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Education reform, Tatak Pinoy singled out for potential to arrest PHL slide within region

PHILSTAR FILE PHOTO

THE Federation of Philippine Industries (FPI) said education reform and the Tatak Pinoy strategy hold the potential to help the Philippines keep up with its peers in ASEAN.

“The Philippines risks slipping further behind its Asian neighbors in the region’s industrial boom unless education reform and industrial policy advance together,” the FPI said on Tuesday.

It said reforms pushed by Education Secretary Juan Edgardo M. Angara, and the Tatak Pinoy strategy will help rebuild national competitiveness.

“Education and industry are mutually reinforcing engines of growth,” FPI Chair Elizabeth H. Lee said.

“Tatak Pinoy provides the blueprint for upgrading Philippine industries. Angara’s reforms ensure we have the skilled workforce to power that transformation. Without both, we cannot close the widening gap with Asia,” she added.

Tatak Pinoy legislation seeks to raise the competitiveness of Philippine goods, raise their value, and open up access to new markets.

Citing reports from the ASEAN Secretariat and UN Trade and Development, FPI said that industrialization has been driving rapid gains across the region.

“ASEAN attracted a record $230 billion in foreign direct investment (FDI) in 2023 … cementing its position as the largest developing region magnet thanks to robust manufacturing hubs in Indonesia, Malaysia, Thailand, and Vietnam,” it said.

Meanwhile, the Philippines’ services sector grew 6.3% in the first quarter, particularly in retail and repair, which the group said hold weaker potential in terms of wages and innovation.

“Services provide stability, but industry delivers prosperity. That’s the leap our neighbors have made, and it’s the leap we have to make,” Ms. Lee said.

Education reform such as upgrading teacher training, modernizing curricula, and strengthening technical vocation pathways will help supply demand for skilled workers, she added.

“These can help temper the country’s shortage of industry-ready talent with updated skills and increased innovation capacity,” FPI said.

The FPI said it views the Tatak Pinoy Act as providing the blueprint for modernizing manufacturing and boosting innovation.

“Tatak Pinoy tells us what we need to become. Education reforms ensure we have the skilled people who can actually build it,” Ms. Lee said giving the Philippines “a chance to catch up with Asia’s industrial boom.” — Justine Irish D. Tabile

Thales tapped to upgrade PHL air traffic management system 

EN.WIKIPEDIA.ORG

FRANCE’s Thales SA will upgrade the Philippines’ air traffic management system to boost capacity in the face of surging flight volumes, the Civil Aviation Authority of the Philippines (CAAP) said.

 “This modernization project is a pivotal step in future-proofing Philippine aviation. Through our partnership with Thales, we are ensuring that our air traffic management system exceeds international standards, providing greater safety, resilience, and operational continuity,” CAAP Director-General Raul L. Del Rosario said in a statement on Tuesday.

Thales will upgrade software, modernize hardware architecture, and add advanced cybersecurity to bolster resilience against digital and operational threats, it said.

The initial phase of the upgrade will strengthen operational capacity and enhance airspace management. The upgrade is expected to be completed by early 2027.

“Once all upgrade phases are finalized, by early 2027, CAAP will operate a state-of-the-art ATM (air traffic management) system, fully aligned with the latest international standards and technological benchmarks,” it said.

“This upgrade will prepare our airspace to handle growing air traffic demand and secure the long-term efficiency of aviation in the Philippines,” Mr. Del Rosario said.

Thales will also supply a disaster recovery system to ensure the continuity of crucial operations even in the event of a system failure, CAAP said, adding that these upgrades will help keep the Philippines compliant with International Civil Aviation Organization (ICAO) standards.

“This contract enables us to continue that trajectory, with the latest digital technologies and cybersecurity embedded, ensuring that the skies over the country remain resilient to match the demands of global travel. We appreciate the trust that the authorities have placed in us and look forward to deepening our collaboration in the coming years,” Thales Country Director in the Philippines Mayuran Sundaramoorthy said.

