Affichage des articles dont le libellé est Foreign Agents Registration Act. Afficher tous les articles
Affichage des articles dont le libellé est Foreign Agents Registration Act. Afficher tous les articles

mercredi 7 août 2019

Chinese Fifth Column

FARA should apply to Confucius Institutes
BY ANDY KEISER

Under Xi Jinping's consolidated power, China is working diligently to supplant the United States as the world's top economic and military power. 
That includes a comprehensive effort to influence American K-12 and higher educational students with a favorable view of the Communist Chinese government to shape U.S. policy over the long-term.
This influence operation by a hostile foreign power, led by China's state-controlled Confucius Institutes, should trigger the Justice Department to require a Foreign Agents Registration Act (FARA) filing by the institutes and its employees.
FARA requires anyone working at the behest of a foreign government to register with the Department of Justice. 
Originally written to combat propaganda, FARA also covers lobbying and public relations. 
FARA is a content-neutral disclosure statute that is designed to expose foreign associations to help ensure transparency and accountability in public policy.
Confucius Institutes are extensions of the Chinese government, plain and simple. 
They are owned and controlled by the government in Beijing and are overseen by the Office of Chinese Language International, commonly known as Hanban, a division of the Chinese Ministry of Education.
The Chinese government spends billions of dollars annually on propaganda activities promoted through Confucius Institutes.
 
Primarily targeted to the U.S., there are more than 100 Confucius Institutes in the American universities and colleges that have opted into the programing. 
Confucius Institutes have expanded their reach to include K-12 education through an effort called "Confucius Classrooms."
The underhanded genius behind Confucius Institutes is that they operate under the benign guise of teaching Chinese language, culture and history while simultaneously ensuring that they can restrict speech, control curriculum and force educational institutions to choose Confucius Institute faculty from a pre-approved list of teachers provided by the Hanban.
According to a letter Senator Chuck Grassley (R-Iowa) sent last year to then-Attorney General Jeff Sessions, Confucius Institutes "require the teaching to ignore human rights abuses, and stress that Taiwan and Tibet are part of China, among other restrictions."
Institute presence, particularly on U.S. college campuses, can also be a threat to economic and national security. 
The Chinese government can hand-pick employees at Confucius Institutes and use them as its eyes and ears or task them to steal sensitive, valuable university research. 
The transparency of a FARA filing would at least give more insight to U.S. counterintelligence professionals and to the public about the scope and scale of Confucius Institute activities.
According to Grassley's letter, a Chinese government official stated that the "Confucius Institute is an appealing brand for expanding our culture abroad. It has made an important contribution toward improving our soft power... using the excuse of teaching Chinese language, everything looks reasonable and logical."
Others have taken note. 
The Permanent Subcommittee on Investigations, led by Senators Rob Portman (R-Ohio) and Tom Carper (D-Del.), released a bipartisan report in 2015 that detailed the activities of Confucius Institutes. 
Among several alarming findings, it details that since 2006 the Chinese government has given more than $158 million to fund Confucius Institutes in the U.S. 
It has veto authority over events and speakers at the institutes, and controls every aspect of their operations in the United States, including staff members pledging to protect Chinese national interests.
Grassley recently introduced the Foreign Agents Disclosure and Registration Enhancement Act of 2019 to beef up FARA enforcement and held a hearing on foreign threats to taxpayer funded research, which focused extensively on China's activities on university campuses. 
Sen. Ted Cruz (R-Texas) has led a series of efforts against Chinese influence and espionage operations targeting American higher education, having secured a provision in the National Defense Authorization Act for Fiscal Year 2019 prohibiting the Department of Defense from funding Confucius Institutes.
Sen. Cruz has also introduced legislation called the Stop Higher Education Espionage and Theft Act to further crack down on Confucius Institutes, which he called "the velvet glove around the iron fist of their campaigns on our campuses."
The Chinese government's desire to influence our public policy through propaganda, conduct aggressive espionage on our soil and steal our intellectual property is real and hard to overestimate. The activities occurring at Confucius Institutes to achieve China's goals undoubtedly trigger the requirements of FARA. 
The Department of Justice should take immediate action to provide the type of transparency needed to help protect our nation.

vendredi 21 septembre 2018

Chinese spy Xiaoqing Zheng and the “Thousand Talents” Program

President Trump: "Almost every student coming to the U.S. from China is a spy"
Bloomberg News

