biden to Order Tougher Cybersecurity Standards Amid Growing China Hacking Threat

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President Joe Biden is preparing to issue an executive order aimed at enhancing cybersecurity standards for federal agencies and contractors, as part of efforts to combat the escalating threat of cyberattacks linked to China and cybercriminal organizations. The new executive order, expected to be published in the coming days, seeks to address several high-profile cyberattacks attributed to China, targeting critical infrastructure, government agencies, major telecom firms, and most recently, the U.S. Treasury Department. While the U.S. government has attributed these hacks to China, Beijing has consistently denied involvement.

The proposed order emphasizes stricter standards for secure software development, including the need for vendors to provide detailed documentation that verifies adherence to these standards. The Cybersecurity and Infrastructure Security Agency (CISA) will be tasked with evaluating and validating this documentation through its software attestation program. Vendors whose software fails validation may face further legal action, as per the draft.

Tom Kellermann, Senior Vice President of Cyber Strategy at Contrast Security, expressed support for the effort to push for more secure software development but warned that the proposed attestation process might not go far enough. Kellermann pointed out that the timeline outlined in the order appears arbitrary given the urgency of the threat posed by China, Russia, and cybercriminal syndicates. “They’re already here,” Kellermann said, stressing the ongoing cyberattacks against U.S. critical infrastructure and government agencies, which have been fueled by foreign state actors.

The executive order also includes guidelines for the secure management of access tokens and cryptographic keys used by cloud providers. In 2023, Chinese-linked hackers exploited vulnerabilities in this area to access email accounts belonging to senior U.S. government officials, an issue that was highlighted by Microsoft.

Brandon Wales, Vice President of Cybersecurity Strategy at SentinelOne, acknowledged that the order builds on efforts from the past five years to strengthen cybersecurity capabilities, and emphasized that the Chinese threat is a major focus. However, he also noted that the U.S. faces a broad range of cybersecurity challenges that require ongoing attention.

The White House has declined to comment on the forthcoming order, and CISA did not respond to requests for comment.

 

Meta and Amazon Scale Back Diversity Programs Ahead of Trump’s Inauguration

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Meta Platforms and Amazon have decided to scale back their diversity, equity, and inclusion (DEI) programs ahead of the upcoming U.S. presidential inauguration, with the return of Donald Trump to office intensifying conservative opposition to such initiatives.

Both companies, which had previously ramped up their diversity efforts in response to protests following the police killings of George Floyd and other Black Americans in 2020, are now adjusting their policies in light of a changing legal and political landscape. Meta is halting its DEI programs, which included initiatives focused on hiring, training, and selecting suppliers. The decision was shared with employees in an internal memo on Friday and follows a series of actions that have attracted support from conservative circles. In the past two weeks, Meta has dismantled its U.S. fact-checking program, appointed Republican Joel Kaplan as its Chief Global Affairs Officer, and added UFC CEO Dana White—a close associate of Trump—to its board. The company also made headlines by contributing $1 million to Trump’s inaugural fund in December, signaling a shift in its political positioning.

Similarly, Amazon has begun winding down its diversity-related programs and materials, with plans to complete this process by the end of 2024. The decision was outlined in a memo seen by Reuters, which highlighted the company’s intention to phase out what it considered “outdated” programs on representation and inclusion.

The conservative backlash against DEI programs has been emboldened by legal developments, including a 2023 U.S. Supreme Court ruling that struck down affirmative action in university admissions. Critics, including figures like Elon Musk, have targeted DEI initiatives, accusing them of hindering business responses to crises, such as the wildfires in Los Angeles, despite lacking evidence to support these claims.

Janelle Gale, Meta’s Vice President of Human Resources, acknowledged in the memo that the legal and policy environment surrounding DEI efforts is evolving. She pointed to recent rulings, including a decision by a U.S. appeals court in December that blocked Nasdaq from enforcing diversity requirements for corporate boards. Gale also noted that the term “DEI” has become contentious, with some viewing it as promoting preferential treatment for certain groups.

As part of its restructuring, Meta will no longer have a dedicated team for DEI efforts. Chief Diversity Officer Maxine Williams will transition to a new role focused on accessibility and engagement, marking a significant shift in the company’s approach to diversity initiatives.

 

TCS Sees Revival in Retail and Manufacturing Sectors After Banking Recovery

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Tata Consultancy Services (TCS), India’s leading software-services exporter, is optimistic about a recovery in its retail and manufacturing sectors in North America, following a strong rebound in its banking and financial services segment. The company’s CFO, Samir Seksaria, pointed to improved consumer sentiment, driven by strong holiday season sales in the U.S. and a resolution of some labor issues in the manufacturing sector, as key factors contributing to this optimism.

Seksaria’s comments reflect a cautious yet hopeful outlook, acknowledging the broader economic uncertainties and persistent inflation that have led clients to tighten their tech spending. Despite the challenges, TCS expects a recovery in its retail and manufacturing verticals, which are among its top revenue sources. Retail and manufacturing combined account for a significant portion of TCS’s $29 billion in annual revenue, with recent sales figures from major U.S. retailers like Walmart, Amazon, and e-commerce platforms such as Shein and Temu contributing to the positive outlook. U.S. online spending also saw a nearly 9% increase, reaching $241.4 billion during the recent holiday season.

However, the company continues to face a decline in its North American revenue for the fifth consecutive quarter, although the banking and financial services sectors have posted their strongest performance since mid-2023. TCS’s communications and media vertical, a high-investment segment currently underperforming, could also benefit from potential interest rate cuts, Seksaria suggested.

Echoing CEO Krithivasan’s sentiment, Seksaria noted that the incoming U.S. administration could remove policy uncertainties and boost client confidence, further encouraging investment in discretionary tech projects. As a result, TCS’s stock saw a 5.6% increase in a single day on Friday, marking its highest rise since July 2024.

TCS also addressed concerns about the increasing trend of insourcing by multinational corporations, which may reduce the outsourcing of IT services to companies like TCS. Many global companies are expanding their in-house teams and setting up global capability centers (GCCs) in India, which is projected to reach a $105 billion market size by 2030. While this could initially offer cost advantages, Seksaria pointed out that the cyclical nature of opening and closing GCCs may pose challenges for long-term sustainability.

TCS has also managed to adapt to this shift, acquiring units such as the captive arm of Danske Bank in 2023 and Post Bank AG’s unit in 2020, indicating a flexible approach to industry changes.