More than 1,000 Ubiquiti routers in homes and small businesses were infected with malware used by Russian-backed agents to coordinate them into a botnet for crime and spy operations, according to the Justice Department.
That malware, which worked as a botnet for the Russian hacking group Fancy Bear, was removed in January 2024 under a secret court order as part of “Operation Dying Ember,” according to the FBI’s director. It affected routers running Ubiquiti’s EdgeOS, but only those that had not changed their default administrative password. Access to the routers allowed the hacking group to “conceal and otherwise enable a variety of crimes,” the DOJ claims, including spearphishing and credential harvesting in the US and abroad.
Unlike previous attacks by Fancy Bear—that the DOJ ties to GRU Military Unit 26165, which is also known as APT 28, Sofacy Group, and Sednit, among other monikers—the Ubiquiti intrusion relied on a known malware, Moobot. Once infected by “Non-GRU cybercriminals,” GRU agents installed “bespoke scripts and files” to connect and repurpose the devices, according to the DOJ.
The DOJ also used the Moobot malware to copy and delete the botnet files and data, according to the DOJ, and then changed the routers’ firewall rules to block remote management access. During the court-sanctioned intrusion, the DOJ “enabled temporary collection of non-content routing information” that would “expose GRU attempts to thwart the operation.” This did not “impact the routers’ normal functionality or collect legitimate user content information,” the DOJ claims.
“For the second time in two months, we’ve disrupted state-sponsored hackers from launching cyber-attacks behind the cover of compromised US routers,” said Deputy Attorney General Lisa Monaco in a press release.
The DOJ states it will notify affected customers to ask them to perform a factory reset, install the latest firmware, and change their default administrative password.
Christopher A. Wray, director of the FBI, expanded on the Fancy Bear operation and international hacking threats generally at the ongoing Munich Security Conference. Russia has recently targeted underwater cables and industrial control systems worldwide, Wray said, according to a New York Times report. And since its invasion of Ukraine, Russia has focused on the US energy sector, Wray said.
The past year has been an active time for attacks on routers and other network infrastructure. TP-Link routers were found infected in May 2023 with malware from a reportedly Chinese-backed group. In September, modified firmware in Cisco routers was discovered as part of a Chinese-backed intrusion into multinational companies, according to US and Japanese authorities. Malware said by the DOJ to be tied to the Chinese government was removed from SOHO routers by the FBI last month in similar fashion to the most recently revealed operation, targeting Cisco and Netgear devices that had mostly reached their end of life and were no longer receiving security patches.
In each case, the routers provided a highly valuable service to the groups; that service was secondary to whatever primary aims later attacks might have. By nesting inside the routers, hackers could send commands from their overseas locations but have the traffic appear to be coming from a far more safe-looking location inside the target country or even inside a company.
Similar inside-the-house access has been sought by international attackers through VPN products, as in the three different Ivanti vulnerabilities discovered recently.
China is still finding ways to skirt US export controls on Nvidia chips, Reuters reported.
A Reuters review of publicly available tender documents showed that last year dozens of entities—including “Chinese military bodies, state-run artificial intelligence research institutes, and universities”—managed to buy “small batches” of restricted Nvidia chips.
The US has been attempting to block China from accessing advanced chips needed to achieve AI breakthroughs and advance modern military technologies since September 2022, citing national security risks.
Reuters’ report shows just how unsuccessful the US effort has been to completely cut off China, despite repeated US attempts to expand export controls and close any loopholes discovered over the past year.
China’s current suppliers remain “largely unknown,” but Reuters confirmed that “neither Nvidia” nor its approved retailers counted “among the suppliers identified.”
An Nvidia spokesperson told Reuters that the company “complies with all applicable export control laws and requires its customers to do the same.”
“If we learn that a customer has made an unlawful resale to third parties, we’ll take immediate and appropriate action,” Nvidia’s spokesperson said.
It’s also still unclear how suppliers are procuring the chips, which include Nvidia’s most powerful chips, the A100 and H100, in addition to slower modified chips developed just for the Chinese market, the A800 and H800. The former chips were among the first banned, while the US only began restricting the latter chips last October.
