An anonymous reader quotes a report from Reuters: Russia is going to further clamp down Virtual Private Networks (VPNs), which are used by millions of Russians to get around internet controls and censorship, Russia's digital minister said. In what has been cast by diplomats as Russia's "great crackdown," the authorities have repeatedly blocked mobile internet and jammed major messenger services while giving sweeping powers to cut off mass communications. "The task is reduce VPN usage," Digital Minister Maksut Shadayev said on state-backed messenger MAX late on Monday, adding that his ministry was trying to impose the limits with minimal impact on users. He said decisions had been taken to restrict access to a number of unidentified foreign platforms without giving details.

He's "the most famous anonymous man in the world," suggests Reuters. But investigating Banksy's artworks in a bombed Ukrainian village (and other clues in the U.K. and Manhattan) have led them to "a hand-written confession by the artist to a long-ago misdemeanor charge of disorderly conduct — a document that revealed, beyond dispute, Banksy's true identity."

But Banksy's long-time lawyer "urged us not to publish this report, saying doing so would violate the artist's privacy, interfere with his art and put him in danger" and "would harm the public, too." Working "anonymously or under a pseudonym serves vital societal interests," he wrote. "It protects freedom of expression by allowing creators to speak truth to power without fear of retaliation, censorship or persecution — particularly when addressing sensitive issues such as politics, religion or social justice."

Reuters took into account Banksy's privacy claims — and the fact that many of his fans wish for him to remain anonymous. Yet we concluded that the public has a deep interest in understanding the identity and career of a figure with his profound and enduring influence on culture, the art industry and international political discourse... As for the risk he might face of retaliation or censorship, Britain's legal and political establishments seem comfortable with Banksy's messages and how he delivers them...

His mastery of disguise began as a way of shaking the police, says former manager [Steve] Lazarides. In an interview, Lazarides said anonymity served a practical purpose in Bristol, where authorities enforced "draconian" policies against graffiti... Eventually, keeping the secret became a burden. By the end of their partnership, Lazarides estimates he spent half or more of his time managing and maintaining the artist's mystique. "I think it became a good gag, and then, if you want my honest, honest opinion, I think it then became a disease," he said.
Lazarides wrote a two-volume book about managing Banksy from the late 1990s to 2008, including a story about Banksy's arrest in 2000 for this defacing of a billboard. Reuters geolocated that building, then found police documents and a court file including the hand-written confession. This investigation spawned a 7,000-word article with everything from a comic strip Banksy drew when he was 11 to his connections with Robert Del Naja of the trip hop band Massive Attack — and a 2017 podcast interview where a music producer apparently revealed Banksy's real first name.

But the article also reveals how protective the art community is of Banksy's secret. Reuters investigated that Banksy auctioned in 2018 for $1.4 million — and then immediately started shredding itself with a device Banksy embedded in its frame: That piece, renamed "Love is in the Bin," sold three years later for about $25 million. Art dealer [Robert] Casterline was at the auction and remembers when the shredder began to beep. He pulled out his phone to take pictures. "Unfortunately, there was one person standing in front of me," blocking the view, he said. It was an eccentric-looking man with a broad neck scarf and thick eyewear. Oddly, the man wasn't watching the painting get shredded. He was looking in the other direction, observing the crowd's reaction. Only later, reviewing what he shot, did Casterline notice that the man's glasses appeared to have a small camera built into the bridge. (Banksy later posted a video of the stunt, including shots of the astonished audience.)
Having seen a photo of the man suspected of being Banksy, Casterline confirmed to Reuters that he was "pretty sure" it was the same man.

But "I don't want to be the guy who exposes Banksy."

Wikipedia describes Freenet as "a peer-to-peer platform for censorship-resistant, anonymous communication," released in the year 2000. "Both Freenet and some of its associated tools were originally designed by Ian Clarke," Wikipedia adds. (And in 2000 Clarke answered questions from Slashdot's readers...)

And now Ian Clarke (aka Sanity — Slashdot reader #1,431) returns to share this announcement: Freenet's new generation peer-to-peer network is now operational, along with the first application built on the network: a decentralized group chat system called River.

