This week’s edition features a ninth EU sanctions package against Russia, increasing defense collaboration between Russia and Iran, Japan’s new national security strategy, and new Congressional reporting requirements on the relationship between the NSA and Cyber Command. Additionally, the Senate votes to ban TikTok on government devices, California scientists achieve a new milestone in nuclear fusion research, 500 million WhatsApp user records are for sale online, tech hubs bolstered local economies during the pandemic, and a new Pew Research Center analyzes international opinions about social media’s impact on democracy.    

Industrial Policy & International Security

EU leaders agree more Russia sanctions, funds for Ukraine | Reuters

In the last summit of 2022, European Union leaders agreed to deliver 18 billion euros in financing to Ukraine in 2023, to implement a global minimum corporate tax, and to enforce a ninth package of sanctions against Russia. The decisions achieved the required unanimous support after objections to the global minimum corporate tax and proposed exceptions to sanctions that could inadvertently benefit Russian oligarchs were resolved. The sanctions package includes new restrictions on investments in Russian mining and other industries and blacklists 200 more people. Notably, US Treasury Secretary Janet Yellen provided written support for the global minimum tax agreement. After the talks concluded, German Chancellor Olaf Scholz declared the twenty-seven EU nations’ joint “determination to support Ukraine politically, financially, militarily, and in the humanitarian area for as long as possible.” In the new year, the EU Commission will make proposals to support cutting-edge industries like biotech and AI and explore options for a coordinated response to the US Inflation Reduction Act.

Ukraine war: US says Iran now Russia's 'top military backer' | BBC

Defense collaboration between Iran and Russia has reached unprecedented levels. Ukrainian forces have allegedly downed 10 Iranian “kamikaze” drones Russia has used to strike energy infrastructure in southern regions of Ukraine, which have left more than 1.5 million people without power. US National Security Council spokesman John Kirby reported that Russia and Iran are considering joint production of lethal drones. Additionally, Kirby expressed concerns that, in return, Russia intended to “provide Iran with advanced military components” and partner more widely in weapons development and training. Australia has announced sanctions against Iranian individuals and businesses for supplying drones to Russia and UK Foreign Secretary James Cleverly condemned the partnership as a threat to global security. 

Japan scraps pacifist postwar defence strategy to counter China threat | Financial Times

In a significant departure from the country’s historically pacifist stance, Japan released a new national security strategy on Friday that boosts defense spending and seeks to strengthen military capabilities to guarantee national security and “a free and open Indo-Pacific.” The new defense budget will bring military spending up from approximately 1 percent—a level maintained since the 1960s—to 2 percent of GDP over the next five years. While Japan will continue to adhere to a self-defense stance, the budget includes funding to expand its cruise missile arsenal, develop hypersonic weapons, enhance space and cyber capabilities, strengthen the Self-Defense Forces’ capacity to engage in a prolonged conflict, and support the development of maritime capabilities and infrastructure in Southeast Asian countries. The new strategy seeks to serve as a stabilizing force in the face of China’s rising military aggression and North Korea’s repeated missile launches. The Chinese embassy in Japan has already condemned Tokyo’s new security posture for “stirring up tension and confrontation in the region.”

US Regulation

Senate votes to ban TikTok use on government devices | The Hill

The Senate passed legislation this week that would prevent government employees from downloading or using TikTok on government-issued devices. The No TikTok on Government Devices Act, introduced by Republican senator Josh Hawley, was passed by unanimous consent late on Wednesday. Hawley said that TikTok is a “Trojan Horse” for the Chinese Communist Party, adding that, “it’s a major security risk to the United States, and until it is forced to sever ties with China completely, it has no place on government devices.” To become law, the legislation must still be passed by the House of Representatives and signed by President Joe Biden. Other bills under consideration seek to ban TikTok from operating in the US altogether due to national security concerns.  

