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FBI warns of Chinese infiltration of U.S. higher education

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Amid heightened concern about Russian election meddling, the FBI on Tuesday warned U.S. universities about Chinese intelligence operatives active on their campuses, adding that many academics display “a level of naiveté” about the level of infiltration.

FBI Director Christopher Wray told the Senate intelligence committee that China has aggressively placed operatives at universities, “whether its professors, scientists, students,” and the bureau must monitor them from its 56 field offices across the nation.

“It’s every field office, not just major cities. It’s small ones as well,” Wray said.

The FBI is also “watching warily” activities at dozens of Confucius Institutes, Chinese government-sponsored academies that are often embedded within universities and public schools to offer U.S. students Mandarin language classes.

Some 350,000 Chinese students are enrolled at U.S. universities, about 35 percent of the more than one million foreigners attending university in the country, the Institute of International Education estimates.

The Senate hearing to discuss an annual assessment of worldwide threats focused heavily on Russian hacking and the nuclear threat from North Korea. But several senators pushed the five intelligence agency chiefs and the FBI director testifying at the hearing about China’s ambitions.

Wray described China as using a lot of “nontraditional collectors” of intelligence and technology, not only in the business community but also in academia.

“I think the level of naiveté on the part of the academic sector about this creates its own issues. They’re exploiting the very open research and development environment that we have, which we all revere. But they’re taking advantage of it,” Wray said.

A little more than a decade ago, China began following in the footsteps of the United States, Britain, France and Germany in creating institutes abroad to promote their languages.

The Confucius Institutes now number more than 100 at public and private universities, colleges and even high schools. Several hundred more Confucius Classrooms teach Mandarin at elementary, middle and high schools across the country.

Sen. Marco Rubio of Florida wrote last week to five Florida institutions — Miami Dade College and the universities of North Florida, South Florida and West Florida as well as to Cypress Bay High School in Broward County — asking that they shut down their Confucius programs.

A smattering of universities have eliminated their Confucius Institute programs, but the programs continue at universities in North and South Carolina, California, Kentucky, Idaho, Texas, Missouri and Kansas, among other states.

They have a long-term strategic objective to become a world power.

Director of National Intelligence Dan Coats

The intelligence agency heads attending the hearing also outlined how China’s intelligence gathering serves its global ambitions.

“They have a long-term strategic objective to become a world power,” Director of National Intelligence Dan Coats told the panel, adding that all U.S. intelligence agencies are analyzing China’s intentions in an integrated manner.

“We have intensive studies going on throughout the intelligence community, relative to A to Z, on what China is doing,” Coats said.

Several senators voiced concern about China’s efforts to obtain U.S. technology through investments and the rise of two of its own giants, Huawei and ZTE, telecom companies with a growing worldwide footprint and close ties to China’s ruling Communist Party.

“These companies now represent some of the leading market players globally,” said Sen. Mark Warner, Virginia Democrat who is ranking member of the intelligence committee.

Most Americans have not heard of all of these companies.

Sen. Mark Warner, a Virginia Democrat

“Most Americans have not heard of all of these companies. But as they enter Western economic markets, we want to ensure that they play by the rules. We need to make sure that this is not a new way for China to gain access to sensitive technology,” Warner said.

Sen. Tom Cotton, an Arkansas Republican, echoed Warner’s concerns about Huawei and ZTE, and asked the FBI director how concerned he would be if either of the Chinese companies acquired a position inside the United States.

“We’re deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks,” Wray said.

Cotton and fellow Republican Rubio of Florida introduced a proposal in the Senate last week that would block the federal government from buying or leasing equipment from Huawei Technologies Ltd. (pronounced WHA-way) and ZTE Corp.

Having potentially unfriendly foreign companies inside the U.S. telecom network, Wray said, “provides the capacity to maliciously modify or steal information and it provides the capacity to conduct undetected espionage.”

Huawei, founded in 1987 by a former People’s Liberation Army officer, has galloped to a global lead in telecommunications, almost absent in the U.S. market but hugely popular in China, Europe, Latin America, Africa and the Middle East. ZTE, once called the “poor man’s Huawei,” has become a giant in wireless and data telecommunications equipment.

Cotton asked if any of the six intelligence and law enforcement chiefs could recommend purchase of Huawei or ZTE products to U.S. citizens: “None of you raised your hand,” he said.

Wray, in response to questions, said the FBI is concerned not only about the two companies winning U.S. contracts but also other Chinese companies not so visibly connected with the Chinese government buying U.S. high-tech startups or forming joint ventures here.

“Because America is the land of innovation, there’s a lot of very exciting stuff that’s happening in terms of smaller start-up companies,” Wray said, and Chinese operatives are on the hunt for useful technology.

A lot of it is trying to educate them about what to be on the lookout for.

