Lawmakers Call for Examination of NewsBreak App Over Chinese Background

Three U.S. lawmakers are calling for increased scrutiny of NewsBreak, a popular news aggregation app in the United States, following a Reuters report revealing its Chinese origins and use of artificial intelligence tools to create inaccurate stories.

Based on newly uncovered court documents related to copyright infringement and cease-and-desist emails, as well as a 2022 company memo expressing concerns about “AI-generated stories,” Reuters found at least 40 instances where NewsBreak’s use of AI impacted the communities it serves.

“The idea of a company dealing in unchecked, artificially generated news is concerning enough, but when it has strong ties to a foreign government, it becomes even more alarming,” stated Sen. Mark Warner, D-Va., who chairs the Intelligence Committee.

Warner emphasized the need for a comprehensive approach to address the threat posed by such technologies, highlighting the challenges of combating individual companies without a holistic strategy.

The lawmakers raised alarms about NewsBreak’s past and present connections to Chinese investors, as well as its operations in China where many of its engineers are located.

Responding to inquiries from Reuters regarding the lawmakers’ concerns, NewsBreak insisted that it is an American company: “NewsBreak is a U.S. company, always has been. Any claims suggesting otherwise are false,” stated a spokesperson.

NewsBreak was launched in the U.S. in 2015 as a subsidiary of Yidian, a Chinese news aggregation app founded by Jeff Zheng, who is also the CEO of NewsBreak. Both Yidian and NewsBreak share a U.S. patent for an “Interest Engine” algorithm that recommends news based on user interests and location.

While Yidian received recognition from Chinese Communist Party officials for disseminating government propaganda efficiently in 2017, Reuters found no evidence of NewsBreak censoring or favoring news beneficial to the Chinese government.

Rep. Raja Krishnamoorthi of Illinois, the leading Democrat on the House select committee on China, raised concerns about Yidian’s ties to the CCP and Chinese state-linked media. He stressed the importance of transparency regarding any connections between news distributors and the Chinese government.

Despite reports of Yidian’s praise by the Communist Party, Reuters could not confirm any current links between NewsBreak and the Party.

Rep. Elise Stefanik, R-N.Y., expressed apprehension about IDG Capital’s support of NewsBreak, suggesting that the app warrants closer scrutiny to prevent foreign adversaries from exploiting American citizen data.

NewsBreak, a privately held startup, is primarily backed by private equity firms Francisco Partners in San Francisco and IDG Capital in Beijing. IDG Capital was recently included in a list of Chinese companies alleged to be working with Beijing’s military, a claim it has denied.

Francisco Partners denied being the primary backer of NewsBreak, claiming their investment was less than 10%. The company did not provide evidence to support this assertion. NewsBreak previously identified Francisco Partners as its main investor but did not offer documentation.