Among military and government groups purchasing chips were two top universities that the US Department of Commerce has linked to China’s principal military force, the People’s Liberation Army, and labeled as a threat to national security. Last May, the Harbin Institute of Technology purchased six Nvidia A100 chips to “train a deep-learning model,” and in December 2022, the University of Electronic Science and Technology of China purchased one A100 for purposes so far unknown, Reuters reported.
Other entities purchasing chips include Tsinghua University—which is seemingly gaining the most access, purchasing “some 80 A100 chips since the 2022 ban”—as well as Chongqing University, Shandong Chengxiang Electronic Technology, and “one unnamed People’s Liberation Army entity based in the city of Wuxi, Jiangsu province.”
In total, Reuters reviewed more than 100 tenders showing state entities purchasing A100 chips and dozens of tenders documenting A800 purchases. Purchases include “brand new” chips and have been made as recently as this month.
Most of the chips purchased by Chinese entities are being used for AI, Reuters reported. None of the purchasers or suppliers provided comments in Reuters’ report.
Nvidia’s highly sought-after chips are graphic processing units capable of crunching large amounts of data at the high speeds needed to fuel AI systems. For now, these chips remain irreplaceable to Chinese firms hoping to compete globally, as well as nationally, with China’s dominant technology players, such as Huawei, Reuters suggested.
While the “small batches” of chips found indicate that China could still be accessing enough Nvidia chips to enhance “existing AI models,” Reuters pointed out that US curbs are effectively stopping China from bulk-ordering chips at quantities needed to develop new AI systems. Running a “model similar to OpenAI’s GPT would require more than 30,000 Nvidia A100 cards,” research firm TrendForce reported last March.
For China, which has firmly opposed the US export controls every step of the way, these curbs remain a persistent problem despite maintaining access through the burgeoning black market. On Monday, a Bloomberg report flagged the “steepest drop” in the value of China chip imports ever recorded, falling by more than 15 percent.
China’s black market for AI chips
The US still must confront whether it’s possible to block China from accessing advanced chips without other allied nations joining the effort by lobbying their own export controls.
In October 2022, a senior US official warned that without more cooperation, US curbs will “lose effectiveness over time.” A former top Commerce Department official, Kevin Wolf, told The Wall Street Journal last year that it’s “insanely difficult to enforce” US export controls on transactions overseas.
On top of that activity, a black market for chips developed quickly, selling “excess stock that finds its way to the market after Nvidia ships large quantities to big US firms” or else chips imported “through companies locally incorporated in places such as India, Taiwan, and Singapore,” Reuters reported.
The US has maintained that its plan is not to ensure that China has absolutely no access but to limit access enough to keep China from getting ahead. But Nvidia CEO Jensen Huang has warned that curbs could have the opposite effect. While China finds ways to skirt the bans and acquire chips to “inspire” advancements, US companies that have been impacted by export controls restricting sales in China could lose so much revenue that they fall behind competitively, Huang predicted.
Enlarge/ Firefly Aerospace’s fourth Alpha rocket lifted off December 22 from Vandenberg Space Force Base, California.
Welcome to Edition 6.25 of the Rocket Report! We hope all our readers had a peaceful holiday break. While many of us were enjoying time off work, launch companies like SpaceX kept up the pace until the final days of 2023. Last year saw a record level of global launch activity, with 223 orbital launch attempts and 212 rockets successfully reaching orbit. Nearly half of these missions were by SpaceX.
As always, we welcome reader submissions, and if you don’t want to miss an issue, please subscribe using the box below (the form will not appear on AMP-enabled versions of the site). Each report will include information on small-, medium-, and heavy-lift rockets, as well as a quick look ahead at the next three launches on the calendar.
Firefly’s fourth launch puts payload in wrong orbit. The fourth flight of Firefly Aerospace’s Alpha rocket on December 22 placed a small Lockheed Martin technology demonstration satellite into a lower-than-planned orbit after lifting off from Vandenberg Space Force Base, California. US military tracking data indicated the Alpha rocket released its payload into an elliptical orbit ranging between 215 and 523 kilometers in altitude, not the mission’s intended circular target orbit. Firefly later confirmed the Alpha rocket’s second stage, which was supposed to reignite about 50 minutes after liftoff, did not deliver Lockheed Martin’s satellite into the proper orbit. This satellite, nicknamed Tantrum, was designed to test Lockheed Martin’s new wideband Electronically Steerable Antenna technology to demonstrate faster on-orbit sensor calibration to deliver rapid capabilities to US military forces.
