"A violent workers' revolt at the world's largest iPhone factory this week in central China is further scrambling Apple's strained supply," reports CNN, adding that the revolt is also "highlighting how the country's stringent zero-Covid policy is hurting global technology firms." The troubles started last month when workers left the factory campus in Zhengzhou, the capital of the central province of Henan, due to Covid fears. Short on staff, bonuses were offered to workers to return. But protests broke out this week when the newly hired staff said management had reneged on their promises. The workers, who clashed with security officers wearing hazmat suits, were eventually offered cash to quit and leave.

Analysts said the woes facing Taiwan contract manufacturing firm Foxconn, a top Apple supplier which owns the facility, will also speed up the pace of diversification away from China to countries like India.

Daniel Ives, managing director of equity research at Wedbush Securities, told CNN Business that the ongoing production shutdown in Foxconn's sprawling campus in the central Chinese city of Zhengzhou was an "albatross" for Apple. "Every week of this shutdown and unrest we estimate is costing Apple roughly $1 billion a week in lost iPhone sales. Now roughly 5% of iPhone 14 sales are likely off the table due to these brutal shutdowns in China," he said.

Demand for iPhone 14 units during the Black Friday holiday weekend was much higher than supply and could cause major shortages leading into Christmas, Ives said, adding that the disruptions at Foxconn, which started in October, have been a major "gut punch" to Apple this quarter. In a note Friday, Ives said Black Friday store checks show major iPhone shortages across the board.
Ives' note says he believes "many Apple Stores now have iPhone 14 Pro shortages ... of up to 25%-30% below normal heading into a typical December."

CNN also cites an analyst at TF International Securities who estimated on Twitter that more than 10% of global iPhone production capacity has been affected by the situation at the Zhengzhou campus.

The U.S. government "has banned approvals of new telecommunications equipment from China's Huawei Technologies and ZTE," reports CNN, "because they pose 'an unacceptable risk' to US national security." The U.S. Federal Communications Commission said on Friday it had adopted the final rules, which also bar the sale or import of equipment made by China's surveillance equipment maker Dahua Technology, video surveillance firm Hangzhou Hikvision Digital Technology and telecoms firm Hytera Communications.

The move represents Washington's latest crackdown on the Chinese tech giants amid fears that Beijing could use Chinese tech companies to spy on Americans.

"These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications," FCC Chairwoman Jessica Rosenworcel said in a statement.

The UK government will no longer deploy surveillance equipment made by Chinese companies at sites it considers sensitive, minister Oliver Dowden said in a statement Thursday. From a report: "Since security considerations are always paramount around these sites, we are taking action now to prevent any security risks materialising," Dowden said. The government's decision was based on a review of current and future possible security risks arising from the installation of visual surveillance systems on the government estate.

China's Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology are among the world's leading video surveillance providers and have been on a US blacklist since 2019 because of concerns about them being implicated in human rights violations. Discontent about the lack of safeguards preventing the Chinese government from acquiring data and information from its companies has grown in recent years and other governments have taken steps to limit their exposure.

Hundreds of Chinese-manufactured drones have been detected in restricted airspace over Washington, D.C., in recent months, a trend that national security agencies fear could become a new means for foreign espionage. From a report: The recreational drones made by Chinese company DJI, which are designed with "geofencing" restrictions to keep them out of sensitive locations, are being manipulated by users with simple workarounds to fly over no-go zones around the nation's capital.

Federal officials and drone industry experts have delivered classified briefings to the Senate Homeland Security, Commerce and Intelligence committees on the development, three people privy to the meetings said. A spokesperson for the Intelligence Committee -- which has been kept closely apprised of the counterintelligence risks -- declined to comment on the briefings. The other two committees did not respond. This story is based on interviews with seven government officials, lawmakers, congressional staffers and contractors. They were granted anonymity because they are not authorized to speak publicly about private and sometimes classified discussions involving government officials.

A new working paper by Matthew Ferranti -- a fifth-year PhD candidate in Harvard's economics department and advisee of Ken Rogoff, a former economist at the IMF and the Federal Reserve Board of Governors who is now a Harvard professor -- has caused a minor splash. From a report: In it, Ferranti argues that it makes sense for many central banks to hold a small amount of Bitcoin under normal circumstances, and much more Bitcoin if they face sanctions risks, though his analysis finds gold is a more useful sanctions hedge. DFD caught up with Ferranti at Harvard's Cabot Science Library to discuss the working paper, which has not been peer-reviewed since its initial publication online late last month.