In June, the Public-Private Partnership (PPP) Center announced the P31.55-billion unsolicited proposal of ComClark Network and Technology Corp. for the management of the country’s air navigation traffic and control system.

The project involves the financing, design, construction, operation, and maintenance of the country’s air traffic and air navigation services, including services within Philippine airspace and international airspace under Philippine jurisdiction.

CAAP has said it will focus on hardware upgrades to its communications, navigation, surveillance and air traffic management systems for this year.

CAAP embarked on the system upgrades following the power outage that hit CAAP facilities in 2023, which affected thousands of passengers. — Ashley Erika O. Jose

Manufacturing output picks up in October to 9-month high

Workers are seen at a manufacturing facility in Santa Rosa, Laguna. — PHILIPPINE STAR KRIZ JOHN ROSALES

By Heather Caitlin P. Mañago

FACTORY OUTPUT rose to a nine-month high in October, driven by seasonal demand, monetary policy easing and rise in exports.

Preliminary results of the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries indicated that factory output, as measured by the volume of production index, grew 1.4% year on year in October.

This was higher than the revised 0.8% expansion in September and a reversal from the revised 1.2% contraction a year earlier.

The latest reading was also the strongest in nine months or since the 2.2% expansion in January.

Month on month, factory output in October grew 4.7%, a turnaround from the 2.2% drop in September. Stripping out seasonal factors, it fell 0.5%.

In the first 10 months, factory output declined 0.3%, reversing the 1.3% year-earlier rise.

The PSA attributed the expansion in October factory output to an acceleration in growth of computer, electronic and optical products (18% in October from 4.2% in September); wood, bamboo, cane, rattan articles, and related products (15.8% from -5.7%); and a moderated decline in chemicals and chemical products (-24.3% from -32.3%).

Eleven other categories recorded expansions, while eight declined.

The PSA said the three largest contributors to the year-on-year acceleration in VoPI growth were computer, electronic and optical products (18% from 4.2%), food products (9% from 4.1%), and basic pharmaceutical products and pharmaceutical preparations (22.6% from 10.6%).

The Philippine S&P Global Manufacturing Purchasing Managers’ Index (PMI) had expanded to 50.1 in October from 49.9 in September.

PMIs are a leading indicator for factory activity, reflecting the volume of raw materials purchased in advance of manufacturing operations weeks or months down the line. A reading above 50 separates expansion from contraction.

The PSA also reported that in October, capacity utilization averaged 77.5%, against the revised 77.2% in September and the year-earlier 76.2%.

Cid L. Terosa, senior economist at University of Asia and the Pacific, attributed the growth in factory output to better weather compared to a month earlier, seasonal demand, and monetary policy easing.

Meanwhile, Philippine Chamber of Commerce and Industry Chairman George T. Barcelon attributed the increase to an uptick in exports and seasonal demand.

The Philippines posted a trade deficit of $3.83 billion in October, 34.2% narrower than the year-earlier deficit, according to preliminary data.

Exports increased 19.4% to $7.4 billion while imports fell 6.5% in October from a year earlier to $11.2 billion.

Both analysts indicated that monetary policy easing may have boosted production by reducing borrowing and financing costs for certain industries.

In October, the Bangko Sentral ng Pilipinas cut its policy rate for a fourth straight meeting, bringing borrowing costs to their lowest in three years.

The Monetary Board reduced the target reverse repurchase rate by 25 basis points (bps) to 4.75%, the lowest since September 2022.

The central bank has now lowered borrowing costs by 175 bps since it began its easing cycle in August 2024.

In the following months, Mr. Terosa said factory output could be influenced by “weak consumer and export demand.”

He also added that some risks include disruptions in manufacturing operations due to weather disruptions, coupled by domestic economic uncertainty arising from corruption and governance issues.

In the third quarter, household final consumption expenditure, which accounts for over 70% of the economy, grew 4.1%, slowing from 5.3% in the second quarter. This brought the nine-month average to 4.9%.

He cautioned that these factors “will probably continue in December.”

