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<ul><li><keyword id="10850136" type="UNKNOWN" weightage="20" keywordseo="chinese-cybercriminals">Chinese cybercriminals</keyword>, dubbed <keyword id="10849528" type="COMPANY" weightage="20" keywordseo="redecho">RedEcho</keyword>, are targeting India’s <keyword id="6368906" type="COMPANY" weightage="20" keywordseo="power-grid">power grid</keyword> with background Trojans called ShadowPad.</li><li>The investigation by Recorded Future identifies 10 distinct power sector organisations and two maritime ports as targets of RedEcho.</li><li>The cybersecurity firm points out that this infiltration has little to offer in terms of economic espionage, but could be used as a ‘show of force’, a tool to sway public opinion or serve as research for bigger attacks in the future.</li></ul> Chinese cybercriminals are targeting the <keyword id="65314" type="ORGANIZATION" weightage="20" keywordseo="Indian-power-sector">Indian power sector</keyword>, according to a report by US-based cybersecurity company Recorded Future. The two Asian giants may be disengaging on the ground but relations do not seem to have thawed in the realm of cybersecurity. An investigation conducted by the firm’s Insikt Group claims to have discovered a steep rise in the attacks against many companies in India’s power sector. “10 distinct Indian power sector organisations, including 4 or the 5 Regional Load Despatch Centres (RLDC)... have been identified as targets in a concerted campaign against India's critical infrastructure,” <a href="https://www.recordedfuture.com/redecho-targeting-indian-power-sector/">said the report.</a> Chidambaranar and Mumbai ports were also identified as targets. <div type="image" title="china power grid attack map" msid="81274118" hostid="261" caption="&amp;lt;p&amp;gt;Suspected Indian power sector victims of RedEcho targeted intrusions&amp;lt;/p&amp;gt;"></div> However, Recorded Future pointed out that infiltration of RLDCs have very little to offer in terms of meeting any economic espionage objectives. But it does have its uses. Regardless of whether the attack itself was severe or not, the electric grid falls into the critical infrastructure category. The report <a href="https://go.recordedfuture.com/hubfs/reports/cta-2021-0228.pdf?utm_medium=email&amp;_hsmi=110851062&amp;_hsenc=p2ANqtz-9jdCA-FQY1DAHO0FT1PDC4VZzmFmLhLt2PHMaQMzioRH4rvElhlAXO9NRsMuvDFDoMuz-WYhwkkfzsMu3PUYoL3tCNwlNCtuCqcgtnG-DCbfosJVU&amp;utm_content=110851062&amp;utm_source=hs_automation">believes</a> such attacks are ideal for posturing and can deliver potential outcomes such as: <ul><li>To be a robust signaling message as a ‘show of force’</li><li>To enable influence operations to sway public opinion during a diplomatic confrontation</li><li>To support potential destructive cyber operations against critical infrastructure in the future</li></ul>These points are key because the discovery of the attack comes at a time when Indo-Sino relations are tense and <a href="https://www.businessinsider.in/defense/news/india-and-china-begin-to-disengage-from-friction-areas-along-the-border/articleshow/80831679.cms">disengagement attempts</a> on-going along the Line of Actual Control (LAC). <div type="Article" hostid="261" msid="77497819" title="After Jio, India's unicorn startups are the top target for Chinese hackers trying to get their hands on Indian users' data" mstype="2" mssubtype="0"></div> The two Asian giants were involved in their first fatal border clash in 45 years in <a href="https://www.businessinsider.in/defense/news/indian-army-on-india-china-war-in-galwan-valley-soldiers-killed/articleshow/76402297.cms">June last year</a>. Since then, their military forces have been locked in a face-off along multiple frictions points in Leh, especially along the southern banks of Pangong Tso Lake. Who are these Chinese Hackers? The first thing to note is that these attacks were using ShadowPad, which is one of the largest known supply-chain attacks, according to cybersecurity firm <a href="https://www.kaspersky.com/about/press-releases/2017_shadowpad-how-attackers-hide-backdoor-in-software-used-by-hundreds-of-large-companies-around-the-world">Kaspersky</a>. It is a covert background malware, which hides inside legit software. Once activated, it allows hackers to access the system in order to install more malicious software or steal data. <div type="image" title="Screenshot (629)_edited" msid="81274305" hostid="261" caption="&amp;lt;p&amp;gt; High-level RedEcho Terrorist Tactics, Techniques, and Procedures (TTPs) and Recorded Future data sourcing graphic &amp;lt;/p&amp;gt;"></div> Even though the investigators spotted some overlaps with other cybercriminal groups — like APT41, known for the <a href="https://securelist.com/shadowpad-in-corporate-networks/81432/">NetSarang</a> incident using ShadowPad, and Tonto Team — they don’t believe that there is enough evidence to pin the blame on any known perpetrators. In addition to APT41 and Tonto Team, ShadowPad is used by at least three other distinct Chinese groups. So, instead, this closely-related but distinct activity group has been dubbed RedEcho. SEE ALSO: <a href="https://www.businessinsider.in/business/news/elon-musk-and-reliance-industries-mukesh-ambani-compete-in-energy-storage-skytran-and-hyperloop/articleshow/81266903.cms">Elon Musk is facing a challenge from Asia’s richest man Mukesh Ambani in India⁠— both in energy and transportation</a> <a href="https://www.businessinsider.in/india/news/indians-are-heading-back-to-parks-supermarkets-and-pharmacies-but-malls-and-theatres-are-not-on-the-priority-list/articleshow/81271614.cms">Indians are heading back to parks, supermarkets and pharmacies — but malls and theatres are not on the priority list</a>

