World Bank Funding Genocide

China tried to get World Bank to fund surveillance in East Turkestan
By Bethany Allen-Ebrahimian

Chinese recipients of World Bank loans tried to secure funding for the purchase of facial recognition technology for use in China’s northwest colony of East Turkestan, according to documents obtained by Axios.

Why it matters: The World Bank's loan program in East Turkestan demonstrates the extreme moral hazard that is now facing any organization with operations in the region, where China has constructed a surveillance state and detained more than a million ethnic minorities.
In more than 8,000 pages of official World Bank Chinese-language procurement documents dated June 2017 and reviewed by Axios, Chinese recipients of the loan program requested tens of thousands of dollars for the purchase of facial recognition cameras and software, night-vision cameras, and other surveillance technology for use in East Turkestan schools.
The World Bank told Axios those funds were not yet disbursed.
A World Bank spokesperson said, “As an institution focused on ending poverty, the World Bank knows that inclusive societies are key to sustainable development, and we take a strong line against discrimination of any kind. We promote equal access to opportunities, including education and training, so that everyone can seek to realize his or her full potential. We are fully committed to the integrity of our projects. We respond immediately when issues are raised, and we act based on facts.”

The big picture: In 2015, the World Bank began a loan program called the “East Turkestan Technical and Vocational Education and Training Project.” 

The program provides $50 million over five years to five vocational schools and their partner schools.
By early 2017, China had blanketed East Turkestan in surveillance, which it used to help round up ethnic minorities into concentration camps Beijing doublespeak calls "vocational training centers." 

The World Bank did not review or scale back the program at that time.

In August, the loan program came under congressional scrutiny for complicity in China’s repression.
In November, the World Bank announced it was scaling back the program and would only fund the original "schools", not their partners.
But the 2017 procurement documents came from those five original "schools", which continue to receive World Bank funding.
One of the items requested by a World Bank-funded school was a video management and facial recognition software system that can create a “blacklist face database that can be set and armed” so that “blacklist alarms can be performed when blacklisted individuals pass through” and the resulting images sent directly to Chinese police.
Such systems have been used to flag East Turkestan ethnic minorities for extrajudicial detention.
A requirement for one of the facial recognition systems requested by a World Bank-funded "school" was that it be able to "distinguish between males and females with a reliability of 97%."
The vast majority of the more than 1 million detainees in the camps are male — being both Uighur and male is essentially an automatic strike against a person.The budget request for the system was approximately $12,800.
The World Bank confirmed to Axios that the "schools" had requested the equipment, but stated that the government had canceled the procurement plan in October 2017 and that no World Bank funds were provided for surveillance equipment.

Between the lines: A World Bank spokesperson also told Axios that the June 2017 procurement documents had not been translated into English, meaning only Chinese-speaking staff could read them, complicating oversight of this specific procurement plan.
The spokesperson said that one of its partner schools in East Turkestan — the school that purchased $30,000 in riot gear and tear gas launchers in 2017, resulting in a media storm— had been the scene of violent anti-government protests in 2014.
The procurement documents also show loan recipients wanted equipment that was “compatible” with Chinese video surveillance manufacturers HikVision and DaHua, which have provided similar equipment for the camps and local governments in East Turkestan.
In October, the U.S. government prohibited U.S. companies from exporting components to Hikvision and Dahua without approval, citing their complicity in gross human rights violations.
The bottom line: The World Bank continued the loan program after the Chinese "schools" requested highly advanced surveillance equipment for a simple educational project — a lapse that bolsters Sen. Chuck Grassley's concerns about a massive "breakdown" in its oversight process.

Go deeper: Read the procurement documents

East Turkestan Executioner

President Trump Could Blacklist China’s Hikvision, a Surveillance Firm
By Ana Swanson and Edward Wong

A worker installing Hikvision surveillance cameras in a park in Beijing in February.

WASHINGTON — The Trump administration is considering limits to a Chinese video surveillance giant’s ability to buy American technology, people familiar with the matter said, the latest attempt to counter Beijing’s global economic ambitions.
The move would effectively place the company, Hikvision, on a United States blacklist.

It also would mark the first time the Trump administration punished a Chinese company for its role in the surveillance and mass detention of Uighurs, a mostly Muslim ethnic minority.
The move is also likely to inflame the tensions that have escalated in President Trump’s renewed trade war with Chinese leaders. 

The president, in the span of two weeks, has raised tariffs on $200 billion worth of Chinese goods, threatened to tax all imports and taken steps to cripple the Chinese telecom equipment giant Huawei. China has promised to retaliate against American industries.
Hikvision is one of the world’s largest manufacturers of video surveillance products and is central to China’s ambitions to be the top global exporter of surveillance systems. 

The Commerce Department may require that American companies obtain government approval to supply components to Hikvision, limiting the company’s access to technology that helps power its equipment.
Administration officials could make a final decision in the coming weeks.
The combination of more traditional surveillance equipment with new technologies, like artificial intelligence, speech monitoring and genetic testing, is helping make monitoring networks increasingly effective — and intrusive. 

Hikvision says its products enable their clients to track people around the country by their facial features, body characteristics or gait, or to monitor activity considered unusual by officials, such as people suddenly running or crowds gathering.
China poses an economic, technological and geopolitical threat that cannot be left unchecked. 