Throwing a tantrum? … This was the third time in four flights that Firefly’s commercial Alpha rocket, designed to loft payloads up to a metric ton in mass, has not reached its orbital target. The first test flight in 2021 suffered an engine failure on the first stage before losing control shortly after liftoff. The second Alpha launch in 2022 deployed its satellites into a lower-than-planned orbit, leaving them unable to complete their missions. In September, Firefly launched a small US military satellite on a responsive launch demonstration. Firefly and the US Space Force declared that mission fully successful. Atmospheric drag will likely pull Lockheed Martin’s payload back into Earth’s atmosphere for a destructive reentry in a matter of weeks. The good news is ground teams are in contact with the satellite, so there could be a chance to complete at least some of the mission’s objectives. (submitted by Ken the Bin)
Australian startup nears first launch. The first locally made rocket to be launched into space from Australian soil is scheduled for liftoff from a commercial facility in Queensland early next year, the Australian Broadcasting Corporation reports. A company named Gilmour Space says it hopes to launch its first orbital-class Eris rocket in March, pending final approval from Australian regulatory authorities. This would be the first Australian-built orbital rocket, although a US-made rocket launched Australia’s first satellite from a military base in South Australia in 1967. The UK’s Black Arrow rocket also launched a satellite from the same remote Australian military base in 1971.
Getting to know Eris … The three-stage Eris rocket stands 25 meters (82 feet) tall with the ability to deliver up to 300 kilograms (660 pounds) of payload into low-Earth orbit, according to Gilmour Space. The company says the Eris rocket will be powered by Gilmour’s “new and proprietary hybrid rocket engine.” These kinds of propulsion systems use a solid fuel and a liquid oxidizer. We’ll be watching to see if Gilmour shares more tangible news about the progress toward the first Eris launch in March. In late 2022, the company targeted April 2023 for the first Eris flight, so this program has a history of delays. (submitted by Marzipan and Onychomys)
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A commander’s lament on the loss of a historic SpaceX booster. The Falcon 9 rocket that launched NASA astronauts Doug Hurley and Bob Behnken on SpaceX’s first crew mission in 2020 launched and landed for the 19th and final time just before Christmas, then tipped over on its recovery ship during the trip back to Cape Canaveral, Florida, Ars reports. This particular booster, known by the tail number B1058, was special among SpaceX’s fleet of reusable rockets. It was the fleet leader, having tallied 19 missions over the course of more than three-and-a-half years. More importantly, it was the rocket that thundered into space on May 30, 2020, on a flight that made history.
A museum piece? … The lower third of the booster was still on the deck of SpaceX’s recovery ship as it sailed into Port Canaveral on December 26. This portion of the rocket contains the nine Merlin engines and landing legs, some of which appeared mangled after the booster tipped over in high winds and waves. Hurley, who commanded SpaceX’s Crew Dragon spacecraft on the booster’s historic first flight in 2020, said he hopes to see the remaining parts of the rocket in a museum. “Hopefully they can do something because this is a little bit of an inauspicious way to end its flying career, with half of it down at the bottom of the Atlantic Ocean,” said Hurley.
SpaceX opens 2024 campaign with a new kind of Starlink satellite. SpaceX has launched the first six Starlink satellites that will provide cellular transmissions for customers of T-Mobile and other carriers, Ars reports. A Falcon 9 rocket launched from California on January 2 carried 21 Starlink satellites overall, including the first six Starlinks with Direct to Cell capabilities. SpaceX says these satellites, and thousands of others to follow, will “enable mobile network operators around the world to provide seamless global access to texting, calling, and browsing wherever you may be on land, lakes, or coastal waters without changing hardware or firmware.” T-Mobile said that field testing of Starlink satellites with the T-Mobile network will begin soon. “The enhanced Starlink satellites have an advanced modem that acts as a cellphone tower in space, eliminating dead zones with network integration similar to a standard roaming partner,” SpaceX said.
