samedi 30 juin 2018

China's Sonic War

More U.S. Casualties Evacuated From China
By Steven Lee MyersAmericans employed at the United States Consulate in Guangzhou, China, have reported symptoms similar to those experienced by diplomats in Cuba.

BEIJING — The State Department has evacuated at least 11 Americans from China after abnormal sounds or sensations were reported by government employees at the United States Consulate in the southern city of Guangzhou, officials said, deepening a mystery that has so far confounded investigators.
At least eight Americans associated with the consulate in Guangzhou have now been evacuated, according to one official, who spoke on condition of anonymity because of the sensitivity of the matter.
In addition, one employee from the consulate in Shanghai and two from the embassy in Beijing were sent to the United States for further medical tests after undergoing examinations that the department encouraged when the first report of illnesses in Guangzhou surfaced in April, the official said.
Secretary of State Mike Pompeo raised the issue with his Chinese counterpart, Wang Yi, in a telephone call that otherwise focused on the diplomacy surrounding North Korea’s nuclear program, according to a statement released Friday morning in Beijing.
The cases in Guangzhou — and now Shanghai and Beijing — are similar to a wave of illnesses that struck Americans working at the embassy in Havana, Cuba, beginning in fall 2016. 
Another American there was reported last week to have symptoms, bringing the total number of those afflicted by what have been described as “sonic attacks” to 25.
It remains unclear whether the cases in Shanghai and Beijing — which have not been previously reported — were related to what officials described as “subtle and vague, but abnormal, sensations of sound and pressure” experienced at an apartment tower in Guangzhou where a number of consulate employees live.
The sounds and sensations in Cuba, and now China, have been variously attributed to sophisticated electronic eavesdropping efforts or a form of aural harassment, with some pointing fingers at Russia or China. 
Other experts have raised the possibility of environmental factors or even mass hysteria.
American officials in China declined to comment or did not respond to inquiries. 
But in a written response on Saturday, the State Department said that “several staff and family members” had been sent to the United States for further evaluation. 
The statement suggested that some might have been evacuated for “other unrelated issues.”
The statement said that only one of those evacuated so far had been diagnosed with mild traumatic brain injury: the first employee who was evacuated in April after complaining of health issues caused by the sounds and sensations.
Some of those evacuated have been sent to the Center for Brain Injury and Repair at the University of Pennsylvania, where researchers examined the cases from Cuba. State Department spokesmen would not elaborate.
After the injuries appeared in Cuba, the Trump administration expelled 15 Cuban diplomats, saying Cuban officials had failed to adequately protect American diplomats. 
But the government there denied any involvement.
So have the Chinese. 
The department’s statement on Friday referred to “ongoing cooperation” with the Chinese in investigating “the health-related incident” in Guangzhou.
After the cases surfaced there, senior officials from the department flew to China to investigate, while Mr. Pompeo appointed a committee to review “unexplained health incidents” affecting American diplomats and employees abroad. 
The deputy secretary of state, John J. Sullivan, is leading the review, assisted by representatives from the Department of Health and Human Services and the Justice Department, but officials have said they remain flummoxed.

vendredi 29 juin 2018

China's theft of US intellectual property

China's penetration of Silicon Valley creates risks for startups
By Heather Somerville

Stanford University's campus is seen in an aerial photo in Stanford, California, U.S. on April 6, 2016.

SAN FRANCISCO -- Danhua Capital has invested in some of Silicon Valley’s most promising startups in areas like drones, artificial intelligence and cyber security
The venture capital firm is based just outside Stanford University, the epicenter of U.S. technology entrepreneurship.
Yet it was also established and funded with help from the Chinese government. 
And it is not alone.
More than 20 Silicon Valley venture capital firms have close ties to a Chinese government fund or state-owned entity, according to interviews with venture capital sources and publicly available information.
While the U.S. government is taking an increasingly hard line against Chinese acquisitions of U.S. public companies, investments in startups, even by state-backed entities, have been largely untouched.
That may well be poised to change as the U.S. Congress finalizes legislation that dramatically expands the government’s power to block foreign investment in U.S. companies, including venture investments.
The new law would give the U.S. government’s Committee on Foreign Investment in the United States (CFIUS) wide latitude to decide what sorts of deals to examine, eliminating certain ownership thresholds, with a particular focus on so-called “critical” technologies.
“The perception is that a lot of the tech transfer of worry to the U.S. security establishment is happening in the startup world,” said Stephen Heifetz, a former member of CFIUS and now a lawyer representing companies going through CFIUS review.
The latest version of the bill exempts “passive” investors, which would cover many of the limited partners that back venture firms. 
But limited partners that have some control over the business, or firms whose managing partner is a “foreign person”, could be subject to scrutiny.
The university endowments and family offices that traditionally provide most of the money for venture firms are usually one of many limited partners and have minimal if any involvement in the startups they help fund.
Chinese entities also sometimes take a passive role in big venture funds. 
But venture capital sources say that Chinese government funds often play a more influential role in the smaller venture firms they back by providing a greater percentage of their funding. 
That empowers them to request information about startups or help them to open offices in China -- potentially opening those startups to CFIUS review.
The possibility of a regulatory crackdown has caused unease in the startup world. 
Venture firm Andreessen Horowitz is counseling startups that if they raise money from a China-backed investor, they put themselves at risk of government scrutiny.
“The window for some startups to raise money from China may be closing,” said Chris Nicholson, co-founder of AI company Skymind, which has raised money from Chinese Internet group Tencent Holdings Ltd and a Hong Kong family office.