Chinese hacked into India’s power grid just to show that they can

<ul class="summary-list"><li>The Philippines wants to buy its first submarine as tensions in the region mount.</li><li>Experts say their money would be better spent on drones and missile boats.</li></ul>Amid rising tensions with China, the Philippines is planning to buy its first submarine.The Philippine government says this reflects a shift from internal counterinsurgency against rebels to external defense of the nation's sovereignty as China's military power grows in the South China Sea. But some experts question whether buying a sub makes sense given more cost-effective weapons to counter China, or whether it will even happen."There are a lot of folks inside and outside of the Philippine Navy saying, 'maybe this isn't the best use of our money," Greg Poling, director of the Asia Maritime Transparency Initiative at the Washington-based Center for Strategic and International Studies think tank, told Business Insider.In February, Philippine President Ferdinand Marcos Jr. <a target="_blank" href="https://www.scmp.com/news/asia/southeast-asia/article/3250570/south-china-sea-philippines-marcos-approves-purchase-submarines-defend-sovereignty-amid-growing">announced</a> that his nation would buy a submarine, as part of a long-term modernization of the Philippine armed forces. A Philippine Navy spokesman added that this reflected the Philippines shifting from internal to external defense. "We may not be a large navy … but we would have a navy that will take care of our territorial rights and sovereignty," he said.China and its neighbors have been at loggerheads for the past decade, after Beijing claimed sovereignty over most of the South China Sea, including islands and resource-rich waters. Multiple nations — including Vietnam, Malaysia and the Philippines — reject those claims, as did an international tribunal in 2016.In recent months, the Philippines and China have clashed over an unlikely prize: the <a target="_blank" href="https://www.businessinsider.com/decaying-ship-stands-as-philippines-defense-against-china-sea-claims-2023-11">Sierra Madre</a>, a rusting ex-American amphibious landing ship from World War II, which the Philippine Navy grounded on the Second Thomas Shoal in 1999 to assert its rights over the area. China has tried to stop the Philippines military from resupplying the small garrison on the ship, including ramming Philippine ships, and using <a target="_blank" href="https://www.businessinsider.com/china-philippines-ship-confrontation-with-water-cannons-video-2024-4">water cannon</a>, <a target="_blank" href="https://www.bbc.com/news/world-asia-64621414">lasers</a>, and even <a target="_blank" href="https://www.businessinsider.com/philippine-general-accuses-china-of-piracy-south-china-sea-clash-2024-6">axes and knives</a>.However, Poling doesn't believe that the sub acquisition is tied to this incident. Plans to buy a sub date back to the administration of former President Rodrigo Duterte, a populist whose attempts to embrace China sputtered. "The Philippines is in the last third of a 15-year military modernization plan to move from an internal counterterrorism-focused force to an external defense force," Poling said. "And that mainly means pumping more money into acquisitions for the navy and air force."Though an American ally, it couldn't afford or operate the nuclear-powered models that the US builds. France, Spain, South Korea and Italy, which build diesel-electric subs, have expressed interest, the Philippine Navy has said. Diesel-electric submarines are relatively tough to detect before they surface to intake fresh air, and a small number of them could complicate China's efforts to encroach on atolls and islands by force.But that leaves the question of how readily the Philippines Navy can operate a submarine. Its combat fleet mostly consists of small missile boats and patrol craft, plus two frigates and a corvette. Other Asian powers, including Indonesia, Malaysia and Vietnam, have subs. But Malaysia experienced major <a target="_blank" href="https://www.defenseworld.net/2010/02/06/malaysias-scorpene-submarine-refuses-to-submerge.html">problems</a> when it received French-built submarines in 2009.Submarines are a "wildly expensive capability for any country to field because it is an entire ecosystem," said Poling. " You've got to build a submarine base. You've got to have trained crews."The Philippines may not even have the money for a diesel submarine, which can cost $500 million apiece. "The key determinant here is the fiscal capacity of the Philippines," Mark Manantan, director of cybersecurity and critical technologies, at the Hawaii-based Pacific Forum think tank, told Business Insider. "According to some individuals within the defense and security establishment, purchasing a submarine will possibly eat up the entire defense budget."Still, there are powerful symbolic reasons for the Philippines to join the sub club. It demonstrates success in ending a 50-year-old <a target="_blank" href="https://www.crisisgroup.org/asia/south-east-asia/philippines/338-calming-long-war-philippine-countryside">Communist insurgency</a>, as well as a more recent rebellion by Islamic militants on the island of Mindanao."There are two complementary things going on here," said Poling. "One is the rise of China as a threat to the Philippines. The other is the pretty rapid advance of the peace process in the southern Philippines, along with the degradation of the Philippine Communist Party."And as with many nations, there is a desire to keep up with the neighbors. "Malaysia, Indonesia and Vietnam have subs, so we should have subs, too," Poling said.<div type="image" title="Chinese Coast Guard holding knives and machetes as they approach Philippine troops in the Second Thomas Shoal at the disputed South China Sea" height="3158" width="3165" msid="111535353" hostid="261" sizebytes="206970"></div>A single submarine would do little to change the power imbalance between the Philippines and China. Nor would it be useful against the sort of low-key, gray zone warfare that Beijing is waging in places, such as harassing the Philippine ship beached on the Second Thomas Shoal.Rather than a $500 million diesel sub, a better option would be to acquire cheap but powerful weapons such as missiles, drones and small missile boats. Indeed, the Philippines recently took delivery of Indian-made <a target="_blank" href="https://www.voanews.com/a/amid-china-tensions-india-delivers-supersonic-cruise-missiles-to-philippines-/7581242.html">BrahMos</a> anti-ship missiles, with a range of around 180 miles."I don't think that you'll find any Philippine naval analysts who would stump for a submarine," Poling said. "They want BrahMos missiles or fast missile boats."Ironically, one country that won't care about a new Philippine sub is China. "I don't think the purchase of submarines would have any deterrent effect at all," said Manantan, who believes China may also be counting on future Philippine governments to cancel the project. "The Chinese understand the volatility of Philippine domestic politics, particularly the in-fighting and rent-seeking dynamics among competing political parties. So Beijing is just biding its time up until a new administration sits that it can persuade or at least influence.Ironically, one country that won't care about a new Philippine sub is China. Beijing is more concerned with alliances that Manila is pursuing, such as a new <a target="_blank" href="https://www.reuters.com/world/asia-pacific/philippines-hopes-seal-troops-pact-with-japan-soon-2023-11-06/">agreement</a> that would allow the Japanese military — whose forebears committed atrocities against Filipinos during their WWII occupation — to use Philippine bases."This would be the first time since World War II that Japanese forces have been able to conduct live-fire training in an Asian nation," said Poling. "That worries China."Michael Peck is a defense writer whose work has appeared in Forbes, Defense News, Foreign Policy magazine, and other publications. He holds an MA in political science from Rutgers Univ. Follow him on <a target="_blank" href="https://www.twitter.com/@mipeck1">Twitter</a> and <a target="_blank" href="https://www.linkedin.com/in/mipeck/">LinkedIn</a>.

Eyeing China, the Philippines wants to buy its first attack submarine 

<ul class="summary-list"><li>India's Prime Minister Narendra Modi had his power pegged back in elections this week. </li><li>It was also the 35th anniversary of the Tiananmen Square massacre in China. </li></ul><a target="_blank" href="https://www.businessinsider.com/narendra-modi-won-already-seeing-cost-him-allies-cabinet-funding-2024-6">Narendra Modi's strongman ambitions</a> suffered a setback this week.His Bharatiya Janata Party (BJP) party fell<a target="_blank" href="https://www.businessinsider.com/narendra-modi-win-bjp-india-election-explained-2024-6"> short of the landslide victory </a>many had predicted in the Indian elections.As Modi becomes India's prime minister for a third time, his party will have to enter into a power-sharing agreement with alliance partners.It's a chastening lesson from the Indian electorate for Modi, who, while boosting India's global standing, has been accused of stoking division and weakening India's democracy.On the same day as the Indian election results, <a target="_blank" href="https://www.state.gov/on-the-35th-anniversary-of-tiananmen-square/">the world marked the 35th anniversary </a>of the June 4, 1989 Tiananmen Square massacre, which saw a brutal crackdown on pro-democracy protesters in Beijing.In the decades since, China has slid back into Maoist-style authoritarianism.The events this week highlighted how the competition between India and China is about more than raw power. It's also a competition between two very different political ideologies.<h2 id="6acd91a8-36b3-408f-85c1-259d5944f4e0">India is a flawed but thriving democracy</h2>India is the world's largest democracy. Its first elections were held in 1951-52 after it gained independence from Britain. Free elections have been held in nearly every election cycle since, with a coup in 1975 briefly threatening India's democratic status.It is a rare bright spot in a world where democracy seems to be in retreat. Even in the US, the global champion of democracy, former president Donald Trump is accused of launching an attempt to cling to power illegally after losing the 2020 election.<div type="image" title="Indian voters" height="683" width="1024" msid="110819479" hostid="261" sizebytes="88454"></div>"India isn't a perfect democracy but it is still a role model for developing nations, large or small. And given trends in some Western democracies, I would have to say that there are several things they, too, should be learning from India," said Jabin T. Jacob, an expert on India-China relations at Shiv Nadar University, India.India's democracy, though, faces a stern test under Modi, say critics. Global democracy watchdog <a target="_blank" href="https://www.bbc.co.uk/news/world-asia-india-56393944">Freedom House in 2021</a> downgraded India's democratic status, saying Modi's Hindu nationalist movement had menaced journalists, attacked Muslims, and corroded civil liberties.Jacob said this week's results showed India's democracy remained resilient despite the pressures, while dealing a blow to a leader seen to have overstepped his authority."We have just seen an election in which the Indian electorate decided that their interests are best served by power shared more evenly among a set of political formations that represent diverse interests and aspirations. That is the essence of democracy," he said."The Indian electorate is a very mature one, and it has always intervened in a timely fashion against authoritarian tendencies in its rulers."It's unclear whether Modi will now double down on the nationalism he's championed or seek a more moderate path based on economic reform.<h2 id="c1fe728e-200a-4edb-8d77-94ea6111c952">China's rise comes at a high cost</h2>There are those in India, though, <a target="_blank" href="https://www.ft.com/content/daa87f88-ae0e-11e3-974d-00144feab7de">who have been astonished</a> at the speed and efficiency of China's rise to economic superpower status.China has become the world's second-largest economy, and the lives of millions of ordinary Chinese people have been transformed. Though India has made huge economic progress under Modi, it still lags behind.<div type="image" title="China high speed rail" height="644" width="1024" msid="110819477" hostid="261" sizebytes="117068"></div>"Perhaps the greatest challenge democracy faces in India is that is has failed to deliver the kind of sustained economic development enjoyed by neighbors like China over the last four decades. It has also failed to eliminate extreme poverty," wrote Chatham House <a target="_blank" href="https://www.chathamhouse.org/2022/04/democracy-india">analyst Gareth Price in 2022.</a>But with prosperity in China, has come reduced freedom.Since Tiananmen Square 35 years ago, China's Communist Party has rolled back many of the freedoms its citizens once had.Its current leader, Xi Jinping, has imposed a draconian surveillance state and is considered <a target="_blank" href="https://www.businessinsider.com/china-xi-jinping-ai-wreak-havoc-america-world-economy-2024-6">China's most authoritarian ruler</a> since Mao Tse Tung.Dominic Chiu, an analyst with the Eurasia Group, told Business Insider that China's system had given it an economic advantage — but at a cost."China's one-party rule in the reform era enabled consistent long-term policymaking and economic planning," he said. "This benefited China's economy immensely when the leadership decided to liberalize markets, privatize industries, and open the country up to foreign investment." But, he said, China's repressive one-party system was also deterring investors. And with China's <a target="_blank" href="https://www.businessinsider.com/china-falls-out-of-love-with-natural-diamonds-industry-struggles-2024-6">economy experiencing a steep </a>downturn, this poses a serious problem for its future growth.<h2 id="ebafe111-fa5e-49b8-95d3-f92a674d0da2">China and India vie for dominance</h2>Having achieved economic superpower status, China is now seeking to assert its power more aggressively both regionally and internationally.Tensions with India are increasing. In 2020, clashes along the countries' Himalayan border resulted in the death of 20 Indian soldiers and four Chinese.<div type="image" title="India-China border" height="683" width="1024" msid="110819475" hostid="261" sizebytes="158650"></div><a target="_blank" href="https://uk.news.yahoo.com/modi-mission-assert-indias-global-123002908.html">Analysts told BI</a> that building stronger alliances to counter Chinese aggression will be one of the core aims of Modi's third term.And its commitment to democracy hands it an important advantage, said Jacob."India's democratic status is critical for its international standing. It is an opportunity to develop a model of economic and political development that is both equitable and democratic and thus distinct from the aggressive capitalism of the US or the authoritarianism of the PRC," he said.In 2021, India entered<a target="_blank" href="https://uk.news.yahoo.com/modi-went-straight-reelection-needling-103142130.html"> into the "Quad" partnership </a>with democracies the US, Japan, and Australia, to counter what is perceived as growing Chinese aggression in the Pacific and Indian Ocean.It's a political alliance that would've been more difficult to broker if India was ruled by an authoritarian government,<a target="_blank" href="https://www.brookings.edu/articles/democracy-and-the-us-india-relationship/"> say observers.</a><h2 id="b9b7d5ac-0c25-43f4-adf2-9128d9242020">Competing nationalist visions</h2>Some analysts, though, say that the competition between India and China is not, at its core, about competing political systems but about competing nationalist visions.According to this interpretation, both Xi and Modi are committed to restoring what they see as their nation's rightful place at the top of the global order.But in his quest to strengthen India, critics are warning Modi not to undermine the commitment to democracy and pluralism they believe is at the heart of its post-independence success.Jacob said those in India jealous of China's economic might should look more closely at the reality."Indians who argue against democracy using the China comparison clearly don't understand anything about the reality of China and the Chinese people," he said.