Two of 144 … SpaceX followed this launch with another Falcon 9 flight from Florida on January 3 carrying a Swedish telecommunications satellite. These were the company’s first two missions of 2024, a year when SpaceX officials aim to launch up to 144 rockets, an average of 12 per month, exceeding the 98 rockets it launched in 2023. A big focus of SpaceX’s 2024 launch manifest will be delivering these Starlink Direct to Cell satellites into orbit. (submitted by Ken the Bin)
Chinese booster lands near homes. China added a new pair of satellites to its Beidou positioning and navigation system on December 25, but spent stages from the launch landed within inhabited areas, Space News reports. Meanwhile, a pair of the side boosters from the Long March 3B rocket used for the launch appeared to fall to the ground near inhabited areas in Guangxi region, downrange of the Xichang spaceport in Sichuan province, according to apparent bystander footage on Chinese social media. One video shows a booster falling within a forested area and exploding, while another shows a falling booster and later, wreckage next to a home.
Life downrange … Chinese government authorities reportedly issue warnings and evacuation notices for citizens living in regions where spent rocket boosters are likely to fall after launch, but these videos clearly show people are still close by as the rockets fall from the sky. We’ve seen this kind of imagery before, including views of a rocket that crashed into a rural building in 2019. What’s more, the rockets return to Earth with leftover toxic propellants—hydrazine and nitrogen tetroxide—that could be deadly to breathe or touch. Clouds of brownish-orange gas are visible around the rocket wreckage, an indication of the presence of nitrogen tetroxide. China built its three Cold War-era spaceports in interior regions to protect them from possible military attacks, while its newest launch site is at a coastal location on Hainan Island, allowing rockets launched there to drop boosters into the sea. (submitted by Ken the Bin and EllPeaTea)
Launch date set for next H3 test flight. The second flight of Japan’s new flagship H3 rocket is scheduled for February 14 (US time; February 15 in Japan), the Japan Aerospace Exploration Agency announced on December 28. This will come nearly one year after the first H3 test flight failed to reach orbit last March when the rocket’s second stage failed to ignite a few minutes after liftoff. This failure destroyed a pricey Japanese Earth observation satellite and dealt a setback to Japan’s rocket program. The H3 is designed to be cheaper and more capable than the H-IIA and H-IIB rockets it will replace. Eventually, the H3 will launch Japan’s scientific research probes, spy satellites, and commercial payloads.
Fixes since the first flight … Engineers narrowed the likely cause for the first H3 launch failure to an electrical issue, although Japanese officials have not provided an update on the investigation for several months. In August, Japan’s space agency said investigators had narrowed the cause of the H3’s second-stage malfunction to three possible failure scenarios. Nevertheless, officials are apparently satisfied the H3 is ready to fly again. But this time, there won’t be an expensive satellite aboard. A dummy payload will fly inside the H3 rocket’s nose cone, along with two relatively low-cost small satellites hitching a piggyback ride to orbit. (submitted by Ken the Bin and EllPeaTea)
India’s PSLV launches first space mission of 2024. The first orbital launch of the new year, as measured in the globally recognized Coordinated Universal Time, or UTC, was the flight of an Indian Polar Satellite Launch Vehicle (PSLV) on January 1 (December 31 in the United States). This launch deployed an X-ray astronomy satellite named XPoSat, which will measure X-ray emissions from black holes, neutron stars, active galactic nuclei, and pulsars. This is India’s first X-ray astronomy satellite, and its launch is another sign of India’s ascendence among the world’s space powers. India has some of the world’s most reliable launch vehicles, is developing a human-rated capsule to carry astronauts into orbit, and landed its first robotic mission on the Moon last year.