SENSITIVE AREAS
Until recently, the original source of funds for venture investments has not been an issue in Silicon Valley. 
Venture firms are not obliged to disclose who their investors are and entrepreneurs rarely ask, leading some dealmakers to question how CFIUS could keep tabs on startup investing.
Danhua Capital, which is backed by the Zhongguancun Development Group, a state-owned enterprise funded by the Beijing municipal government, has holdings in the most sensitive technology sectors.
Its investments include data management and security company Cohesity, which counts the U.S. Department of Energy and U.S. Air Force among its customers.
Drone startup Flirtey, which in May was selected by the U.S. Department of Transportation to participate in projects to help the agency integrate drones safely into U.S. air space, is also part of the Danhua portfolio.
Shoucheng Zhang, Danhua’s founder and a Stanford University physics professor, declined to answer specific questions from Reuters. 
In an email, he said: “Most of our (limited partners) are publicly listed companies in New York or Hong Kong stock exchanges. We will of course fully comply with any legislations and regulations.”
Cohesity declined to comment. 
A spokeswoman for Flirtey said Danhua’s minority investment did not come with any information rights.
The practice of investing through layers of funds, known as funds of funds, can make it all but impossible to know where money is coming from. 
Westlake Ventures, backed by the Hangzhou city government in eastern China, invests in at least 10 other Silicon Valley venture funds, including Palo-Alto based Amino Capital.
Larry Li, founder and managing partner at Amino Capital, said he took the money that was on offer when he launched his fund in 2012. 
He said he felt his firm wasn’t the kind of known quantity that could tap the big pensions and endowments.
“We weren’t going to the Harvard endowment or Yale endowment; that’s like mission impossible,” Li said. 
“You need to have some special source of funds to get started.”
China-backed funds include Oriza Ventures, which belongs to the investment arm of the Suzhou municipal government, and has backed AI and self-driving car startups. 
SAIC Capital, the venture arm of state-owned auto company SAIC Motor, has invested in Silicon Valley autonomous driving, mapping and artificial intelligence startups.
Even well-known startup accelerator 500 Startups raised part of its main fund from the Hangzhou government.
500 Startups and Oriza declined to comment, while SAIC did not respond to a request for comment.
Capital controls have slowed the flow of Chinese money into the United States since 2016, but sources say venture investments have been more resilient than sectors like real estate, in part due to the Chinese government’s focus on improving its domestic high-tech industry.

‘CROWN JEWELS’
U.S. politicians were galvanized by a Department of Defense report released last year that warns that Chinese venture investors are accessing “the crown jewels of U.S. innovation.”
The report helped guide Sen. John Cornyn, a Texas Republican who sponsored the Senate version of the CFIUS reform bill, people with knowledge of the matter said. 
A spokeswoman said Cornyn “is especially concerned with Chinese state-backed venture capital investments.”
For now, at least, President Donald Trump has backed away from his declared intention to clamp down on a wide range of Chinese technology investments through a special emergency order, saying he would leave the job to CFIUS. 
But if Congress fails to pass the bill quickly, Trump said he would use his executive powers.

Chinese Colonialism

China Is Doing The Same Things To Sri Lanka Great Britain Did To China After The Opium Wars
By Panos Mourdoukoutas 

China is turning Sri Lanka into a modern day “semi-colony,” the same way Great Britain and Portugal turned south China into their own semi-colonies back in the mid of 19th century.
Sri Lanka didn’t lose a war to China. 
It never ceded any of its territory officially to China. 
But it handed over economic control of its deep sea Hambantota port to China Merchants Port Holdings (CM Port).
Last week, CM Port made a $584 million payment as part of a $1.12 billion deal to operate Sri Lanka’s deep-sea Hambantota port, according to a Reuters report. 
Under the agreement, signed in July 2017, CM Port will run the $1.5 billion Chinese-built port on a 99-year lease.
The $1.12 billion total price is to be used to reduce the Sri Lankan government’s debt to China.
In economic terms, this agreement is similar to that China signed back in the aftermath of Opium Wars with the British and the Portuguese, ceding control of its Southern ports to the British and the Portuguese.
China's growing presence in Sri Lanka began back in 2007, when Beijing provided President Rajapaksa both military and diplomatic support to crush the Tamil Tigers. 
Then followed high profile construction projects and high interest loans that left Sri Lanka heavily indebted to China.
Sri Lanka government debt was standing 77.60% of the country's GDP in 2017, well above the 69.69% average for the 1950-2017 period, according to Tradingeconomics.
Meanwhile, Sri Lanka’s Government Budget deficit stands at 5.5% of the country’s GDP, adding to its indebtedness.
Rising indebtedness comes at a time when Sri Lanka is already living beyond its means, as evidenced by persistent current account deficits, which stand at 2.60% of the country's GDP in 2017.
To cope with a rising debt to China, Sri Lanka has signed agreements with China that swap loans for equity, transforming China into an owner to major infrastructure projects like Sri Lanka’s major port— and a key outpost in the Indian Ocean for Beijing.
This development has irked India, which is slowly becoming encircled by China; and India’s allies that are concerned about China’s aggressive moves to control maritime trade from the South China Sea to the Indian Ocean.
That’s something investors in Southeast Asian markets should keep a wary eye on, as it opens yet another front between the two Asian giants, raising the geopolitical risk of investing in the region.
Markets, for the time being, seem to be ignoring these risks.

Trade War Punctures China’s Pride in Its Technology

There is a big gap between the science and technology of China and those of the United States
By Yoko Kubota

China’s tech businesses have been on tenterhooks in recent months. Here, a Foxconn factory in Guizhou province. 