“Traditional holiday-season spending will most likely offset this trend, providing a short-term boost to sluggish manufacturing activity,” he said.

UP, La Salle to settle unfinished business in UAAP hoops trilogy

JACOB CORTEZ — UAAP

Games on Wednesday
(Mall of Asia Arena)
10 a.m. – 16U Boys and Women’s Individual Awarding Ceremonies
11 a.m. – FEU-D vs NUNS (16U Boys)
1 p.m. – NU vs UST (Women)
4 p.m. – UP vs DLSU (Men)

TITLEHOLDER University of the Philippines (UP) and De La Salle University (DLSU) waltz in another Last Dance to settle an unfinished business in an ultimate bid to be crowned as the UAAP’s best.

As bumpy as their campaigns were after winless starts, the stars have aligned after all for a trilogy starting on Wednesday in Game 1 of the UAAP Season 88 men’s basketball finals at the Mall of Asia Arena.

War erupts at 4 p.m. with their armies clad in Maroon and Green in an expected sellout crowd behind for the third installment of brewing rivalry after splitting the crown in the last two seasons.

Last season’s champ UP, in its fifth straight finals, eyes its second straight crown and fifth overall in history, while La Salle, winner of Season 86, seeks redemption for an 11th title bid — in its 19th finals appearance as the most in the league.

But as epic and pressuring the trilogy narrative is, coach Goldwin Monteverde urges his wards to focus on one thing that only matters — themselves.

UP, after losing Finals MVP JD Cagulangan and Quentin Millora-Brown, started winless at 0-2 before slowly but surely regaining fine form capped by an 82-81 escape act from University of Santo Tomas (UST) in the semifinals.

Led by Harold Alarcon, Gerry Abadiano and Francis Nnoruka, the UP Fighting Maroons had a twice-to-beat incentive as the No. 2 seed like the top-ranked National University (NU) Bulldogs, who on the other hand were on the receiving end of the DLSU Green Archers’ stellar run.

Like UP, La Salle had a flat start at 2-3 and was pushed to the brink with near elimination after the injuries of Kean Baclaan and Mason Amos before getting its acts together in the nick of time.

The Green Archers claimed two straight wins in the eliminations punctuated by a 78-72 victory over archrival Ateneo de Manila University Blue Eagles to catch the last bus into the Final Four, where they erased the NU Bulldogs’ twice-to-beat edge, 87-77 and 78-73.

That proved as the ultimate pedigree for La Salle, which welcomed back Mr. Amos and Mr. Baclaan in a perfect time to complete its quartet of stars including Mike Phillips and Jacob Cortez, who brought them home with a heroic performance for career-best 29 points.

And there is no turning back for La Salle to cap a Cinderella run, even if it means coming at the jaws of the UP juggernaut once more.

“I think the most important thing is respect. We really respect UP so much. It’s their fifth straight finals appearance, so that’s really huge for a program. It’s really gonna be a good challenge for us as a team,” vowed mentor Topex Robinson.

“Personally, as a coach, as well, I can learn from somebody who’s been there five times. They really are a good staff that he has there, and a good support group as well. But we also have to take into consideration that we’re also happy to be here. We also wanted to be in the finals,” Mr. Robinson said.

Meanwhile, NU goes for the jugular at 1 p.m. against erstwhile unbeaten Santo Tomas in Game 2 of the women’s finals for a back-to-back and ninth overall title bid in the last 11 seasons.

The Lady Bulldogs took an 84-79 win against the Growling Tigresses, who swept the elims, 14-0, to earn an outright final berth.

“Mindset, of course, I know that we want to win the next game, but our focus should be on UST coming out really hard on Game 2. Focus and effort and even more, ” said coach DA Olan, who took over from Aris Dimaunahan this season.

NU-Nazareth School aims for a similar mission at 11 a.m. to atone for NU’s exit in the men’s when it shoots for a 16-0 sweep against Far Eastern University-Diliman in the U16 finals after a 74-49 win in Game 1.