China’s government has forbidden state media from referencing its flagship "talent" recruitment program after a participant was arrested by the Federal Bureau of Investigation last month, according to people familiar with the situation.
The program, known as “Thousand Talents,” began in 2008 as a way for the government to attract the brightest Chinese people abroad to contribute to innovative sectors in China’s economy.
Censorship of the term follows other recent orders to ban mentions of “China-U.S. trade war,” the #MeToo movement, a vaccine scandal and a faulty peer-to-peer money-lending program.
China’s foreign ministry and State Council Information Office didn’t immediately reply to faxed questions about the censorship.
The order reflects growing concerns in Beijing over China’s image abroad as Western governments become increasingly skeptical of investment from the world’s second-largest economy. 
Australia in June introduced unprecedented foreign interference laws amid reports of Chinese meddling, while espionage fears threaten to open a new front in the President Donald Trump’s trade war.
The U.S. Justice Department on Tuesday informed the state-owned Xinhua News Agency and China Global Television Network that they must register under the Foreign Agents Registration Act.
That requires organizations attempting to influence U.S. policy makers or public opinion on behalf of foreign governments to disclose information about their ownership structure and annual budget.
The Trump administration in May announced plans to restrict the visas of Chinese students studying in America.
During an Aug. 8 dinner with CEOs and senior staffers, President Trump claimed that almost every student coming to the U.S. from China is a spy, according to Politico.
A recent White House report was titled “How China’s Economic Aggression Threatens the Technologies and Intellectual Property of the United States and the World.”
Texas Tech University circulated a letter Sept. 9 alerting staff to legislation receiving consideration in Congress that would sanction U.S. faculty associated with Chinese, Iranian and Russian "talent" programs -- including “Thousand Talents.”
The spying program attracted 7,018 participants between its inception in 2008 and last August, according to China’s state media.

Xiaoqing Zheng

Beijing’s censorship order for “Thousand (Spy) Talents” came after the August arrest in New York state of Xiaoqing Zheng, a 56-year-old Chinese-American General Electric Co. engineer.
Zheng, who had worked on steam turbine technologies for GE after being hired in 2008, has stolen technology secrets from the company. 
Zheng was recruited to the Thousand Talents program in 2012. 
He traveled often between the U.S. and China, founding two companies in China that also specialize in turbine technology.
At least two of the program’s other participants were caught up in U.S. judicial cases this year.
Chinese leaders once saw "talent" recruitment as crucial to their quest to be a global scientific and technological power by 2049, with Xi Jinping calling it “the key” to China’s scientific development. But lately China has sought to downplay its significance, purging terms depicting it as a menacing power and toning down language on plans for expansion.
No major reports on the “Thousand Talents” program could be found on the official Xinhua News Agency’s database between Aug. 1 and Sept. 19. 
That compares with regular pieces between January and July.
“Keeping a humble attitude is constructive for China’s international relations, easing the doubts that China is anxious to overtake the U.S.’s position in leading the world,” said Wang Huiyao, founder of the Center for China and Globalization, an independent think tank.
Immigrants from China and other nations have been shown to typically pay higher tuition rates that can help subsidize educations of their native-born peers.
As of 2013, 84 percent of Chinese doctorates remained in America five years after graduation, according to the National Science Foundation.

jeudi 20 septembre 2018

Chinese Propaganda Machine

US orders Chinese media to register as foreign agents
By Lily Kuo

The Foreign Agents Registration Act requires anyone acting on behalf of a foreign government to register with the US Department of Justice. 

Beijing has complained to the US following reports that Washington has ordered two Chinese state-run media agencies to register as foreign agents.
The US Department of Justice has ordered China’s largest state-run media outlets, Xinhua News Agency and China Global Television Network (CGTN), formerly known as CCTV, to register under a law that would treat them as lobbyists working for a foreign entity.
Foreign ministry spokesman Geng Shuang said on Wednesday that Beijing had “contacted and communicated” with the US regarding the order, first reported by the Wall Street Journal on Tuesday.
The Foreign Agents Registration Act (Fara) requires anyone acting on behalf of a foreign government to register with the US Department of Justice and file public reports. 
If registered as foreign agents, Xinhua and CGTN would have to disclose their budgets and expenditures as well as include disclaimers identifying the outlets as foreign agents on all broadcasts.
“Countries should perceive media’s role in promoting international exchange and cooperation in an open and inclusive spirit,” Geng said at a news briefing. 
“They need to facilitate rather than obstruct media’s normal work, still less politicising their role.”
The news comes as relations between the US and China have hit a low over an escalating trade war. Geng’s comments also struck some as ironic, given China’s extremely restrictive media environment.
Last month, the US embassy in Beijing said it was “deeply concerned” when a US journalist for Buzzfeed News, known for her reporting on human rights abuses in East Turkestan, was denied a visa to continue working in China. 
Other foreign journalists have also been effectively barred.
Last year, Russia’s state-run RT Television was ordered to register under Fara after a US intelligence report said RT and the website Sputnik news were part of a misinformation campaign during the 2016 US presidential election.
Chinese media operating in the US are expanding efforts to influence public opinion through Chinese and English-language news from Chinese state outlets.
Paid inserts of the government-run China Daily have appeared in major newspapers such as the New York Times and the Washington Post. 
CGTN has claimed it reaches 30m US households a year. 
In 2016, Xinhua paid for a mega-screen in New York’s Times Square that played a video promoting “China’s historical role and standing in the South China Sea” on loop.
In January, a group of US senators including Marco Rubio and Patrick Leahy wrote to the US asking the Department of Justice to assess whether state-controlled Chinese media should be registered under Fara.
They also asked the department to assess whether the dissemination of Chinese state media, including the inserts from the China Daily and the use of social media, complied with the law. 
Both Xinhua and CGTN have Facebook pages.
Citing a report last year from the National Endowment for Democracy, the senators said China was exploiting “glaring asymmetry” by raising barriers to external political and cultural influence at home while simultaneously taking advantage of the openness of democratic systems abroad.”
The US Department of Justice has been contacted for comment.