The new version is a complete redesign of the original project, focusing on real-time decentralized applications rather than static content distribution. Applications run as WebAssembly-based contracts across a small-world peer network, allowing software to operate directly on the network without centralized infrastructure.

An introductory video demonstrating the system is available on YouTube.
"While the original Freenet was like a decentralized hard drive, the new Freenet is like a full decentralized computer," Clarke wrote in 2023, "allowing the creation of entirely decentralized services like messaging, group chat, search, social networking, among others... designed for efficiency, flexibility, and transparency to the end user."

"Freenet 2023 can be used seamlessly through your web browser, providing an experience that feels just like using the traditional web,"

fjo3 shares a report from Reason Magazine: Effective January 1, 2027, providers of computer operating systems in California will be required to implement age verification. That's just part of a wave of state and national laws attempting to limit children's access to potentially risky content without considering the perils such laws themselves pose. Now, not a moment too soon, over 400 computer scientists have signed an open letter warning that the rush to protect children from online dangers threatens to introduce new risks including censorship, centralized power, and loss of privacy. They caution that age-verification requirements "might cause more harm than good." The group of computer scientists from around the world cautions that "those deciding which age-based controls need to exist, and those enforcing them gain a tremendous influence on what content is accessible to whom on the internet." They add that "this influence could be used to censor information and prevent users from accessing services."

"Regulating the use of VPNs, or subjecting their use to age assurance controls, will decrease the capability of users to defend their privacy online. This will not only force regular users to leave a larger footprint on the network, but will leave a number of at-risk populations unprotected, such as journalists, activists, or domestic abuse victims." It continues: "We note that we do not believe that trying to regulate VPN use for non-compliant users would be any more effective than trying to forbid the use of end-to-end encrypted communication for criminals. Secure cryptography is widely available and can no longer be put back into a box."

"If minors or adults are deplatformed via age-related bans, they are likely to migrate to find similar services," warn the scientists. "Since the main platforms would all be regulated, it is likely that they would migrate to fringe sites that escape regulation." With data on everyone collected in order to restrict the activites of minors, data abuses and privacy risks increase. "This in itself increases privacy risks, with data being potentially abused by the provider itself or its subcontractors, or third parties that get access to it, e.g., after a data breach, like the 70K users that had their government ID photos leaked after appealing age assessment errors on Discord."

Instead of mandated age restrictions, the letter urges lawmakers to consider the dangers and suggest regulating social media algorithms instead. They also recommend "support for parents to locally prevent access to non-age-appropriate content or apps, without age-based control needing to be implemented by service providers."

A sprawling Chinese influence operation -- accidentally revealed by a Chinese law enforcement official's use of ChatGPT -- focused on intimidating Chinese dissidents abroad, including by impersonating US immigration officials, according to a new report from ChatGPT-maker OpenAI. From a report: The Chinese law enforcement official used ChatGPT like a diary to document the alleged covert campaign of suppression, OpenAI said. In one instance, Chinese operators allegedly disguised themselves as US immigration officials to warn a US-based Chinese dissident that their public statements had supposedly broken the law, according to the ChatGPT user. In another case, they describe an effort to use forged documents from a US county court to try to get a Chinese dissident's social media account taken down.

The report offers one of the most vivid examples yet of how authoritarian regimes can use AI tools to document their censorship efforts. The influence operation appeared to involve hundreds of Chinese operators and thousands of fake online accounts on various social media platforms, according to OpenAI.

Russia's domestic intelligence agency claimed Saturday that Ukraine can obtain sensitive information from troops using the Telegram app on the front line, reports Bloomberg. The fact that the claims were made through Russia's state-operated news outlet RIA Novosti signals "tightening scrutiny over a platform used by millions of Russians," Bloomberg notes, as the Kremlin continues efforts to "push people to use a new state-backed alternative." Russia's communications watchdog limited access to Telegram — a popular messaging app owned by Russian-born billionaire Pavel Durov — over a week ago for failing to comply with Russian laws requiring personal data to be stored locally. Voice and video calls were blocked via Telegram in August. The pressure is the latest move in a long-running campaign to promote what the Kremlin calls a sovereign internet that's led to blocks on YouTube, Instagram and WhatsApp... Foreign intelligence services are able to see Russia's military messages in Telegram too, Russia's Minister for digital development, Maksut Shadaev, said on Wednesday, although he added that Russia will not block access to Telegram for troops for now.