FBI Director Christopher Wray

“I think the private sector is not used to spotting (this). And so a lot of it is trying to educate them about what to be on the lookout for,” Wray said.

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2260 days ago
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L.L. Bean says it might offer discounts for clothing that tracks your habits

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ll bean AP/Pat Wellenbach

  • L.L. Bean said Wednesday that it will be starting a pilot to sew sensors to clothing to track certain things about its usage.
  • This information would be fed into a blockchain and then anonymized for later use.
  • The company indicated it may offer discounts on items equipped with the new technology.


First, there were customer surveys. Now, there's the blockchain.

L.L. Bean says it will start sewing in sensors in its clothing to track how customers use the items in a new pilot test, according to a new report in the Wall Street Journal.  These sensors — which will start being used in coats and boots — will collect stats about how people wear and use the items. That information will then be sent the Ethereum blockchain, anonymized, and available for use for the company as raw data.

That will include things like temperature the garments experience, how often they're worn, and how many times they've been washed. That information is a gold mine for a retailer, which can then use the information for creating new products, marketing products, and talking with suppliers. Clothing retailers and makers are currently only able to get such information from things like customer surveys and focus groups.

Blockchain is being used because it can effectively encrypts the data and can take data from many sources. Customers will transfer the data from their garment using an app on their phone that can bridge the garment to the internet. LL Bean will access the data from Ethereum, and not directly from customers themselves.

Chad Leeder, an innovation specialist at LL Bean, indicated to the Journal that it may provide discounts to those that enter the test, making the clothing with the sensors cheaper than comparable clothing without the sensors. Customers will have to consent to giving over the data at the time of purchase, and hand over some other demographic data to give a fuller picture of who is using the items.

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2265 days ago
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U.S. Congress to Hold Blockchain Hearing on Valentine's Day

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The U.S. House of Representatives has a date with blockchain this Valentine’s Day.

Two subcommittees of the U.S. House Committee on Science, Space and Technology – for Oversight as well as Research and Technology – are holding a hearing, entitled "Beyond Bitcoin: Emerging Applications for Blockchain Technology," on Feb. 14 at 10 a.m. EST.

Appearing at the event are Walmart vice president of food safety Frank Yiannas; National Institute of Standards and Technology (NIST) director Charles Romine; IBM vice president of blockchain Jerry Cuomo; Congressional Research Service analyst Chris Jaikaran; and Benjamin N. Cardozo School of Law associate clinical professor Aaron Wright.

It's not immediately clear if the hearing will be broadcast live, as has been the case for prior events of this nature.

The subcommittees, in particular, oversee legislative and investigative actions into the science and technology fields. Notably, the Subcommittee on Research and Technology has the power to allocate resources to developing projects. However, it is not yet clear what the goal for next week's hearing will be.

While focusing on potential applications outside of currency, the House subcommittee event comes just over a week after the U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing with the heads of the Commodity Futures Trading Commission and the Securities and Exchange Commission.

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The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

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2266 days ago
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You thought you knew how to play BoTW? Watch this. I'm mind blown. : NintendoSwitch

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2268 days ago
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Samsung Confirms It's Now Making Cryptocurrency Mining Chips

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Samsung has confirmed it is now manufacturing specialized cryptocurrency mining chips after reports to that effect surfaced this week.

South Korean news outlet The Bell first revealed the news on Jan. 30, stating that Samsung was kicking off manufacturing in January, aiming to provide application-specific integrated circuits (ASICs) to an unnamed Chinese mining firm.

A company spokesperson has since told TechCrunch:

"Samsung's foundry business is currently engaged in the manufacturing cryptocurrency mining chips."

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The South Korean tech giant, however, did not provide any details on its customers or the chips, TechCrunch states.

However, in its recent 4th quarter and fiscal year 2017 results report yesterday, talking about the growing demand for cryptocurrency mining, Samsung said that, in 2018, it will provide 8-nanometer and 11nm processes to meet market needs, as well as start a "risk production" of 7nm.

Samsung's move into the bitcoin mining space will undoubtedly bring serious competition to China-based Bitmain, which claims to hold over 70 percent of the market share and uses ASICS from Taiwanese manufacturer TSMC.

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The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

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2272 days ago
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Visionary Investor Jim Breyer On How He Picks Winners Like Facebook

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Founder and CEO Jim Breyer of Breyer Capital has an eye for talent. As one of Facebook's first investors — he bought in at $0.05 a share — he backed a young Mark Zuckerberg, a bet that delivered billion dollar returns for investors, and himself.

(Photo by Breyer Capital)

On this episode of the Forbes Interview podcast, hear Breyer's insider’s take on that social network, his favorite qualities in an entrepreneur and lots of talk on AI, the tech field he says is growing at a speed heretofore unseen. Also, hear his insight on the growing markets in China and how he works with innovation hubs like Harvard and Stanford to find the next generation of tech leaders.

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2274 days ago
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