The competition between India and China is about more than raw power

<ul class="summary-list"><li>America is discovering there are few good options for stopping the Houthis.</li><li>Modern anti-ship weapons are powerful yet simple enough that a militant group can operate them.</li></ul>When it comes to raw military power, the US and its allies should have no problem smashing the Houthis who are attacking cargo ships in the Red Sea.But as Houthi missiles continue to disrupt global shipping routes and supply chains, America is discovering there are few good options for stopping the Houthis. Repeated strikes by US and British forces — including <a target="_blank" href="https://abcnews.go.com/International/us-navy-sinks-3-houthi-boats-attacking-merchant/story?id=106016731">sinking several Houthi boats</a> — don't appear to be deterring the Houthis, a Shiite rebel group in war-ravaged Yemen, one of the poorest nations in the world.The Houthis aren't a major military power, but they don't need to be. They enjoy three advantages that magnify their ability to create havoc and make it difficult for the West to stop them.First, there's geography. Nature has decreed that the best shortcut for ships traveling between Europe or the US east coast to India and East Asia is the Suez Canal in Egypt, which connects the Mediterranean Sea and the Indian Ocean. That's why nations fought desperately to control the waterway in the First and Second World Wars. It's estimated that as much as <a target="_blank" href="https://www.reuters.com/world/middle-east/suez-disruption-new-inflation-risk-horizon-2023-12-19/">15% of world trade</a> and 20% to 30% of cargo arriving at US east-coast ports pass through the 120-mile-long Suez Canal.The canal has always been vulnerable, as evidenced when the giant container ship <a target="_blank" href="https://www.usatoday.com/in-depth/graphics/2021/03/26/how-evergreens-ship-got-stuck-in-the-suez-canal/7010375002/">Ever Given</a> ran aground in 2021, disrupting global commerce for weeks. But the problem today isn't the Suez Canal itself, but rather the menace that ships face passing through the Red Sea and the straits of <a target="_blank" href="https://affiliate.insider.com?h=f0c5e417c192cb9ac0958aabe8ce2445c8285099a2bb2f0004791c8e50b78721&amp;postID=65affe42d137673d8ca84d23&amp;postSlug=why-the-west-cant-stop-houthi-missile-attacks-on-ships-2024-1&amp;site=bi&amp;u=https%3A%2F%2Fwww.nationalgeographic.com%2Fhistory%2Farticle%2Fbab-al-mandan-red-sea-suez-shipping-crisis-houthis-gaza">Bab el Mandeb</a> ("gate of tears" in Arabic), bounded by Eritrea and Djibouti to the west, and Yemen to the east. Bab el Mandeb is just 70 miles long and 20 miles wide, within easy range of land-based anti-ship missiles, drones, and even howitzers firing extended-range shells. Unlike most highways, there are no bypasses if the straits are blocked.The second problem is technological. Modern anti-ship weapons are powerful yet simple enough that even a militant group can operate them (<a target="_blank" href="https://www.timesofisrael.com/new-hezbollah-footage-purports-to-show-2006-strike-on-israeli-navy-ship/">Hezbollah</a> used a Chinese-made C-802 cruise missile to damage an Israeli warship in 2006). Drones are cheap, and even a small drone can cause minor damage on a large ship.The Houthis have a polyglot array of <a target="_blank" href="https://www.iiss.org/online-analysis/military-balance/2024/01/houthi-anti-ship-missile-systems-getting-better-all-the-time/">ship-killer missiles</a>, mostly from Iran but with older Soviet and Chinese models, according to the International Institute for Strategic Studies. Anti-ship cruise missiles include the Soviet-era P-21 Termit and Chinese C-801 (with ranges up to 80 miles), as well as Iran's Ghadir (185 miles) and Quds Z-0 (reported to be up to 500 miles). The Houthis also have Iranian-made anti-ship ballistic missiles with a range of about 300 miles, as well as drones.These missiles are fired from mobile launchers that can rapidly change locations. They can fire a rocket and then scoot away before the US Navy can pinpoint the launch site and strike it with a Tomahawk cruise missile. The Houthis are familiar with these tactics from their 9-year war with the Saudi-led coalition that bombed them relentlessly.Geography compounds the technological threat. A ship's best defense isn't guns or jammers, but open space. Even a giant aircraft carrier is hard to spot in the vastness of the ocean, and an anti-ship missile's onboard radar can <a target="_blank" href="https://www.businessinsider.com/russia-putin-invincible-zircon-hypersonic-missile-speed-accuracy-limitations-2023-2">scan only a small area</a>.That's why the US and other nations invest so much effort in satellites, patrol planes, and sensors: to provide real-time tracking data to guide a missile close to a moving ship. But the Bab el Mandeb is only 20 miles wide, which means ships can be tracked by ground radar, small boats, small drones, or even a hilltop observer with a good pair of binoculars.The third problem is political. The Houthis claim they are only attacking Israeli ships out of solidarity with Gaza, though many of the ships have <a target="_blank" href="https://news.usni.org/2024/01/04/u-s-5th-fleet-co-houthi-strikes-not-just-targeting-israel-affiliated-ships">nothing to do with Israel</a>. The real reason seems to be Iran's attempt to use proxies to become the dominant power in the Persian Gulf and the Middle East. Though the Houthis aren't Iranian puppets, they do have a strong sponsor in nearby Iran and its hard-line Shiite government, and their confrontation with Israel is a popular stance with their population and across Arab states more generally. Tehran isn't just aiding the Houthis with weapons and money: Reports say Iranian ships are giving the Houthis <a target="_blank" href="https://www.jpost.com/middle-east/iran-news/article-779229">information on ship movements</a> in the Red Sea.Just as Soviet and Chinese aid propped up North Vietnam, Iranian support could sustain the Houthis indefinitely. Sanctions against the Houthis, such as the US's move to re-designate them a terror organization, are unlikely to be effective against a martyrdom-obsessed group that doesn't seem overly concerned that its own people are starving.This doesn't mean the Houthis are invincible. Perhaps enough Western attacks on their military and surveillance platforms — and even against their leaders — might make a difference (the US has already conducted numerous drone attacks against Al Qaeda in Yemen). An ongoing <a target="_blank" href="https://www.reuters.com/world/middle-east/yemens-warring-parties-commit-ceasefire-steps-un-special-envoy-2023-12-23/">peace deal</a> to end Yemen's civil war, which the UN estimates has led to 227,000 deaths, might sway behavior. Or, perhaps the Houthis will decide to focus on the needs of a country so <a target="_blank" href="https://borgenproject.org/5-facts-poverty-yemen/">poverty-stricken</a> that half the population survives on the equivalent of $2 a day.