Telegram responded at the time that no breaches of the app's encryption have ever been found. "The Russian government's allegation that our encryption has been compromised is a deliberate fabrication intended to justify outlawing Telegram and forcing citizens onto a state-controlled messaging platform engineered for mass surveillance and censorship," it said in an emailed response.

The U.S. State Department is reportedly developing a site called freedom.gov that would let users in Europe and elsewhere access content restricted under local laws, "including alleged hate speech and terrorist propaganda," reports Reuters. Washington views the move as a way to counter censorship. Reuters reports: One source said officials had discussed including a virtual private network function to make a user's traffic appear to originate in the U.S. and added that user activity on the site will not be tracked. Headed by Undersecretary for Public Diplomacy Sarah Rogers, the project was expected to be unveiled at last week's Munich Security Conference but was delayed, the sources said. Reuters could not determine why the launch did not happen, but some State Department officials, including lawyers, have raised concerns about the plan, two of the sources said, without detailing the concerns.

The project could further strain ties between the Trump administration and traditional U.S. allies in Europe, already heightened by disputes over trade, Russia's war in Ukraine and President Donald Trump's push to assert control over Greenland. The portal could also put Washington in the unfamiliar position of appearing to encourage citizens to flout local laws.

Bloomberg reports: India tightened rules governing social media content and platforms, particularly targeting artificially generated and manipulated material, in a bid to crack down on the rapid spread of misinformation and deepfakes. The government on Tuesday (Feb 10) notified new rules under an existing law requiring social media firms to comply with takedown requests from Indian authorities within three hours and prominently label AI-generated content. The rules also require platforms to put in place measures to prevent users from posting unlawful material...

Companies will need to invest in 24-hour monitoring centres as enforcement shifts toward platforms rather than users, said Nikhil Pahwa, founder of MediaNama, a publication tracking India's digital policy... The onus of identification, removal and enforcement falls on tech firms, which could lose immunity from legal action if they fail to act within the prescribed timeline.
The new rules also require automated tools to detect and prevent illegal AI content, the BBC reports. And they add that India's new three-hour deadline is "a sharp tightening of the existing 36-hour deadline." [C]ritics worry the move is part of a broader tightening of oversight of online content and could lead to censorship in the world's largest democracy with more than a billion internet users... According to transparency reports, more than 28,000 URLs or web links were blocked in 2024 following government requests...

Delhi-based technology analyst Prasanto K Roy described the new regime as "perhaps the most extreme takedown regime in any democracy". He said compliance would be "nearly impossible" without extensive automation and minimal human oversight, adding that the tight timeframe left little room for platforms to assess whether a request was legally appropriate. On AI labelling, Roy said the intention was positive but cautioned that reliable and tamper-proof labelling technologies were still developing.
DW reports that India has also "joined the growing list of countries considering a social media ban for children under 16."

"Young Indians are not happy and are already plotting workarounds."

Richard Stallman spoke Friday at Atlanta's Georgia Institute of Technology, continuing his activism for free software while also addressing today's new technologies.

Speaking about AI, Stallman warned that "nowadays, people often use the term artificial intelligence for things that aren't intelligent at all..." He makes a point of calling large language models "generators" because "They generate text and they don't understand really what that text means." (And they also make mistakes "without batting a virtual eyelash. So you can't trust anything that they generate.") Stallman says "Every time you call them AI, you are endorsing the claim that they are intelligent and they're not. So let's let's refuse to do that."

"So I've come up with the term Pretend Intelligence. We could call it PI. And if we start saying this more often, we might help overcome this marketing hype campaign that wants people to trust those systems, and trust their lives and all their activities to the control of those systems and the big companies that develop and control them."

"By the way, as far as I can tell, none of them is free software."

When it comes to today's cars, Stallman says they contain "malicious functionalities... Cars should not be connected. They should not upload anything." (He adds that "I am hoping to find a skilled mechanic to work with me in a project to make disconnected cars.")