BEIJING—To the list of casualties in the trade battle between the U.S. and China add another: Chinese chest-thumping about the country’s prowess in innovation.
More sober assessments of China’s technological capabilities have emerged from China’s tech community in recent weeks, as the U.S. has ratcheted up pressure, threatening tariffs and export restrictions to punish Beijing for what it says are theft of technology and unfair trade practices.
“There is a big gap between the science and technology of China and those of the United States, as well as other Western developed countries. This is common sense, not a problem,” said Liu Yadong, the editor in chief of the government-run Science and Technology Daily, in a speech last week that set off debate on the internet.
China’s tech businesses have been on tenterhooks in recent months. 
Threats by the Trump administration to impose tariffs on as much as $450 billion in Chinese products and to restrict Chinese investment in the U.S. and American technology exports to China potentially stand to disrupt supply chains crucial to China’s telecommunications-gear makers, its microchip industry and aircraft manufacturing.
While President Donald Trump backed away from those investment and export restrictions on Wednesday, he said those issues would be addressed through existing institutions.
Some Chinese officials greeted the move with wary relief. 
A Commerce Ministry spokesman said Thursday that Beijing is watching developments in the U.S. and warned that investment restrictions would likely affect global perceptions about the U.S.’s business environment.
Still, disruptions loom. 
U.S. tariffs on $34 billion in Chinese goods kick in July 6, and China has vowed to retaliate dollar for dollar. 
The biggest casualty thus far in the trade fight is Chinese telecom-equipment maker ZTE Corp., which nearly stopped operating after the U.S. Commerce Department prohibited its access to American components because of sanctions violations.
Liu, the Science and Technology Daily editor, sought to address the foreign foundations of many Chinese industries at a seminar on China’s reliance on critical technologies.
“The house is built on other people’s foundation, but some insist that we have complete and permanent property rights,” Liu said, according to a transcript on the website of the newspaper, which belongs to the Ministry of Science and Technology. 
“What’s troublesome is that people with those kind of opinions have fooled leaders, the public and even themselves.”
His was a striking admission considering that state media and senior officials have played up China’s advances in innovation for much of the past year to meet Xi Jinping’s objective of making the country a global technology power. 
The government news agency Xinhua last year praised China’s “four great new innovations” in modern times: dockless shared bikes, high-speed rail, online payments and e-commerce. 
All were invented elsewhere, and China’s high-speed rail uses technology from Germany’s Siemens AG , Japan’s Kawasaki Heavy Industries Ltd. and other foreign companies.
In March, a government-produced documentary “Amazing China” lauded China’s advanced technologies in ports, bridges, cars and the internet.

ZTE nearly stopped operating after the U.S. Commerce Department prohibited its access to American components because of sanctions violations. 

“Our Amazing China also has areas that are not amazing,” Beijing Daily, the Communist Party’s official newspaper in the capital, said this week. 
It said that while China has made strides in development, “our shortcomings are more noticeable. 
Just one microchip is enough to put China in a corner, let alone other items.”
A core U.S. concern is what the Trump administration says are attempts by China to steal U.S. technology and use subsidies to build up national champions to conquer world markets. 
Particular criticism has been directed at Beijing’s “Made in China 2025” plan to dominate 10 cutting-edge areas including information technology and aerospace.
Given the glare, senior Chinese officials have recently started playing down “Made in China 2025” in meetings with the U.S. business community and European diplomats, people familiar with the matter said. 
Authorities have also ordered media to tone down coverage of the policy.
China’s State Council Information Office didn’t respond to a request for comment.
The shift in tone is more tactical and doesn’t mean China is scrapping its global technology ambitions. 
“The wrestling between the U.S. and China on technology issues is inescapable, and we for sure shouldn’t chicken out at this moment,” said Fang Xingdong, who runs ChinaLabs, a technology think tank. 
But, he said, China has said too much about the importance of Made in China 2025.
The U.S. is mistakenly targeting Made in China 2025, he said, because the real strength in China’s technology sector comes from market-oriented companies.
The Finance Ministry offered tax relief Thursday for companies in high-end manufacturing and technology sectors, particularly those in fields covered by “Made In China 2025.” 
In a notice, the ministry said it would refund to companies overpayment of value-added taxes, instead of applying the excess amount to next year’s tax bill, as in the past.
As part of the new messaging, Xi, senior officials and state media have said the trade fight should spur China to reduce its U.S. dependence, not curb its technological ambition.
“If the U.S. keeps providing us with core technology, it might hinder China’s technology development,” Liu, of the Science and Technology Daily, said in an interview. 
“If the U.S. does not provide, China will devote our own efforts to technology development, and the process to catch up might be shortened.”

Two-China Policy vs One-China Fallacy

President Trump had good reason to question the 'one-China' fallacy
BY JOSEPH BOSCO







Since Richard Nixon traveled to China and began Washington’s abandonment of official diplomatic and military relations with Taiwan, several shorthand policy phrases have defined the fraught U.S.-China-Taiwan relationship. 
The three main notions are: one-China, cross-Strait stability (status quo), and strategic ambiguity.

One China: The 1972 U.S.-China Shanghai Communique has been called the “original sin” of the trilateral relationship. 
It laid out the two sides’ understandings on the existence, or not, of a single Chinese polity encompassing both sides of the Taiwan Strait. 
Beijing stated its position that, as a matter of historical, cultural, and juridical fact, China and Taiwan are part of one legal entity called the People’s Republic of China, period. 
That is known as the communist government’s “one-China principle.”
Washington, on the other hand, simply acknowledged that “all Chinese” on both sides of the Strait — i.e., the communist dictatorship under Mao Zedong in Beijing and the anti-communist dictatorship under Generalissimo Chiang Kai-shek in Taipei — shared that view, differing only on who should rule the merged territories. 
The U.S. position stated the “expectation” that the issue would be resolved “peacefully.” 
That is America’s “one-China policy.”
Almost immediately, China began posturing as if the two governments held identical positions and relentlessly advanced that false narrative over the next 45 years until it became absorbed into the general public consciousness. 
Prominent journalists and active and former public officials, either because they were simply careless or too accommodating to China, often state as established historical fact that Washington and Beijing long have agreed Taiwan is part of China.
Henry Kissinger, who helped draft the Communique, knows better but has continued to accept that the American and Chinese interpretations inevitably would merge and Taiwan would be under combined U.S.-PRC pressure to accept Beijing’s rule. 
That is why he could self-confidently warn Taipei in 2007 that “China will not wait forever” — a message Xi Jinping was only too glad to echo shortly after assuming power when he said the Taiwan question “cannot be passed on from generation to generation.”
So, whenever minority U.S. officials or commentators have tried to set the record straight on what “one China” means in Washington’s view, the PRC and its sympathetic American academic audience have accused them of undermining the foundation of the U.S.-China relationship. 
That explains the shock among international foreign policy establishments when President Donald Trump explicitly questioned the sanctity of the policy even under the American perspective. 
They assumed Washington was on the verge of violating the linchpin of U.S.-China relations — that Taiwan is part of China. 
It was the premise of the first question a CNN interviewer once put to me; yet, even after I (and others) corrected the error on-air, two CNN hosts repeated it in subsequent programs — as have BBC and other media.