What are the implications of your findings?
You can read op-eds, for example in the Wall Street Journal, where people say, "We overused sanctions. It's going to come back to bite us because people are not going to want to use dollars." But the contribution of my paper is to put a number on that and say, "Okay, how big of a deal is this really? How much should we be concerned about it?" The numbers that come out of it are that yeah, it is a concern. It's not just you change your Treasury bonds by 1 percent or something. It's a lot bigger than that.

Rather than hedging sanctions risk with Bitcoin, shouldn't governments just avoid doing bad things?
There's not just one thing that gets you added to the U.S. sanctions list. If the only thing that could get you sanctioned, for example, was to invade another country, then most countries, as long as they don't plan to invade their neighbors, probably don't need to care about this at all, and so my research becomes less relevant. But it's kind of a nebulous thing. That might make countries pause and think about, "How reliable is the U.S?" The paper doesn't say anything about whether applying sanctions is a good or bad thing. There's a huge literature on how effective sanctions are. And I think the number that comes out of that is like a third of the time they work. Of course, they can have unintended consequences, like hurting the population of the country that you're sanctioning.

So why would a central bank bother with Bitcoin?
They're not correlated. They both sort of jump around, so there's diversification benefit to having both. And if you can't get enough gold to hedge your sanctions risk adequately -- think about a country that has very poor infrastructure, doesn't have the capability to store large amounts of gold, or countries whose reserves are so large that they simply cannot buy enough gold. Places like Singapore and China. You can't just turn around and buy $100 billion of gold.

Protests have broken out at Foxconn's vast iPhone factory in Zhengzhou, central China, as footage circulating on social media shows workers clashing with baton-wielding riot police and hazmat-suited officials. The Verge reports: The protests started after workers, who have been under strict covid lockdown for weeks, learned bonus payments would be delayed, reports The Wall Street Journal. Zhengzhou, known locally as "iPhone city," is home to an estimated 200,000 workers who are responsible for the vast majority of all iPhone production.

The Wall Street Journal reports that protests started on Tuesday evening near Foxconn employee accommodations at the Zhengzhou facility. Foxconn's strict covid controls have reportedly isolated its employees, forcing them to live and work on-site (with limited food and supplies) in order to prevent further outbreaks in Zhengzhou. Since October, many workers have escaped from the locked-down facility, leading Foxconn to promise incentives like higher salaries and bonuses to retain staff.

Video footage captured on Wednesday shows hundreds of workers protesting at the campus, chanting "give us our pay" while surrounded by riot police and people in hazmat suits. Livestream footage later that night saw protests escalating, with workers chanting "Defend our rights! Defend our rights!" as they confronted police officers, according to the Agence France-Presse news agency. "Foxconn never treats humans as humans," said another person in a social media video at the scene. Other workers captured on live streams said they were protesting over food shortages in addition to the delayed payments. "They changed the contract so that we could not get the subsidy as they had promised. They quarantine us but don't provide food," said one Foxconn worker during a live stream as reported by the BBC. "If they do not address our needs, we will keep fighting."

China's top gaming industry association declared that the problem of children's video gaming addiction has been "resolved," the clearest signal so far that Beijing will ease its curbs on the approval of new titles. From a report: China's Game Industry Group Committee, which is affiliated with the government's gaming regulatory body, released a report on Tuesday that found 70 per cent of minors played less than three hours of games a week. "Minors' gaming addiction has been basically resolved," the body wrote in a report co-authored by Beijing-based research body CNG. Any easing of China's crackdown on online video games would be a boon for industry leaders Tencent and NetEase, which have borne the brunt of the restrictions.

Beijing sent a shockwave through the gaming industry in August 2021 when it restricted children to only playing online games for one hour on Fridays, Saturdays and Sundays. The move came after state media highlighted the mental and physical health toll gaming addiction was having on China's youth, labelling online games a form of "spiritual opium." The time spent by children on Chinese internet giant Tencent's games has plummeted since the regulation change and was down 92 per cent in the third quarter compared with the same period last year. During an earnings call with investors last week, Tencent said it had become "fully compliant" with Chinese regulations on gaming for minors and expected "more licenses will be forthcoming in the future."