And later Stallman calls the smartphone "an Orwellian tracking and surveillance device," saying he refuses to own one. (An advantage of free software is that it allows the removal of malicious functionalities.)

Stallman spoke for about 53 minutes — but then answered questions for nearly 90 minutes longer. Here's some of the highlights...

An anonymous reader quotes a report from 404 Media: The Belarusian government is threatening three HAM radio operators with the death penalty, detained at least seven people, and has accused them of "intercepting state secrets," according to Belarusian state media, independent media outside of Belarus, and the Belarusian human rights organization Viasna. The arrests are an extreme attack on what is most often a wholesome hobby that has a history of being vilified by authoritarian governments in part because the technology is quite censorship resistant.

The detentions were announced last week on Belarusian state TV, which claimed the men were part of a network of more than 50 people participating in the amateur radio hobby and have been accused of both "espionage" and "treason." Authorities there said they seized more than 500 pieces of radio equipment. The men were accused on state TV of using radio to spy on the movement of government planes, though no actual evidence of this has been produced. State TV claimed they were associated with the Belarusian Federation of Radioamateurs and Radiosportsmen (BFRR), a long-running amateur radio club and nonprofit that holds amateur radio competitions, meetups, trainings, and forums. Siarhei Besarab, a Belarusian HAM radio operator, posted a plea for support from others in the r/amateurradio subreddit. "I am writing this because my local community is being systematically liquidated in what I can only describe as a targeted intellectual genocide," Besarab wrote. "I beg you to amplify this signal and help us spread this information. Please show this to any journalist you know, send it to human rights organizations, and share it with your local radio associations."

European leaders including Emmanuel Macron have accused Washington of "coercion and intimidation," after the US imposed a visa ban on five prominent European figures who have been at heart of the campaign to introduce laws regulating American tech companies. From a report: The visa bans were imposed on Tuesday on Thierry Breton, the former EU commissioner and one of the architects of the bloc's Digital Services Act (DSA), and four anti-disinformation campaigners, including two in Germany and two in the UK.

The other individuals targeted were Imran Ahmed, the British chief executive of the US-based Center for Countering Digital Hate; Anna-Lena von Hodenberg and Josephine Ballon of the German non-profit HateAid; and Clare Melford, co-founder of the Global Disinformation Index. Justifying the visa bans, the US secretary of state, Marco Rubio, wrote on X: "For far too long, ideologues in Europe have led organised efforts to coerce American platforms to punish American viewpoints they oppose. The Trump administration will no longer tolerate these egregious acts of extraterritorial censorship."

Macron condemned the visa ban in furious terms. "These measures amount to intimidation and coercion aimed at undermining European digital sovereignty," he wrote, also on X. "The European Union's digital regulations were adopted following a democratic and sovereign process by the European Parliament and the Council. They apply within Europe to ensure fair competition among platforms, without targeting any third country, and to ensure that what is illegal offline is also illegal online. The rules governing the European Union's digital space are not meant to be determined outside Europe."

An anonymous reader quotes a report from the Associated Press: The State Department announced Tuesday it was barring five Europeans it accused of leading efforts to pressure U.S. tech firms to censor or suppress American viewpoints. The Europeans, characterized by Secretary of State Marco Rubio as "radical" activists and "weaponized" nongovernmental organizations, fell afoul of a new visa policy announced in May to restrict the entry of foreigners deemed responsible for censorship of protected speech in the United States. "For far too long, ideologues in Europe have led organized efforts to coerce American platforms to punish American viewpoints they oppose," Rubio posted on X. "The Trump Administration will no longer tolerate these egregious acts of extraterritorial censorship."

The five Europeans were identified by Sarah Rogers, the under secretary of state for public diplomacy, in a series of posts on social media. [...] The five Europeans named by Rogers are: Imran Ahmed, chief executive of the Centre for Countering Digital Hate; Josephine Ballon and Anna-Lena von Hodenberg, leaders of HateAid, a German organization; Clare Melford, who runs the Global Disinformation Index; and former EU Commissioner Thierry Breton, who was responsible for digital affairs. Rogers in her post on X called Breton, a French business executive and former finance minister, the "mastermind" behind the EU's Digital Services Act, which imposes a set of strict requirements designed to keep internet users safe online. This includes flagging harmful or illegal content like hate speech. She referred to Breton warning Musk of a possible "amplification of harmful content" by broadcasting his livestream interview with Trump in August 2024 when he was running for president.