Going lower … After releasing the XPoSat payload, the PSLV’s fourth stage lowered its orbit to begin an extended mission hosting 10 scientific and technology demonstration experiments. These payloads will test new radiation shielding technologies, green propulsion, and fuel cells in orbit, according to the Indian Space Research Organization. On missions with excess payload capacity, India has started offering researchers and commercial companies the opportunity to fly experiments on the PSLV fourth stage, which has its own solar power source to essentially turn itself from a rocket into a satellite platform. (submitted by EllPeaTea and Ken the Bin)
Mixed crews will continue flying to the International Space Station. NASA and the Russian space agency, Roscosmos, will extend an agreement on flying each other’s crew members to the International Space Station through 2025, Interfax reports. This means SpaceX’s Crew Dragon spacecraft and Boeing’s Starliner capsule, once operational, will continue transporting Russian cosmonauts to and from the space station, as several recent SpaceX crew missions have done. In exchange, Russia will continue flying US astronauts on Soyuz missions.
There’s a good reason for this… Despite poor relations on Earth, the US and Russian governments continue to be partners on the ISS. While NASA no longer has to pay for seats on Soyuz spacecraft, the US space agency still wants to fly its astronauts on Soyuz to protect against the potential for a failure or lengthy delay with a SpaceX or Boeing crew mission. Such an event could lead to a situation where the space station has no US astronauts aboard. Likewise, Roscosmos benefits from this arrangement to ensure there’s always a Russian on the space station, even in the event of a problem with Soyuz. (submitted by Ken the Bin)
SpaceX sets new records to close out 2023. SpaceX launched two rockets, three hours apart, to wrap up a record-setting 2023 launch campaign, Ars reports. On December 28, SpaceX launched a Falcon Heavy rocket from NASA’s Kennedy Space Center in Florida with the US military’s super-secret X-37B spaceplane. Less than three hours later, a Falcon 9 rocket took off a few miles to the south with another batch of Starlink Internet satellites. These were SpaceX’s final launches of 2023. SpaceX ended the year with 98 flights, including 91 Falcon 9s, five Falcon Heavy rockets, and two test launches of the giant new Super Heavy-Starship rocket. These flights were spread across four launch pads in Florida, California, and Texas. It was also the shortest turnaround between two SpaceX flights in the company’s history, and set a modern-era record at Cape Canaveral, Florida, with the shortest span between two orbital-class launches there since 1966.
Where’s the X-37B?… The military’s reusable X-37B spaceplane that launched on the Falcon Heavy rocket apparently headed into an unusually high orbit, much higher than the spaceplane program’s previous six flights. But the military kept the exact orbit a secret, and amateur skywatchers will be closely watching for signs of the spaceplane passing overhead in hopes of estimating its apogee, perigee, and inclination. What the spaceplane is doing is also largely a mystery. The X-37B resembles a miniature version of NASA’s retired space shuttle orbiter, with wings, deployable landing gear, and black thermal protection tiles to shield its belly from the scorching heat of reentry.
Elon Musk says SpaceX needs to built a lot of Starships. Even with reusability, SpaceX will need to build Starships as often as Boeing builds 737 jetliners in order to realize Elon Musk’s ambition for a Mars settlement, Ars reports. “To achieve Mars colonization in roughly three decades, we need ship production to be 100/year, but ideally rising to 300/year,” Musk wrote on his social media platform X. SpaceX still aims to make the Starship and its Super Heavy booster rapidly reusable. The crux is that the ship, the part that would travel into orbit, and eventually to the Moon or Mars, won’t be reused as often as the booster. These ships will come in a number of different configurations, including crew and cargo transports, refueling ships, fuel depots, and satellite deployers.
Laws of physics… The first stage of the giant launch vehicle, named Super Heavy, is designed to return to SpaceX’s launch sites about six minutes after liftoff, similar to the way SpaceX recovers its Falcon boosters today. Theoretically, Musk wrote, the booster could be ready for another flight in an hour. With the Starship itself, the laws of physics and the realities of geography come into play. As an object flies in low-Earth orbit, the Earth rotates underneath it. This means that a satellite, or Starship, will find itself offset some 22.5 degrees in longitude from its launch site after a single 90-minute orbit around the planet. It could take several hours, or up to a day, for a Starship in low-Earth orbit to line up with one of the recovery sites. “The ship needs to complete at least one orbit, but often several to have the ground track line back up with the launch site, so reuse may only be daily,” Musk wrote. “This means that ship production needs to be roughly an order of magnitude higher than booster production.”
