We started the year with China lying about the deadly virus that was about to sweep the world, so let’s end the year with a China news roundup:
A major leak containing a register with the details of nearly two million CCP members has occurred – exposing members who are now working all over the world, while also lifting the lid on how the party operates under Xi Jinping, says Sharri Markson.
Ms Markson said the leak is a register with the details of Communist Party members, including their names, party position, birthday, national ID number and ethnicity.
“It is believed to be the first leak of its kind in the world,” the Sky News host said.
“What’s amazing about this database is not just that it exposes people who are members of the communist party, and who are now living and working all over the world, from Australia to the US to the UK,” Ms Markson said.
“But it’s amazing because it lifts the lid on how the party operates under President and Chairman Xi Jinping”.
Ms Markson said the leak demonstrates party branches are embedded in some of the world’s biggest companies and even inside government agencies.
“Communist party branches have been set up inside western companies, allowing the infiltration of those companies by CCP members – who, if called on, are answerable directly to the communist party, to the Chairman, the president himself,” she said.
“Along with the personal identifying details of 1.95 million communist party members, mostly from Shanghai, there are also the details of 79,000 communist party branches, many of them inside companies”.
I’ve poked around a bit to find a copy of that database, but all I could locate was an excerpt featuring the first 5,000 names or so. If anyone knows where I can find the full list, let me know in the comments.
Arm Ltd., the chip designer owned by SoftBank Group Corp., accused the ousted head of its China joint venture of hurting its business there, escalating a dispute that’s becoming a test of Beijing’s willingness to protect foreign investment in the world’s second-largest economy.
The U.K. chip giant in June announced it was firing Allen Wu, the head of its Chinese unit, over undisclosed breaches of conduct, but the executive has refused to step down and remains in control of the strategically important operation. Rather than the peaceful, rapid resolution that both sides have said they want, the situation has deteriorated.
Wu has hired his own security and won’t let representatives of Arm Ltd. or his board on the premises, said a person familiar with the situation. He’s refused to hold a planned event to connect Chinese chipmakers with Arm Ltd. and avoided negotiations despite public statements to the contrary, said the person, who asked not to be named.
Wu is “propagating false information and creating a culture of fear and confusion among Arm China employees,” the U.K.-based company said in a statement. “Allen’s focus on his own self-preservation has also put China semiconductor innovation at risk as he has attempted to block the critical communication and support our China partners require from Arm for ongoing and future chip designs.”
Arm China disputed the claims in an emailed response to queries, adding that Wu was open to talks and there have been no disruptions in business engagement between Arm Ltd. and its China clients.China is the largest market for semiconductors and the U.K. firm relies on Arm China to conduct business with local customers, including Huawei Technologies Co. The country accounts for a large proportion of the company’s global revenue and resolving the conflict will be crucial to SoftBank’s reported plans to sell Arm, a lynchpin in the global smartphone and computing industry that the Japanese firm bought for $32 billion in 2016.
In early June, Arm China’s board – which includes representatives from Arm Ltd. and Chinese investors – ousted Wu for setting up an investing firm that competes with its own businesses there. He refused to accept the decision, saying it was invalid and has remained in control at Arm China’s headquarters in Shenzhen.
The intricacies of Chinese rules confer an advantage to Wu as the holder of key registration documents. As the legal representative of Arm China, Wu holds the company’s registration documents and the company seal, or stamp. Changing the legal representative requires taking possession of the company stamp — something Wu has refused to give up.
It was once an accepted truth that China’s increased economic trade and participation in international bodies such as the World Trade Organization would benefit everyone.
China and its citizens would benefit through the jobs and wealth earned from their vast export market. Americans and Europeans would benefit from access to an ever-greater array of ever-cheaper goods. Asian, African, and other American nations would benefit from access to both sides of this market and the incentive to replicate a version of China’s export model. And the world’s democracies, the cornerstones of the post-Cold War international order, would benefit from China’s recognition that it would gain more by abiding the rules of the game than by breaking them.
To borrow from Shakespeare, “the jest of the truth savors but of shallow wit, now that thousands weep more than did celebrate it.”