An anonymous reader quotes a report from Reuters: Several dozen people protested on Sunday in the Siberian city of Tomsk against Russia's ban on U.S. children's gaming platform Roblox, a rare show of public dissent as popular irritation over the ban gains some momentum. In wartime Russia, censorship is extensive: Moscow blocks or restricts social media platforms such as Snapchat, Facebook, Instagram, WhatsApp and YouTube while distributing its own narrative through a network of social media and Russian media. Russia's communications watchdog Roskomnadzor said on December 3 it had blocked Roblox because it was "rife with inappropriate content that can negatively impact the spiritual and moral development of children."

In Tomsk, 2,900 km (1,800 miles) east of Moscow, several dozen people braved the snow to hold up hand-drawn placards reading "Hands off Roblox" and "Roblox is the victim of the digital Iron Curtain" in Vladimir Vysotsky Park, according to photographs provided by an organizer of the protest. "Bans and blocks are all you are able to do," read one placard. The photographs showed about 25 people standing in a circle in the snow, holding up placards. In Russia, the ban on Roblox has triggered a debate over censorship, child safety in relation to technology and even the effectiveness of censorship in a digitalized world where children can bypass many bans in a few clicks.

Longtime Slashdot reader hackingbear writes: Taiwan's government has ordered a one-year block of a popular, mainland Chinese-owned social media app Xiaohongshu, also known as The Little RedNote, citing its failure to cooperate with authorities over fraud-related concerns. Taiwan's Ministry of the Interior on Thursday cited Xiaohongshu's, which does not have business presence on the island, refusal to cooperate with authorities as the basis for the ban, claiming that the platform has been linked to more than 1,700 fraud-related cases that resulted in financial losses of 247.7 million Taiwanese dollars ($7.9 million). "Due to the inability to obtain necessary data in accordance with the law, law enforcement authorities have encountered significant obstacles in investigations, creating a de facto legal vacuum," the ministry said in a statement.

Chinese Nationalist Party (KMT), Taiwan's opposition party, Chairwoman Cheng Li-wun decried the government plan to suspend access to Chinese social media platform Xiaohongshu for one year as censorship. "Many people online are already asking 'How to climb over the firewall to access Xiaohongshu,'" Cheng posted on social media. Meta was facing fines earlier this year for failing to disclose information on individuals who funded advertisements on its social media platforms, marking the second such penalty in Taiwan for violating the anti-fraud act. "Meta failed to fully disclose information regarding who paid for the advertisement and who benefited from it," Depute Minister Lin of Ministry of Digital Affairs said at a news conference on June 18.

If MODA decides to impose the fine, it would mark the second such penalty against Meta in Taiwan, following a NT$1 million ($33,381) fine issued in May for violating the Fraud Crime Hazard Prevention Act by failing to disclose information on individuals who commissioned and funded two Facebook advertisements. Meta's Threads were also included in the regulatory framework following nearly 1,900 fraud-related reports associated with the platform, with 718 confirmed as scams. Xiaohongshu has surged in popularity among young Taiwanese in recent years, amassing 3 million users in the island of 23 million.

Russia has blocked Apple's FaceTime and the gaming platform Roblox as part of a broader crackdown on foreign tech platforms. CBC News reports: Both restrictions are part of an accelerating clampdown on foreign tech platforms: In the case of FaceTime, Russian authorities allege it is being used for criminal activity, while Roblox was accused of distributing extremist materials and "LGBT propaganda." The move follows restrictions against Google's YouTube, Meta's WhatsApp and the Telegram messaging service.

Critics say the curbs amount to censorship and a tightening of state control over private communications. Russia says they are legitimate law enforcement measures. Russian authorities have this year launched a state-backed rival app called Max, which critics say could be used for surveillance -- allegations that state media have dismissed as false.