New York became the first state to enact a temporary ban on new cryptocurrency mining permits at fossil fuel plants, a move aimed at addressing the environmental concerns over the energy-intensive activity. From a report: The legislation signed by Gov. Kathy Hochul on Tuesday was the latest setback in a bruising month for the cryptocurrency industry, which had lobbied fiercely against the bill but was unable to overcome a successful push by a coalition of left-leaning lawmakers and environmental activists. The legislation will impose a two-year moratorium on crypto-mining companies that are seeking new permits to retrofit some of the oldest and dirtiest fossil fuel plants in the state into digital mining operations. It also requires New York to study the industry's impact on the state's efforts to reduce its greenhouse gas emissions.

The move in New York comes months after some other states had adopted more friendly policies toward the industry, offering tax incentives in hopes of luring crypto-mining operations after China cracked down on the activity last year. But it also comes at a moment of intense turbulence, and a potential crossroads, for the cryptocurrency sector. Earlier this month, the crypto exchange known as FTX suffered a swift and public collapse that led to its declaration of bankruptcy. The fall of what had been a trusted player in the new market has led to broader questions about the future of the exchange, as well as possible criminal charges for its principal, Sam Bankman-Fried.

An anonymous reader shares an excerpt from a MIT Technology Review article, written by Zeyi Yang: It's easier to talk about what China's social credit system isn't than what it is. Ever since 2014, when China announced a six-year plan to build a system to reward actions that build trust in society and penalize the opposite, it has been one of the most misunderstood things about China in Western discourse. Now, with new documents released in mid-November, there's an opportunity to correct the record. For most people outside China, the words "social credit system" conjure up an instant image: a Black Mirror -- esque web of technologies that automatically score all Chinese citizens according to what they did right and wrong. But the reality is, that terrifying system doesn't exist, and the central government doesn't seem to have much appetite to build it, either. Instead, the system that the central government has been slowly working on is a mix of attempts to regulate the financial credit industry, enable government agencies to share data with each other, and promote state-sanctioned moral values -- however vague that last goal in particular sounds. There's no evidence yet that this system has been abused for widespread social control (though it remains possible that it could be wielded to restrict individual rights).

While local governments have been much more ambitious with their innovative regulations, causing more controversies and public pushback, the countrywide social credit system will still take a long time to materialize. And China is now closer than ever to defining what that system will look like. On November 14, several top government agencies collectively released a draft law on the Establishment of the Social Credit System, the first attempt to systematically codify past experiments on social credit and, theoretically, guide future implementation. Yet the draft law still left observers with more questions than answers. [...]

"This draft doesn't reflect a major sea change at all," says Jeremy Daum, a senior fellow of the Yale Law School Paul Tsai China Center who has been tracking China's social credit experiment for years. It's not a meaningful shift in strategy or objective, he says. Rather, the law stays close to local rules that Chinese cities like Shanghai have released and enforced in recent years on things like data collection and punishment methods -- just giving them a stamp of central approval. It also doesn't answer lingering questions that scholars have about the limitations of local rules. "This is largely incorporating what has been out there, to the point where it doesn't really add a whole lot of value," Daum adds. So what is China's current system actually like? Do people really have social credit scores? Is there any truth to the image of artificial-intelligence-powered social control that dominates Western imagination? The "social credit" term covers two different things, writes Yang: "traditional financial creditworthiness and 'social creditworthiness,' which draws data from a larger variety of sectors." The former is a concept Westerners are familiar with as it essentially refers to documenting individuals' or businesses' financial history and predicting their ability to pay back future loans. The latter, which is what's most controversial in the West, is the Chinese government's attempt to hold entities accountable to fight corruption, telecom scams, tax evasion, academic plagiarism, and much more.

"The government seems to believe that all these problems are loosely tied to a lack of trust, and that building trust requires a one-size-fits-all solution," writes Yang. "So just as financial credit scoring helps assess a person's creditworthiness, it thinks, some form of 'social credit' can help people assess others' trustworthiness in other respects." It gets confusing though because the "social" credit scoring often gets lumped together with financial credit scoring in policy discussions, "even though it's a much younger field with little precedent in other societies." Local governments also occasionally mix up the two, further complicating the matter.