Why the West can't stop the Houthi rebels' missile attacks on ships 

<ul class="summary-list"><li>Yemen's Iran-linked Houthi rebels are attacking ships in the Red Sea.</li><li>MSC, Maersk, and oil giant BP have responded by rerouting vessels away from the Suez Canal.</li></ul><a href="https://www.businessinsider.com/ships-go-dark-red-sea-tracking-attacks-israel-iran-2023-12">Attacks on vessels by rebels linked to Iran in the Red Sea</a> have forced big-name shipping and oil giants to reroute their vessels away from the Suez Canal, the crucial and busy shipping lane that connects the strip of water to the Mediterranean.Analysts are warning the disruption could drive up crude prices, delay deliveries, and trigger a flare-up in inflation.Here's what you need to know.<h2>What's happening in the Red Sea?</h2>The Houthis are an Iran-aligned militant group that controls much of northern Yemen, a war-torn and poverty-stricken country in the Middle East. <a href="https://apnews.com/article/yemen-israeli-houthi-gaza-war-3e48ff43f1225ccd98c9a56929fb8f57" target="_blank" rel="noopener">Per AP</a>, the group's official slogan is: "God is the greatest, death to America, death to Israel. Curse the Jews, victory to Islam."Since <a href="https://www.businessinsider.com/israel-declares-state-of-war-hamas-launches-massive-surprise-attack-2023-10">Hamas' terrorist attacks on Israel on October 7,</a> the Houthis have used drones and rockets to target ships in the Red Sea to try and pressure Israel into a ceasefire in Gaza.Shipping giants MSC, <a href="https://markets.businessinsider.com/news/commodities/oil-tankers-red-sea-fuel-ship-energy-trade-yemen-houthis-2023-12">Maersk</a>, Hapag-Lloyd, and UK oil-and-gas super major BP have responded to the attacks by rerouting vessels away from the Suez Canal, the vital waterway that connects Asia to Europe and the US.Their ships will likely instead sail around the Cape of Good Hope on the southern tip of Africa in a diversion that could extend journey lengths by around 3,300 miles, per <a href="https://www.nytimes.com/2023/12/19/business/red-sea-suez-canal-shipping.html" target="_blank" rel="noopener">the New York Times</a>.<h2>Why is the Suez Canal important?</h2><div type="image" title="Ever Given stuck in the Suez Canal in March 2021" height="1533" width="2044" msid="106160118" hostid="261"></div>If chaos at the Suez Canal sounds familiar, cast your mind back to the summer of 2021 — when the <a href="https://www.businessinsider.com/how-ever-given-got-stuck-in-suez-canal-main-theories-2021-3">Ever Given's six-day grounding</a> triggered supply-chain chaos and held up around <a href="https://www.wired.co.uk/article/ever-given-global-supply-chain" target="_blank" rel="noopener">$60 billion worth of goods</a>.The incident was a reminder that the man-made waterway is a vital link for global commerce, with around 15% of the world's total shipping traffic passing through it each year, according to data from <a href="https://www.reuters.com/world/middle-east/suez-disruption-new-inflation-risk-horizon-2023-12-19/" target="_blank" rel="noopener">Reuters</a>.Chinese car parts, Indian cotton, and consumer goods including TVs, clothes, and sports equipment all pass through Suez on container ships. The canal is also a crucial energy route."The Suez Canal has become an increasingly important thoroughfare for the shipping industry since the pandemic, with transits rising by roughly a third in the past two years," Bank of America commodity strategist Francisco Blanch said Wednesday in a research note."Nearly every sector within the shipping industry has seen improvement in tonnage through the Suez Canal, but petroleum has been the clear leader since 2021 as more Russian volumes move to India, China, and elsewhere."Some 12% of seaborne oil and 8% of liquefied natural gas traded worldwide passes through the chokepoint each year, according to data from <a href="https://www.eia.gov/todayinenergy/detail.php?id=61025" target="_blank" rel="noopener">the US Energy Information Administration</a>.<h2>How is the chaos impacting oil prices?</h2>Shipping delays are already driving up oil benchmarks at a time when global supply has already tightened due to <a href="https://markets.businessinsider.com/news/commodities/crude-oil-outlook-opec-production-markets-saudi-arabia-russia-economy-2023-12">the OPEC+ cartel's production cuts</a>.Data from Refinitiv shows that <a href="https://markets.businessinsider.com/commodities/oil-price?type=wti">Brent crude futures</a> have climbed 8% to over $80 a barrel over the past week, while <a href="https://markets.businessinsider.com/commodities/oil-price/euro?type=wti">West Texas Intermediate crude futures</a> are up 8% to just under $75 a barrel over the same period.The flare-up comes toward the end of a quarter where <a href="https://www.businessinsider.com/us-and-uk-naval-forces-intercept-15-drones-in-red-sea">oil prices have tumbled</a>. Both Brent and WTI could climb by another $2 a barrel, Saxo Bank technical analysts said Wednesday, "with the driver being the elevated risks posed by potential attacks from Yemen's Houthi rebels on tankers passing through the Red Sea".<h2>Could this drive up inflation?</h2>Lower price pressures have been a source of relief for the world economy over the second half of 2023. <a href="https://www.businessinsider.com/inflation-consumer-price-index-november-economic-outlook-fed-interest-rate-2023-12">US inflation rose just 3.1%</a> in November, while <a href="https://www.bbc.co.uk/news/business-67769782" target="_blank" rel="noopener">UK data published Wednesday</a> showed a sharp cool-off between October and last month.But forecasters are fretting that a prolonged standoff in the Red Sea could trigger rises. Crude benchmarks rising will have a knock-on effect on gas, while shipping companies could respond to longer journey times and <a href="https://www.reuters.com/markets/commodities/london-marine-insurers-widen-high-risk-zone-red-sea-attacks-surge-2023-12-18/" target="_blank" rel="noopener">higher insurance costs</a> by charging consumers higher prices."Issues in the Red Sea threaten supply chains and have pushed up the oil price, both drivers for inflation," AJ Bell investment director Russ Mould said Wednesday. "Therefore, this is a somewhat muddy situation."Suez also isn't the only major international waterway experiencing difficulties, with a severe drought forcing the freshwater-filled <a href="https://www.businessinsider.com/panama-canal-shipping-company-paid-record-4-million-skip-line-2023-11">Panama Canal to slash its capacity</a>, leading to delays that have already likely <a href="https://www.businessinsider.com/panama-canal-traffic-jam-months-to-clear-impact-holiday-shopping-2023-8">hampered Americans' holiday-season shopping</a>.Investors are already more worried about geopolitics than anything else, according to a <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-2024-geopolitics-recession-inflation-russia-china-ukraine-2023-12">recent poll by Natixis</a> – and the chaos in the Red Sea should serve as yet another reminder that <a href="https://www.businessinsider.com/jamie-dimon-jpmorgan-israel-hamas-ukraine-world-war-two-2023-11">wars in Europe and the Middle East</a> could derail the world economy's miraculous recovery next year.

