At a Glance.
- The Biden Administration has released its new international cybersecurity plan.
- US tightens exports on semiconductor chips to Huawei.
Biden administration releases new international cybersecurity plan.
The News.
On Monday, the Biden administration rolled out its new strategy to build greater global cybersecurity cooperation. This new strategy will center on increasing the United States (US) and its allies' capabilities to respond to the growing number of cyber threats emerging from China, Russia, and other hostile elements. This announcement marks the first time that the US State Department has announced a global cybersecurity strategy in over a decade. This new global plan articulates four main areas of focus including:
- Promoting a secure digital ecosystem globally
- Upholding “rights-respecting” digital technology approaches with allied nations
- Building coalitions to counter malicious cyber attacks
- Enhancing the cybersecurity resiliency of partner nations
Aside from emphasizing these four focus areas, the strategy also outlines the State Department's intention to create a Cyberspace and Digital Connectivity Fund. While funds will be limited for these efforts, Nathaniel Fick, the State Department’s ambassador-at-large for cyberspace and digital policy, did highlight that his team has already begun to identify “candidate projects” to fund.
The Knowledge.
With this new cybersecurity strategy, the US State Department is following through with several of the key elements detailed in the Biden Administration's overall cybersecurity strategy. This original strategy, released in March 2023, comprised five core strategies. These strategies were:
- Defend Critical Infrastructure
- Disrupt and Dismantle Threat Actors
- Shape Market Forces to Drive Security and Resilience
- Invest in a Resilient Future
- Forge International Partnerships
With the State Department’s new global strategy, the Biden administration is making an earnest effort to improve the US’s and international allies' abilities to defend against cyber threats while simultaneously funding new projects. With this new strategy, the State Department is making a concerted effort to dismantle threat actors on a global scale, shape market forces by investing in new projects, invest in a more resilient future, and forge stronger international partnerships.
Aside from funding new projects, the State Department announced its intent to focus its efforts on artificial intelligence (AI) and create globally recognized guiding principles. With this new global strategy, the State Department and subsequently the Biden Administration is continuing to redouble its efforts from its previous initiatives to bolster domestic and international cybersecurity, incentivize greater global cooperation, and handle emerging technologies.
The Impact.
While this new strategy has only just been announced, this latest move represents the Biden administration’s continuing effort to address existing cybersecurity gaps. While the average American citizen will most likely not see any changes in their daily routines, these efforts will go a long way in the future to improve overall cybersecurity posture globally and ideally minimize the number of and the severity of major cyber incidents. Additionally, this new strategy will most likely have a notable positive impact on US allies across the world by fostering a collaborative security mindset where nations pool efforts to address cybersecurity gaps and prevent breaches.
Lastly, with the funding coming through the Cyberspace and Digital Connectivity Fund, organizations involved in relevant projects should submit proposals to the federal government to secure funding and bolster their initiatives.
US revokes exporting licenses to sell chips to Huawei.
The News.
On Tuesday, the US announced that it had revoked several licenses that currently allow domestic companies to export chips to sanctioned Chinese telecommunications company, Huawei Technologies. With this announcement, the Commerce Department stated that “we have revoked certain licenses for exports to Huawei, ” but declined to comment on which specific companies had their licenses revoked. This announcement comes as Huawei has continued to grow its product catalog in recent years with the launch of its new AI-enabled laptop being powered by Intel’s new Core Ultra 9 processor last month as well as with the launch of its newest phone last August.
Additionally, sources have also stated that the Commerce Department is considering implementing new export restrictions that would also prevent the sale of AI models to China. While these rules have yet to be announced, these potential restrictions could have a far greater impact on China’s technology efforts as they would expand beyond just restricting Huawei. While the Commerce Department has not made any official comment on these potential restrictions, the Chinese Embassy has responded by stating that these potential restrictions are a “typical act of economic coercion and unilaterally bullying, which China firmly opposes.”
The Knowledge.