The awarding ceremony for the U16 and women’s division MVP, Rookies of the Year and Elite Team members is set at 10 a.m. — John Bryan Ulanday

San Beda faces Letran in NCAA 101 Last Dance

YUKIEN ANDRADA — NCAA

Game on Wednesday
(Smart Araneta Coliseum)
2 p.m. – San Beda vs Letran

ONE of college basketball’s bitterest rivalries takes center stage as San Beda University (SBU) and Colegio de San Juan de Letran face off on Wednesday at the start of their best-of-three NCAA Season 101 title showdown at the Smart Araneta Coliseum.

The SBU Red Lions, searching for a league-best 24th seniors championship, clash with the Letran Knights, eyeing their title No. 21, collide in the series opener at 2 p.m. in a showdown that should have the hallmarks of their past battles — physical, emotional and fierce.

Game Two is on Saturday while a deciding Game Three, if necessary, is on Tuesday, all at the Big Dome.

“It’s the best finals Philippine basketball fans will ever see, it’s a guarantee,” said San Beda coach Yuri Escueta, moments after its epic, finals berth-sealing Game Three win over College of St. Benilde.

“It’s going to be a battle,” Letran mentor Allen Ricardo, whose charges swept University of Perpetual Help in two outings, for his part, said.

For Letran, attention is expected to focus heavily on rookie sensation Titing Manalili, who has blown everyone away with his showmanship and passing artistry in leading his team to the Last Dance.

But the Cebuano star is feeling the nerves as he will play his first finals in the college level even though he had already won in the high school level while playing for the Squires.

“There’s a little nervousness just because it’s San Beda,” said the MVP candidate. “We don’t know what they’ll throw at us but we expect the physicality from them and a lot of things could happen right on tip-off.”

For the Red Lions, they would come in with all the weapons as well as championship experience.

They have the battle-scarred Yukien Andrada and Bryan Sajonia, who have stepped up big when it mattered most, and this one talented rookie in Agjanti Miller, who could be the main thorn in Letran’s side.

“That Mr. Miller is hard to guard. We’ll have to find ways to defend against him,” said Mr. Manalili. — Joey Villar

Ginebra eyes Top Four slot against free-falling Blackwater Bossing

BARANGAY GINEBRA GIN KINGS — PBA

Games on Wednesday
(Ynares Sports Center Antipolo, Rizal)
5:15 p.m. – Meralco vs Terrafirma
7:30 p.m. – Ginebra vs Blackwater

GILAS PILIPINAS head coach Tim Cone and the rest of his troops return to home base as Barangay Ginebra tries to shore up its playoff push in a shaky campaign so far in the PBA Season 50 Philippine Cup on Wednesday at the Ynares Sports Center in Antipolo.

The Gin Kings (3-4) tangle with the free-falling Blackwater Bossing (1-7) at 7:30 p.m. after the duel between Meralco (3-4) and Terrafirma (1-7) at 5:15 p.m.

It’s the first game back in the PBA for Mr. Cone after nearly a month-long off from his ballclub to focus on national team duties in the first window of the 2027 FIBA World Cup Asian Qualifiers.

And it’s the same for some of his prized bets like Scottie Thompson, RJ Abarrientos and Japeth Aguilar, who just retired from national tour of duties but not so quick with Ginebra in the PBA, after a good job in Gilas’ 2-0 sweep of Guam.

Before the Gilas duty, the Gin Kings scored a crucial 102-93 win over Phoenix to somehow right the ship of a rattling campaign so far at eighth place with a 3-4 slate.

And Mr. Cone is hoping to ride on that momentum to still stay afloat in the race for a Top 4 finish that comes with a twice-to-beat incentive in the quarterfinals.

“It was good to get the monkey a little bit off our back. Those were the games that we needed down the stretch, which we haven’t done so far in this conference. Hopefully, it’s a start to playing with more confidence in the fourth quarter and in finishing games,” said Mr. Cone, still trying to solve Ginebra’s flat start after back-to-back finals appearances last season.

