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KSG Executive Brief
TikTok, Enterprise Architecture, and the Future of a Splitting Tech Ecosystem
Insight:
“Should we ban TikTok from our corporate devices?” (A recent question from a multinational firm with hundreds of thousands of employees spanning dozens of jurisdictions).
KSG Advisory Approach
Strategic Context: Welcome to the (geo)politics of enterprise architecture and the future of the tech ecosystem, where security risks, corporate culture, client relations, and government diktak intertwine. TikTok bans are a case study in how multinationals may navigate G7-China technological “decoupling” and economic “de-risking”.
Assessing Risks Beyond TikTok: KSG recently worked with a client making a decision about how to set their global policy around TikTok on work devices. But TikTok is only the current China-cyber cause célèbre and an imperfect example of actual security concerns posed by PRC-made digital applications.
For example, one popular e-commerce app was found to exploit vulnerabilities in the Android operating system, grab credentials, escalate privileges, and then collect much more data than was allowed under its terms of service.
Elsewhere the US and China are battling for the future of tech standards at international standard setting organizations. If the two countries cannot reach actual consensus on these issues, each may choose to go its own way, and the global technology and telecommunications ecosystem will increasingly splinter.
What C-Suites Need to Know: These issues are good examples of what might motivate a more widespread effort to reduce western exposure to PRC tech and digital supply chains.
Washington is likely to scrutinize companies using cloud infrastructure supplied by Chinese companies in the next few years, drawing what had been the preserve of mundane enterprise architecture design into the geopolitical spotlight.
C-suites of companies operating abroad, particularly in southeast Asia, would be wise to get a head start on evaluating exposure to PRC infrastructure in operations outside China… before policymakers force their hand.
For more information on this issue, please reach out to intel@ks.group.
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Global Scan
Geopolitics
Kremlin Signals Willingness to Talk Nukes with United States: Kremlin spokesperson Dmitriy Peskov claims Moscow will await concrete proposals from Washington via diplomatic channels.
Kyiv Seeks UN Security Council Meeting over Collapsed Dam: After major flooding devastates the Kherson region, Ukrainian officials want to see new international sanctions against Russia’s nuclear and defense sectors.
The West isn’t Ready to Give Ukraine the Guarantees it Seeks: Western leaders are struggling to craft a formulation for NATO’s July summit in Vilnius that will send both a deterrent signal to Moscow and a reassuring one to Kyiv.
Cybersecurity
Russian hacktivist group “Killnet” disbands: The pro-Kremlin group, allegedly behind denial-of-service (DDOS) attacks against several US hospitals and a German automotive and arms manufacturer, has splintered, according to administrators.
Microsoft Says Clop Cybercrime Group Behind File-Transfer Hacks: Over 100 companies have been hacked so far, including British Airways, BBC, and Nova Scotia administration. Data exfil likely points to more extortions yet to come.
Strategic and Emerging Tech
China set to become electric vehicle juggernaut: China skyrocketed from #5 to #1 global auto exporter over the past three years—its industrial scale and near global monopoly on battery production will mean lower prices. The geoeconomic challenge to the West now is: can Japanese, German, and US competitors keep up?
Sequoia Capital to Split in Sign of Changing Geopolitical Landscape: The tech investment giant’s three venture capital firms will focus on transatlantic, southeast Asian, and Chinese markets, respectively, by next March.
China Leading the US in Majority of High-Impact Research Areas: Australian researchers conclude that Beijing has a commanding lead in hypersonics, electronic warfare, and undersea capabilities. Western partners, meanwhile, have advantages in autonomous systems, advanced robotics, adversarial AI-reverse engineering and protective cyber.
Policy/Regulation
Japan Sets Precedent on Copyright and AI: In a surprise move, authorities in Tokyo announce they will not enforce copyrights on data used in AI training models, apparently in hopes the move will give Japan a competitive advantage.
Japan’s New Chip Restrictions Anger Beijing: The de facto ban on 23 types of semiconductor-related equipment and materials threatens to hamper China’s drive for chip self-sufficiency.
European Union Considers a Wide-scale Ban on Huawei in 5G Rollout: Brussels, fearing inaction on the part of member-states, eyes more comprehensive restrictions that Washington had pushed for back in 2020.
Bookmarks
Former CIA Senior Analyst corrects a piece on the risk of Taiwan war in Foreign Affairs. How to Read Xi Jinping | Foreign Affairs Relatedly, a publication associated with the PRC dissected the value of claims about a plan to assassinate Taiwan’s vice president.
Center for Strategic and Emerging Technologies: A Shot of Resilience: A Critical Analysis of Manufacturing Vulnerabilities in Vaccine Production