Industrial Policy & International Security

Elon Musk offers Iranians uncensored internet access | Financial Times
In an effort to support internet freedom in Iran, the US government loosened sanctions to allow tech companies to “provide secure platforms and services” and “export private satellite internet equipment.” After the death of Mahsa Amini, who was accused of failing to wear her hijab, protests erupted across the country. The Iranian government has responded by cutting off access to WhatsApp and Instagram. Elon Musk activated Starlink satellite broadband service in Iran to provide uncensored internet access; however, ground terminals are required in order to receive the signal. Musk says, “if anyone can get terminals into Iran, they will work.” He also told the Financial Times that he would turn on Starlink in Cuba if the US government similarly modified sanctions. 

Apple begins making iPhone 14 in India weeks ahead of schedule | Bloomberg
Apple is working with production partner Foxconn Technology Group to assemble iPhone 14s in India. Most iPhones are assembled in China but Apple started shifting some production to India in 2017. In the midst of rising geopolitical tensions between China and the US, Apple is committed to diversification. Production lines in India are a few weeks slower than their Chinese counterparts while they build new relationships and coordinate with a complex network of suppliers of critical components. The Modi administration is seeking to compete with China in technology and production capability and is strengthening the country’s logistics, infrastructure, and human capital resources and offering financial incentives under its Make in India program.  

Russia’s war in Ukraine to cost global economy $2.8 trillion, OECD says | Wall Street Journal
The Organization for Economic Cooperation and Development (OECD) estimates that by the end of 2023, Russia’s invasion of Ukraine will have cost the global economy $2.8 trillion in lost output. In June, the OECD projected that the eurozone would experience 1.6% growth in 2023 but revised their estimate to 0.3% growth, which could decline further if a severe winter exacerbates energy shortages. Some European governments have implemented energy price caps to assist consumers, but the increased debt could threaten economic growth. US growth projections similarly declined from 1.2% to 0.5% and could continue to fall if inflation rates do not slow down. Moreover, the conflict in Ukraine could be prolonged as Russia seeks to mobilize additional forces to annex new territory, extending the dampening effects on the global economy. 

US Regulation

House passes antitrust bills targeting tech giants’ power | The Hill
Thirty-nine Republicans and most Democrats voted to pass a package of antitrust bills in the House this week. Together, the bills increase filing fees for large mergers, require merger parties to disclose foreign subsidies from countries that may pose a national security risk, and allow state attorneys general to select their venue when enforcing antitrust laws. Republican critics claimed the bills would allow Attorney General Merrick Garland and the Justice Department to “harass” the American people while Democratic critics opposed portions of the bill that may allow state attorneys general to bring content moderation cases against tech companies. 

Innovation

Move over, Bruce Willis: NASA crashed into an asteroid to test planetary defense | NPR
In their Double Asteroid Redirection Test, NASA successfully rammed a spacecraft into the asteroid Dimorphos this week. A smaller spacecraft observed the impact but it will be two months before scientists know whether the test changed the asteroid’s course. Dimorphos posed no threat to Earth. The European Space Agency has plans for a follow-on mission to observe the impact’s effect. Contrary to Hollywood’s depictions, planetary defense experts expect to have enough advance warning of objects on a trajectory toward Earth to plan defensive missions like the one to Dimorphos to push them off course. NASA’s Planetary Defense Coordination Office may launch NEO Surveyor, a space-based telescope, by 2026 or 2028 to hunt for unknown asteroids and provide warnings of impact with Earth years in advance.

The era of fast, cheap genome sequencing is here | WIRED
This week, San Diego company Illumina revealed the NovaSeq X series of genome sequencing machines that could reduce the price of sequencing a human genome to $200. For comparison, the Human Genome Project took 13 years and cost $2.7 billion; today it costs $600 to sequence a human genome. In addition to reducing costs, the NovaSeq X machines will work faster, more than doubling the number of genomes an Illumina machine can sequence per year to 20,000. This could make genomic medicine more accessible but researchers are more likely to reap near-term benefits than patients. The reduced cost and increased output will help them build larger and more diverse datasets, with applications ranging from medicine to agriculture. While Illumina dominates the market, it faces competition from US companies Ultima Genomics, Element Biosciences, and Singular Genomics and China’s MGI, all of which produce sequencing machines.   

Cyber

State Department kicks off new cyber diplomacy endeavor | Axios
The Senate confirmed Nate Fick this week as the State Department’s first cyber ambassador. He will lead the Bureau of Cyberspace and Digital Policy, which is focused on conflicts, negotiations, and promoting internet freedom. The Cyber Diplomacy Act, if passed in the Senate, will codify the office’s existence so it may not be dismantled by a new administration. One of the Bureau’s missions is to establish stronger norms of cyber behavior in the international system, which will require Fick to build trust and make long-term commitments. Fick is a former tech executive and entrepreneur; earlier this year, he co-led a Council on Foreign Relations report which claimed “the era of the global internet is over.” 

New European Union cybersecurity proposal takes aim at cybercrime | World Economic Forum
The European Commission shared details about the Cyber Resilience Act earlier this month. First introduced by European Commission president Ursula von der Leyen in November 2021, the proposed legislation seeks to bolster cybersecurity requirements for internet of things products beginning at the design stage. For example, the legislation includes provisions requiring that a product’s default configuration is secure and they can receive security updates to address future vulnerabilities. Motivated by the increasing cost of cybercrime–the average cyber breach costs a company $3.6 million–the Act aims to reshape cyber strategy into smart business strategy. If passed, companies will have two years to implement the new rules. 

State & Local Tech Ecosystems

‘Tough tech’ VC firm The Engine expands to bigger offices in Cambridge | The Boston Globe
MIT started The Engine in 2016 to invest in startups working on “tough tech” that goes beyond software code. The VC firm moved this week into a 155,000-square-foot building in Cambridge that offers space for startups to work, a machine shop, and rentable biology, chemistry, optics, and 3D printing lab space. The building can accommodate up to 1,000 people and is already host to fifty startups–some are part of The Engine’s portfolio while others fall into the tough tech category. Chief executive and managing partner Katie Rae says that having these startups in the same place allows them to “learn faster from each other.”

Democracy Online

How China, Russia recently sought to spread political misinformation online, according to Meta | ABC News
Meta manually took down Chinese and Russian-operated accounts posing as Western media outlets to stop the spread of inauthentic political content. Both operations spread across multiple platforms and websites. China’s fake accounts focused on sharing information about charged political issues from both conservative and liberal perspectives. This is China’s first known effort to sway US opinion ahead of the midterm elections. However, they received little engagement and reached audiences of only ten to twenty followers. The Russian operation spanned sixty websites and pushed pro-Russian narratives about Ukraine to European users. They reached 3,000 followers across Facebook and Instagram. Meta expects to address more threats as the election season approaches and described its security work as focused on uncovering deception instead of moderating content.

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