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Yellen Raises Concerns About China’s Cyber Activity in Meeting with Vice Premier He Lifeng

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U.S. Treasury Secretary Janet Yellen held a virtual meeting with Chinese Vice Premier He Lifeng on Monday, during which she raised serious concerns about “malicious cyber activity” attributed to Chinese state-sponsored actors, according to a Treasury Department statement. This follows the Treasury’s announcement last month of a significant breach involving Chinese hackers who compromised several of its computers after a security incident at its contractor, BeyondTrust, which provides cybersecurity services.

The breach is part of an ongoing series of cyberattacks on U.S. government agencies that have been blamed on Chinese state-sponsored hackers. Although a briefing on the breach has been requested by Congressional aides, no date has been set.

Despite the escalating cyber tensions, the Biden administration has made efforts to improve communication and manage the competitive dynamics between the U.S. and China, including the establishment of economic and financial working groups. During her discussion with He, Yellen expressed her grave concerns over the cyber activities and its negative impact on the bilateral relationship, describing the conversation as candid and constructive.

Additionally, the two officials reviewed economic developments in both countries and discussed progress in the working groups. Yellen reiterated her long-standing concerns regarding China’s non-market practices, policies, and industrial overcapacity, highlighting that these issues would continue to strain the U.S.-China economic relationship unless properly addressed.

During her visit to Beijing in April, Yellen similarly warned He about the need to manage industrial capacity to avoid worsening trade tensions. She also warned of the “significant consequences” Chinese companies would face if they supported Russia’s war against Ukraine.

With President-elect Donald Trump set to assume office on January 20, he has threatened to impose higher tariffs on Chinese imports, including a 60% tax, which would be a significant escalation from tariffs introduced during his first term.

Nvidia Criticizes Biden Administration’s Reported AI Chip Export Restrictions

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Nvidia has expressed concern over a reported plan by the Joe Biden administration to impose new restrictions on AI chip exports, with the company urging the outgoing president not to enact a policy that could harm the U.S. economy and benefit adversaries. Nvidia’s Vice President, Ned Finkle, criticized the potential move, arguing that it could set the U.S. back and play into the hands of international competitors.

The Commerce Department and the White House have not responded to Reuters’ inquiries about the policy. According to exclusive reports, the Commerce Department is planning to approve global AI chip exports while preventing bad actors, particularly China, from accessing these advanced technologies. A Bloomberg News report suggests that new export regulations could be announced soon, with limits on the computing power that can be sent to certain countries, including China.

Finkle warned that the policy, though presented as an anti-China measure, would have broader global consequences, including limiting computing systems for other countries and driving the market toward alternative technologies. The Information Technology Industry Council, representing major tech companies like Amazon, Microsoft, and Meta, also voiced concerns, claiming that the restrictions would impede U.S. companies’ ability to compete globally.

Nvidia’s criticism comes as U.S. President-elect Donald Trump prepares to take office on January 20. Trump previously imposed restrictions on U.S. technology sales to China during his first term, citing national security concerns. Nvidia’s stock saw a decline of more than 1% following the Bloomberg report.

 

U.S. Designates Extreme Right-Wing “Terrorgram” Network as Terrorist Group

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The U.S. government has taken a significant step in addressing extremist online networks by designating the “Terrorgram” collective as a terrorist group. This move, announced on Monday, comes with sanctions aimed at individuals and the group itself, accusing them of promoting violent white supremacy.

The U.S. State Department officially labeled the group, which primarily operates on the Telegram platform, as a Specially Designated Global Terrorist organization. In addition to the group, three of its leaders—located in Brazil, Croatia, and South Africa—were also sanctioned. These measures freeze any assets linked to the group in the U.S. and prohibit American individuals from engaging with them.

The State Department detailed that “Terrorgram” has been responsible for motivating and facilitating violent attacks, including a 2022 shooting outside an LGBTQ bar in Slovakia, a planned 2024 attack on energy facilities in New Jersey, and an August knife attack at a mosque in Turkey. The group is known for its promotion of violent white supremacist ideologies, inciting violence against perceived enemies, and providing guidance on attack methods and targets. These include critical infrastructure and government officials, as well as marginalized communities such as Black, Jewish, LGBTQ individuals, and immigrants.

In response, Telegram stated that it has a zero-tolerance policy for calls to violence and noted that it had previously removed several channels associated with “Terrorgram.” The platform emphasized that any similar content is swiftly banned upon detection.

Earlier this year, U.S. prosecutors charged two individuals linked to “Terrorgram,” accusing them of using the Telegram platform to incite a race war by soliciting attacks against various minority groups. The United Kingdom also moved to classify the “Terrorgram” collective as a terrorist organization in April, making it illegal to belong to or promote the group in the country.

This designation is part of a broader effort by U.S. President Joe Biden to combat domestic terrorism, particularly white supremacy. The Biden administration’s 2021 National Strategy for Countering Domestic Terrorism included measures to identify and prosecute such threats while also creating deterrents to prevent U.S. citizens from joining dangerous extremist groups.