Has the government built a system that is actively regulating these two types of credit? How will a social credit system affect Chinese people's everyday lives? So is there a centralized social credit score computed for every Chinese citizen? These are some of the questions Yang attempts to answer in the full article.

The president of the European Commission, the executive branch of the European Union, has confirmed there are multiple ongoing investigations into TikTok. From a report: The probes concern the transfer of EU citizens' data to China and targeted advertising aimed at minors. Investigators are seeking to ensure that TikTok meets General Data Protection Regulation (GDPR) requirements. "The data practices of TikTok, including with respect to international data transfers, are the object of several ongoing proceedings," Ursula von der Leyden wrote in a letter shared by Federal Communications Commissioner Brendan Carr.

"This includes an investigation by the Irish [Data Protection Commission] about TikTok's compliance with several GDPR requirements, including as regards data transfers to China and the processing of data of minors, and litigation before the Dutch courts (in particular concerning targeted advertising regarding minors and data transfers to China)." Von der Leyden was responding to concerns raised by members of the European Parliament regarding Chinese public authorities potentially gaining access to EU citizens' TikTok data, following a report by BuzzFeed News. The app's data practices have been under the EU's spotlight for a while. Earlier this year, TikTok agreed to enforce certain policies concerning ads and branded content following a complaint that accused the app of breaching EU consumer rules.

Slashdot has been covering plans for the UK's largest chip plant to be acquired by Chinese-owned firm Nexperia.

But this week the U.K. government "has blocked the takeover of the country's largest microchip factory by a Chinese-owned firm," CNBC reported this week, "over concerns it may undermine national security." Grant Shapps, minister for business, energy and industrial strategy, on Wednesday ordered Dutch chipmaker Nexperia to sell its majority stake in Newport Wafer Fab, the Welsh semiconductor firm it acquired for £63 million ($75 million).

Nexperia is based in the Netherlands but owned by Wingtech, a partially Chinese state-backed company listed in Shanghai. Nexperia completed its acquisition of Newport Wafer Fab in 2021, and the firm subsequently changed its name to Nexperia Newport Limited, or NN.

"The order has the effect of requiring Nexperia BV to sell at least 86% of NNL within a specified period and by following a specified process," the United Kingdom's Department for Business, Energy and Industrial Strategy said in a statement. Nexperia had initially owned 14% of Newport Wafer Fab, but in July 2021 it upped its stake to 100%.

"We welcome foreign trade & investment that supports growth and jobs," Shapps tweeted Wednesday. "But where we identify a risk to national security we will act decisively."
Nexperia plans to appeal the decision.

"China has submitted the most research papers accepted at a prestigious international academic conference focused on semiconductors, underscoring the country's growing presence in the field and bumping the U.S. into second place (Warning: source paywalled; alternative source)," reports Nikkei Asia. The committee of the International Solid-State Circuits Conference (ISSCC) was held in South Korea on Nov. 16. From a report: According to the committee, a total of 629 research papers were submitted for next year's ISSCC, including 198 that passed the screening. The 198 include 59 from China, 42 from the United States and 32 from South Korea. China rose from third to first and South Korea's number decreased by nine compared to the previous one. "China increased its selected research paper count in every category and the Chinese government played an important role in this," one of the participants said [...].

The academic conference in the field of semiconductor integrated circuit design was first held in 1954. It is the largest and most renowned international conference in this field and next year's conference will start on Feb. 19 in San Francisco. More than 3,000 researchers from over 30 countries will attend it to share the latest technologies in the field.

India will be adopting USB-C type as a common charging port for smart devices, with stakeholders reaching a consensus at a meeting of an inter-ministerial task force, consumer affairs secretary Rohit Kumar Singh said on Wednesday. From a report: The government held wide-ranging consultations to standardize charging ports for all compatible smart devices, but it is yet to reach a decision on chargers for low-cost feature phones. With universal chargers consumers will no longer need a different charger every time they purchase a new device. Besides, the move will also reduce massive amounts of e-waste. In 2021, India is estimated to have generated 5 million tonnes of e-waste , only behind China and the US, according to an ASSOCHAM-EY report, Electronic Waste Management in India.