Cross-Strait stability/Status quo: The Shanghai Communique, in both the U.S. and Chinese position statements, envisions “peace and stability” across the Taiwan Strait as conceptually equivalent to preservation of “the status quo.” 
Washington repeatedly has called on both sides to avoid actions that would upset that undefined stasis and create tension and instability.
The inherent problem is that there is a static status quo and a dynamic status quo. 
The former, if taken literally, would mean that everything in social and political life on Taiwan was frozen in place as of Feb. 28, 1972, the date of the Communique, or at least as of Jan. 1, 1979, the date that Washington shifted official recognition from Taipei to Beijing. 
Both are physical impossibilities, in demographic terms alone, since the populations of China and Taiwan are constantly changing. 
People in both places who believe they recall a time when Taiwan was an integral part of Greater China, or should be, are dying off; people are being born who have no such mindset, and on Taiwan, the younger generations know it as their only homeland and national identity.
But a dynamic status quo also is at work in the policies of both governments across the Strait. 
The independent and freedom-loving citizens of Taiwan want to keep the democratic system for which they, or their parents and grandparents, struggled, suffered and sometimes died. 
At the same time, they aspire to be treated like citizens of the world and recognized for their admirable economic and political achievements, and for their scientific and humanitarian contributions to the international community.
Taiwan’s dynamic status quo, in other words, constitutes a state of de facto independence and a desire to enjoy at least some of the dignity and benefits of normal de jure independence.
What the Taiwanese seek for themselves is the mirror image of the dynamic status quo sought by Beijing for Taiwan — an evolving economic, cultural and political closeness that eventually leads to unification and Taiwan’s absorption by Communist China, if not peacefully, then by force.
Subjugation of Taiwan is the first of Beijing’s ever-lengthening “core interests” and “red lines.” Beijing defines it not only in terms of actions Taiwan might take, but also by what it fails to do. 
The 2005 Anti-Secession Law includes a declaration of independence, or other official moves by Taipei toward independence, as a basis to attack Taiwan. 
But it also presumes a “right” to use force if Taiwan takes too long to submit to Chinese Communist rule.

Strategic ambiguity: What has been Washington’s response to China’s decades-long threats of aggression against Taiwan, beginning with the Shanghai Communique itself? 
Chinese military officials asked that question of their American counterparts during the 1995-1996 Taiwan Strait missile crisis
The U.S. answer was the quintessential expression of Washington’s doctrine of strategic ambiguity regarding the defense of Taiwan: “We don’t know and you don’t know. It would depend on the circumstances.”
Beijing’s strategic military planners have been preparing ever since to create the circumstances that would keep the United States from intervening in a cross-Strait conflict to defend Taiwan. 
China’s Area Denial/Anti-Access strategy makes use of an arsenal of anti-ship ballistic missiles and a fleet of attack submarines to keep the U.S. Seventh Fleet out of the fight.
If Washington instead had told China’s military officials an attack on Taiwan would mean war with the United States, how differently the ensuing decades might have unfolded. 
Without a U.S. red line against the use of force, Beijing would have been far less inclined to pass the 2005 Anti-Secession Law.
The hour is late for Washington to deter war in the Taiwan Strait — but not too late, especially for the Trump administration, which has credibly used the threat of American force to deter war on the Korean Peninsula.

The great firewall of China: Xi Jinping’s internet shutdown

Before Xi Jinping, the internet was becoming a more vibrant political space for Chinese citizens. But today the country has the largest and most sophisticated online censorship operation in the world.  
By Elizabeth C Economy