jeudi 8 mars 2018

China's Subversion Machine

CHINA’S LONG ARM REACHES INTO AMERICAN CAMPUSES
Beijing is stepping up efforts to inject party ideology into student life. 
BY BETHANY ALLEN-EBRAHIMIAN



When Xi Jinping visited Washington on Sept. 24, 2015 on a state visit, hundreds of Chinese students lined the streets for hours, carrying banners and flags to welcome him.
It was a remarkable display of seemingly spontaneous patriotism.
Except it wasn’t entirely spontaneous.
The Chinese Embassy paid students to attend and helped organize the event. 
Working with Chinese Students and Scholars Associations (CSSAs) at local universities — a Chinese student organization with branches at dozens of schools around the country — government officials from the office of educational affairs at the Chinese Embassy in Washington collected the contact information of about 700 students who had signed up to attend.
Embassy officials communicated with students via WeChat, a Chinese messaging app, during the event and into the night, responding to messages as late as 3 a.m.
According to a Chinese student at George Washington University who attended the event, participants each received about $20 for their effort, distributed through the CSSA a few months later.
This wasn’t an isolated example of paid political mobilization.
A similar arrangement had occurred in February 2012, when Xi visited Washington as vice chairman. In that case, it took almost a year for the embassy to transfer the promised funds to the George Washington CSSA.
In January 2013, the student group sent a message, recently reviewed by Foreign Policy, to its members saying the compensation from Xi’s welcome the previous year was finally available, and they could come pick up the cash at the campus community center if they brought a photo ID. 
The George Washington CSSA did not respond to a request for comment.
And when then-President Hu Jintao visited Chicago in 2011, the University of Wisconsin-Madison CSSA bused in Chinese students, excited about a free trip to the city and a chance to glimpse the president.
The association also surprised the students at the conclusion of the trip with a small cash payment. The CSSA president told students not to speak to the media about the money.
The association did not respond to a request for comment.
The embassy-sponsored welcome parties, which lend an aura of power and popularity to the visiting leaders, are just one example of the close relationship that the Chinese government maintains with Chinese student groups across the United States.
In the past few years, as Xi has strengthened the party’s control over every aspect of Chinese society and sought to extend his power abroad, consular officials have markedly increased their efforts to exert ideological influence over students — leaving some CSSA members wary to speak out against what they see as unwanted government intrusion.
Chinese students at George Washington University line the streets of Washington on Sept. 24, 2015 to welcome Xi Jinping during his state visit.