The wild attacks on ships in the Red Sea are another geopolitical shock that could drive up inflation

<ul><li>Jio, Airtel, Cipla, MRF Tires, Sun Pharmaceuticals and other commercial companies have been tagged as targets by <keyword id="149865" type="PERSON" weightage="20" keywordseo="Chinese-hackers">Chinese hackers</keyword>. </li><li>Cybersecurity firm CYFIRMA has determined that two Chinese hacker groups — Ghost Panda and Stone Panda are looking to damage the companies’ reputation and extract trade secrets.</li><li>The motivation behind the attacks is to “teach India a lesson”.</li></ul>There’s a flurry of activity on the dark web and hackers’ forums as a reaction to the ongoing India-China border dispute in Galwan Valley. The two main hacking groups behind the rhetoric are China-based Gothic Panda and Stone Panda. Cybersecurity firm CYFIRMA Research reports that notable organisations like Jio, Airtel, Cipla and others are on the radar of Chinese hackers to “teach India a lesson”. Other comments translated from Mandarin included “this is one nation who doesn’t listen to us”. <div type="image" title="hack_edited" msid="76528295" hostid="261" caption="&amp;lt;p&amp;gt;Screen from Chinese hackers community forum&amp;lt;/p&amp;gt;"></div> As per their observations, CYFIRMA has shared three lists — commercial organisations, media companies, and government websites — that are potential targets as per the conversations they observed between the Chinese hacking community. Commerical organisations on Chinese hackers target list: <ol><li>Jio</li><li>MRF Tires</li><li>Sun Pharmaceuticals</li><li>Airtel</li><li>Cipla</li><li>Intex Technologies</li><li>Micromax</li><li>BSNL</li><li>Apollo Tires</li><li>L&amp;T</li></ol>According to CYFIRMA, the objective of hacking commercial organisations listed above is to cause reputation damage and extract any sensitive information that could hamper their operations — including trade secrets. Government sites on Chinese hackers target list: <ol><li>Ministry of Foreign Affairs</li><li>Ministry of Defence</li><li>Ministry of Information and Broadcasting</li></ol>The motivation for hacking government sites is to ‘name and shame’ them as per CYFIRMA’s report. The same applies to media houses on their target list. Media houses on Chinese hackers target list: <ol><li>Times of India</li><li>Republic TV</li><li>NDTV</li><li>Hindustan Times</li><li>X-TV</li><li>Aaj Tak</li><li>Dainik Jagran</li></ol>Meet the hackers behind the threat to Indian organisations Gothic Panda — also known at APT3, UPS and TG-011 — has been <a href="https://www.recordedfuture.com/chinese-mss-behind-apt3/">directly attributed</a> to the Chinese Ministry of State Security in the past. It has been behind campaigns like Operation Clandestine Fox, Double Tap and Clandestine Wolf in the past. Gothic Panda’s repertoire of victims include companies in the defence, telecommunications, transportiation, and advanced technology sectors. They have also been known to hack into government departments and bureaus in Hong Kong, the US, and several other countries. Stone Panda — also known APT10, Red Apollo, CVNX, HOGFISH and most popularly, menuPass — been known to originate in China and been active since 2009. In 2017, Palo Alto detected that the hacker group was targetting Japanese Academics and organisations with malware. In another investigation, FireEye found that Stone Panda was using a Remote Accessibility Trojan (RAT) — which gives the hackers to control your device from anywhere — to run reconnaissance, extract intelligence, and plant malware. SEE ALSO: <a href="https://www.businessinsider.in/tech/the-10-most-infamous-hackers-of-all-time/slidelist/46883316.cms">The 10 most infamous hackers of all time</a> <a href="https://www.businessinsider.in/tech/news/chinese-hackers-crack-through-indias-industry-department-website-with-mediation/articleshow/76510233.cms">Chinese hackers crack through India's Industry Department website with "mediation"</a> <a href="https://www.businessinsider.in/tech/news/sbi-warns-2-million-users-may-be-at-risk-of-phishing-attacks-in-delhi-mumbai-and-other-major-cities/articleshow/76505433.cms">SBI warns 2 million users may be at risk of phishing attacks in Delhi, Mumbai and other major cities</a>

Top 20 Indian organisations under threat of attack from Chinese hackers to “teach India a lesson” amid border tension