The weeping is real. Each week brings us increasingly horrific stories of the suffering endured by China’s already impoverished Uighur population. More than 2 million of these innocent citizens have been forced into concentration camps over the past decade. They have been indoctrinated to believe that there is no ideology of value save that of the Communist Party and its god-emperor Xi Jinping. Some have been forcibly sterilized, others sent far from their homes and families. As reported just this month, hundreds of thousands of Uighurs are forced into annual servitude as cotton pickers.
There’s a defining lesson here. China was supposed to be a top partner to the liberal international order. Instead, it is now taking inspiration from the Antebellum South’s slave economy, using forced labor in support of an unaccountable elite. Even were it not beholden to China, Hollywood could not invent a better example than the Uighurs’ plight to expose the lie that China’s economic development would usher in a kinder and gentler policy on its part.
Of course, Hollywood’s pathetic deference to Beijing isn’t a solitary American corporate story. It is the story. Instead of markets leading to more economic and political freedom in China, they have led major U.S. corporations to self-censor in order to gain access to Chinese consumers and their cheap labor. As with the NBA, which rightly cares a great deal about black lives but apparently not one iota about Uighur lives, major corporations such as Disney, Dell, and Walmart deal with China even if they must do so with terrible strings attached.
Beijing is explicit in its expectation that trade opportunities come with the price of silent acquiescence. Where the Chinese Communist Party signs treaties — whether the rules of the WTO, promises on intellectual property regimes, or carbon emissions targets — its pledges must be greeted only with applause from the West, never with any enforcement or demands that Xi be held to his word.
US carriers and telecommunications companies receiving Universal Service funding are now required to remove all Huawei technology, by order of the federal government.
The US Federal Communications Commission has ordered certain carriers to “rip and replace” all equipment produced by Huawei. It follows continuing investigations into claims that Huawei represents a threat to national security, and Huawei’s application for a review of a similar ruling by the Public Safety and Homeland Security Bureau in June.
“A laundry list of evidence before us compels this result,” said FCC chairman Ajit Pal in a statement. “But to summarize some of the main points, Huawei has a long and well-documented history of close ties to the Chinese military and intelligence communities, as well as the Chinese Communist Party, at every level of the company— all the way up to its founder.”
“Huawei is subject to sweeping Chinese intelligence laws compelling Huawei’s assistance and cooperation with Chinese intelligence services and forbidding the disclosure of that assistance,” he continued. “Moreover, the concerns about Huawei aren’t just hypothetical: Independent entities have identified numerous security vulnerabilities in Huawei equipment and found it to be less secure than that of other companies— perhaps deliberately so.”
The Trump administration is poised to add China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies, Reuters reported citing a document and sources, curbing their access to U.S. investors and escalating tensions with Beijing.
The latest crackdown comes after a report from Reuters earlier this month that the Department of Defense (DOD) was planning to designate four more Chinese companies as owned or controlled by the Chinese military, bringing the number of Chinese companies affected to 35. A recent executive order issued by President Donald Trump would prevent U.S. investors from buying securities of the listed firms starting late next year.
It was not immediately clear when the new tranche, would be published in the Federal Register. But the list comprises China Construction Technology Co Ltd and China International Engineering Consulting Corp, in addition to Semiconductor Manufacturing International Corp (SMIC) and China National Offshore Oil Corp (CNOOC), Reuters reported.
On paper the Chinese army looks pretty impressive, with 78 combat brigades and nearly as many specialized brigades. Over the last decade the Chinese army has been converting its divisions to brigades, many of them independent brigades like the American Brigade combat teams. That conversion is still underway, although by now nearly all the regiments that formerly comprised the major subunits of divisions have been converted to brigades.
The task of turning all those new brigades into well-equipped and trained ones is still underway. There are three types of combat brigades. The most potent is the heavy brigade, each with about a hundred tanks and dozens of tracked IFVs (infantry fighting vehicles) plus detachments of engineers and other specialists. The problem with these heavy brigades is that not all of them have the latest tanks. China has not built enough of its most modern tank to replace all the older models. As more of the latest tank enter service heavy brigades receive them and have to go through months of training to learn how to get the most out of them.
Snip.
The major problem with the army is that all the elite units (special operations and airborne) as well as key units stationed in the capital and a few other places have few conscripts. Nearly all the conscripts are assigned to the combat brigades and the support brigades assigned to each of the 13 Group Armies. Units with conscripts spend about half the year training the new ones and if there is a war these units would, half the time, have a large portion of their troops poorly trained and not fully integrated into the unit. This is a major problem for combat units that depend on well-trained troops who have been with their units long enough for commanders to know what they can get out of them.