While many countries, including the United States, fund educational activities abroad, the Chinese government’s direct control over student groups is unique. 
Beijing’s influence over these groups is also beginning to raise questions and concerns among students on American campuses, who fear they will be accused of being agents of espionage.
The growing ties are also concerning U.S. government officials, who are wary of China’s political and economic reach in the United States.
At a security hearing last month, FBI Director Christopher Wray said that American universities are naive about the intelligence risk of Chinese “nontraditional collectors, especially in the academic setting,” and claimed that China poses a “whole-of-society threat.”
Although the extent of Chinese government funding and oversight of these organizations is not entirely clear and appears to vary from group to group, it seems to be more significant than previously known — and growing.
FP spoke to more than a dozen members of the group across the country (including four current or former presidents), was given access to internal messages and documents, and reviewed the publicly available charters of dozens of these groups, in Chinese and English.
All of the students who spoke to FP requested anonymity for fear of potential reprisals.
FP found that CSSAs regularly accept funds from their local consulates and many officially describe themselves as under the “guidance” or “leadership” of the embassy. 
Internal correspondence reviewed by FP also show that consular officials communicate regularly with CSSAs, dividing the groups by region and assigning each region to an embassy contact who is responsible for relaying safety information — and the political directive — to chapter presidents. 
CSSAs explicitly vet their members along ideological lines, excluding those whose views do not align with Communist Party core interests.
The Chinese Embassy did not respond to a request for comment on any of the issues raised in this article.
Chinese Communist Party influence within the United States is a real concern, and the vessels of that influence “should be transparent and it should be disclosed,” says Bill Bishop, author of the influential Sinocism newsletter, which offers insights into Chinese politics and government.
The number of Chinese students studying in the United States has skyrocketed from tens of thousands a decade ago to more than 330,000; nearly one in three international students is Chinese.
Numerous CSSA members, including two current chapter presidents, say that they are uncomfortable with what they felt was growing ideological pressure from the embassy and consulates. 
That pressure has become more apparent since 2016, when the Chinese Ministry of Education issued a directive ordering schools to instill greater patriotism and love for the party in students of every age — including Chinese students studying abroad.
Pressure on CSSAs to promote “patriotic” ideas was particularly acute in October 2017 during the 19th party plenum, the key national planning session held every five years at which top officials are selected and new policies are announced.
Consular officials sent out requests to CSSAs around the country to hold events related to the plenum. One such message, viewed by FP, encouraged groups to organize viewing sessions for their members to watch the opening ceremonies together, and requested that they send photos or reports of the event back to the consulate.
Consular officials also requested that CSSAs across the United States post articles praising Xi’s vision for the country and touting other party propaganda. 
Officials asked groups to organize study sessions to discuss the party pronouncements coming out of the plenum. 
Articles and invitations to plenum-related events appeared on the WeChat accounts of CSSAs at University of California at Berkeley, Harvard University, Georgetown University, and other schools around the country.
These and similar requests have troubled some CSSA leaders.
“I really don’t want CSSA to have any relationship more than basic etiquette with the Chinese Consulate,” says the president of a large CSSA at a major university, speaking to FP.
“I try to reject any sponsor from the embassy, financial wise, since I want our club to be able to make our own decisions.”
The student says that the requests feel to him like an attempt to inject a political ideology where it doesn’t belong.
He says he tries to keep the consulate at arm’s length, offering bare minimum compliance with its requests in order to keep up a good relationship.
He does not post the pro-party articles that the consular officials send to him, though he knows other CSSA presidents do.
“I feel like the tendency is that the consulate tries to control CSSAs more and more,” says the CSSA president.
“I don’t think this student group should be involved with government in any way.”
The CSSA president emphasizes that while he is concerned about the increasing control the Chinese government tries to exert over student organizations, he is not deeply alarmed yet.
“The current situation is not that Chinese students don’t have freedom after they come to the United States,” he tells FP.
“If something bad is happening, it has not happened yet.”
But the association president feels he must at least make a show of complying with embassy requests, citing a sense of peer pressure that exists within the CSSA.
A consular official often asks him for evidence of compliance, such as photos or a brief report, to show to superiors, and the student doesn’t want to get the consular officer in trouble.
“The people inside [the consulate], I feel most of them are good, they’re just doing their jobs,” said the student.
“But I do feel like there is an invisible hand behind them, saying they want more than this. Maybe the policymaker is in Beijing, or in D.C.”
The president of a CSSA at a small liberal arts college expresses similar reservations, telling FP that he also chose not to post the articles the consulate had sent him.
“I personally disliked those content. I felt it’s wrong to do it,” the student tells FP.
Chinese consular officials often communicate with CSSA leaders through group chats in the Chinese messaging app WeChat.
Consular officials divide the regions into different umbrellas, with specific officials responsible for certain regions, and then create WeChat groups for the presidents of all the CSSAs in the region, with a consular official also a member of each group. 
This allows officials to communicate announcements and requests directly to dozens of CSSA presidents by sending a single message. 
FP viewed a screenshot of one group that included nearly two dozen regional CSSA presidents receiving messages from a Chinese Consulate official.
The West Coast region has more institutionalized oversight.
An umbrella organization called Southwest CSSA was founded in 2003; the organization itself is not affiliated to any university, and oversees the CSSAs at universities in California, Arizona, New Mexico, and Hawaii. 
In some ways the umbrella group functions as a regional office to increase coordination and cooperation among campus CSSAs, holding annual elections from among its member CSSAs for its board of officers, and holding joint events.
But Southwest CSSA’s ties to the consulate are far closer than those of the individual groups at universities. 
Its bylaws state that all presidential candidates must first receive approval from the Chinese Consulate in Los Angeles before the election can take place. 
Southwest CSSA sometimes holds events inside the consulate itself.
Southwest CSSA also openly supports party ideology. 
Its stated goals, according to its website, include “promoting the spirit of ‘studying abroad to serve the country’” — a direct quote from a letter Xi Jinping sent to Chinese students studying in Moscow in December.
This letter has been the subject of a major push, with consulates encouraging Chinese students around the world to study and learn from the president’s words. 
Other stated goals include “promoting patriotic feeling” and helping Chinese students “serve the motherland in many ways even while they are studying in America.”
In 2016, Southwest CSSA filed for tax-exempt status as a public charity with the IRS.
According to its tax forms, it reported $107,304 in gifts and contributions, but no money from fundraising or membership dues.
Its list of donors is not publicly available.
Neither Southwest CSSA nor the Los Angeles consulate responded to a request for comment.
Chinese consular funding of CSSAs is widespread, and any CSSA is eligible to apply for government funds.
Many CSSAs tout their relationships and financial ties to Chinese consulates on their websites, usually only in Chinese, omitting this connection from the English translations on the website.
The financial relationship between the Chinese government and the CSSAs is not always well advertised.
In June 2017, the president of the University of Pittsburgh’s CSSA wrote on her Weibo account that the group received $6,000 a year from the Chinese Embassy; she later deleted the post.
Others are more open.
The goals of the Harvard Medical School CSSA, according to its charter, include “loving the motherland” and “uniting” the Chinese students and researchers at Harvard Medical School with the Chinese Embassy “for the prosperity and strength of the motherland.” 
The charter also mentions funds received from the “embassy sponsor.”
Many other CSSAs, from those at small liberal arts colleges to prestigious private universities to major public research institutions, openly accept consular funding as well.
Onlookers wait to catch a glimpse of Hu Jintao in Chicago on Jan. 20, 2011.