<ul class="summary-list"><li>A months-long clash between <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword> and <keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword> on their Himalaya border has dramatically increased tensions.</li><li>But the growing rivalry between the two Asian powers is also likely to play out in the <keyword id="12350" type="ENTERTAINMENT" weightage="60" keywordseo="Indian-Ocean">Indian Ocean</keyword>.</li><li>China's navy is capable and only getting bigger, and India is trying to catch up.</li></ul>Last year, an all-out brawl between Chinese and Indian troops along the disputed Sino-Indian border killed 20 Indian and at least four Chinese soldiers.The medieval-style battle in the Himalayas showed that the countries' rivalry is entering a new phase of intensity."China is definitely factoring larger and larger in India's defense strategy today," Timothy Heath, a senior <keyword id="6356001" type="UNKNOWN" weightage="60" keywordseo="international">international</keyword> and defense researcher at the Rand Corporation think tank, told Insider.The military focus of that rivalry has primarily been on the ground, as reflected by <a href="https://www.businessinsider.com/china-india-tanks-armor-could-make-future-war-much-deadlier-2021-5" target="_blank" rel="noopener">the buildup in the Himalayas</a>, but another <a href="https://www.businessinsider.com/india-china-border-clashes-could-cause-more-indian-ocean-activity-2020-7" target="_blank" rel="noopener">area is growing in importance</a>: the Indian Ocean.<div type="image" title="India China troops soldiers Pangong Ladakh border" height="1000" width="2000" msid="83204985" hostid="261"></div>With some of the world's most <a href="https://lki.lk/publication/the-importance-of-the-indian-ocean-trade-security-and-norms/" target="_top">important</a> trade routes running through it, the Indian Ocean's value is hard to understate, which <a href="https://www.businessinsider.com/india-is-guarding-against-chinas-big-plans-across-asia-2020-11" target="_blank" rel="noopener">China has already recognized</a>."Given its importance for China, it's pretty obvious the Chinese are elevating in priority the security needs for the maritime silk road," Heath said. "That means India has to be ready for possible situations involving China."But Indian dominance in its home waters is far from assured. While India's navy has some advanced capabilities, China's People's Liberation Army Navy, or PLAN, is <a href="https://www.businessinsider.com/china-challenged-to-build-balanced-to-compete-with-us-navy-2021-5">substantially larger</a> and more sophisticated.With the rivalry entering a new phase, India is trying to catch up.<h2>Outnumbered at sea</h2><div type="image" title="Indian Navy aircraft carrier INS Vikramaditya" height="1098" width="2000" msid="83204986" hostid="261"></div>The <keyword id="6355100" type="ORGANIZATION" weightage="60" keywordseo="Indian-Navy">Indian navy</keyword> isn't small or weak. Its primary combatants include 10 destroyers, 13 frigates, 17 submarines, and one aircraft carrier.A number of India's warships, like its <a href="http://www.military-today.com/navy/kolkata_class.htm" target="_top">Kolkata-class destroyers</a> and <a href="https://www.navyrecognition.com/index.php/world-naval-forces/asian-navies-vessels-ships-equipment/india-indian-navy-ins-vessels-ships-equipment/india-indian-navy-destroyers-and-frigates/2492-shivalik-class-frigate-india-indian-navy-ins-guided-missile-frigate-satpura-sahyadri-datasheet-pictures-photos-video-specifications.html" target="_top">Shivalik-class frigates</a>, were commissioned within the last decade and have stealth capabilities.Some Indian ships have modern vertical launching systems and are armed with Russian and Israeli anti-ship and anti-aircraft missiles. India's navy also has the <a href="https://missilethreat.csis.org/missile/brahmos/" target="_top">BrahMos</a> supersonic missile, a joint Indian-Russian design that is one of the fastest missiles in the world.Two of India's submarines are nuclear-powered: one attack submarine (SSN) on loan from Russia and one <a href="https://www.naval-technology.com/projects/arihant-class/" target="_top">Arihant-class</a> domestically designed and built ballistic-missile submarine (SSBN) - the first SSBN for a non-permanent member of the UN Security Council.India <a href="https://www.hindustantimes.com/india-news/navy-to-get-aircraft-carrier-vikrant-missile-destroyer-visakhapatnam-in-2021-101619498533809.html" target="_top">expects</a> to commission a second Arihant SSBN and a second aircraft carrier (also domestically designed and built) within the year. But the Indian navy is outnumbered and outclassed by the PLAN.Chinese ships are "largely composed of modern multi-role platforms featuring advanced anti-ship, anti-air, and anti-submarine weapons and sensors," according to a <a href="https://media.defense.gov/2020/Sep/01/2002488689/-1/-1/1/2020-DOD-CHINA-MILITARY-POWER-REPORT-FINAL.PDF" target="_top">2020 Pentagon report</a>.By comparison, India is "still quite a way behind the Chinese in their warship development," Heath said. "The Chinese have certainly developed some very impressive platforms, and the Indians are really trying to catch up."<div type="image" title="Indian Navy Scorpene-class submarine Karanj" height="1287" width="2000" msid="83204988" hostid="261"></div>The Indian navy's primary fighting vessels are outnumbered by the PLAN's <a href="https://www.rand.org/pubs/external_publications/EP68058.html" target="_top">South Sea Fleet</a> alone, which has some 11 destroyers, 19 frigates, 22 submarines (including two SSNs and four SSBNs), and one aircraft carrier. The PLAN, now the largest navy in the world, can draw on even more vessels from its two other fleets.To address the imbalance, the Indian navy plans on <a href="https://www.naval-technology.com/features/future-ships-indian-navy/" target="_top">acquiring</a> a number of new and advanced vessels, especially <a href="https://www.indiatoday.in/magazine/defence/story/20210426-india-s-nuclear-sharks-1791817-2021-04-17" target="_top">nuclear-</a><a href="https://www.indiatoday.in/magazine/defence/story/20210426-india-s-nuclear-sharks-1791817-2021-04-17" target="_top">powered</a><a href="https://www.indiatoday.in/magazine/defence/story/20210426-india-s-nuclear-sharks-1791817-2021-04-17" target="_top"> and diesel-electric submarines</a>.Two more Arihant-class SSBNs are in production and are expected to join the fleet by 2025. Three more larger SSBNs from the new <a href="http://www.hisutton.com/S-5_SSBN.html" target="_top">S5-class</a> are also being planned.The Indian navy also <a href="https://timesofindia.indiatimes.com/india/project-to-build-n-powered-attack-subs-set-to-get-ccs-nod/articleshow/81770216.cms?from=mdr" target="_top">hopes</a> to build six Project-75 Alpha-class SSNs and to <a href="https://www.defensenews.com/global/asia-pacific/2019/03/08/india-signs-3-billion-contract-with-russia-for-lease-of-a-nuclear-submarine/" target="_top">replace</a> its leased Russian SSN INS Chakra (which will be returned soon) with another leased Akula-class SSN by 2025.Six new <a href="https://www.naval-technology.com/projects/p75i-scorpene-class-attack-submarines/" target="_top">Project 75I-class</a> diesel-electric attack submarines have <a href="https://www.financialexpress.com/defence/the-wait-for-more-submarines-gets-longer-project-75-i-gets-delayed-further/2209149/" target="_top">been delayed</a> but could start entering Indian service by 2030.A third aircraft carrier, INS Vishal, is planned to replace the aging INS Vikramaditya. The new carrier, not expected to be completed before 2030, <a href="https://economictimes.indiatimes.com/news/defence/india-uk-in-talks-to-build-copycat-naval-supercarrier-report/articleshow/69186727.cms" target="_top">may be based on</a> the UK's Queen Elizabeth-class supercarrier.Seven brand-new <a href="https://www.navalnews.com/naval-news/2020/12/indian-navys-2nd-project-17a-frigate-himgiri-launched-by-grse/" target="_top">Nilgiri-Class</a> stealth frigates are also under construction, and four Admiral Grigorovich-class frigates, two built by Russia and two by India, are also <a href="https://www.navyrecognition.com/index.php/news/defence-news/2021/january/9586-india-procures-from-ukraine-gas-turbine-engines-for-admiral-grigorovich-class-frigates-of-indian-navy.html" target="_top">expected</a> to join India's navy before the end of the decade.<h2>China's 'string of pearls'</h2><div type="image" title="India navy Malabar" height="1429" width="2000" msid="83204989" hostid="261"></div>There is little doubt in India that the new vessels are needed. Although China is relatively far from the Indian Ocean, it has ramped up its activity there.Over the last few years, China has taken control of ports across the Indian Ocean that have the potential to support the PLAN - a network that has been called China's "String of Pearls.""People have been theorizing about the so-called String of Pearls for years," Heath said. "We are actually starting to see some evidence of the Chinese implementing something along these lines."China has <a href="https://www.npr.org/2019/12/13/784084567/in-sri-lanka-chinas-building-spree-is-raising-questions-about-sovereignty" target="_top">taken control</a> of a port in Sri Lanka, is <a href="https://www.forbes.com/sites/hisutton/2020/06/02/chinas-new-high-security-compound-in-pakistan-may-indicate-naval-plans/?sh=2180b3d21020" target="_top">building</a> naval facilities in Pakistan, and is pursuing port projects in <a href="https://www.globalconstructionreview.com/news/china-signs-deals-myanmar-create-back-door-indian-/" target="_top">Myanmar</a>, <a href="https://www.orfonline.org/expert-speak/china-bangladesh-strategic-linkages/" target="_top">Bangladesh</a>, and <a href="https://www.orfonline.org/expert-speak/falling-apart-a-story-of-the-tanzanian-bagamoyo-port-project/" target="_top">Tanzania</a>.China already has a <a href="https://asia.nikkei.com/Politics/International-relations/Indo-Pacific/China-adds-carrier-pier-to-Djibouti-base-extending-Indian-Ocean-reach" target="_blank" rel="noopener">military base in Djibouti</a>, but other "pearls" appear to be primarily for civilian use.That doesn't mean those facilities couldn't be used to support PLAN vessels. A number of Chinese ships and submarines have <a href="https://www.reuters.com/article/sri-lanka-china-submarine/chinese-submarine-docks-in-sri-lanka-despite-indian-concerns-idINKBN0IM0LU20141102" target="_top">already docked</a> at Sri Lanka to refuel and resupply. Sri Lanka has since <a href="https://www.reuters.com/article/us-sri-lanka-china-submarine/sri-lanka-rejects-chinese-request-for-submarine-visit-sources-idUSKBN1871P9" target="_top">denied</a> Chinese requests for other warship port visits due to Indian concerns."The Chinese are not interested in building full-fledged bases in the US model," Heath said. "These are facilities that primarily offer refueling, repair, and replenishment to passing warships."<div type="image" title="India Australia US Navy P-8" height="1125" width="2000" msid="83204991" hostid="261"></div>India does have a few advantages over China. As the region is its backyard, it will always be able to bring more to bear against threatening Chinese vessels, such as land-based aircraft and anti-ship missiles.India also has its own overseas outposts. It <a href="https://www.indiatoday.in/india/story/india-sets-up-coastal-radars-in-neighbourhood-to-keep-eye-on-china-1744751-2020-11-27" target="_top">has set up</a> radar stations for maritime surveillance in Sri Lanka, Seychelles, and Mauritius; it's <a href="https://www.lowyinstitute.org/the-interpreter/agalega-glimpse-india-s-remote-island-military-base" target="_top">constructing</a> facilities on the Mauritian island of North Agalega, and <a href="https://asia.nikkei.com/Politics/International-relations/Indo-Pacific/Seychelles-in-crosshairs-of-India-s-maritime-security-axis" target="_top">it's pursuing</a> military facilities elsewhere in the region.India also controls the Andaman and Nicobar Islands, <a href="https://www.businessinsider.com/r-india-navy-set-to-open-third-base-in-strategic-islands-to-counter-china-2019-1" target="_blank" rel="noopener">strategically important islands</a> on the Indian Ocean side of the Malacca Strait. India has beefed up its military presence there, and some <a href="https://www.hindustantimes.com/analysis/militarising-andamans-the-costs-and-the-benefits/story-J3mGWFQS3NgLUiPYwIVb2N.html" target="_top">advocate</a> allowing partner countries to have a presence there as well. (A US Navy patrol plane <a href="https://www.businessinsider.com/us-intelligence-sharing-with-india-helps-monitor-chinese-military-2020-12" target="_blank" rel="noopener">has already refueled</a> there.)Despite the government's renewed attention, India's navy still has a ways to go. Most of its new ships and submarines will not be fully operational until the end of the decade at the earliest, and its budget is still smaller than that of India's army or air force.India's navy will also have to compete with the considerable attention that remains <a href="https://www.businessinsider.com/us-intelligence-sharing-with-india-helps-monitor-chinese-military-2020-12" target="_blank" rel="noopener">focused on India's land borders</a>, where New Delhi also has to worry about Pakistan, the rival it has focused on almost exclusively since independence.But the rivalry with Pakistan also has a naval element. The Pakistani terrorists who carried out the deadly 2008 attack in Mumbai <a href="https://www.stimson.org/wp-content/files/file-attachments/Mumbai-Final_1_1.pdf" target="_top">arrived by sea</a>, and Islamabad, which is a Chinese military partner, is <a href="https://www.defensenews.com/naval/2020/10/14/outgoing-pakistan-navy-chief-reveals-details-of-modernization-programs/" target="_top">modernizing its </a><a href="https://www.defensenews.com/naval/2020/10/14/outgoing-pakistan-navy-chief-reveals-details-of-modernization-programs/" target="_top">own</a><a href="https://www.defensenews.com/naval/2020/10/14/outgoing-pakistan-navy-chief-reveals-details-of-modernization-programs/" target="_top"> navy</a>, including with Chinese submarines and drones.