After Blackwater, up next for Mr. Cone’s charges are Terrafirma, Rain or Shine and Titan Ultra. A sweep of the last three games is a must if the Gin Kings wish to stay in Top 4 contention. Otherwise, awaiting them would be a tougher twice-to-win disadvantage or worse, an early exit.

“We know the expectations we have up in this team and we’re not living up to it. We know that but we’re just trying to stick to learning and getting better,” added Mr. Cone, who also has Troy Rosario, Stephen Holt and new anchor Norbert Torres to bank on.

“It’s a learning process as we make changes in trying to fit in the system with our different personnel. It’s not quite taking the way we envisioned it but we’re trying.” — John Bryan Ulanday

Dylan Harper’s late jumper lifts Spurs past Derik Queen, Pelicans

DYLAN HARPER canned the decisive jumper with 9.1 seconds to play as part of his career-high 22 points and the visiting San Antonio Spurs outlasted the reeling New Orleans Pelicans, 135-132, on Monday.

The Spurs were up by 20 points at halftime, but New Orleans rallied to take a 102-100 edge to the final period. San Antonio retook the lead on Julian Champagnie’s 3-pointer with 8:55 to play and slowly built the margin back to eight points on a Keldon Johnson trey with 5:29 left.

The Pelicans drew within 129-127 on an alley-oop dunk by Trey Murphy III with 1:40 remaining and took the lead on Murphy’s 3-pointer with 59.4 seconds left.

After De’Aaron Fox hit a jumper to put San Antonio up by a point, Derik Queen capped a career-high 33-point effort with a driving layup to give New Orleans a 133-132 lead with 30 seconds to play.

Harper then canned his clutch jumper to push the Spurs back in front. Queen missed a 3-point attempt and Fox grabbed the rebound, was fouled and sank two free throws with 1.1 seconds to play.

The Pelicans’ Saddiq Bey had a 3-point attempt to tie rim out at the buzzer. — Reuters

Norris earns ‘1’

The lights at Yas Marina invariably have a way of making everything look cleaner. From a distance, Lando Norris’ title-clinching run over the weekend carried that same polished sheen: third in the race and first in final standings with a nominally tight two-point margin. Up close, though, the year that delivered McLaren its first world champion since 2008 was anything but pristine. It exposed frayed nerves, brought internal skirmishes to the fore, and shone the light on self-doubt.

Inevitability was most certainly not on Norris’ mind early on. Although he opened the season with pace, winning in Australia and compiling podium finishes in seemingly sustainable manner, dominance eluded him. His ride was quick, but not untouchable. McLaren teammate Oscar Piastri kept finding ways to unsettle him while Red Bull’s Max Verstappen lurked, and both racked up enough points to threaten the status quo. And when retirement was foisted on him in Zandvoort, his campaign was already one of near-misses wrapped in bright papaya. By then, he faced a 34-point deficit that betrayed his lack of consistency.

To be sure, much of the turbulence came from Norris’ own camp. McLaren’s double disqualification in Las Vegas replaced the cushion he had with the dread of a story of collapse often told in Formula One annals. Qatar added a strategic misread that would have rattled a more unsure driver. In his case, however, he greeted each stumble with composure. Creditably, panic never surfaced. Believing in himself and fully committing to his cause, he steadied the garage and made a late-season push to provide direction to his otherwise-fraying campaign.

And so the finale took shape with narrative symmetry: Verstappen winning the race, Piastri charging at the lights, Norris pinned in the middle with everything to lose and nothing to spare. His spirited defense against Ferrari’s Charles Leclerc highlighted the steel that lined his self-effacing veneer. His deft navigation through pit-cycle traffic, steady moves made sans flourish, remarkable restraint amid tantalizing but risky and ultimately wrong battles reflected maturity. When he crossed the line third, he didn’t punch the air so much as have a sigh of relief.