In December 2015, thousands of tech entrepreneurs and analysts, along with a few international heads of state, gathered in Wuzhen, in southern China, for the country’s second World Internet Conference. 
At the opening ceremony Chinese dictator Xi Jinping set out his vision for the future of China’s internet. 
“We should respect the right of individual countries to independently choose their own path of cyber-development,” said Xi, warning against foreign interference “in other countries’ internal affairs”.
No one was surprised by what they heard. 
Xi had already established that the Chinese internet would be a world unto itself, with its content closely monitored and managed by the Communist party. 
In recent years, the Chinese leadership has devoted more and more resources to controlling content online. 
Government policies have contributed to a dramatic fall in the number of postings on the Chinese blogging platform Sina Weibo (similar to Twitter), and have silenced many of China’s most important voices advocating reform and opening up the internet.
It wasn’t always like this. 
In the years before Xi became president in 2012, the internet had begun to afford the Chinese people an unprecedented level of transparency and power to communicate. 
Popular bloggers, some of whom advocated bold social and political reforms, commanded tens of millions of followers. 
Chinese citizens used virtual private networks (VPNs) to access blocked websites. 
Citizens banded together online to hold authorities accountable for their actions, through virtual petitions and organising physical protests. 
In 2010, a survey of 300 Chinese officials revealed that 70% were anxious about whether mistakes or details about their private life might be leaked online. 
Of the almost 6,000 Chinese citizens also surveyed, 88% believed it was good for officials to feel this anxiety.
For Xi Jinping, however, there is no distinction between the virtual world and the real world: both should reflect the same political values, ideals, and standards. 
To this end, the government has invested in technological upgrades to monitor and censor content. 
It has passed new laws on acceptable content, and aggressively punished those who defy the new restrictions. 
Under Xi, foreign content providers have found their access to China shrinking. 
They are being pushed out by both Xi’s ideological war and his desire that Chinese companies dominate the country’s rapidly growing online economy.
At home, Xi paints the west’s version of the internet, which prioritises freedom of information flow, as anathema to the values of the Chinese government. 
Abroad, he asserts China’s sovereign right to determine what constitutes harmful content. 
Rather than acknowledging that efforts to control the internet are a source of embarrassment – a sign of potential authoritarian fragility – Xi is trying to turn his vision of a “Chinanet” (to use blogger Michael Anti’s phrase) into a model for other countries.
The challenge for China’s leadership is to maintain what it perceives as the benefits of the internet – advancing commerce and innovation – without letting technology accelerate political change. 
To maintain his “Chinanet”, Xi seems willing to accept the costs in terms of economic development, creative expression, government credibility, and the development of civil society. 
But the internet continues to serve as a powerful tool for citizens seeking to advance social change and human rights. 
The game of cat-and-mouse continues, and there are many more mice than cats.
The very first email in China was sent in September 1987 – 16 years after Ray Tomlinson sent the first email in the US. 
It broadcast a triumphal message: “Across the Great Wall we can reach every corner in the world.” 
For the first few years, the government reserved the internet for academics and officials. 
Then, in 1995, it was opened to the general public. 
In 1996, although only about 150,000 Chinese people were connected to the internet, the government deemed it the “Year of the Internet”, and internet clubs and cafes appeared all over China’s largest cities.
Yet as enthusiastically as the government proclaimed its support for the internet, it also took steps to control it. 
Rogier Creemers, a China expert at Oxford University, has noted that “As the internet became a publicly accessible information and communication platform, there was no debate about whether it should fall under government supervision – only about how such control would be implemented in practice.” 
By 1997, Beijing had enacted its first laws criminalising online postings that it believed were designed to hurt national security or the interests of the state.
China’s leaders were right to be worried. 
Their citizens quickly realised the political potential inherent in the internet. 
In 1998, a 30-year-old software engineer called Lin Hai forwarded 30,000 Chinese email addresses to a US-based pro-democracy magazine. 
Lin was arrested, tried and ultimately sent to prison in the country’s first known trial for a political violation committed completely online. 
The following year, the spiritual organisation Falun Gong used email and mobile phones to organise a silent demonstration of more than 10,000 followers around the Communist party’s central compound, Zhongnanhai, to protest their inability to practise freely. 
The gathering, which had been arranged without the knowledge of the government, precipitated an ongoing persecution of Falun Gong practitioners and a new determination to exercise control over the internet.
The man who emerged to lead the government’s technological efforts was Fang Binxing
In the late 1990s, Fang worked on developing the “Golden Shield” – transformative software that enabled the government to inspect any data being received or sent, and to block destination IP addresses and domain names. 
His work was rewarded by a swift political rise. 
By the 2000s, he had earned the moniker “Father of the Great Firewall” and, eventually, the enmity of hundreds of thousands of Chinese web users.
Throughout the early 2000s, the Chinese leadership supplemented Fang’s technology with a set of new regulations designed to ensure that anyone with access to China’s internet played by Chinese rules. 
In September 2000, the state council issued order no 292, which required internet service providers to ensure that the information sent out on their services adhered to the law, and that some domain names and IP addresses were recorded. 
Two years later, Beijing blocked Google for the first time. (A few years later, Google introduced Google.cn, a censored version of the site.) 
In 2002, the government increased its emphasis on self-censorship with the Public Pledge on Self-Discipline for China’s Internet Industry, which established four principles: patriotic observance of law, equitableness, trustworthiness and honesty. 
More than 100 companies, including Yahoo!, signed the pledge.
Perhaps the most significant development, however, was a 2004 guideline on internet censorship that called for Chinese universities to recruit internet commentators who could guide online discussions in politically acceptable directions and report comments that did not follow Chinese law. 
These commentators became known as wu mao dang, or “50-cent party”, after the small bonuses they were supposedly paid for each post.
Yet even as the government was striving to limit individuals’ access to information, many citizens were making significant inroads into the country’s political world – and their primary target was corrupt local officials.
In May 2009, Deng Yujiao, a young woman working in a hotel in Hubei province, stabbed a party official to death after she rejected his efforts to pay her for sex and he tried to rape her. 
Police initially committed Deng to a mental hospital. 
A popular blogger, Wu Gan, however, publicised her case. 
Using information gathered through a process known as ren rou sousuo, or “human flesh search engine”, in which web users collaborate to discover the identity of a specific individual or organisation, Wu wrote a blog describing the events and actions of the party officials involved.
In an interview with the Atlantic magazine at the time, he commented: “The cultural significance of flesh searches is this: in an undemocratic country, the people have limited means to get information... [but] citizens can get access to information through the internet, exposing lies and the truth.” 
Deng’s case began to attract public support, with young people gathering in Beijing with signs reading “Anyone could be Deng Yujiao.” 
Eventually the court ruled that Deng had acted in self-defence.
During this period, in the final years of Hu Jintao’s presidency, the internet was becoming more and more powerful as a mechanism by which Chinese citizens held their officials to account. 
Most cases were like that of Deng Yujiao – lodged and resolved at the local level. 
A small number, however, reached central authorities in Beijing. 
On 23 July 2011, a high-speed train derailed in the coastal city of Wenzhou, leaving at least 40 people dead and 172 injured. 
In the wake of the accident, Chinese officials banned journalists from investigating, telling them to use only information “released from authorities”. 
But local residents took photos of the wreckage being buried instead of being examined for evidence. 
The photos went viral and heightened the impression that the government’s main goal was not to seek the true cause of the accident.
A Sina Weibo poll – later blocked – asked users why they thought the train wreckage was buried: 98% (61,382) believed it represented destruction of evidence. 
Dark humour spread online: “How far are we from heaven? Only a train ticket away,” and “The Ministry of Railways earnestly requests that you ride the Heavenly Party Express.” 