(Previously.)
As China pushes to become a blue-water power, nuclear-powered submarines are critically important to Beijing’s plan. Historically the Chinese Navy’s (PLAN) nuclear-powered submarine fleet has been constrained by its limited construction capacity. There is only one shipyard in the country up to the task. But that yard has been undergoing a massive enlargement. And now, recent satellite imagery suggests an additional capacity expansion.
China’s nuclear-powered submarine fleet was already expected to get much larger in the coming years. This latest development suggests that China could pump out submarines at an even greater rate.
Just how many nuclear submarines China will build over the next ten years is a hot topic. The Office of Naval Intelligence (ONI) recently forecast China’s submarine fleet to grow by six nuclear-powered attack submarines by 2030. Other observers, such as retired Capt. James Fanell who was Director of Intelligence and Information Operations for the U.S. Navy’s Pacific Fleet, place their estimates even higher.
A senior Chinese People’s Liberation Army officer, Lt. Gen. He Lei, penned an article explaining why China’s Korean War experience should guide its modern military strategy toward the United States.
The executive officer of the PLA’s Academy of Military Science, He is a known hard-liner on Taiwan and the U.S. In his present assignment, the general is responsible for training PLA officers and strategy development. His words carry weight both for what they say about evolving PLA doctrine and their influence on Beijing’s Central Military Commission. His arguments are certainly forward-leaning, referencing the PLA’s rising expectation that it will have to fight a near-term war with either the U.S., Taiwan, or both.
Beginning with a creative history of the Korean War, He explains that Mao Zedong’s deployment of the PLA against the U.S. military in North Korea shattered “the myth that U.S. imperialism is invincible.” Here, we see a presentation of the U.S. military as a force that can be both contested and defeated. The centrality of the Korean War to the Chinese military psyche takes on significant importance in the context of three factors. First, the war is seen as a necessary defense of the motherland against a great external threat. Second, the PLA has limited post-Korean War experience of major conflict. Third, China views the outcome of that war as being broadly in its favor. Taken together, He thus uses the Korean War to reinforce the idea that China can take on a more powerful foe and triumph.
China’s military might be shocked to find America’s military a wee bit more advanced and prepared than it was in 1950…
More than half a million Tibetan farmers and pastoralists have been placed in military training facilities to be turned into wage workers controlled by the authorities. This model replicates the one used in Xinjiang internment camps where more than a million Uyghur Muslims are imprisoned and indoctrinated.
A study by the Australian Strategic Policy Institute shows that the Chinese regime runs 380 “concentration camps” in the Xinjiang autonomous region. According to the Chinese Communist Party, Tibetans are a “lazy people” who need to be reprogrammed. To this end, Chinese leaders want to reduce the “negative influence” of the Buddhist religion.
First of a three-part series. Second Part. Third part.
The FBI is warning law-enforcement agencies to beware of cooperating with a Chinese government campaign to coerce U.S. residents to return to China to face criminal charges, according to a counterintelligence bulletin obtained by Yahoo News.
The bulletin comes after eight people, including a former New York Police Department officer, were indicted on charges of acting as illegal agents for Beijing.
“State and local public safety personnel should be aware that Chinese Government officials, such as diplomats and officials with China’s primary law enforcement agency, the Ministry of Public Security (MPS), may seek assistance to obtain sensitive US law enforcement or non-public personally identifiable information on individuals of interest,” which is marked for official use only and was distributed to law enforcement agencies around the country.
The warning concerns China’s long-standing policy of reaching beyond its borders to target people it accuses of financial crimes, even if they are permanently living abroad. The repatriations, often coerced by blackmail or threats, are part of Beijing’s anti-corruption campaign called Fox Hunt.
There has been an increasing number of allegations that China has coerced, even kidnapped, its citizens living abroad, and that it targets political dissidents as well as those accused of financial crimes.
When it comes to the impact of COVID-19 on the People’s Republic of China (PRC), the conventional wisdom seems to be that the emergence of the virus was mishandled and the Communist government has yet to be transparent about it, but that the spread was arrested through aggressive public-health practices and the economy has rebounded.