Now that the moment has settled into the sport’s storied past, what remains is Norris’ imprint on his title run. He did not overwhelm the field; he outlasted it. He proved sturdier and sharper than even he thought, and, most importantly, composed enough to withstand the weight of all expectations. And, if nothing else, he earned the “1” that will be on his car next year.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Samsung innovation contest awards top prize to Cavite high school students for mangrove-monitoring solution 

The winning team from Cavite Science Integrated School receiving the top prize for Solve for Tomorrow 2025. — EDG ADRIAN A. EVA

A group of high school students from Cavite was hailed on Tuesday as the grand prize winner of the 2025 Samsung Philippines “Solve for Tomorrow” innovation contest for their solar-powered device that helps prevent mangrove degradation. 

Out of over 350 entries and 10 finalists from science high schools across the country, the young Caviteño innovators from Cavite Science Integrated School prevailed in the third iteration of the competition, AA M. Abjelina, head of public relations and corporate social responsibility (CSR) for Samsung Philippines, told BusinessWorld. 

Project leader Harly P. Bautista said their winning entry, called “Mangrove Health Monitor (MaHeMo),” is a low-cost, solar-powered floating device that provides communities with early-warning monitoring of mangrove health. 

It uses sensors to monitor the mangrove’s water salinity, pH, and temperature, which can help indicate if the mangroves are at risk of damage. 

“If it detects that the mangroves are slowly declining, it can send early warning signs to a dashboard through LoRa (Long Range) and notify communities and local government units, so they can take action and prevent damage,” Ms. Bautista said. 

She added that the project was inspired by her desire to protect mangroves, which are facing decline, as her family personally benefits from the resources they provide. The mangroves support her family and community by serving as a habitat for various fish species and as a natural barrier against flooding caused by storms. 

A report from the Climate Change Commission said that the Philippines has lost a significant portion of its mangrove forest over the past century. From an estimated 450,000 hectares in 1920, coverage declined to 317,500 hectares by 1990 and further decreased to 311,400 hectares in the most recent statistics. 

The team has already created a model of MaHeMo and will conduct its first field testing in the project leader’s hometown. 

Following their win, the team’s school will receive P500,000 worth of Samsung devices, while four team members and their adviser will receive P250,000 worth of Samsung devices. The team members will also receive P100,000 in cash, and their adviser will receive P30,000 in cash. 

The second-prize winner, also from Cavite Science Integrated School, will receive P300,000 worth of Samsung devices for their school, P250,000 worth of Samsung devices for the team and their teacher, and a cash prize of P70,000 for the team members and P25,000 for the teacher adviser. 

The third-prize winner, from Tuguegarao City Science High School, will also receive a similar set of prizes which include gadgets and cash. 

Meanwhile, Ms. Abjelina said Samsung’s science, technology, engineering, and mathematics (STEM)-based competition encourages students to participate in solving community challenges by creating tech solutions. 

“We don’t develop technology for the sake of it. We want our technology to really make people’s lives better. That is why in this contest, we also encourage students to do the same,” Ms. Abjelina said. 

The “Solve for Tomorrow 2025” competition is fully funded by Samsung Electronics, Ms. Abjelina added, and the company plans to continue the annual contest next year, again engaging public science high schools across the country. — Edg Adrian A. Eva 

US DoJ accuses 2 Chinese men of trying to smuggle Nvidia chips

H100, Nvidia’s GPU optimized to handle large AI models used to create text, computer code, images, video and audio. — NVIDIA/HANDOUT VIA REUTERS

WASHINGTON — Two Chinese men are in custody for allegedly smuggling Nvidia H100 and H200 chips to China, the US Justice department said on Monday, as President Donald J. Trump gave the green light for Nvidia to export its H200 chips to Beijing.

Prosecutors allege that Fanyue Gong, 43, a Chinese citizen living in New York, and Benlin Yuan, 58, a Canadian citizen from China, independently conspired with employees of a Hong Kong-based logistics company and a China-based artificial intelligence (AI) technology company to circumvent US export controls, according to the Department of Justice (DoJ).

In court documents, prosecutors said Mr. Gong and his co-conspirators obtained the Nvidia chips through straw purchasers and intermediaries, and falsely claimed that the goods were for US customers or customers in third countries like Taiwan and Thailand.