Innovation

What is nuclear fusion and what have scientists achieved? | The Guardian

Researchers at the National Ignition Facility at Lawrence Livermore National Laboratory in California successfully used laser fusion to generate 1.1MJ of energy, which is a little more than enough to boil a kettle of water. After over seventy years of research into nuclear fusion, this marks the first time scientists have demonstrated ignition—a positive energy gain. The results will spur further research to simplify methods to generate energy and increase efficiency. Nuclear fusion has long been anticipated as a near-limitless, safe, and clean source of energy. The successful demonstration of ignition is a first step toward making this a reality. However, before laser fusion can become a viable power source, it needs to get cheaper; researchers will need to find ways to decrease the energy required to power the lasers while increasing the frequency of reactions.

Cyber

Lawmakers force NSA and Cyber Command to weigh divorce | Axios

The latest National Defense Authorization Act, recently passed by the Senate, would require an annual briefing through 2028 from the Secretary of Defense examining the relationship between the NSA and Cyber Command. The dual-hat structure of these agencies has faced scrutiny since 2016. Supporters believe the close relationship between the NSA and Cyber Command creates a stronger feedback loop between intelligence collection and cyber operations, which often rely on the same skill sets and talent. However, opponents point out the friction between the organizations’ missions—intelligence collection can require sustained network access while military operations are often disruptive. The ongoing debate in Washington is centered on the future of Cyber Command and cyber warfare, but former officials told Axios the organization is not yet resourced to operate on its own. 

WhatsApp data leaked - 500 million user records for sale online | Cybernews

A dataset of 487 million WhatsApp user mobile numbers from 84 countries is allegedly for sale on a hacking forum. The seller claimed to have user records of 32 million US, 45 million Egyptian, 35 million Italian, 29 million Saudi Arabian, 20 million French, and 20 million Turkish users. The hacker is reportedly selling the data for between $2,000 and $7,000, depending on the country. The leaked data could be used for phishing, marketing, impersonation, and fraud, according to Cybernews, which investigated a sample of the information provided by the seller.

State & Local Tech Ecosystems

Tech hubs in California, Washington, and Texas thrived in the pandemic, new data shows | Fast Company

County-by-county data analyzed by the Bureau of Economic Analysis indicates that the pandemic was an economic boon for tech centers in the US, especially compared to local economies driven by manufacturing, tourism, or hospitality. Counties home to tech companies experienced significant GDP growth from 2019 to 2021, fueled by increasing consumer demands for remote work software, food delivery, or streaming services. Santa Clara County GDP grew by 19 percent, followed by Travis County (in Austin) at 14 percent and King County (in Seattle) at 13 percent. Sun Belt counties in Texas, Florida, North Carolina, Utah, and Arizona also experienced a boom in jobs and population. Comparatively, Contra Costa County (to the east of San Francisco) experienced a 6 percent decline in GDP over the same period as a result of the pandemic’s impact on conventional manufacturing. However, the tech spike is over; economic indicators are dropping closer to 2019 levels as consumer demands recalibrate to more work days spent in the office and increased travel. 

Democracy Online

Social Media Seen as Mostly Good for Democracy Across Many Nations, But US is a Major Outlier | Pew Research Center

A survey by Pew Research Center of citizens in nineteen countries with advanced economies shows that 57 percent of respondents believe social media has been good for democracy, with 35 percent seeing it as bad. However, US results differed. Just 34 percent said social media had been good for democracy, with 64 percent believing it had had a negative impact. In contrast, 65 percent or more respondents in Singapore, Malaysia, Poland, Sweden, Hungary, and Israel believe social media had a positive impact on democracy in their countries. To dig deeper into these attitudes, the survey also compared responses to six questions about specific impacts the internet and social media has on society. Notably, more than 80 percent of respondents in every country surveyed believe access to the internet and social media made people easier to manipulate with false information. And approximately 65 percent of respondents think online misinformation has made people more divided in their political opinions.

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