In some cases, the consulate deposits the money directly into the personal account of the CSSA treasurer or other officer, rather than the official CSSA account, according to three association members.
A separate, unofficial CSSA bank account is sometimes set up to receive the funds. 
In either case, the university administration may be unaware that the organization is receiving funding from a foreign government. (The Columbia University CSSA was briefly shuttered in 2015 for rules violations; the school administration allowed the group to resume operations within a year.)
Receiving money from a foreign government or officials could trigger the Foreign Agents Registration Act (FARA), which is designed as a transparency mechanism for organizations attempting to influence American opinion.
Normally, academic organizations are exempt from FARA registration, says Ben Freeman, the director of the Foreign Influence Transparency Initiative at the nonprofit Center for International Policy.
That means, for example, that Chinese graduate students studying in the United States on Chinese government scholarships do not have to register.
And FARA only applies to advocacy conducted with the American public in mind, according to Freeman.
“If the Chinese government is paying a Chinese group here to do advocacy to influence other Chinese, that would not trigger FARA,” he says.
But what might trigger registration as a foreign agent is if a Chinese government-funded group attempted to change the behavior of U.S. government officials or to sway American public opinion at large, he says.
In at least one case, the Chinese government, through a local CSSA, appeared to do just that. 
In late 2017, the Wayne State University CSSA in Michigan was involved in an ethics investigation into the local city council after the CSSA offered four scholarships to the Ypsilanti mayor and three other local officials to fund travel to China. 
After the trip took place, it was discovered that the Chinese Consulate had provided the money to persuade Ypsilanti city officials to support a $300 million Chinese-funded development project. 
The Wayne State CSSA did not respond to a request for comment.
Some CSSAs have accepted money directly from high-ranking Chinese government officials.
In February 2017, Hong Lei, a former Chinese foreign ministry spokesman and now a diplomat at the Chinese Consulate in Chicago, made a personal donation to the CSSA at the Washington University in St. Louis, according to an article posted to the group’s WeChat account.
The consulate’s website mentioned his visit to the school, but not the donation.
The association did not respond to a request for comment.
For Chinese students, however, a more important concern is potential political pressure, which can come in the form of explicit ideological vetting.
In a March 2016 message to students announcing upcoming elections, the University of Minnesota CSSA stated that candidates for president who were Communist Party members would receive preferential consideration for the post (FP viewed a copy of the message).
The group’s website states that the group receives “strong financial support” from the Chicago consulate.
In some cases, the CSSAs make the ideological requirements for membership clear.
The University of Tennessee, Knoxville CSSA charter states that members are required to “love the motherland” and to “protect China’s honor and image.” 
The Chinese-language version of the charter, which differs from the English-language version, also states that members must hold Chinese passports; that students or researchers from Hong Kong, Taiwan, or Macau who do not have Chinese passports must uphold the “one-China principle” and support “national unification” in order to be a member; and that ethnic Chinese students without Chinese passports can join if “their heart belongs to the motherland.”
Embassy officials have also coached CSSAs how to respond during a public relations crisis, like what happened at the University of Maryland in May 2017, when Yang Shuping, a Chinese undergraduate, praised American democracy and criticized Chinese government oppression during her commencement address. 
Her remarks went viral on the Chinese internet and Yang became the subject of virulent online attacks from patriotic Chinese netizens.
The University of Maryland CSSA, rather than supporting her, posted a video criticizing her remarks.
Shortly after the incident, an embassy official met with CSSAs from 14 schools from states near the Washington metro area, including the University of Maryland CSSA. 
In the meeting, the official praised the group’s response and encouraged other CSSAs to follow suit, according to typed notes from the meeting reviewed by FP.
The official recommended that CSSAs, if faced with a similar crisis, should contact the embassy as soon as possible and provide a detailed report, issue a public statement immediately, and avoid violence and personal attacks.
In 2017, widespread opposition among Chinese students at the University of California, San Diego over an invitation to the Dalai Lama to give the commencement address sparked suspicion that the Chinese Embassy was behind the protest.
The UC San Diego CSSA issued a strongly worded statement and requested a meeting with the administration, in which it asked university officials to ensure that the Tibetan spiritual leader would not address politics in his speech.
In May 2017, shortly after the Dalai Lama’s visit, Chinese diplomatic officials gave an award to the UC San Diego CSSA at an annual CSSA conference held inside the consulate itself, according to a post on the group’s WeChat account.
The close ties between the student groups and the consulates keep Chinese students mindful that government officials are just one WeChat message away.
One Chinese student at a large university in the south says the CSSA’s links to the embassy bothered them, and that since 2015, the ties have become more obvious. 
“Self-censorship in authoritarian states is usually a state of being constantly careful about what you say and do,” the student says.