As usual with the PRC, the reality is more complex. In fact, recent signs of tension between President Xi Jinping and other leaders, notably Premier Li Keqiang, indicate the additional impact the pandemic had on an underlying soft economy and the country’s growing isolation because of Beijing’s poor handling of the crisis and other factors.
Snip.
In the past few years, Xi has centralized his personal authority to a degree not seen in a Chinese leader since Chairman Mao. In 2017, Xi took control of the country’s military and often appears in public in a military uniform. He is, in effect, the head of the National Security Council, the head of the foreign policy apparatus, and of multiple economic commissions. In recent public appearances, the state news agency Xinhua has referred to him as “People’s Leader.” Can “Chairman Xi” be far off? In additional to title inflation, in 2018, he imposed constitutional changes on the National People’s Congress that removed a term limit preventing him from seeking a third term in 2023. Xi’s moves and power consolidation mean he is responsible and accountable for both the good and the bad. And lately, there’s been far more bad than good.
Starting with the economy: However the government may have controlled the pandemic, the economy remains weak. Economic growth prior to the pandemic — according to China watchers skeptical of government numbers — was probably flat or negative, notwithstanding official statistics that had it closer to 6 percent. Government at every level and households had combined debt of about 300 percent of GDP. U.S. debt/GDP even after trillions in coronavirus relief spending is less than half China’s level, which leaves fewer levers for Beijing to pull to help stimulate the economy.
While the U.S. Federal Reserve and Congress have injected more than $6 trillion into the economy through massive purchases across many asset classes, the People’s Bank of China balance sheet has remained flat this year. The U.S. Congress provided about $630 billion in direct support to small businesses, compared with less than one-tenth that amount the PRC made available to small businesses in China. Retail sales in China for each month of 2020 are down compared with the same month the year prior. The real data are certainly worse than what the government discloses. In the U.S., retail sales in July were at all-time highs, eclipsing their pre-pandemic levels. According to economist Carlos Casanove at French insurer Coface, the PRC “recovery narrative has been overplayed.”
This is contributing to the tension between Xi and Li. At a press conference in May, the prime minister acknowledged that 600 million people in China — about half the population — subsist on 1000 yuan ($140) a month. This number includes the estimates of 80 million who lost work due to the virus who may have no income and no meaningful social safety net in China. Li’s data track with World Bank data which show a vast disparity in income between the urban elite and the mostly poor rural population. Even so, his comments were out of step with other government-touted figures, including a central bank survey in April of 30,000 urban residents who have an average of nearly half a million dollars in household assets. This figure generated so much controversy that the central bank withdrew it.
Read the whole thing.
The Guardian newspaper in London had an exclusive story in which Victor Zhang, the vice president of Huawei, stated that in light of Trump’s defeat, Britain should review its decision to ban the telecoms giant from its 5G network. Zhang warned that this decision would have economic repercussions for Britain, adding: “As a global company, we want to work with governments to ensure they have the policies to secure growth. The decision was a political one motivated by U.S. perceptions of Huawei, and not those of the U.K. This is not really motivated by security, but about a trade war between the U.S. and China.”
Or consider the fact that this year, some British politicians have shown a certain amount of moral grit by expressing concerns about new authoritarian security laws in Hong Kong and China’s persecution of its Muslim Uyghur minority in Xinjiang. How have the Chinese reacted? This week, Fang Wenjian, chairman of the Chinese Chamber of Commerce in the U.K. and the Bank of China’s boss, issued another menacing warning. The Sunday Times and City A.M. have both published stories linking him to the threat that any decline in U.K.-China relations could force some Chinese firms out of the U.K. In other words: “Don’t criticize China’s abysmal human rights record, or you risk losing our business.”
Alarms bells are also ringing because of Citiking International, a Chinese-backed private equity firm with offices around the world and, it has been reported, possible ties to the Chinese Communist Party. It is trying to buy Eclipse Aerospace, a small firm based in Albuquerque, New Mexico, that employs 65 people. According to Defense News, Eclipse Aerospace produces “very light jets” that are used for intelligence, surveillance and reconnaissance. Defense News states that its planes feature “sophisticated avionics, engines (originally designed for cruise missiles) and a full authority digital engine control system that all contain sensitive national security design information.” Everybody should be deeply worried about the Chinese having access to this sensitive technology, for obvious reasons.