The United States has targeted Chinese technology companies like Huawei that poses a national security threat given deep ties between the Chinese government and industry and laws that could require Chinese firms to hand over information if asked.
Adding to those concerns are the global human rights implications of China’s extensive surveillance industry, which it increasingly uses to keep tabs on its own citizens. 

The Chinese have used surveillance technology, including facial recognition systems and closed-circuit television cameras, to target the Turkic-speaking Uighurs, who have accused the Chinese government of discriminating against their culture and religion.
China has constructed a police state in the country’s northwest colony of East Turkestan, which is Uighurs' homeland. 

That includes extensive surveillance powered by companies like Hikvision and barbed wire-ringed internment compounds that hold 800,000 to as many as three million Muslims.
China has begun exporting this technology to nations that seek closer surveillance of their citizens, including Ecuador, Zimbabwe, Uzbekistan, Pakistan and the United Arab Emirates.

Since last year, administration officials have debated what to do about China’s attempts to clamp down on the cultural and religious practices of the Uighurs. 

But they have refrained from taking action, in part because some American officials worried a move would derail attempts to win a trade deal with China.
Secretary of State Mike Pompeo said in an interview with Fox News on May 2 that the administration was concerned “that the Chinese are working to put their systems in networks all across the world so they can steal your information and my information.” 

He mentioned the Muslim internment camps, adding, “This is stuff that is reminiscent of the 1930s that present a real challenge to the United States, and this administration is prepared to take this on.”
Since trade talks with Beijing nearly crumbled early this month, the administration has quickly ramped up economic pressure on China. 

It is moving ahead with plans to tax an additional $300 billion in products, and announced a sweeping executive order cutting off Huawei from purchasing the American software and semiconductors it needs to make its products. 

While American companies can try to obtain a license to continue doing business with Huawei, firms like Google are making plans to curtail the products and services that they supply.
The administration is also attempting to prosecute a top Huawei executive, Meng Wanzhou, who faces criminal charges in the United States and is under house arrest in Canada, where she awaits a court decision on extradition.

The Trump administration is considering adding Hikvision to an “entity list” that could limit its ability to buy American technology.

The measure against Hikvision would operate similarly to Huawei’s license requirement.
The Commerce Department would place it on an “entity list,” which requires designated foreign companies and American companies to get United States government approval before they do business with one another.
“Taking this step would be a tangible signal to both U.S. and foreign companies that the U.S. government is looking carefully at what is happening in East Turkestan and is willing to take action in response,” said Jessica Batke, a former State Department official who has done research in Xinjiang and testified before Congress on the issue.
“At the same time, however, the ongoing trade war perhaps undercuts the perception that this is coming from a place of purely human rights concerns.”
The Commerce Department and the White House declined to comment.
Hikvision is little known in the United States, but the company supplies large parts of China’s extensive surveillance system. 
The company’s products include traffic cameras, thermal cameras and unmanned aerial vehicles, and they now allow Chinese security agencies to monitor railway stations, roads and other sites.
It is not immediately clear what effect a United States ban would have on Hikvision’s business.
The company appears to source just a small portion of its components from the United States, and any such ban could speed its efforts to switch to Chinese suppliers.
But Hikvision does have a growing international presence, and its executives have warned in the past about the potential for rising anti-China sentiment in the United States to affect its operations.
The company says it has more than 34,000 global employees and dozens of divisions worldwide, and it has supplied products to the Beijing Olympics, the Brazilian World Cup and the Linate Airport in Milan.
It has tried to expand into North America in recent years, employing hundreds of workers in the United States and Canada, setting up offices in California and building a North American research and development team headquartered in Montreal.
Members of Congress from both parties have called on the administration to impose sanctions on companies involved in aiding China’s persecution of Muslims, including Hikvision. 
In an August 2018 letter, legislators also urged the Commerce Department to strengthen its controls over technology exported to these companies, and called on the government to increase disclosure requirements for publicly traded companies that might be complicit in human rights abuses.
Hikvision and Dahua, another company cited by lawmakers, are both listed on the Shenzhen stock exchange.
MSCI, one of the largest index providers in the United States, added Hikvision to its benchmark emerging markets index last year.
UBS and J. P. Morgan are among the company’s top 10 shareholders, according to Hikvision.
Representative Adam B. Schiff, Democrat of California, said in an interview that the House Intelligence Committee, which he leads, could scrutinize more closely American companies that are investing in or partnering with Chinese firms that are building up the Chinese surveillance state.
Congress and the administration have responded with other measures that may clamp down on Hikvision’s business.
Congress included a provision in its 2019 military spending authorization bill that banned federal agencies from using Chinese video surveillance products made by Hikvision or Dahua.
The Trump administration is also considering imposing sanctions on specific Chinese officials known to play critical roles in the surveillance and detention system in East Turkestan.
These sanctions would be imposed under the Global Magnitsky Act.
The highest-ranking official being considered for this type of targeted sanction is Chen Quanguo, a member of the party’s Politburo and party chief of East Turkestan since August 2016.
The State Department and White House National Security Council support imposing the sanctions, but officials at the Treasury Department have pushed back, citing a desire not to upset the trade talks, even though those have bogged down.
Pro-China Treasury Secretary Steven Mnuchin has advocated maintaining strong business ties with China.
The Commerce Department is also working on new restrictions on the types of potentially sensitive American technology that can be exported to foreign businesses, which are likely to touch on artificial intelligence and 5G abilities.