vendredi 17 novembre 2017

Chinese Spies

U.S. Congress urged to require Chinese journalists to register as agents
By David Brunnstrom

China's mole in New Zealnd: Yang Jian
Spying HQ: Xinhua serves the functions of an intelligence agency by gathering information and producing classified reports for the Chinese leadership. It had important offices at the United Nations in New York, Washington, Chicago, Los Angeles, Houston and San Francisco.

WASHINGTON -- A report to the U.S. Congress released on Wednesday accused Chinese state media entities of involvement in spying and propaganda and said their staff in the United States should be required to register as foreign agents.
The annual report of the U.S. China Economic and Security Review Commission said that while China had tightened restrictions on domestic and foreign media, Chinese state media had rapidly expanded overseas.
The commission, created by Congress in 2000 to monitor national security implications of U.S.-China trade relations, said China’s state media expansion was part of a broader effort to exert greater control over how China is depicted globally, as well as to gather information.
The report highlighted the rapid growth of the Xinhua news agency and noted that it had offices at the United Nations in New York, Washington, Chicago, Los Angeles, Houston and San Francisco.
“Xinhua serves the functions of an intelligence agency by gathering information and producing classified reports for the Chinese leadership on both domestic and international events,” the report said.
It quoted testimony to the commission by the U.S. Government-funded rights organization, Freedom House, as saying it was a “loophole” that individuals working for Xinhua and China’s People’s Daily newspaper were not covered by the Foreign Agents Registration Act.
FARA, first passed in 1938 in the lead up to World War Two to combat German propaganda efforts, requires foreign governments, political parties and lobbyists they hire in the United States to register with the Department of Justice.
The China Daily, an English-language newspaper owned by China’s government and ruling Communist Party, is already registered under FARA but only its top executives are required to individually disclose working for the publication.
A bipartisan group of U.S. lawmakers is working to overhaul FARA after Paul Manafort, former campaign manager for President Donald Trump, and a business associate were indicted for failing to register under the law.
The reform, backed by powerful Senate Judiciary Committee chairman Chuck Grassley, could provide an opportunity for Congress to act on the commission recommendations.
On Monday, the Kremlin-backed television station RT America registered under FARA after U.S. intelligence agencies in a report in January called it a “state-run propaganda machine” that contributed to the Kremlin’s campaign to interfere with last year’s U.S. presidential election.
Under the act, RT will be required to disclose financial information. 
Moscow has said it views the action against RT as an unfriendly act.

vendredi 21 avril 2017

Chinese Peril

Tensions flare between US and China, this time in Hollywood
Rebecca A. Fannin

China investment into overseas transactions doubled last year to peak at $225 billion, according to data firm Dealogic, which tracks deals across real estate, tech, industry and Hollywood. 
Now Chinese acquisitions overseas have slowed to a small fraction of that former record, especially when it comes to Hollywood. 
At least one dozen cross-border, China-U.S. deals in the tech, media and entertainment space have dried up over the last six months, according to a studio executive with close ties to investment bankers and private equity dealmakers involved in these transactions.