A year after a showdown on 'the roof of the world,' India is gearing up to take on China at sea

<ul class="summary-list"><li>Paul Scharre, a former defense official, argues AI dominance will determine the next global power.</li><li>The battle for AI power will revolutionize world militaries and economies.</li></ul>The global battle for AI dominance is underway, according to author Paul Scharre, a former Army Ranger and current VP and director of studies at the Center for New American Security — a think tank specializing in national security issues.Scharre previously served as a strategic planner at the Office of the Secretary of Defense, working to establish policies on unmanned and autonomous systems and emerging weapons technologies, and established DOD policies on intelligence, surveillance, and reconnaissance programs.In his latest book, "<a href="https://wwnorton.com/books/9780393866865#!/" target="_blank" rel="noopener">Four Battlegrounds: Power in the Age of Artificial Intelligence</a>," Scharre explores how the international battle for the most powerful AI technology is changing global power dynamics. That battle, he says, is a global competition to seek the best and most efficient data, computing hardware, human talent, and institutions adopting AI technology — which will determine the next global superpower.This conversation with Scharre has been lightly edited for length and clarityIn your new book, you argue there's a battle for global power going on in the form of a revolution brought about by artificial intelligence. What are the stakes of that battle?So we saw during the Industrial Revolution that nations rose and fell on the global stage based on how rapidly they industrialized. Now, technology is this key enabler of political, economic, and military power. And I think that AI technologies are extremely powerful tools for a country's or society's ability to shape global progress and the international environment.I do not want to live in a world where the Chinese Communist Party has that level of influence over global affairs. I find that concerning given their egregious human rights abuses at home, their bullying of their neighbors and abroad, their threatening of Taiwan and other countries in the region with military aggression, their militarization of the South China Sea. And I think it's part of the risk is not just about economic and military power and political power, but the spread of China's model of governance, their techno-authoritarianism, through adoption of their AI systems.Other countries are increasingly emulating China's laws and norms for how to use technology for surveillance and repression at home — some of the social software that sits on top of the hardware of this surveillance technology itself. And of course, this fits into a broader trend we've seen of democratic backsliding in a number of countries and so I do think that we shouldn't take democracy for granted at home or abroad. And it's really important that democracies push back against these authoritarian trends.And it isn't a typical battle, as we aren't directly at war, so where is the action happening?So the book explores the US/China rivalry in artificial intelligence and the book comes looks at what's happening with artificial intelligence as a general purpose technology, much like electricity or computer networks or the internal combustion engine. And like those other technologies, it has a wide variety of applications across society. The book concludes that the four key battlegrounds of global competition: in artificial intelligence, or data, computing hardware or compute, human talent, and the institutions necessary to successfully adopt AI systems.Probably the most foundational application of AI that will help advance national power is the widespread application of AI to enhanced economic productivity and scientific research. When AI technology is adopted in a wide range of industries and increases economic productivity, that's going to have second and third order effects on national power by increasing the GDP, and then allowing the nation to turn economic productivity into other, sometimes more tangible tools of national power — whether it's for the intelligence services building satellites and processing intelligence information that's collected or building military forces.What practical applications does AI have for the intelligence community or military operations?AI tech has a lot of potential in intelligence applications. I think it's quite likely that the US Defense Department and intelligence community use AI to analyze imagery whether from satellites or drones and, while they haven't acknowledged this publicly, it's very possible that's playing a role in the information that the US is sharing with Ukraine. We have seen some other examples of AI technology being used directly by Ukrainian forces on the ground, particularly some of the civilian drone operators. And this highlights just really how ubiquitous AI technology is that you don't need to be the world's most advanced person to use the technology, it's pretty widely available.We're also seeing in the war in Ukraine the importance of logistics, for example, and maintenance operations, and that's the kind of thing where the bulk of what militaries do on a day-to-day basis is move people and things from point A to point B — it looks a lot like Walmart or Amazon does, it's just what happens at the end that's different. And so that's a place where militaries can improve their logistics, readiness, and finance. and personnel, and maintenance by 5%, the sum total of those effects in terms of military effectiveness could be quite significant and quite transformative.And is AI transforming traditional warfare, as well?As far as military advancements in warfare, there are also some examples. In the DARPA Alpha Dog competition, the goal was to build an AI agent that could achieve superhuman performance in a simulator against a human in dogfighting, which is considered by humans to be sort of the ultimate crucible of human pilots. To make a long story short, the AI succeeded, went head to head against an experienced Air Force pilot and absolutely crushed the human pilot, 15 to zero — the human didn't get a single shot off against the AI.In particular, head-to-head gunshots are actually banned in training by human pilots because there's a high risk of collision if the pilot is trying to maneuver the aircraft when you're racing each other hundreds of miles an hour. And it's extremely difficult to do in any case and requires superhuman levels of precision, but none of that was a problem for the AI agent. It can achieve these split-second shots while also avoiding a collision. And the AI agent learned to do this all on its own — it wasn't trained to do that. The AI system that won was trained in a simulator and had over 30 years of simulated flying time and this was one of the things that it simply learned on its own from all of these years of simulated dogfights.And what about use of AI outside of war? I think there's a variety of places where AI is likely to have pretty significant effects over time on economic productivity. One is, of course, you know, specific AI applications that might improve finance or medicine or transportation or other industries — so self-driving cars should be at the point where they're really effective and viable on roads are one example of this, certainly improvements in medicine, using AI for imaging, for example, that kind of thing that could be very beneficial across society. But it's one of the most exciting things about AI is just its ability to increase productivity across a whole wide range of places.When I think of AI, I think of things like <a href="https://www.businessinsider.com/clearview-ai-facial-recognition-lawsuit-us-businesses-private-companies-2022-05">Clearview AI facial recognition</a>, where law enforcement can use facial recognition scans of civilians. What are the surveillance applications of this kind of tech?One really critical component of this global competition in artificial intelligence is the emerging struggle over how AI is used within countries for domestic security and surveillance and the creeping spread that we're seeing globally of Chinese-style models of techno-authoritarianism that China has pioneered. It's very dystopian, tech-enhanced repression. China has half of the world's 1 billion surveillance cameras, and they're increasingly using AI tools like facial recognition, or gait recognition, to identify who people are based on their gait patterns and how they walk. And in connecting that with other types of data, like license plate data, calls, or geolocation data on phones and people's purchasing behaviors to monitor and track Chinese citizens.And China is exporting a lot of the technology abroad, so 80 countries around the world have purchased Chinese surveillance technology. And perhaps even more troubling, we're increasingly seeing the export of the norms and laws that China uses to other countries to use this technology. So the social software, if you will, that's coupled with the physical hardware of some of the surveillance technology. And it's deeply troubling because it's not just that technology is being used for human rights abuses in China, and potentially can be used by other countries, but one of the concerning things about AI-enabled oppression is that it enhances the state's ability to monitor citizens and therefore accelerate the system of oppression itself.What would a competing model look like?Well, that's part of the problem. One of the challenges that democracies face is that we don't have that model yet. So for facial recognition, for example, we have a patchwork system that's developing in the United States of different regulations on for example, the law enforcement use of facial recognition depending on where you live in the United States and a number of different cities and states have passed bans on law enforcement use of facial recognition you know, I think one of the challenges that democracies face is that the decentralized nature of power inside democracies, means that coming up with a solution for tech governance takes longer. It takes longer because sometimes the quick answer is not the right one.So what kind of guardrails do you think should be placed on this technology?Over time, regulation in some fashion of AI technology; probably much of which will be sector-specific. The regulations for AI in medical applications will fall within the sort of the broader paradigm of how we regulate tools and safety for medical devices, and the way that we regulate AI in finance applications will fall from how we regulate trading and other financial things. But I do think that AI doesn't get a pass on regulations and it's worth reflecting on the fact that we only have clean air and water, and safe highways, and safe air travel, and safe food to eat in America because of government regulation of industry.We need some regulatory framework in place for very large training models. I think that's the conversation that we need to start having, in part because these large models are in many cases dual-use. They could be used for generating text and having chats with them or writing essays — but they could also be used to find cyber vulnerabilities, they could, in principle, if they were more sophisticated, perhaps used to help someone plan a terrorist attack to cause harm or figure out how to, you know, not today, but in the future, make a biological weapon or some other kind of destructive device. And that's a conversation we need to start having now in part because the pace of the technology is much, much, much faster than the pace of policy discussions in Washington.What do you see as potential drawbacks to AI, especially as we get to a point where we're really developing new tech first and asking questions later?That's a great point. I think we should have reservations about AI technology because there are a lot of problems with AI technology today: it's unreliable, it is often very brittle in the sense that the AI systems can do well in some contexts and then it can fail often quite dramatically in others.One of my favorite examples of this brittleness was reportedly one of the early versions of AlphaGo, the AI agent that achieved superhuman performance at the game Go, if you change the size of the board slightly, proportionately its performance dropped off very dramatically because it was not trained on data of that size. It was only trained on a certain size and so that's a good example of the problems that come up often quite brittle and failing in generalizing within one to other situations.We're seeing some of this on display very recently with the implementation of these chatbots into search, for example. I mean, both Microsoft and Google most recently deployed AI chatbots publicly that weren't ready. And the problem isn't that Bing is declaring its love for users and saying that someone that is chatting with should leave their wife to be with it — I mean, that's kind of odd — but the real problem is that the best AI scientists in the world don't know how to stop these chatbots from doing that. And so to me, that is the kind of thing that should give us pause as we're thinking about how we use these AI systems in more real-world applications. In the immediate time being, the risk that a chatbot hurt someone's feelings is not world-shattering, but as we see AI integrated into more high-consequence applications, we absolutely want to make sure that these systems are going to do what we want them to do.And, you know, the behavior of some of the major companies here has not exactly been super responsible. And so we're already seeing with Open AI, and Microsoft, and Google saw the rush over the last couple months to hastily deploy AI chatbots that were not at all ready and the companies responding to each other in this competitive dynamic that's really harmful, this sort of race to the bottom on safety.Do you have a positive outlook on the future of AI at this point? What are you hopeful for?It's funny. I would not say that I'm optimistic about the technology. I mean, I'm fairly bullish about where AI is going in terms of capabilities. I just think we've seen tremendous progress and I think there's no sign of it slowing down in the near term. But there are a lot of risks that come with AI. I would just say that I'm optimistic about society's ability to handle those risks. I think that when we take a step back and look at human progress, this is the best time to be alive.We've seen tremendous progress over the last several hundred years in lifting up people's standard of living, in reducing poverty, in improving life expectancy, and reducing infant mortality. There are good reasons to be optimistic about the future and our ability to continue to use technology to improve our lives in a very meaningful way.I do think that there are very significant challenges with artificial intelligence technology. The troubling thing is these problems seem very difficult. These technical problems of getting AI to do what you want it to do is quite hard. And I think it's important that we're clear-eyed about some of these technical problems. I'm feeling quite encouraged the actually that some of these relatively public failures have brought some of these concerns about AI more mainstream and increased the number of people that are paying attention to the problem.<a href="https://www.paulscharre.com/four-battlegrounds">Four Battlegrounds: Power in the Age of Artificial Intelligence</a> was released on February 28.