Justifying its decision, the communications regulator, Roskomnadzor, said in an emailed statement: "According to law enforcement agencies, FaceTime is being used to organize and carry out terrorist attacks in the country, recruit perpetrators, and commit fraud and other crimes against Russian citizens." The watchdog did not cite evidence in support of the allegations.

schwit1 shares a report from Behind The Black: In its war with the Ukraine, it appears Russia is still managing to obtain black market Starlink mini-terminals for use on its drones, despite an effort since 2024 to block access. [Imagery from eastern Ukraine shows a Russian Molniya-type drone outfitted with a mini-Starlink terminal, reinforcing reports that Russia is improvising satellite-linked UAVs to extend their communication and operational range.] SpaceX has made no comment on this issue.

According to the article, Ukraine is "exploring alternative European satellite providers in response, seeking more secure and controllable communications infrastructure for military operations." While switching to another satellite provider might allow Ukraine to shut Starlink down and prevent the Russians from using it within its territory, doing so would likely do more harm to Ukraine's military effort than Russia's. There isn't really any other service comparable at this time. And when Amazon's Leo system comes on line it will face the same black market issues. I doubt it will have any more success than SpaceX in preventing Russia from obtaining its terminals.

Overall this issue is probably not a serious one militarily, however. Russia is not likely capable of obtaining enough black market terminals to make any significant difference on the battlefield. This story however highlights a positive aspect of these new constellations. Just as Russia can't be prevented from obtaining black market terminals, neither can the oppressed citizens in totalitarian nations like Russia and China be blocked as well. These constellations as designed act to defeat the censorship and information control of such nations, a very good thing.

In October cryptologist/CS professor Daniel J. Bernstein alleged that America's National Security Agency (and its UK counterpart GCHQ) were attempting to influence NIST to adopt weaker post-quantum cryptography standards without a "hybrid" approach that would've also included pre-quantum ECC.

Bernstein is of the opinion that "Given how many post-quantum proposals have been broken and the continuing flood of side-channel attacks, any competent engineering evaluation will conclude that the best way to deploy post-quantum [PQ] encryption for TLS, and for the Internet more broadly, is as double encryption: post-quantum cryptography on top of ECC." But he says he's seen it playing out differently: By 2013, NSA had a quarter-billion-dollar-a-year budget to "covertly influence and/or overtly leverage" systems to "make the systems in question exploitable"; in particular, to "influence policies, standards and specification for commercial public key technologies". NSA is quietly using stronger cryptography for the data it cares about, but meanwhile is spending money to promote a market for weakened cryptography, the same way that it successfully created decades of security failures by building up the market for, e.g., 40-bit RC4 and 512-bit RSA and Dual EC. I looked concretely at what was happening in IETF's TLS working group, compared to the consensus requirements for standards-development organizations. I reviewed how a call for "adoption" of an NSA-driven specification produced a variety of objections that weren't handled properly. ("Adoption" is a preliminary step before IETF standardization....) On 5 November 2025, the chairs issued "last call" for objections to publication of the document. The deadline for input is "2025-11-26", this coming Wednesday.
Bernstein also shares concerns about how the Internet Engineering Task Force is handling the discussion, and argues that the document is even "out of scope" for the IETF TLS working group This document doesn't serve any of the official goals in the TLS working group charter. Most importantly, this document is directly contrary to the "improve security" goal, so it would violate the charter even if it contributed to another goal... Half of the PQ proposals submitted to NIST in 2017 have been broken already... often with attacks having sufficiently low cost to demonstrate on readily available computer equipment. Further PQ software has been broken by implementation issues such as side-channel attacks.
He's also concerned about how that discussion is being handled: On 17 October 2025, they posted a "Notice of Moderation for Postings by D. J. Bernstein" saying that they would "moderate the postings of D. J. Bernstein for 30 days due to disruptive behavior effective immediately" and specifically that my postings "will be held for moderation and after confirmation by the TLS Chairs of being on topic and not disruptive, will be released to the list"...

I didn't send anything to the IETF TLS mailing list for 30 days after that. Yesterday [November 22nd] I finished writing up my new objection and sent that in. And, gee, after more than 24 hours it still hasn't appeared... Presumably the chairs "forgot" to flip the censorship button off after 30 days.
Thanks to alanw (Slashdot reader #1,822) for spotting the blog posts.

