Silicon Valley steps up safety practices over Chinese language spy menace

Good morning. In right this moment’s publication we’re masking:

• Putin and Kim’s new pact

• How Biden’s China tariffs complicate his EV ambitions

• The EU’s rooster ft drawback with China

However we begin with an unique story from Silicon Valley, the place firms are escalating their safety vetting of workers and potential recruits as US officers voice better concern about the specter of Chinese language espionage.

Know-how giants similar to Google and high-profile start-ups like OpenAI have stepped up their screening of personnel, in line with a number of folks working straight with the teams.

Enterprise capital companies similar to Sequoia Capital — which break up off its personal Chinese language enterprise final yr owing to geopolitical stress — have additionally inspired some portfolio firms to tighten workers vetting after warnings that spy businesses are focusing on US tech builders, the folks mentioned.

There are additionally considerations a few rise in xenophobia at US tech firms given the prevalence of expert staff of Asian descent.

However former US nationwide safety adviser HR McMaster mentioned the menace from Chinese language intelligence businesses was “absolutely real and they are persistent”. Learn the complete story.

• TikTok: The Federal Commerce Fee mentioned it had “uncovered reason to believe” that the video app and its Chinese language dad or mum firm ByteDance “are violating or are about to violate the law” in a criticism referred to the US justice division for additional motion.

Right here’s what I’m conserving tabs on right this moment:

• Financial coverage: Financial institution Indonesia’s charge determination will likely be intently watched after the central financial institution shocked markets with a hike in April. In the meantime China publishes its mortgage prime charge.

• Financial knowledge: New Zealand publishes first-quarter GDP and Hong Kong reviews Could jobs figures.

• Vladimir Putin: The Russian president visits Vietnam. Whereas the 2 international locations have historic shut ties, Vietnam has deepened relations with the EU and US, which has already condemned Hanoi’s internet hosting of Putin. (Reuters)

5 extra high tales

1. Vladimir Putin and Kim Jong Un have signed a strategic partnership to deepen commerce and navy ties between Russia and North Korea. The Russian president mentioned the brand new pact included an unspecified mutual help clause that might apply within the case of “aggression” towards one of many signatories.

2. China’s central financial institution chief has warned markets to anticipate weaker credit score progress, in a speech that highlighted the affect of a protracted property slowdown on the nation’s economic system. “Many loans in China are not efficient,” Pan Gongsheng instructed a serious monetary discussion board in Shanghai.

3. Hizbollah chief Hassan Nasrallah has warned that the Lebanese militant group would combat “without rules and without limits” if its battle with Israel widens. In a televised tackle, Nasrallah additionally threatened neighbouring Cyprus for the primary time. Right here’s why.

4. Ecuador is to droop a visa waiver settlement with China, citing a “worrying increase” in arrivals. The South American nation has grow to be a widespread place to begin for Chinese language folks and different international migrants heading to the US.

5. Rishi Sunak is on observe to grow to be the primary sitting prime minister ever to lose their seat at a normal election, in line with a brand new ballot launched yesterday that predicted a catastrophic outcome for the Tories. The survey forecast Labour might win 516 MPs, which might hand Sir Keir Starmer a colossal 382-seat majority.

The Massive Learn

Tens of millions of Individuals are opting to proceed shopping for combustion-engine automobiles over electrical automobiles. Issues over affordability, driving vary and charging infrastructure have chilled patrons’ enthusiasm — even amongst those that take into account themselves inexperienced. President Joe Biden needs to extend adoption, however his tariffs on Chinese language imports might cut back competitors and additional enhance prices.

We’re additionally studying . . . 

• The EU’s rooster ft drawback: After opening a probe into EU pork imports, China’s subsequent goal could possibly be poultry and beef — particularly the components Europeans have a tendency to not eat, writes Andy Bounds.

• Will Modi 3.0 be good for enterprise?: Businesspeople try to evaluate what a weakened Narendra Modi would possibly imply for funding, jobs and progress, writes John Reed. 

• Financial institution heists in Gaza: Armed gangs have plundered at the least $120mn from banks within the war-ravaged strip in simply the previous two months, in line with UN estimates.

Chart of the day

The largest glut of copper in 4 years has constructed up in Chinese language warehouses, after a worth spike and tepid client demand prompted producers within the nation to tug again on shopping for the world’s most necessary industrial steel.

Take a break from the information

Why is there a style boutique on the Tibetan Plateau? Cattle herders and farmers are the primary passers-by within the rural village of Ritoma, the place Norlha opened its flagship retailer. However there’s a cause for the far-flung location — and Norlha’s yak down collections are well worth the trek.

Extra contributions from Tee Zhuo and Gordon Smith