Next three launches
January 5: Kuaizhou 1A | Unknown Payload | Jiuquan Satellite Launch Center, China | 11: 20 UTC
January 7: Falcon 9 | Starlink 6-35 | Cape Canaveral Space Force Station, Florida | 21: 00 UTC
January 8: Falcon 9 | Starlink 7-10 | Vandenberg Space Force Base, California | 05: 00 UTC
Enlarge/ A Long March 5 rocket, the largest launcher in China’s inventory, deployed a classified Chinese military satellite into orbit Friday.
China’s largest rocket apparently wasn’t big enough to launch the country’s newest spy satellite, so engineers gave the rocket an upgrade.
The Long March 5 launcher flew with a payload fairing some 20 feet (6.2 meters) taller than its usual nose cone when it took off on Friday with a Chinese military spy satellite. This made the Long March 5, with a height of some 200 feet, the tallest rocket China has ever flown.
Adding to the intrigue, the Chinese government claimed the spacecraft aboard the Long March 5 rocket, named Yaogan-41, is a high-altitude optical remote sensing satellite. These types of surveillance satellites usually fly much closer to Earth to obtain the sharpest images possible of an adversary’s military forces and strategically important sites.
This could mean a few things. First, assuming China’s official description is accurate, the satellite could be heading for a perch in geosynchronous orbit, a position that would afford any Earth-facing sensors continuous views of a third of the world’s surface. In this orbit, the spacecraft would circle Earth once every 24 hours, synchronizing its movement with the planet’s rotation.
Because this mission launched on China’s most powerful rocket, with the longer payload fairing added on, the Yaogan-41 spacecraft is presumably quite big. The US military’s space tracking network found the Yaogan-41 satellite in an elliptical, or oval-shaped, soon after Friday’s launch. Yaogan-41’s trajectory takes it between an altitude of about 121 miles (195 kilometers) and 22,254 miles (35,815 kilometers), according to publicly available tracking data.
This is a standard orbit for spacecraft heading into geosynchronous orbit. It’s likely in the coming weeks that the Yaogan-41 satellite will maneuver into this more circular orbit, where it would maintain an altitude of 22,236 miles (35,786 kilometers) and perhaps nudge itself into an orbit closer to the equator.
Staring down from space
In an official statement, China’s state-run Xinhua news agency claimed Yaogan-41 will be used for civilian purposes, such as land surveys and agricultural monitoring. In reality, China uses the Yaogan name as a blanket identifier for most of its military satellites.
US military officials will closely watch to see where Yaogan-41 ends up. If it settles into geosynchronous orbit over the Indian or Pacific Oceans, as analysts expect, Yaogan-41 would have a constant view of China, Taiwan, and neighboring countries.
From such a high altitude, Yaogan-41’s optical imager won’t have the sharp vision of a satellite closer to Earth. But it’s easy to imagine the benefits of all-day coverage, even at lower resolution, without China’s military needing to wait hours for a follow-up pass over a potential target from another satellite in low-Earth orbit.
In August, China launched a synthetic aperture radar surveillance satellite into a geosynchronous-type orbit using a medium-lift Long March 7 rocket. This spacecraft can achieve 20-meter (66-foot) resolution at Earth’s surface with its radar instrument, which is capable of day-and-night all-weather imaging.
Optical payloads, like the one on Yaogan-41, are restricted to daytime observations over cloud-free regions. China launched a smaller optical remote sensing satellite into geosynchronous orbit in 2015, ostensibly for civilian purposes.
Although Chinese officials did not disclose the exact capabilities of Yaogan-41, it would almost certainly have the sensitivity to continually track US Navy ships and allied vessels across a wide swath of the Indo-Pacific. Aside from its use of the larger payload fairing, the Long March 5 rocket used to launch Yaogan-41 can haul approximately 31,000 pounds (14 metric tons) of payload mass into the orbit it reached on Friday’s launch.
This suggests China could have equipped Yaogan-41 with a large telescope to stare down from space. Notably, China acknowledged Yaogan-41’s purpose as an optical imaging satellite. China’s government doesn’t always do that. Perhaps this is a signal to US officials.
Enlarge/ The New Essential Guide to Electronics in Shenzen is made to be pointed at, rapidly, in a crowded environment.