NetEase and Blizzard Entertainment plan to end their 14-year partnership after January, depriving the Chinese firm of a slice of revenue and suspending service for some of the country's most popular games. From a report: The Hangzhou-based publishing giant and Activision Blizzard Inc. subsidiary failed to agree on an extension to their long-running collaboration, which had encompassed famed franchises like StarCraft, Diablo, Overwatch and World of Warcraft. Blizzard will suspend most online game services in mainland China from Jan. 23, the US company said on Wednesday. Game sales will also halt in the coming days. Beyond financial terms, key sticking points to the NetEase extension were ownership of intellectual property and control of the data of millions of players across China, people familiar with the discussions said. The people spoke on condition of anonymity because the talks weren't public.

Federal Bureau of Investigation Director Christopher Wray told lawmakers Tuesday that he is "extremely concerned" about TikTok's operations in the U.S. From a report: "We do have national security concerns at least from the FBI's end about TikTok," Wray told members of the House Homeland Security Committee in a hearing about worldwide threats. "They include the possibility that the Chinese government could use it to control data collection on millions of users. Or control the recommendation algorithm, which could be used for influence operations if they so chose. Or to control software on millions of devices, which gives it opportunity to potentially technically compromise personal devices."

Wray's remarks build on those from other government officials and members of Congress who have expressed deep skepticism about the ability of the Chinese-owned video platform to protect U.S. user information from an adversarial government. TikTok has maintained it doesn't store U.S. user data in China, where the law allows the government to force companies to hand over internal information. Wray said that law alone was "plenty of reason by itself to be extremely concerned."

An anonymous reader quotes a report from CBS News: The world's population reached 8 billion on Tuesday, growing by 1 billion in the last dozen years and reflecting the rapid population spike of the past few decades, with India projected to become the world's most populous country by next year, surpassing China. The world's population milestone of 8 billion people has long-term significance for both rich and poor countries. While it took hundreds of thousands of years for the world's population to reach 1 billion, the world grew from 7 billion to 8 billion just since 2010, a reflection of advancements in health.

As the world is expected to grow even more to over 10 billion during the next 60 years as the U.N.'s population division of the Department of Economic and Social Affairs (DESA) reported, population growth is slowing relative to the past, and the U.N. warns that the challenges of feeding, housing and keeping that level of people from polluting the climate will be significant. On the bright side, the increase in global life expectancy grew to almost 73 years, and is expected to reach 77 years in 2050. [...] The global population is growing at its slowest rate since 1950 with under 1% growth in 2020. The report estimates that there will be 8.5 billion people in 2030 and 9.7 billion in 2050 and then peak at 10.4 billion people during the 2080s and remain at that level until 2100.

So, how do we know that the eight billionth baby was born today? Frankly, the U.N. says, we don't. John Wilmoth, director of the U.N. Population Division of DESA, conceded -- when the report was published -- that the day is somewhat arbitrary, but important to mark the milestone. "We do not pretend that that's the actual date and we think that the uncertainty is at least plus or minus a year," he said. That's because the combination of antiquated census gathering in many countries as well as proliferation of conflicts and the COVID19 pandemic, made a door-to-door count difficult, and the numbers are based in some countries on projections.

China just completed construction on what is now the world's largest telescope array at the edge of the Tibetan Plateau. The country plans to aim it at our sun as part of what one expert is calling "the golden age of solar astronomy." Popular Mechanics reports: As reported in Nature earlier today, the Daocheng Solar Radio Telescope (DSRT) cost 100 million yuan ($14 million USD), and is comprised of over 300 antenna dishes situated in a 3 kilometer (1.87 miles) circumference formation. Initial testing will begin in June 2024, and will focus on an upcoming increase in solar activity over the next few years, particularly on how solar eruptions affect Earth.

"China now has instruments that can observe all levels of the sun, from its surface to the outermost atmosphere," Hui Tian, a solar physicist at Beijing's Peking University, told Nature. Compared to similar telescopic arrays, the DSRT will be more finely tuned, and thus potentially capture weaker signals from high-energy particles emitted during CME events. As the sky above us becomes increasingly -- and sometimes problematically -- crowded by satellites, developing more reliable, accurate, and detailed analysis of solar activity will be critical to further expansion.

