Lawmakers Call for Increased Scrutiny of News App NewsBreak Over Chinese Connections

Recent revelations about the Chinese origins of the popular news aggregation app, NewsBreak, have prompted several U.S. lawmakers to demand heightened scrutiny. The concerns arise following a Reuters report that highlighted the app's connections to China and its use of artificial intelligence tools that have resulted in inaccurate news stories. As the digital landscape evolves, the integrity and security of information distribution have become paramount, particularly when foreign influences are involved.

#### Background

Reuters unearthed previously undisclosed court documents related to copyright infringement, cease-and-desist communications, and a 2022 company memo expressing concerns about "AI-generated stories." These documents revealed at least 40 instances where NewsBreak's use of AI tools negatively impacted the communities it serves. The report highlighted the potential dangers of relying on AI for content generation without proper oversight and the risks posed by foreign influences on domestic news platforms.

#### Lawmaker Reactions

Senator Mark Warner, who chairs the Intelligence Committee, voiced his alarm, stating, "The only thing more terrifying than a company that deals in unchecked, artificially generated news, is one with deep ties to an adversarial foreign government." Warner emphasized the broader threat posed by technologies from countries of concern, advocating for a holistic approach to address these issues rather than a piecemeal, company-by-company strategy. Warner’s comments underline the complexity and scale of the threat posed by foreign-linked tech companies in the U.S. information ecosystem.

Concerns were also raised about NewsBreak's connections to Chinese investors and its operational presence in China, where many of its engineers are based. Despite these concerns, NewsBreak maintained that it is an American company. A spokesperson for NewsBreak stated, "NewsBreak is a U.S. company and always has been. Any assertion to the contrary is not true."

#### Historical Connections

NewsBreak was launched in the U.S. in 2015 as a subsidiary of Yidian, a Chinese news aggregation app. Both companies were founded by Jeff Zheng, NewsBreak's CEO, and share a U.S. patent for an "Interest Engine" algorithm that recommends news content based on user interests and location. In 2017, Yidian received commendation from Chinese Communist Party officials for efficiently disseminating government propaganda. However, Reuters found no evidence that NewsBreak censored or produced news favorable to the Chinese government.

The dual nature of NewsBreak's origins—rooted in both American and Chinese technology ecosystems—raises complex questions about its operational and editorial independence. The shared patent between Yidian and NewsBreak, and the background of their founder, point to a deep, intertwined relationship that extends beyond mere business affiliations. This duality is at the heart of the lawmakers’ concerns, as it suggests potential vulnerabilities in how NewsBreak operates and manages its content.

#### Additional Concerns

Representative Raja Krishnamoorthi, the top Democrat on the House select committee on China, expressed serious concerns about NewsBreak's historical ties to entities linked with the Chinese Communist Party (CCP). He underscored the importance of transparency about any CCP connections, especially regarding the use of "opaque algorithms" and AI tools in news production. Krishnamoorthi highlighted that Americans have the right to full transparency about the origins and influences of their news sources.

U.S. Representative Elise Stefanik, a Republican, pointed to IDG Capital's backing of NewsBreak as a reason for increased scrutiny. "We cannot allow our foreign adversaries access to American citizens' data to weaponize them against America’s interests," she stated. Stefanik’s remarks reflect a broader bipartisan consensus on the need to scrutinize tech companies with foreign ties, particularly those connected to nations considered adversarial to U.S. interests.

#### Investor Relations

NewsBreak is a privately held start-up with major backing from private equity firms Francisco Partners, based in San Francisco, and IDG Capital, based in Beijing. The Pentagon included IDG Capital on a list of Chinese companies allegedly working with Beijing's military, a claim IDG Capital denies. Francisco Partners, while refuting Reuters' description of them as a "primary backer" of NewsBreak due to their investment being less than 10%, did not provide documentation to support their claim. NewsBreak has previously indicated Francisco Partners as its primary investor.

The involvement of IDG Capital, a Beijing-based firm, in NewsBreak’s funding adds another layer of complexity. In February, IDG Capital was added to a list of dozens of Chinese companies the Pentagon said were allegedly working with Beijing's military. This listing has intensified the scrutiny of NewsBreak’s financial and operational transparency. IDG Capital has consistently denied any association with the Chinese military, but the inclusion on the Pentagon’s list suggests the need for a more thorough investigation.

A spokesperson for Francisco Partners described the Reuters story as "false and misleading," yet did not provide details beyond stating that their investment was less than 10%. This response raises questions about the transparency and accuracy of information regarding NewsBreak’s financial backing. NewsBreak did not respond to two requests late Friday asking for documentation supporting the assertion that Francisco Partners is their primary investor, leaving a gap in the available information about the company’s financial structure.

#### AI and News Accuracy

The use of AI in generating news content has been a focal point of the concerns raised by lawmakers and observers alike. The 2022 company memo cited by Reuters highlighted internal worries about "AI-generated stories" and their impact on the credibility and reliability of the news being disseminated. AI's role in news generation can lead to errors and misrepresentations if not properly managed, and the potential for AI tools to be influenced by biased or incomplete data sources further complicates the issue.

AI's ability to rapidly generate content can be both a strength and a weakness. While it allows for the quick production of news articles, the lack of human oversight can lead to the spread of misinformation. This is particularly concerning in the context of NewsBreak, where AI-generated errors have already been documented. Ensuring the accuracy and reliability of AI-generated news requires robust oversight mechanisms, which appear to be lacking in this case.

The ethical implications of AI in journalism extend beyond mere errors. The potential for AI to be used to manipulate public opinion or spread propaganda is a significant risk. In the case of NewsBreak, the combination of AI tools and its historical ties to Chinese entities raises the specter of foreign influence in U.S. news media. This underscores the importance of rigorous scrutiny and transparency in the deployment of AI in journalism.

#### Transparency and Trust

Transparency is crucial in maintaining public trust in news media. The revelations about NewsBreak's origins and its use of AI tools have undermined that trust, leading to calls for more stringent oversight. Lawmakers have emphasized the need for greater transparency from NewsBreak about its connections to Chinese entities and the use of AI in its news production processes.

The concerns about opaque algorithms and the potential for hidden biases in AI-generated content highlight the broader issue of accountability in digital journalism. News organizations must be transparent about their methods and affiliations to maintain credibility. In the case of NewsBreak, the lack of clear and transparent information about its financial backers and operational practices has exacerbated the situation.

#### Moving Forward

The scrutiny of NewsBreak by U.S. lawmakers underscores the growing concerns about foreign influence and the integrity of information distributed through popular news platforms. As AI and digital news aggregation continue to evolve, the need for transparency and rigorous oversight remains critical to maintaining trust and security in the digital information landscape.

Ensuring that news platforms operate with transparency and accountability is essential to safeguarding the public’s trust. The concerns raised about NewsBreak serve as a reminder of the importance of due diligence in evaluating the sources and methods of news production. In an era where misinformation and foreign influence are significant threats, maintaining the integrity of news media is more important than ever.

#### Conclusion

The ongoing scrutiny of NewsBreak by U.S. lawmakers highlights the complex interplay between technology, media, and national security. The concerns about AI-generated content and foreign influence in news production underscore the need for robust oversight and transparency. As the digital landscape continues to evolve, ensuring the integrity and reliability of news sources will remain a critical challenge.

The case of NewsBreak serves as a cautionary tale about the potential risks of unchecked technological advancements and foreign influences in media. Moving forward, a concerted effort by lawmakers, regulatory bodies, and the media industry is essential to address these challenges and safeguard the public’s trust in news media.