Just take note of some of the high-profile deals that have been scrapped over the last year.
In March the $1 billion deal by Chinese real estate and entertainment conglomerate Dalian Wanda Group to acquire Dick Clark Productions, producer of the Golden Globes and American Music Awards, collapsed. 
Regulatory pressures, as well as payment issues from Wanda's side, were the cause, according to one principal involved in the deal.
Other China-to-Hollywood deals are in trouble or have been abandoned. 
A $1 billion, three-year deal by Chinese firms Huahua Media and Shanghai Film Group with Paramount Pictures was intended to help the studio finance films and get released and marketed in China, but has stalled since former Paramount head Brad Grey was forced out, though Paramount has insisted in recent press reports it will still happen.
In a related entertainment and distribution deal that was meant to capitalize on the growing trend toward live streaming and internet distribution of content, a $2 billion agreement by Chinese tech and entertainment conglomerate LeEco to acquire LA-based TV maker Vizio is officially off due to "regulatory headwinds." 
The deal's collapse in early April was the result of tighter currency controls and a crackdown on China-U.S. deals, in addition to a cash crunch at LeEco, which has been facing financial difficulties and retrenching after rapid expansion into smartphones and electric vehicles, according to deal makers involved in the industry. 
The two companies will seek to collaborate on content and distribution now that the acquisition is off.
Meanwhile, the Middle Kingdom's moves into Hollywood have been facing scrutiny on Capitol Hill as concerns grow about too much influence and control on American content by China, a market that blocks social media services Facebook, Twitter and Instagram on the Chinese internet. 
In the run-up to the presidential election, 17 lawmakers pushed for Wanda to be investigated for violations to the Foreign Agents Registration Act and require it to publicly disclose its relationship to the Chinese government
More recently, New York Democratic Senator Chuck Schumer has voiced concerns over Wanda's Hollywood dealmaking.
"No Chinese buyers are coming to the table," says Chris Fenton, a trustee of the U.S.-Asia Institute in Washington, D.C., and president of DMG Entertainment Motion Picture Group in Los Angeles and Beijing. 
"No Chinese entity wants to test this," he said, referring to the potential limits of regulatory scrutiny. Most of Chinese investment in U.S. assets has dried up in the final hours of negotiation," he said. Fenton helps organize congressional visits to China. 
This summer he has added a trip focused on the high-profile media and entertainment industry.

Behind the Sino-American skepticism

Issues have been brewing on both sides of the ocean over China-Hollywood deals. 
As China has turned to Hollywood as part of its outward reach and bid for soft power, such transactions have been ensnared by Chinese regulators. 
China policymakers have been closely examining transactions that cut across industry lines and command big price tags, while the Chinese government has tightened controls over capital outflows to shore up foreign currency reserves and gains in the yuan currency.
"The Chinese government crackdowns have made it extremely difficult to get money out," said Rob Cain, president of advisory firm Pacific Bridge Pictures, focused on United States and China entertainment markets.
Hollywood is also becoming more cautious about Chinese capital, Cain said, and also more cautious after earlier — naive — infatuation. 
"There's a lot of skepticism now by Hollywood about these deals," he added, continuing, "On the U.S. side, there's very little sophistication about how to vet potential investors. You have to have dedicated teams and be on the ground in China. It takes a lot to learn the market."

Wanda's Hollywood plans fall through Sunday, 12 Mar 2017

Wanda had led the Hollywood empire building in 2015 by acquiring American film production house Legendary Entertainment, co-producers of "Jurassic World" and "Godzilla" in a deal for $3.5 billion in cash, adding to a U.S. portfolio that included theater-chain giant AMC Entertainment and a deal to finance films with Sony Pictures. 
China's tech titans Alibaba and Tencent have also been on the hunt in Hollywood for inroads into this glamorous and high-profile sector, just as these Chinese leaders have in Silicon Valley for the past few years for technical know-how.
In 2016, Tencent invested in movie studio start-up STX Entertainment, while Alibaba announced a minority stake in Hollywood director Steven Spielberg's Amblin Partners to produce, distribute and finance films globally and in China. 
Alibaba chairman Jack Ma has said the e-commerce company will invest $7.2 billion over the next three years in Hollywood pictures.
"China absolutely wants to have its own home-grown film business," said Elizabeth Dell, a content producer at Two Camels Films and head of the China task force of the Producers Guild of America.