The chips were shipped to multiple US warehouses, where individuals removed the Nvidia labels and affixed labels bearing the name of what prosecutors believe was a fake company, according to the criminal complaint. The chips were then prepared for export, according to the complaint.

In a separate complaint, prosecutors said Mr. Yuan helped recruit and organize individuals to inspect the mislabeled chips on behalf of the Hong Kong logistics company.

Mr. Yuan allegedly agreed to direct inspectors not to say the goods were destined for China, prosecutors said, adding that he also directed discussions to craft a story his company could use to get chips and other equipment released after they were seized by federal authorities.

Prosecutors estimate that the scheme had been in operation since at least November 2023, according to court documents.

Mr. Yuan’s lawyer declined to comment, while a representative for Mr. Gong could not immediately be identified.

“The Chinese government requires Chinese citizens abroad to strictly abide by local laws and regulations, while also legally protecting the legitimate rights and interests of Chinese citizens overseas,” a spokesperson for the Chinese Embassy in Washington said.

Another man, Alan Hao Hsu, 43, and his company pleaded guilty in October to smuggling and unlawful export activities as part of the scheme, according to the Justice department.

Mr. Hsu and his company received more than $50 million in wire transfers from China to help fund the operations, which exported and attempted to export at least $160 million worth of export-controlled Nvidia chips, the agency said.

“Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our Nation’s security by funneling cutting-edge AI technology to those who would use it against American interests,” Nicholas J. Ganjei, the US attorney for the Southern District of Texas, said in a statement.

“While millions of controlled GPUs are in service at businesses, homes and schools, we will continue to work with the government and our customers to ensure that second-hand smuggling does not occur,” an Nvidia spokesperson said, calling the sale of older generation products on the secondary market “subject to strict security and review.” 

In 2022, the US government implemented export controls cutting China off from certain semiconductor chips made anywhere in the world with US equipment. The Trump administration in September expanded its restricted export list to automatically include subsidiaries owned 50% or more by a company on the list. — Reuters

Australia social media ban set to take effect, sparking a global crackdown

STOCK PHOTO | Image by Solen Feyissa from Pixabay

SYDNEY — Australia is set to become the first country to implement a minimum age for social media use on Wednesday, with platforms like Instagram, TikTok, and YouTube forced to block more than a million accounts, marking the beginning of an expected global wave of regulation.

From midnight (1300 GMT), 10 of the biggest platforms will be required to block Australians aged under 16 or be fined up to A$49.5 million ($33 million). The law received harsh criticism from major technology companies and free speech advocates, but was praised by parents and child advocates.

The rollout closes out a year of speculation about whether a country can block children from using technology that is built into modern life. And it begins a live experiment that will be studied globally by lawmakers who want to intervene directly because they are frustrated by what they say is a tech industry that has been too slow to implement effective harm-minimization efforts.

Governments from Denmark to Malaysia – and even some states in the US, where platforms are rolling back trust and safety features – say they plan similar steps, four years after a leak of internal Meta documents showed the company knew its products contributed to body image problems and suicidal thoughts among teenagers while publicly denying the link existed.

“While Australia is the first to adopt such restrictions, it is unlikely to be the last,” said Tama Leaver, a professor of internet studies at Curtin University.

“Governments around the world are watching how the power of Big Tech was successfully taken on. The social media ban in Australia … is very much the canary in the coal mine.”

A spokesperson for the British government, which in July began forcing websites hosting pornographic content to block under-18 users, said it was “closely monitoring Australia’s approach to age restrictions.”

“When it comes to children’s safety, nothing is off the table,” they added.

Few will scrutinize the impact as closely as the Australians. The eSafety Commissioner, an Australian regulator tasked with enforcing the ban, hired Stanford University and 11 academics to analyze data on thousands of young Australians covered by the ban for at least two years.

BEGINNING OF THE END
Though the ban covers 10 platforms initially, including Alphabet’s YouTube, Meta’s Instagram and TikTok, the government has said the list will change as new products appear and young users switch to alternatives.