The popular pressure resulted in a full-scale investigation of the crash, and in late December, the government issued a report blaming poorly designed signal equipment and insufficient safety procedures. 
As many as 54 officials faced disciplinary action as a result of the crash.
The internet also provided a new sense of community for Chinese citizens, who mostly lacked robust civil-society organisations. 
In July 2012, devastating floods in Beijing led to the evacuation of more than 65,000 residents and the deaths of at least 77 people. 
Damages totalled an estimated $1.9bn. 
Local officials failed to respond effectively: police officers allegedly kept ticketing stranded cars instead of assisting residents, and the early warning system did not work. 
Yet the real story was the extraordinary outpouring of assistance from Beijing web users, who volunteered their homes and food to stranded citizens. 
In a span of just 24 hours, an estimated 8.8m messages were sent on Weibo regarding the floods. 
The story of the floods became not only one of government incompetence, but also one of how an online community could transform into a real one.
While the Chinese people explored new ways to use the internet, the leadership also began to develop a taste for the new powers it offered, such as a better understanding of citizens’ concerns and new ways to shape public opinion. 
Yet as the internet increasingly became a vehicle for dissent, concern within the leadership mounted that it might be used to mobilise a large-scale political protest capable of threatening the central government. 
The government responded with a stream of technological fixes and political directives; yet the boundaries of internet life continued to expand.
The advent of Xi Jinping in 2012 brought a new determination to move beyond deleting posts and passing regulations. 
Beijing wanted to ensure that internet content more actively served the interests of the Communist party. 
Within the virtual world, as in the real world, the party moved to silence dissenting voices, to mobilise party members in support of its values, and to prevent foreign ideas from seeping into Chinese political and social life. 
In a leaked speech in August 2013, Xi articulated a dark vision: “The internet has become the main battlefield for the public opinion struggle.”
Early in his tenure, Xi embraced the world of social media. 
One Weibo group, called Fan Group to Learn from Xi, appeared in late 2012, much to the delight of Chinese propaganda officials. (Many Chinese suspected that the account was directed by someone in the government.) 
Xi allowed a visit he made to Hebei to be liveblogged on Weibo by government-affiliated press, and videos about Xi, including a viral music video called How Should I Address You, based on a trip he made to a mountain village, demonstrate the government’s increasing skill at digital propaganda.
Under Xi, the government has also developed new technology that has enabled it to exert far greater control over the internet. 
In January 2015, the government blocked many of the VPNs that citizens had used to circumvent the Great Firewall. 
This was surprising to many outside observers, who had believed that VPNs were too useful to the Chinese economy – supporting multinationals, banks and retailers, among others – for the government to crack down on them.
In spring 2015, Beijing launched the Great Cannon
Unlike the Great Firewall, which has the capacity to block traffic as it enters or exits China, the Great Cannon is able to adjust and replace content as it travels around the internet. 
One of its first targets was the US coding and software development site GitHub
The Chinese government used the Great Cannon to levy a distributed denial of service attack against the site, overwhelming it with traffic redirected from Baidu (a search engine similar to Google). 
The attack focused on attempting to force GitHub to remove pages linked to the Chinese-language edition of the New York Times and GreatFire.org, a popular VPN that helps people circumvent Chinese internet censorship.
But perhaps Xi’s most noticeable gambit has been to constrain the nature of the content available online. 
In August 2013, the government issued a new set of regulations known as the “seven baselines”. 
The reaction by Chinese internet companies was immediate. 
Sina, for example, shut down or “handled” 100,000 Weibo accounts found to not comply with the new rules.
The government also adopted tough restrictions on internet-based rumours. 
In September 2013, the supreme people’s court ruled that authors of online posts that deliberately spread rumours or lies, and were either seen by more than 5,000 individuals or shared more than 500 times, could face defamation charges and up to three years in jail. 
Following massive flooding in Hebei province in July 2016, for example, the government detained three individuals accused of spreading “false news” via social media regarding the death toll and cause of the flood. 
Some social media posts and photos of the flooding, particularly of drowning victims, were also censored.
In addition, Xi’s government began targeting individuals with large social media followings who might challenge the authority of the Communist party. 
Restrictions on the most prominent Chinese web influencers, beginning in 2013, represented an important turning point in China’s internet life. 
Discussions began to move away from politics to personal and less sensitive issues. 
The impact on Sina Weibo was dramatic. 
According to a study of 1.6 million Weibo users, the number of Weibo posts fell by 70% between 2011 and 2013.
The strength of the Communist party’s control over the internet rests above all on its commitment to prevent the spread of information that it finds dangerous. 
It has also adopted sophisticated technology, such as the Great Firewall and the Golden Shield. 
Perhaps its most potent source of influence, however, is the cyber-army it has developed to implement its policies.
The total number of people employed to monitor opinion and censor content on the internet – a role euphemistically known as “internet public opinion analyst” – was estimated at 2 million in 2013. 
They are employed across government propaganda departments, private corporations and news outlets. 
One 2016 Harvard study estimated that the Chinese government fabricates and posts approximately 448m comments on social media annually. 
A considerable amount of censorship is conducted through the manual deletion of posts, and an estimated 100,000 people are employed by both the government and private companies to do just this.
Private companies also play an important role in facilitating internet censorship in China. 
Since commercial internet providers are so involved in censoring the sites that they host, internet scholar Guobin Yang argues that “it may not be too much of a stretch to talk about the privatisation of internet content control”. 
The process is made simpler by the fact that several major technology entrepreneurs also hold political office. 
For example, Robin Li of Baidu is a member of the Chinese People’s Political Consultative Conference, an advisory legislature, while Lei Jun, founder and CEO of mobile phone giant Xiaomi, is a representative of the National People’s Congress.
Yet Xi’s growing control over the internet does not come without costs. 
An internet that does not work efficiently or limits access to information impedes economic growth. China’s internet is notoriously unreliable, and ranks 91st in the world for speed. 
As New Yorker writer Evan Osnos asked in discussing the transformation of the Chinese internet during Xi’s tenure: “How many countries in 2015 have an internet connection to the world that is worse than it was a year ago?”
Scientific innovation, particularly prized by the Chinese leadership, may also be at risk. 
After the VPN crackdown, a Chinese biologist published an essay that became popular on social media, entitled Why Do Scientists Need Google? 
He wrote: “If a country wants to make this many scientists take out time from the short duration of their professional lives to research technology for climbing over the Great Firewall and to install and to continually upgrade every kind of software for routers, computers, tablets and mobile devices, no matter that this behaviour wastes a great amount of time; it is all completely ridiculous.”
More difficult to gauge is the cost the Chinese leadership incurs to its credibility. 
Web users criticising the Great Firewall have used puns to mock China’s censorship system. 
Playing off the fact that the phrases “strong nation” and “wall nation” share a phonetic pronunciation in Chinese (qiangguo), some began using the phrase “wall nation” to refer to China. 
Those responsible for seeking to control content have also been widely mocked. 
When Fang opened an account on Sina Weibo in December 2010, he quickly closed the account after thousands of online users left “expletive-laden messages” accusing him of being a government hack. Censors at Sina Weibo blocked “Fang Binxing” as a search term; one Twitter user wrote: “Kind of poetic, really, the blocker, blocked.” 
When Fang delivered a speech at Wuhan University in central China in 2011, a few students pelted him with eggs and a pair of shoes.
Nonetheless, the government seems willing to bear the economic and scientific costs, as well as potential damage to its credibility, if it means more control over the internet. 
For the international community, Beijing’s cyber-policy is a sign of the challenge that a more powerful China presents to the liberal world order, which prioritises values such as freedom of speech. 
It also reflects the paradox inherent in China’s efforts to promote itself as a champion of globalisation, while simultaneously advocating a model of internet sovereignty and closing its cyber-world to information and investment from abroad.