The next world power will be the first to harness the power of AI, former defense official argues in new book

<ul><li><keyword id="149865" type="PERSON" weightage="20" keywordseo="Chinese-hackers">Chinese hackers</keyword> are increasingly targeting Indian <keyword id="4112095" type="PERSON" weightage="20" keywordseo="Unicorn-Startups">unicorn startups</keyword> like Swiggy, <keyword id="6357120" type="DEFINITION" weightage="20" keywordseo="paytm">Paytm</keyword>, Ola and Byju’s to steal sensitive information. </li><li>The motivation is no longer to cause harm to their reputation but to get away with as much user insight as possible without causing too much noise. </li><li>“They are hunting those companies because they have a lot of data,” Kumar Ritesh, the CEO of Singapore-based cybersecurity firm Cyfirma told Business Insider in an interview. </li></ul>Hackers usually follow the money but now they have now set their sights on a new pot of gold at the end of the rainbow — data. And, their newest targets are unicorn startups in India. <div type="Article" hostid="261" msid="76528261" title="Top 20 Indian organisations under threat of attack from Chinese hackers to “teach India a lesson” amid border tension" mstype="2" mssubtype="0"></div> The geopolitical tensions between India and China have led to a surge in cybercriminals trying to infiltrate companies like Swiggy, Paytm, Ola, Byju’s and OYO among others. Singapore-based cybersecurity company Cyfirma has a new platform called DeCYFIR which can spot threats before an attack occurs by analysing conversations across the dark web and hacker forums. Traditionally, cybercriminals have honed in on telecom companies. Jio, in particular, is a crowd favourite. Right now, the names of <keyword id="982553" type="PERSON" weightage="20" keywordseo="Indian-startups">Indian startups</keyword> have started popping up in these hidden corners of the world wide web. And, the frequency only seems to be increasing. Data hungry hackers Cyberattacks on Indian firms by state-sponsored Chinese hackers were primarily driven by the idea of causing damage to the company’s reputation. However, over the last three months, it’s no longer about creating noise. Instead, it’s about getting behind the defensive walls of companies in order to exfiltrate personal, sensitive, and financial information. “A lot of young companies that started five to ten years ago and have grown to become unicorns — who do a lot of customer services, who collect personal information and financial information, and are supplying you with food, education or other things — and they [cybercriminals] are hunting those companies because they have a lot of data,” Kumar Ritesh, the CEO of Singapore-based cybersecurity firm Cyfirma told Business Insider in an interview. Unicorn startups, in particular, are powerhouses of data and intellectual property. Getting access to that data has a wider impact than just taking down their website. Ritesh cited the example of Chinese hackers stealing data from a popular Japanese cosmetics company. They were able to get away with the IP of the company's signature face cream. The cream soon resurfaced under a Chinese brand name — made using the same formula — undercutting the price of the Japanese company by 30%. The uncertainty around Huawei, the ban on Chinese apps in the Indian market along with the investment restrictions are pushing China out of the loop when it comes to data from Indian users. Ritesh believes that the uptake in attacks is not temporary and won’t die down after the coronavirus pandemic. New players are entering the field of cyber warfare, and the digital world is all set to get more combative. SEE ALSO: <a href="https://www.businessinsider.in/science/research/news/red-bricks-dont-just-make-walls-they-can-now-power-your-house-too/articleshow/77486542.cms">Walls can be power banks for houses as red bricks turn into energy-storing batteries</a> <a href="https://www.businessinsider.in/careers/news/it-and-media-employees-are-in-no-hurry-to-get-back-to-office-not-until-there-are-proper-policies-in-place/articleshow/77486082.cms">IT and media employees are in no hurry to get back to office — not until there are proper policies in place</a> <a href="https://www.businessinsider.in/defense/news/india-approves-another-1-2-billion-for-defence-over-and-above-the-5-5-billion-last-month/articleshow/77487432.cms">HAL's share price jumps 4% after India approves defence projects worth $1.2 billion</a>

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