This week’s roundup covers plans to lift some tariffs on Chinese imports, new EU tech laws, proposed US cryptocurrency regulations, and state-sponsored cyber attacks on healthcare organizations. Additional news includes coverage of new floating wind farm technology and the circular relationship between disinformation and political polarization in the US.
Industrial Policy & International Security
Biden prepares action to reshape Trump’s tariffs on China | Politico
In an effort to curb inflation rates, President Biden is pursuing plans to lift a set of tariffs on some of China’s imports later this month. While the President’s decisions are not yet confirmed, they are expected to include three parts: First, the Administration is expected to lift approximately $10 billion in duties on consumer goods. Second, the US Trade Representative may announce another exclusion process for companies to obtain exemptions from tariffs on China. Finally, to level the playing field for American competitors, the Administration will initiate new tariff investigations into sectors subsidized by the Chinese Communist Party. These anticipated actions leave most Trump-era tariffs in place and some critics argue they don’t go far enough to counteract rising prices in the US.
EU lawmakers approve sweeping digital regulations | Wall Street Journal
The European Parliament approved two laws targeting big tech on July 5: the Digital Markets Act addresses anticompetitive behavior and imposes rules related to product promotion and digital messaging, and the Digital Services Act requires that social media platforms manage illegal and harmful content in addition to providing specific avenues for users to register content moderation complaints. Companies in violation of these new laws could face fines of up to 20% of worldwide revenue in extreme cases. Both laws are expected to take effect in 2024, but the Digital Services Act may be implemented by mid-2023 for larger social media platforms. Proposed bills in the US include some similar provisions but the EU’s legislative efforts are the widest reaching tech regulation in the West, to date.
US Regulation
Bill to grant crypto firms access to Federal Reserve alarms experts | The Washington Post
In June, Senators Cynthia Lummis and Kirsten Gillibrand introduced a new bill to regulate the cryptocurrency industry that includes a provision allowing crypto firms access to the Federal Reserve’s payment system to settle client transactions without a separate bank. Supporters of the law believe it could increase stability by granting federal institutions visibility into crypto ledgers. However, Federal Reserve officials are concerned that integrating firms that are not federally insured or regulated like traditional banks would increase systemic risk. Independent from proposed legislation, the Federal Reserve is developing new standards for granting master accounts and may increase scrutiny over unregulated firms.
Innovation
The race to build wind farms that float on open sea | WIRED
Scientists and engineers are looking to move wind turbines offshore into deeper waters as stronger winds tend to blow in areas further out in the ocean. Offshore winds are located in areas where it is not economically feasible to install fixed-bottom turbines, and wind turbines on floating platforms face unpredictable weather conditions. However, a number of unique solutions are nearing market readiness. Wind Catching Systems from Norway designed a waffle-shaped frame containing 126 rotor turbines, while Equinor placed turbines on ballasted cylinders. Many designs are in development but face tough engineering challenges before they will be cost-effective. In Europe, 80% of offshore wind resources are untapped but floating wind farms could change that, helping the region to move away from fossil fuels.
A poor country made Bitcoin its national currency. The bet isn’t paying off | New York Times
A year after El Salvadoran president Nayib Bukele made Bitcoin the country’s national currency, the government’s holdings have lost over half their value, citizens’ use of the government’s cryptocurrency app has plunged from 60% to 10%, and the country may potentially fall deeper into a financial crisis. Losses continue to increase as the country faces an upcoming $800 million debt payment and struggles to subsidize increased food and fuel prices. The recent drop in crypto prices also delayed the release of an announced one billion dollar bond in crypto. Bukele may have to eventually cut public spending or push the country into a default, disrupting imports and risking a bank run.
Cyber
North Korean government hackers hit health services with ransomware, US agencies warn | CNN
US agencies warned on Wednesday that North Korean hackers targeted multiple health organizations over the last year. Hackers used ransomware to encrypt electronic records, diagnostics, and imaging services. The announcement did not name affected organizations. However, a Health Information Sharing and Analysis Center representative, a group sharing cyber threats between healthcare providers, expects the attacks targeted smaller organizations with weak security. Cyberattacks on health organizations by government-backed hackers from North Korea and Iran are becoming increasingly frequent. In Wednesday's announcement, agencies advised health organizations to beef up cybersecurity to prepare for future attacks.
State & Local Tech Ecosystems
Recession fears are rising. Here’s why San Francisco could be hit harder than other cities | San Francisco Chronicle
San Francisco chief economist Ted Egan is warning that the city’s tech-focused economy could get hit hard by a potential recession. Egan asserts that, despite record low unemployment, rising interest rates will place San Francisco and the surrounding Bay Area in a risky situation. Venture capital firms may respond to interest rate increases by diminishing investments into local startups, a crucial growth factor in Silicon Valley. Egan believes that the Fed’s attempts to control inflation might trigger a recession but notes that, if inflation falls faster than expected, it could lessen the impact on the local economy.
Democracy Online
Disinformation has Become Another Untouchable Problem in Washington | The New York Times
Disinformation has become so politicized that federal agencies are struggling to take action. In April, the Department of Homeland Security (DHS) set up a council to monitor dangerous misinformation threatening national security. Weeks later, the board was de-facto shut down after strong backlash from conservative lawmakers and nonpartisan rights organizations. While nearly all federal agencies see disinformation as a security threat, attempts to take action have consistently met stiff opposition from conservative lawmakers and others concerned about government censorship. In a move indicating the seriousness of the threat, DHS recently added disinformation cases to its terrorism advisory bulletins. Regardless, the increasingly polarized nature of the issue means it is unlikely to be addressed in a timely manner.
Abortion disinformation is growing and dangerously divisive, experts say | Cyberscoop
Abortion disinformation is spreading rapidly across social media platforms in the wake of the overturning of Roe v. Wade. Fake news stories have gained traction on Facebook and Twitter, and are even repeated by the political elite such as Rep. Marjorie Taylor Green and Sen. Tom Cotton. In response to an automatically-generated headline falsely claiming DoD leadership planned to ignore the Supreme Court’s ruling in Dobbs v. Jackson, Rep. Greene tweeted an impassioned call to remove DoD leadership for insurrection. Experts warn that the polarizing power of the abortion issue in the US makes it a prime candidate for foreign disinformation campaigns, which often take advantage of divisive social issues to provoke unrest an even violence.