Of the initial 10, all but Elon Musk’s X have said they will comply using age inference – guessing a person’s age from their online activity – or age estimation, which is usually based on a selfie. They might also check with uploaded identification documents or linked bank account details.

Mr. Musk has said the ban “seems like a backdoor way to control access to the internet by all Australians” and most platforms have complained that it violates people’s right to free speech. An Australian High Court challenge overseen by a libertarian state lawmaker is pending.

For the social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.

Platforms say they don’t make much money showing advertisements to under-16s, but they add that the ban interrupts a pipeline of future users. Just before the ban took effect, 86% of Australians aged 8 to 15 used social media, the government said.

“The days of social media being seen as a platform for unbridled self-expression, I think, are coming to an end,” said Terry Flew, the co-director of University of Sydney’s Centre for AI, Trust and Governance.

Platforms responded to negative headlines and regulatory threats with measures like a minimum age of 13 and extra privacy features for teenagers, but “if that had been the structure of social media in the boom period, I don’t think we’d be having this debate,” he added. — Reuters

FACTBOX-From Australia to Europe, countries move to curb children’s social media access

GERALD MCCRAY-PIXABAY

SYDNEY — Australia on Wednesday will become the world’s first country to ban social media for children under 16, blocking them from platforms including TikTok, Alphabet’s YouTube and Meta’s Instagram and Facebook.

The ban is being closely watched by other countries considering similar age-based measures as concerns mount over the effects of social media on children’s health and safety.

Below is a summary of what other countries and tech companies are doing to regulate access to social media.

AUSTRALIA

A landmark law passed in November 2024 forces major social media platforms to block minors younger than 16 starting on Wednesday, one of the world’s toughest regulations targeting major tech platforms.

Companies that fail to comply could face penalties of up to A$49.5 million ($32.8 million).

BRITAIN

The Online Safety Act sets tougher standards for social media platforms, including age restrictions to block minors from accessing harmful content.

The law was passed in 2023 and enforcement began this year. No age limit for accessing social media has been set.

CHINA

China’s cyberspace regulator has put in place a so-called “minor mode” program that requires device-level restrictions and app-specific rules to restrict screen time depending on age.

DENMARK

Denmark said in November it would ban social media for children under 15, while allowing parents to give exemptions for youngsters down to the age of 13 to access certain platforms.

A majority of parties in Parliament said they would back the plan ahead of a formal vote.

FRANCE

In 2023, France passed a law requiring social platforms to get parental consent for minors under 15 to create accounts. But according to local media, technical challenges have impeded its enforcement.

GERMANY

Minors between the ages of 13 and 16 are allowed to use social media only if their parents provide consent. But child protection advocates say controls are insufficient.

ITALY

In Italy, children under the age of 14 need parental consent to sign up for social media accounts, while no consent is required from that age upwards.

MALAYSIA

Malaysia said in November it would ban social media for users under the age of 16 starting next year.

NORWAY

The Norwegian government in October 2024 proposed raising the age at which children can consent to the terms required to use social media to 15 years from 13, although parents would still be permitted to sign off on their behalf if they are under the age limit.

The government has also begun working on legislation to set an absolute minimum age limit of 15 for social media use.

THE US

The Children’s Online Privacy Protection Act prevents companies from collecting personal data from children under 13 without parental consent.

Several states have also passed laws requiring parental consent for minors to access social media, but they have faced court challenges on free speech grounds.

EU LEGISLATION
The European Parliament in November agreed on a resolution calling for a minimum age of 16 on social media to ensure “age-appropriate online engagement.”

It also urged a harmonized European Union (EU) digital age limit of 13 for social media access and an age limit of 13 for video-sharing services and “AI companions.”

The resolution is not legally binding.

TECH’S OWN REGULATION
Social media platforms including TikTok, Facebook and Snapchat say people need to be at least 13 to sign up.

Child protection advocates say the controls are insufficient, however, and official data in several European countries show huge numbers of children under 13 have social media accounts. — Reuters

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