Machinery Enchantress / Crowd Supply
“Hong Kong has better food, Shanghai has better nightlife. But when it comes to making things—no one can beat Shenzen.”
Many things about the Hua Qiang market in Shenzen, China, are different than they were in 2016, when Andrew “bunnie” Huang’s Essential Guide to Electronics in Shenzen was first published. But the importance of the world’s premiere electronics market, and the need for help navigating it, are a constant. That’s why the book is getting an authorized, crowdfunded revision, the New Essential Guide, written by noted maker and Shenzen native Naomi Wu and due to ship in April 2024.
Naomi Wu’s narrated introduction to the New Essential Guide to Electronics in Shenzen.
Huang notes on the crowdfunding page that Wu’s “strengths round out my weaknesses.” Wu speaks Mandarin, lives in Shenzen, and is more familiar with Shenzen, and China, as it is today. Shenzen has grown by more than 2 million people, the central Huaqiangbei Road has been replaced by a car-free boulevard, and the city’s metro system has more than 100 new kilometers with dozens of new stations. As happens anywhere, market vendors have also changed locations, payment and communications systems have modernized, and customs have shifted.
The updated guide’s contents are set to include typical visitor guide items, like “Taxis,” “Tipping,” and, new to this edition, “LGBTQ+ Visitors.” Then there are the more Shenzen-specific guides: “Is It Fake?,” “Do Not Burn Your Contacts,” and “Type It, Don’t Say It.” The original guide had plastic business card pockets, but “They are anachronistic now,” Wu writes; removing them has allowed the 2023 guide to be sold for the same price as the original.
Machinery Enchantress / Crowd Supply
Both the original and updated guide are ring-bound and focus on quick-flipping and “Point to Translate” guides, with clearly defined boxes of English and Mandarin characters for things like “RGB,” “Common anode,” and “LED tape.” “When sourcing components, speed is critical, and it’s quicker to flip through physical pages,” Wu writes. “The market is full of visitors struggling to navigate mobile interfaces in order to make their needs known to busy vendors. It simply doesn’t work as well as walking up and pointing to large, clearly written Chinese of exactly what you want.”
Then there is the other notable thing that’s different about the two guides. Wu, a Chinese national, accomplished hardware maker, and former tech influencer, has gone quiet since the summer of 2023, following interactions with state security actors. The guide’s crowdfunding page notes that “offering an app or download specifically for English-speaking hardware engineers to install on their phones would be… iffy.” Wu adds, “If at some point ‘I’ do offer you such a thing, I’d suggest you not use it.”
Huang, who previously helped sue the government over DRM rules, designed and sold the Chumby, and was one of the first major Xbox hackers, released the original Essential Guide on the rights-friendly Crowd Supply under a Creative Commons license (BY-NC-SA 4.0) that restricted commercial derivatives without explicit permission, which he granted to Wu. The book costs $30, with roughly $8 shipping costs to the US. It is dedicated to Gavin Zhao, whom Huang considered a mentor and who furthered his ambition to print the original guide.
Listing image by Machinery Enchantress/Crowd Supply
After 14 years of being sanctioned from operating in mainland China, Meta is set to return to the country with the help of a new, lower-priced version of its VR headset, the Wall Street Journal reports.
Meta’s planned return is thanks to a deal—allegedly still in preliminary stages—with China’s Tencent, the world’s largest videogame company and soon-to-be exclusive seller of Meta headsets in China, WSJ reports, citing people familiar with the matter.
The report maintains Tencent will start selling the headset beginning in late 2024, with the two companies reaching a deal after about a year of negotiations.
Quest 3 | Photo by Road to VR
While the report didn’t mention a potential price of the “lower-priced” VR headset, it’s said the China version could use cheaper lenses than the more costly pancake optics in Quest 3. It’s also said the China-approved version could be sold in other markets besides mainland China.
The proposed deal is set to grant Meta a larger share of device sales, while Tencent will have a larger share of content and service revenue, as the headset will feature games and apps published by the Shenzhen, China-based entertainment conglomerate.
As it is today, Meta’s VR hardware is subsidized by content sales, which would make the deal less attractive for Meta on paper. Still, using its VR headset tech to re-enter China, where it might further leverage growth opportunities for other products, may be worth the price.