Concerns related to Huawei are not new. In 2019, the Trump administration placed the Chinese technology company on a US trade blacklist over concerns that the company was spying on Americans. This blacklist banned US firms from selling technology to the Chinese company. These restrictions were then further increased in 2020 and later in 2023 when the Biden administration restricted semiconductor AI chip exports to China. During that export restriction period, the Biden administration expanded existing restrictions to include additional chips that had lesser capabilities as well as imposed controls on exporting chip manufacturing equipment.
Each of these restrictions was imposed over increasingly growing concerns related to fears of potential Chinese misuse of semiconductor chips in weaponry, other military systems, and cyberespionage efforts. These fears have only continued to grow with the proliferation of AI and how the emerging technology could be misused against the American government and its citizens.
The Impact.
With tensions continuing to rise between China and the US, citizens and businesses should expect similar restrictions to continue to be implemented as emerging technologies continue to develop. While some of these restrictions will be new, others will likely be implemented to close loopholes and adjust for new technological developments. While it's unlikely that US citizens will notice any supply chain impacts for these chips, companies involved in exporting technology to China, should expect more regulations to come over the coming months and years. These companies should appropriately prepare themselves to ensure they comply with all relevant laws and regulations.
Other Noteworthy Stories.
TikTok sues to block potential US ban.
What: TikTok and its owner, ByteDance, have officially filed a lawsuit against the US government.
Why: On Tuesday, TikTok and ByteDance filed a lawsuit against the US government arguing that the Protecting Americans From Foreign Adversaries Act violates the First Amendment. This law, which was passed last month, would force ByteDance to sell the social media company, TikTok within 270 days or the app would be banned from American networks and online application stores. This law passed through Congress quickly with broad bipartisan support and was later signed into law by President Biden as a part of a large foreign aid package. TikTok has argued that even if this sale was “feasible,” which they claim it is not, the new law would be “an extraordinary and unconstitutional assertion of power” as well as would give Congress the ability to “circumvent the First Amendment by invoking national security and ordering the publisher…to sell.”
While the lawsuit will not be settled for some time, impacted parties should monitor the progress of the lawsuit to be able to prepare themselves accordingly for possible eventualities.
Biden administration to fund $285 million to develop digital twin semiconductors.
What: The Biden administration has announced that it is granting roughly $285 million in funding for research and development related to chip manufacturing.
Why: On Monday, the Biden Administration announced its new funding that will be devoted to research and development projects focused on developing digital twins in the semiconductor industry. The funding comes from the CHIPS and Science Act and will go towards creating a digital twin. Digital twins are chips that can exist in the cloud and can speed up innovation and reduce the costs of research and development. These chips are also capable of leveraging new emerging technologies, like AI.
The CHIPS Manufacturing USA Program has announced that it will host a one-day hybrid meeting for potential applications for funding next Thursday.
US State Department broadens security vendor list.
What: The US Department of State has announced that it will be expanding its list of security vendors beyond Microsoft, following the company’s recent breaches.
Why: On Tuesday, the US Department of State announced that it has been working with a range of new security vendors following Microsoft’s recent breach from last year. This breach involved Chinese-linked hackers who targeted the department and compromised roughly 60,000 emails. This announcement comes after the US Cyber Safety Review Board heavily criticized the company stating that its lack of transparency and lack of security culture contributed to the attack’s severity. Since the attack, the State Department analyzed all compromised emails and found that none were sensitive.
Biden announces $3.3 billion Microsoft investment in Wisconsin.
What: President Biden announces a major $3.3 billion investment by Microsoft to build new facilities at the former Foxconn site.
Why: On Wednesday, Biden traveled to Wisconsin to announce this latest investment that will go towards building a new data center in the area that will center on AI. This project is expected to create 2,300 construction jobs as well as create 2,000 new permanent jobs. This new AI data center is set to be built on the same land where Foxconn had originally planned to build a facility during the Trump administration; however, that original project never launched. The land was purchased by Microsoft in 2023 for $50 million.
This newest development marks a unique shift in the Biden administration’s latest investment deals. Whereas previous deals were centered on providing funding to grow domestic semiconductor chip manufacturers, this new deal centers on AI. With Microsoft being invested in a significant portion of OpenAI, the creator of ChatGPT, this new facility marks a notable investment in securing the development of and growing the capabilities of AI.