In Short:
– Representative John Moolenaar warns of national security risks with TikTok’s algorithm licensing deal.
– Moolenaar seeks details on the agreement while emphasising concerns over Chinese influence and ownership limitations.

The chair of the House Select Committee on China, Representative John Moolenaar, expressed serious concerns regarding a potential licensing agreement for TikTok’s algorithm.

The deal would arise from Chinese company ByteDance’s efforts to sell its U.S. assets related to the short video app.Moolenaar awaits further details about the arrangement, which White House officials indicated would involve the new ownership licensing the algorithm.

He explained the risks associated with China maintaining influence over the algorithm, stating, “anytime you have (China) with leverage over the algorithm, I think that’s a problem.”

President Donald Trump previously signed an executive order asserting that the sale of TikTok’s U.S. operations meets national security requirements, allowing 120 days for the transaction’s completion. Moolenaar noted that technology experts question whether the algorithm can be effectively reprogrammed.

Detailed Concerns

The executive order also stated that the U.S. company’s security partners would retrain and monitor the algorithm, placing it under the control of the new joint venture.

Under the agreement, ByteDance would appoint one board member out of seven in the new entity, while Americans would occupy the remaining six seats.

The arrangement mandates that ByteDance maintain less than a 20% ownership stake in TikTok U.S. to comply with a 2024 law threatening to shut down the app by January 2025 if the Chinese parent company does not divest its U.S. assets.

Holders of key positions worry about potential national security risks linked to algorithm control.

In Short:
– Apple launched new MacBook Pro, iPad Pro, and Vision Pro with updated M5 chip for faster performance.
– Devices start at $1,599 for MacBook Pro, $999 for iPad Pro, and $3,499 for Vision Pro, available for preorder.

Apple has announced new models of the MacBook Pro, iPad Pro, and Vision Pro featuring the updated M5 chip.

The devices are designed to run faster than their predecessors and include advanced features aimed at enhancing user experience.The new MacBook Pro starts at $1,599, the 11-inch iPad Pro at $999, and the Vision Pro at $3,499 with a Dual Knit Band.

The devices are available for preorder and will be on sale from October 22.

This launch follows the September release of the iPhone 17 and Apple Watch Series 11. Apple’s December quarter typically sees the highest sales, fueled by holiday shopping, prompting the company to update its popular products during this season.

Powerful Chip

The M5 chip delivers quadrupled peak compute performance over the previous M4, enhancing the capabilities of AI workloads significantly. Apple’s senior vice president of Hardware Technologies, Johny Srouji, indicated that the chip greatly improves performance, particularly for the new 14-inch MacBook Pro.

Analysts are closely monitoring these releases, as they examine whether Apple is adjusting prices in response to tariffs affecting semiconductors. Notably, the starting prices for the M5 models remain consistent with earlier versions.

While iPads and MacBooks are not as vital as iPhone sales, they contribute substantially to Apple’s revenue.

The company reported an 8% decline in iPad sales during the June quarter, while Mac sales saw a year-over-year increase.

Apple does not disclose Vision Pro sales figures, but this device is estimated to generate negligible revenue compared to iPhone sales, which comprised over 47% of the June quarter’s revenue.

In Short:
– General Motors is reducing EV manufacturing capacity and taking a $1.6 billion charge due to falling demand.
– Industry experts predict manufacturers will be more conservative in EV strategies and focus on current profitable operations.

General Motors has announced a reduction in its electric vehicle manufacturing capacity and will take a $1.6 billion charge on its EV business due to declining demand.The automaker cited the end of government-funded subsidies and regulatory mandates as key factors behind the anticipated drop in EV sales.

As the auto industry undergoes significant changes, there is growing concern about the impact on stock values.

Many manufacturers are reevaluating their production strategies in light of shifting consumer preferences and market conditions.

Industry Changes

The current trend indicates that automakers may become more conservative in their EV strategies moving forward.

Looking ahead, companies will likely focus on optimising their existing operations rather than expanding electric vehicle programmes outside of their most profitable products.

Adjustments in production may reshuffle competitive dynamics in the automotive sector, influencing stock performance across the board.