jeudi 28 juin 2018

China’s social credit system interferes in other nations’ sovereignty

System, criticised as an Orwellian tool of mass surveillance, is shaping behaviour of foreign businesses, report says
By Kelsey Munro
China’s social credit system, a big-data system for monitoring and shaping business and citizens’ behaviour, is reaching beyond China’s borders to impact foreign companies, according to new research.
The system, which has been compared to an Orwellian tool of mass surveillance, is an ambitious work in progress: a series of big data and AI-enabled processes that effectively grant subjects a social credit score based on their social, political and economic behaviour.
People with low scores can be banned or blacklisted from accessing services including flights and train travel; while those with high scores can access privileges. 
The Chinese government aims to have all 1.35 billion of its citizens subject to the system by 2020.
But a new report by US China scholar Samantha Hoffman for the ASPI International Cyber Policy Institute in Canberra claims the system’s impact beyond China’s borders has not been well understood, and is in fact already shaping the behaviour of foreign businesses in line with Chinese Communist party preferences. 
It has the “potential to interfere directly in the sovereignty of other nations”, she said.
She said recent incidents where Chinese authorities pressured international airlines in the US and Australia to use Beijing’s preferred terminology to refer to Taiwan and Hong Kong were high-profile examples of this new extension of the social credit system rules to foreign companies.
The civil aviation industry credit management measures that the airlines are accused of violating were written to implement two key policy guidelines on establishing China’s social credit system,” she explains. 
Social credit was used specifically in these cases to compel international airlines to acknowledge and adopt the CCP’s version of the truth, and so repress alternative perspectives on Taiwan.
As of 1 January 2018, all companies with a Chinese business licence – a necessity for operating in the country – were brought into the social credit system through the new licence requirement to have an 18-digit “unified social credit code”. 
Through this business ID number, the Chinese government keeps track of all businesses, reporting transgressions on its National Enterprise Credit Information Publicity System, Hoffman said. 
The system extends to non-profits, NGOs, trade unions and social organisations after 30 June.
“Companies don’t have a choice but to comply if they want to continue doing business in China,” Hoffman told the Guardian Australia.
Sanctions for companies so far have come in the form of fines, she said, citing the example of the Japanese retailer Muji, which was fined 200,000 yuan in May for labelling on products sold in China that listed Taiwan as a country. 
The fine cited a violation of PRC advertising law banning activity which damages “the dignity or interests of the state”, but the violation was also recorded on the social credit system’s National Enterprise Credit Information Publicity System. 
This listing can trigger further fines from other state agencies, Hoffman said.
It is not clear whether foreign companies have access to the information kept on their social credit record, nor if foreign citizens could find out if their nation’s companies have made concessions or changed their behavior as a result.
Guardian Australia unsuccessfully sought comment from Qantas, which announced earlier this month it would change the language used on its global websites in accordance with the Chinese government’s preferred terminology for Taiwan.
Hoffman is a visiting academic fellow at the Mercator Institute for China Studies in Berlin. 
Her report, Social Credit: Technology-enhanced Authoritarian Control with Global Consequences, was published on Thursday by the Australian Strategic Policy Institute, a security-focused thinktank which has urged the Australian government take a harder line on Chinese government interference in its democracy.
The report comes amid a difficult period in Australia-China relations; in the same week Australia’s parliamentary committee released a bipartisan report paving the way for the passage of new draft laws against covert, coercive or corrupt foreign interference.

What is the social credit system?