Meanwhile, it seems Meta is striking in China just as the homegrown competition falters. While ByteDance’s VR division Pico Interactive has gained territory in Europe over the past year with the launch of its Pico 4 standalone, earlier this week it was reported that Pico is set to lay off “hundreds” of employees as it refocuses on hardware development, something that has all but dashed hopes of taking on Meta in its home turf.
The day following US President Biden’s unveiling of an executive order designed to curb investments in certain tech sectors in China has been marked by tentative reactions from both policymakers and the business community.
The UK government stated early on Wednesday that the decision provided “clarity” on the approach of its close ally. Furthermore, it said it would “consider these new measures closely” as it continued to evaluate any potential implications for national security.
Meanwhile, the European Union was only marginally less ambiguous in its response. Later in the afternoon, the Commission said that it was “in close contact” with the White House. However, there was no indication that the bloc was looking to emulate the same measures any time soon.
“We will be analysing the Executive Order closely,” the Commission said in a statement shared with Reuters. “We are in close contact with the US administration and look forward to continued cooperation on this topic.”
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It further added it recognised the significance of the topic, and that the EU and its member states have a common interest in preventing capital and expertise from fueling military and intelligence capabilities of “actors who may use them to undermine international peace and security.”
Balancing technological trade act
Brussels has been exploring its own ways to constrain flow of technology to China, adopting an economic security control with stronger export controls in June. However, with China constituting the EU’s largest trading partner, it is a tricky field to navigate.
If the past years of back-and-forth over semiconductor technology have demonstrated anything, it is Beijing’s readiness to retaliate against what it perceives as “technological bullying.” China’s restrictions on rare earth exports threaten to derail not only the nascent chipmaking industry in Europe, but even the EU’s green transition as a whole.
Markets do not seem to have been especially perturbed by the executive order, which bans new private-equity, venture-capital, and joint-venture investments in advanced semiconductors and microelectronics, quantum technology, and certain AI systems.
Still, US investors have raised concerns specifically about a potential payback response from China. Indeed, the EU may choose to hold off on any concrete measures, waiting to see what the fallout of the latest move of the US in its complicated relationship to China will be.
Facebook and Twitter have been blocked in China since 2009, but Meta CEO Mark Zuckerberg is hoping to get back in that country with Quest, according to a Wall Street Journal report.
Citing people familiar with the matter, the report maintains that Meta has held discussions with several Chinese tech companies, making the most progress with massive entertainment conglomerate Tencent.
The Meta-Tencent talks reportedly came to a head late last year, with Tencent Chairman Pony Ma deciding to proceed with the negotiation first and “see what deals they could reach,” WSJ reports.
Undoubtedly the most complicated bit of the talks would revolve around VR content distribution, and how it’s moderated for Chinese markets. It’s said a portion of Meta’s global offerings could be on offer alongside Tencent’s own apps and services.
In 2009, Facebook and Twitter were banned in China after breaching Beijing’s notoriously strict censorship laws; the ban is thought to have been a direct effort to quel the July 2009 Ürümqi riots that took place in the country’s Xinjiang Uyghur Autonomous Region.
More recently, Chinese executives were allegedly worried that Zuckerberg isn’t seen as “friendly to China” due to lingering tentions over prior accusations of technology theft by companies such as ByteDance, maker of TikTok.
A Meta spokesman declined to comment on WSJ’s report. Tencent didn’t respond to a request for comment.
This isn’t the first time Meta VR hardware has made a splash on the Chinese mainland. In 2018, Meta (then Facebook) penned a deal with Xiaomi to release a Chinese variant of Oculus Go, sold by Xiaomi as the ‘Mi VR Standalone’. At the time, this was something of a quid pro quo, as Xiaomi was tasked with manufacturing Oculus Go, giving it exclusive rights to the mainland Chinese market as a result.
No such manufacturing deal is in place with Meta Quest 3, which is coming this Fall for $500. In the end, Meta’s current strategy seems less about getting its subsidized hardware into the country, and more about driving a wedge into the Great Chinese Firewall so it can once again tap into the world’s fastest-growing economy.