Snip.
The fact is, China has ruined the world in 2020 by its reckless handling of COVID-19. For this, it ought to pay very heavy reparations. It will not. Instead, the reverse is happening. China’s economy is powering ahead, and its leaders are bullying weaker Western nations. With Trump all but gone from the White House, and faltering Joe Biden preparing to move in, it now looks as though China’s quest for world domination is back on track. What a calamity.
One of the oldest and most well-known iPhone suppliers has been accused of using forced Muslim labor in its factories, according to documents uncovered by a human rights group, adding new scrutiny to Apple’s human rights record in China.
The documents, discovered by the Tech Transparency Project and shared exclusively with The Washington Post, detail how thousands of Uighur workers from the predominantly Muslim region of Xinjiang were sent to work for Lens Technology. Lens also supplies Amazon and Tesla, according to its annual report.
Lens Technology is one of at least five companies connected to Apple’s supply chain that have now been linked to alleged forced labor from the Xinjiang region, according to human rights groups. Lens Technology stands out from other Apple component suppliers because of its high-profile founder and long, well-documented history going back to the early days of the iPhone.
Meng Yu, former chief investment officer of the California Public Employees’ Retirement System (CalPERS), received more than $1.7 million in total pay and benefits in 2019, according to the latest financial disclosures obtained by Transparent California, a taxpayer watchdog group. Under Meng’s leadership the pension fund, which covers two million members in the retirement system and 1.5 million members under its health program, has been subject to federal inquiries into its investments in Chinese government entities.
Meng took the lead at the pension fund after China’s Thousand Talents Program recruited him to serve as the deputy CIO of China’s State Administration of Foreign Exchange (SAFE), a state-controlled entity. The FBI considers the Thousand Talents Program an example of “China’s non-traditional espionage against the United States” that seeks to recruit people to transfer U.S. trade secrets and taxpayer-funded research into the hands of the Chinese government. Meng told the propaganda outlet People’s Daily that he worked for SAFE out of patriotic commitment to “the motherland.”
When a hacking organization’s secret tools are stolen and dumped online for anyone to pick up and repurpose, the consequences can roil the globe. Now one new discovery shows how long those effects can persist. Five years after the notorious spy contractor Hacking Team had its code leaked online, a customized version of one of its stealthiest spyware samples has shown up in the hands of possibly Chinese-speaking hackers.
At an online version of the Kaspersky Security Analyst Summit this week, researchers Mark Lechtik and Igor Kuznetsov plan to present their findings about that mysterious malware sample, which they detected on the PCs of two of Kaspersky’s customers earlier this year.1 The malware is particularly unusual—and disturbing—because it’s designed to alter a target computer’s Unified Extensible Firmware Interface, the firmware that is used to load the computer’s operating system. Because the UEFI sits on a chip on the computer’s motherboard outside of its hard drive, infections can persist even if a computer’s entire hard drive is wiped or its operating system is reinstalled, making it far harder to detect or disinfect than normal malware.
The malware the Kaspersky researchers discovered uses its UEFI foothold to plant a second, more traditional piece of spyware on the computer’s hard drive, a unique piece of code Kaspersky has called MosaicRegressor. But even if that second-stage payload is discovered and wiped, the UEFI remains infected and can simply deploy it again. “Even if you would take the physical disk out and replace it with a new one, the malware will keep reappearing,” says Lechtik, who along with Kuznetsov works as a researcher on Kaspersky’s Global Research and Analysis Team. “So I think to date, it’s the most persistent method of having malware on your device, which is why it is so dangerous.”
On 4 May 2016, a sudden mass death of fish in the Lichu River in Minyak Lhagang, Dartsedo County in Karze Prefecture brought hundreds of local Tibetans out on the street, protesting against a lithium mining company (Ronda Lithium Co Ltd) that released mine waste into the Lichu River, a tributary of Nakchu/Yalong river, the biggest river that merges with Yangtse downstream.
Yet another case of contaminated mine waste released into Tibetan rivers by a Chinese mining company clearly contradicts Beijing’s call for Green Development in their 13th Five Year plan. In recent years, there have been an increase in the number of cases of environmental degradation caused by Chinese mining companies in Tibet, resulting in more than 20 large scale mining-related protests since 2009.
