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China Slams U.S. as “Surveillance Empire” Over Chip Shipment Trackers

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China’s state-run media Xinhua criticized the United States on Friday for secretly placing location trackers in shipments of advanced chips at risk of diversion to China, calling the practice indicative of the “instincts of a surveillance empire.” Reuters had reported earlier that U.S. authorities embedded these devices to monitor shipments subject to export restrictions aimed at curbing China’s access to advanced semiconductor technology.

In a commentary titled “America turns chip trade into a surveillance game,” Xinhua accused Washington of running “the world’s most sprawling intelligence apparatus” and treating trade partners as rivals to be undermined. The piece warned that if U.S. chips are perceived as potential surveillance tools, global customers may seek alternatives.

The commentary reflects ongoing tensions between the two tech superpowers. The U.S. government has imposed strict limits on exports of advanced chips and related equipment to China, while Washington and its allies have previously accused China of embedding potential surveillance capabilities in exported products, ranging from telecom gear to vehicles.

In recent moves, China has asked U.S. chipmaker Nvidia to clarify whether its H20 chips contain hidden backdoors and has cautioned domestic tech companies about their use, amid heightened scrutiny of foreign technology for security risks.

Italy Ends Spyware Contracts with Israeli Firm Paragon Amid Controversy

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Italy and Israeli spyware maker Paragon have terminated their contracts following allegations that the Italian government used Paragon’s technology to hack phones of government critics, according to a parliamentary report released Monday and statements from both parties.

The fallout stems from a report by Italy’s parliamentary security committee (COPASIR) and earlier revelations from Meta’s WhatsApp, which disclosed that Paragon spyware targeted multiple users including an investigative journalist and members of Mediterranea, a migrant rescue charity critical of Prime Minister Giorgia Meloni.

The government acknowledged that seven Italian phone users had been targeted but denied involvement in illicit surveillance and said it had tasked the National Cybersecurity Agency to investigate. COPASIR’s report states that Italian intelligence services initially suspended and later ended their contracts with Paragon after the media backlash, though the exact timing remains unclear.

Contradictory statements have fueled political criticism, with opposition parties demanding clarity. Paragon claims it ceased providing spyware after allegations against journalist Francesco Cancellato became public, but said the government declined joint investigation offers to verify whether Cancellato was spied on. The committee found no evidence Cancellato was surveilled with Paragon’s tools.

COPASIR also detailed that Italy’s domestic and foreign intelligence agencies used the spyware sparingly, with prosecutor approval, for law enforcement purposes including counter-terrorism, fugitive searches, and anti-smuggling. It stated that spying on Mediterranea activists related to their activities potentially connected to irregular immigration, with authorization from the government.

Undersecretary Alfredo Mantovano, responsible for intelligence oversight, authorized the spyware use on Mediterranea activists Luca Casarini and Beppe Caccia in September 2024. Meanwhile, six Mediterranea members, including Casarini and Caccia, face trial accused of aiding illegal immigration, charges they deny.

The scandal has drawn calls for parliamentary inquiry and public scrutiny over surveillance ethics and government transparency.

Meta’s WhatsApp Reveals Paragon Spyware Targeted Users in Over 24 Countries

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WhatsApp, the popular messaging service owned by Meta Platforms, disclosed that Israeli spyware company Paragon Solutions targeted its users in two dozen countries, including journalists and members of civil society. The company revealed that approximately 90 users were compromised through a zero-click hack, which did not require any user interaction to install spyware. WhatsApp has since sent a cease-and-desist letter to Paragon and disrupted the hacking efforts, working with the Canadian internet watchdog Citizen Lab and informing law enforcement. The spyware, often sold to governments, has been found on the devices of activists, journalists, and politicians, raising alarms over the proliferation of surveillance tools. While Paragon claims to operate ethically, the latest revelations suggest otherwise.