Collaboration may be the hottest ticket

The infatuation between China and Hollywood probably won't fade soon. 
As China's middle-class population has increased and second- and third-tier cities have seen dozens of new cinemas open, China's box-office revenues have soared. 
Annual revenues in China movie tickets have been growing by 35 percent each year since 2011, according to Chinese media and entertainment researcher EntGroup in Beijing. 
It's a frontier market that can't be ignored while U.S. movie ticket sales are relatively flat. 
China is on track to become the world's largest box-office market.
Moreover, Chinese companies are luring filmmakers to China to make movies. 
Wanda's billionaire chairman Wang Jianlin created a stir in Los Angeles last October by announcing a 40 percent subsidy for Hollywood to come to China to create films at its state-of-art movie production facility in the coastal Chinese city of Qingdao. 
A number of companies agreed to shoot there, including Arclight Films and Lionsgate and China Media Capital-backed Infinity Pictures.
Hollywood has turned to co-productions with a China partner to avoid a quota system that limits big-budget imported feature films to 34 per year and limits foreign studios from keeping more than one-quarter of Chinese box-office revenues.
A recently released U.S.-China co-production — The Great Wall, by Universal Pictures, Wanda's Legendary and a LeEco film division — was looked at as a trendsetting deal. 
It was the most expensive feature ever shot in China, and it starred Matt Damon
But the film, which melded Chinese action sequences with Hollywood-style romances, did not go over well at the box office in China or the United States, and losses are expected to hit $75 million.

lundi 17 octobre 2016

Chinese Peril

Why DC Started Caring About Dalian Wanda Group and China in Hollywood
By Matt Pressberg

China’s Dalian Wanda Group made its first big splash in Hollywood back in 2012, when it acquired AMC Theaters. 
Since then, the real estate and media conglomerate has been on quite a shopping spree, including buying “Jurassic World” production company Legendary Entertainment for an aggressive $3.5 billion in January — which made Wanda the first Chinese company to own an American studio or production house.
But it was only the past few days when D.C. really took notice — and began pushing back.
The Washington Post published a strongly worded Oct. 5 editorial that raised red flags over the possibility of China’s ruling party using its entertainment assets to spread propaganda.
Also last week, the Government Accountability Office agreed to a request from 16 members of Congress to review the legal powers of a foreign investment committee, and Rep. Jim Culberson sent a letter to the Department of Justice urging it to take another look at the Foreign Agents Registration Act, specifically mentioning Wanda’s entertainment purchases and their potential to be used for “propaganda purposes.”
So why did Washington decide to start paying attention now?
For one, Wanda — and other Chinese firms — are stepping up their investments in Hollywood. 
Co-financing deals between U.S. studios and Chinese partners have been booming for a couple years now, including arrangements such as Lionsgate’s deal with Hunan TV, STX’s with Huayi Bros. and Universal’s with Perfect World Pictures.
This year, in addition to purchasing Legendary, Wanda was also a leading contender to buy a minority stake in Paramount Pictures — before that was taken off the table — and is also in talks to acquire Dick Clark Productions for $1 billion.
Wanda isn’t a typical entertainment company, either. 
Its founder and CEO, Wang Jianlin, is China’s richest man and very close to the ruling party
Several individuals with ties to government officials have significant economic interests in Wanda’s businesses. 
Wang has made no secret of his desire to spread “Chinese values” around the world via entertainment, making that point — and criticizing U.S. rivals like Disney — in a blustery fashion that can rub people the wrong way.
But as members of Congress have plenty of issues to occupy their minds and public pronouncements aside from Chinese investments in entertainment companies, one instrumental factor in the recent string of fusillades from Capitol Hill has been a campaign by Richard Berman, the president of D.C. lobbying firm Berman & Co.

Berman started paying attention to the fire hose of Chinese money flowing into Hollywood this summer and had one of his staffers do more research, realizing it was bigger than he thought. 
He then began reaching out to sympathetic legislators.
“We reached out to some people on the Hill that we knew already had an agenda,” Berman told The Wrap. 
“There are people who are predisposed to being suspicious [of China] because of some other issues. And a lot of those people have committee assignments that overlap [with Chinese investment in Hollywood].”
Berman said last week’s events were the culmination of that work, and that someone on his staff had been in touch with Culberson.
“My fingerprints are all over this,” he said.
Berman acknowledged that studios tailoring their product to appease the China’s gatekeepers — don’t expect to see a Chinese villain in the next James Bond film — is primarily a business decision driven by the desire to get into the world’s second-biggest and one of its fastest growing movie markets, but he’s more focused on China’s ownership of distribution outlets.
“The issue of censorship in China is not my concern,” he said. 
“People changing their movies so they can be shown in China is not my concern. The thing that really triggered my interest is the distribution issue. If you control distribution, you control what the retail market sees.”
To that end, Berman pointed out Wanda’s ownership of AMC Theaters, which is currently in talks to acquire Carmike Cinemas — making it America’s biggest theatrical exhibitor. 
He said he had conversations with AMC personnel that didn’t give him great comfort that the theater chain would be free to show movies that the Chinese government didn’t like.
“Wang has been pretty blatant that AMC is owned by the Chinese,” he said.
Berman said he’s doing this “just to make people aware,” adding that he’s satisfied with last week’s Washington Post editorial and the correspondence between members of Congress and the GAO and DOJ.
“I’m not trying to make this a McCarthy-ite type issue; but as far as I’m concerned, it needed to have more light shown on it,” he said.