More than a year since the first known person was infected with the coronavirus, an AP investigation shows the Chinese government is strictly controlling all research into its origins, clamping down on some while actively promoting fringe theories that it could have come from outside China.
The government is handing out hundreds of thousands of dollars in grants to scientists researching the virus’ origins in southern China and affiliated with the military, the AP has found. But it is monitoring their findings and mandating that the publication of any data or research must be approved by a new task force managed by China’s cabinet, under direct orders from President Xi Jinping, according to internal documents obtained by the AP. A rare leak from within the government, the dozens of pages of unpublished documents confirm what many have long suspected: The clampdown comes from the top.
As a result, very little has been made public. Authorities are severely limiting information and impeding cooperation with international scientists.
A host of corporate media outlets including CNN, The New York Times, The Washington Post, and MSNBC have participated in private dinners and sponsored trips with the China-United States Exchange Foundation, a Chinese Communist Party-funded group seeking to garner “favorable coverage” and “disseminate positive messages” regarding China, The National Pulse can reveal.
Other outlets involved in the propaganda operation include Forbes, the Financial Times, Newsweek, Bloomberg, Reuters, ABC News, the Economist, the Wall Street Journal, AFP, TIME magazine, LA Times, The Hill, BBC, and The Atlantic.
The relationship is revealed in the Department of Justice’s Foreign Agent Registration Act (FARA) filings, which reveal a relationship spanning over a decade between establishment media outlets and the China–United States Exchange Foundation (CUSEF).
(Hat tip: Stephen Green at Instapundit.)
The president of Columbia University is asking Joe Biden to end the monitoring of foreign-born students, especially those who are ethnically Chinese.
He characterized such monitoring as “paranoia.”
Columbia President Lee Bollinger issued the letter on December 3 as part of a broader statement asking Biden to “End the Trump Administration’s Assault on the International Exchange of Ideas.” In 2019, Bollinger wrote an op-ed in the Washington Post, warning that he would not “start spying” on foreign students.
Won’t someone please think of the plight Ivy league university presidents desperate to keep sucking China’s teat?
Huawei very much is the spearhead, because in the Chinese model of economic expansion and the development of world economic power, broadband is the opener to everything else.
It’s a company with a lot of very talented people. Ten years ago – if you asked people, “What Chinese products do you buy?” – you wouldn’t mention a single brand name. But everyone now knows Huawei. They produce the world’s best smartphones. They certainly dominate 5G internet. But Huawei is not a Chinese company. It is an imperial company.
The Chinese empire is doing better than us because it’s absorbed the talent of a very large number of others. Fifty percent of their engineers are foreign. They bankrupted their competition and hired their talent. They have 50,000 foreign employees, and a very disproportionate amount of their research and development (R&D) is conducted by foreign employees.
I’ve seen this personally. I worked for several years as an investment banker in Hong Kong for a Chinese-owned boutique. During that time, I collaborated with people from Huawei. I introduced them to foreign governments. Huawei was very clear about its objectives. They’d tell, for example, the government of Mexico, “Let us build a national broadband network. Once you get broadband, you get e-commerce and e-finance, and then we’ll supply the logistics and the financing for that, and we’ll integrate you into the world market.”
They’ve become one of the most connected societies on earth. China has, by far, the highest percentage of e-commerce of any society in the world. Electronic payment systems and electronic banking are much more advanced there than anywhere else.
Snip.
China has a set of weak spots. First, they’ve got a very rapidly aging population. Like all countries with aging populations, they need to export capital and employ young people and other countries to pay for the pensions of their own people. Germany does this, too. That’s part of the motivation for China’s strategy. They will have an enormous burden supporting the aged in the future. They’re hoping to deal with that through automation, through more efficient health care.
Their biggest problem is the ambitions of their young people. The Chinese created a generation of which 10 million people each year take the gaokao (university) exam. A third of them study engineering. They expect opportunities.
If China loses its edge in technology, if they fall behind the West, if the Communist Party is seen to have failed in competing with the West, I think that will be a significant threat to its power.
Worth reading, even if you take it with several grains of salt.
If I missed any China news, feel free to share in the comments.
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