Mexico has finally lifted its long-running Tor ban for the main government portal, allowing privacy-focused users, journalists, and activists to access gob.mx again after more than a decade of blocking. That said, the open data portal and the former Tor-compatible whistleblower system remain inaccessible. CyberInsider reports: The development follows a long period of digital censorship that spanned two full six-year presidential terms, those of Enrique Pena Nieto and Andres Manuel Lopez Obrador, and continued into the early months of Claudia Sheinbaum Pardo's current administration. Research conducted by Jacobo Najera and Miguel Trujillo, published in October 2023, documented that 21 federal government agencies were blocking traffic from the Tor network, effectively excluding privacy-conscious users from vital public resources and services.

An anonymous reader shares a report: The Chinese electric car has become a symbol of the country's seemingly unstoppable rise on the world stage. Many observers point to their growing popularity as evidence that China is winning the race to dominate new technologies. But in China, these electric cars represent something entirely different: the profound threats that Beijing's meddling in markets poses to both China and the world.

Bloated by excessive investment, distorted by government intervention, and plagued by heavy losses, China's EV industry appears destined for a crash. EV companies are locked in a cutthroat struggle for survival. Wei Jianjun, the chairman of the Chinese automaker Great Wall Motor, warned in May that China's car industry could tumble into a financial crisis; it "just hasn't erupted yet."

To bypass government censorship of bad economic news, market analysts have opted for a seemingly anodyne term to describe the Chinese car industry's downward spiral: involution, which connotes falling in on oneself. What happens in China's EV sector promises to influence the entire global automobile market. China's emergence as the world's largest manufacturer of EVs highlights the serious challenge the country poses to even the most advanced industries in the U.S., Europe, and other rich economies. Given the vital role the car industry plays in economies around the world, and the jobs, supply chains, and technologies involved, the stakes are high.

But the wobbles in China's EV sector demonstrate the downside of China's state-led economic model. China's government threw ample resources at the EV industry in the hopes of leapfrogging foreign rivals in the transition to battery-powered vehicles. The Center for Strategic and International Studies estimates that the government provided more than $230 billion of financial assistance to the EV sector from 2009 to 2023. The strategy worked: China's EV makers would likely never have grown as quickly as they have without this substantial state support. By comparison, the recent Republican-sponsored tax bill eliminated nearly all federal subsidies for EVs in the U.S.

The problem is that China's program encouraged too much investment in the sector. Michael Dunne, the CEO of Dunne Insights, a California-based consulting firm focused on the EV industry, counts 46 domestic and international automakers producing EVs in China, far too many for even the world's second-largest economy to sustain.

An anonymous reader quotes a report from The Atlantic: In China, you can buy a heavily discounted "used" electric car that has never, in fact, been used. Chinese automakers, desperate to meet their sales targets in a bitterly competitive market, sell cars to dealerships, which register them as "sold," even though no actual customer has bought them. Dealers, stuck with officially sold cars, then offload them as "used," often at low prices. The practice has become so prevalent that the Chinese Communist Party is trying to stop it. Its main newspaper, The People's Daily, complained earlier this year that this sales-inflating tactic "disrupts normal market order," and criticized companies for their "data worship."

This sign of serious problems in China's electric-vehicle industry may come as a surprise to many Americans. The Chinese electric car has become a symbol of the country's seemingly unstoppable rise on the world stage. Many observers point to their growing popularity as evidence that China is winning the race to dominate new technologies. But in China, these electric cars represent something entirely different: the profound threats that Beijing's meddling in markets poses to both China and the world.

Bloated by excessive investment, distorted by government intervention, and plagued by heavy losses, China's EV industry appears destined for a crash. EV companies are locked in a cutthroat struggle for survival. Wei Jianjun, the chairman of the Chinese automaker Great Wall Motor, warned in May that China's car industry could tumble into a financial crisis; it "just hasn't erupted yet." To bypass government censorship of bad economic news, market analysts have opted for a seemingly anodyne term to describe the Chinese car industry's downward spiral: involution, which connotes falling in on oneself.