Britain has lost its position as Europe's largest stock market, as Paris overtook London for the first time since records began in 2003. The Independent reports: According to Bloomberg, the combined market value of primary listings on Monday on the Paris bourse ($2.823 trillion ) surpassed that of the London Stock Exchange ($2.821 trillion) -- finally closing a gap of around $1.5 trillion which has been narrowing since the Brexit referendum. The milestone shift on Monday came as French stocks were buoyed by optimism over the demand for French luxury goods in response to China's slight easing of Covid-19 restrictions, while the sharper fall in the pound's value against the dollar compared with that of the euro this year has also played a role, Bloomberg noted.

While the UK's FTSE 100 index has remain relatively stable this year, thanks in part to export revenues boosted by a lower pound, the FTSE 250 index -- comprising smaller, medium-sized businesses -- has plummeted in value by 17 per cent. This fall has been fueled by concerns over rocketing energy bills and interest rates, the latter of which surged in the wake of Liz Truss's disastrous mini-Budget which spooked investors with her rapidly-announced raft of unfunded tax cuts. By the fourth week of Ms Truss's premiership, British stock and bond markets had lost roughly $500 billion in combined value, Bloomberg reported.

Speaking as Office for National Statistics figures showed that Britain's was the only G7 economy to shrink in the three months to September, the chancellor said on Friday he was "under no illusion that there is a tough road ahead" requiring "extremely difficult decisions to restore confidence and economic stability." "But to achieve long-term, sustainable growth, we need to grip inflation, balance the books and get debt falling," Mr Hunt insisted, adding: "There is no other way." However, Michael Saunders -- an economist who, until August, spent six years as one of the nine members on the Bank of England committee responsible for setting interest rates -- suggested on Monday that, were it not for Brexit, "we probably wouldn't be talking about an austerity budget this week."

India is leading a push for the COP27 climate summit to conclude with a decision on phasing down all fossil fuels, a move that would expand the focus from just coal, but is likely to raise strong concerns from oil and gas-reliant countries. From a report: Indian negotiators formally called on the Egyptian Presidency of climate talks for the expanded language to be included in the cover text, a political statement of how countries will seek to tackle the climate crisis, according to people familiar with the matter. The push stems largely from the coal-dependent country's desire to not be singled out for its dependence on the dirty fossil fuel. The request is likely to put India at odds with other countries within its "Like-Minded Group of Developing Countries" negotiating bloc, like China and Saudi Arabia, who have typically acted as a brake on more climate ambition. There will also probably be concern that India's push is an effort to muddy the waters in reducing fossil fuel use globally, by making it harder to track and compare progress.

NPR reports that "two teams of scientists — one at Northeastern University in Boston; the other at the University of Cambridge in the UK — recently announced that they managed to manufacture, in a lab, a material that does not exist naturally on Earth."

"It — until now — has only been found in meteorites." We spoke to Laura Henderson Lewis, one of the professors on the Northeastern team, and she told us the material found in the meteorites is a combination of two base metals, nickel and iron, which were cooled over millions of years as meteoroids and asteroids tumbled through space. That process created a unique compound with a particular set of characteristics that make it ideal for use in the high-end permanent magnets that are an essential component of a vast range of advanced machines, from electric vehicles to space shuttle turbines.

The compound is called tetrataenite, and the fact that scientists have found a way to make it in a lab is a huge deal. If synthetic tetrataenite works in industrial applications, it could make green energy technologies significantly cheaper. It could also roil the market in rare earths, currently dominated by China, and create a seismic shift in the industrial balance between China and the West....

But it will be a long time before tetrataenite is in a position to disrupt any existing markets, Laura Lewis says. She says there is still a lot of testing to be done to find out whether lab tetrataenite is as hardy and as useful as the outer space material. And even if it turns out to be as good, it will be five to eight years "pedal to the metal" before anyone could make permanent magnets out of it. In the meantime, China's competitors are working hard to source rare earths of their own. The US is investing in mines in Australia; there's exploration ongoing in Malaysia, and the Japanese are researching ways to extract elements from mud mined from the sea bed.