China’s social credit system is an Orwellian tool of social monitoring and political repression.
People can be blacklisted for transgressions such as smoking on trains, using expired tickets or failing to pay fines, as well as spreading false information or causing trouble on flights, according to statements released by China’s National Development and Reform Commission in March.
Citizens with high credit scores can access better hotels, rental homes and even schools; while those with low credit scores can be temporarily or permanently banned from taking planes or trains, as happened to 6.15 million people in 2017, on the government’s own figures. 
A pilot version of the scheme run this year in Hangzhou City reportedly saw citizens with high social credit ratings get free access to gym facilities and shorter public hospital waiting times.
On the business side, the Brookings Institute has reported that businesses that pay tax on time and “abide by government demands” will get better loan conditions and easier access to public tenders; noncompliant businesses will face more difficult business conditions.
But researchers believe its power and reach may be overstated.
Queensland University of Technology researcher Meg Jing Zeng has said that while the social credit system can be used to punish political dissenters such as journalist Liu Hu, it may have positive benefits because government officials can be blacklisted for corrupt behaviour. 
Over 1,100 officials were on restricted lists at December 2017, according to the state media organisation People’s Daily.
An academic study of the social credit system released last month by Belgian researcher Rogier Creemers said that while the Chinese government had high ambitions for the system, at present it remained a relatively crude tool.

Orwellian Nonsense: Don’t Fear China’s Boycott Threats

If history is any guide, the latest dispute over Taiwan will fizzle.
By Adam Minter
It’ll be fine. 

The Chinese government has given the world's airlines until July 25 to recognize Taiwan as part of China. 
So far, Delta Air Lines Inc. and American Airlines Group Inc. are among the very last holdouts. According to Bloomberg News, if the companies don't comply, China could "prompt travelers from the mainland to boycott American airlines."
The airlines are understandably concerned about this threat, given that China is a key growth market. But the fears are overblown: Chinese consumer boycotts have historically been short-lived and relatively painless, and there's little reason to believe that this one will turn out any differently.
The airlines are caught up in a long-running dispute. 
China regards Taiwan as a wayward province, and its self-image and geopolitical vision are deeply connected to reunifying the two territories. 
Pressuring foreign companies to refer to Taiwan as part of China -- on tickets, website drop-down menus and so forth -- is a means of advancing its foreign policy.
But like shoppers anywhere, China's consumers tend to be value-oriented more than anything else, and surveys indicate that while patriotism plays a role their purchasing decisions, quality, brand and price are typically far more important.
Hence a decade's worth of short, over-hyped Chinese boycotts.
The first notable one occurred in April 2008, after a Tibetan activist attempted to seize the Olympic torch as it was paraded through Paris. 
In Shanghai and other cities, protesters surrounded stores owned by French supermarket chain Carrefour SA as part of a general boycott. 
Keeping up that effort proved challenging, though, especially in China's summer heat. 
And before long, Chinese had turned their attention to other matters -- like the Olympics. 
Less than three months after the closing ceremonies, Carrefour announced 10 new store openings in booming south China. 
Shoppers flocked to them.
Similarly, after a territorial dispute with Japan erupted into violent protests across the mainland in August 2012, a boycott caused Mazda Motor Corp.'s sales to decline by 36 percent
But that drop, too, was short-lived. 
By November, sales were recovering (even as China faced its worst auto-market growth in a decade) and by April Japanese car exports were up by more than three-and-a-half times over their October low. (Post-boycott discounts likely helped.)
Protests targeted at specific corporate missteps also typically fizzle. 
Last year, footage of passenger David Dao -- who is partly of Chinese descent -- being beaten and dragged off a United Express flight in Chicago received tens of millions of views per hour in China, sparking calls for boycotts and widespread speculation that the airline's reputation would be permanently damaged among Chinese consumers. 
Despite the fury, United remains the largest foreign operator between China and North America.
Where company boycotts have been more successful, they've usually coincided with bigger problems. 
For example, when South Korea agreed to host an American antimissile system in 2017, a resulting protest appeared to put a big dent in Korean car sales in China. 
But that decline had actually begun before the protest, partly due to stiffening local competition and a poor mix of models on offer for the Chinese market. 
China's enthusiasm for other South Korean products -- such as soap operas and cosmetics -- continued unabated.
For similar reasons, Chinese passengers are unlikely to sustain a boycott of U.S. airlines. 
The government has long restricted domestic competition on the most popular routes to North America. 
And customers looking for choice, convenience and seamless transfers to U.S. cities will naturally turn to American carriers to provide them -- however they refer to Taiwan. 
Few fliers are going to choose Air China over Delta if Delta's prices and travel times are superior.
Of course, even a brief boycott can inflict damage. 
And the airlines can't dismiss this controversy entirely; China could also impose measures such as air-traffic control delays and intensified inspections. 
But like their counterparts everywhere else, Chinese consumers are far more interested in whether a product meets a need and a budget -- and far less on whether it was made by a rival.

Make Trump Rich Again

IVANKA TRUMP HAD MORE CHINA TRADEMARKS APPROVED ON SAME DAY TRUMP LIFTED SANCTIONS ON ZTE
BY JESSICA KWONG 

First daughter Ivanka Trump’s company received approval from China to register three trademarks on the same day her father, Donald Trump, agreed to lift sanctions against ZTE, a Chinese telecommunications company.
China granted registration approval for the three Ivanka Trump Marks LLC trademarks on June 7, Citizens for Responsibility and Ethics in Washington (CREW) found in a review of trademark database records on Wednesday. 
Trump saved the Chinese telecommunications company ZTE from financial collapse the same day by lifting tough American sanctions, despite opposition from some of his advisers and Republicans.
“The questionable part of this is, is there any significance to the timing of when she got registration?” CREW spokesman Jordan Libowitz told Newsweek on Wednesday. 
“You can’t say that there’s quid pro quo behavior, but the timing does raise questions that everything is happening around the same time.”
Ivanka Trump’s company, from which she stepped down upon becoming a senior White House adviser but has not fully divested, has received eight trademark approvals since May, Libowitz said. Besides the three trademarks approved on June 7—which were applied for in July 2016 and include rights to baby blankets, bath mats and textiles—other approvals from China occurred close to the date the president agreed to lift sanctions on ZTE.
“You can say that it is suspicious that all of the [approvals] happened around the same time,” Libowitz said. 
“It may be a coincidence, but if it is, it’s a coincidence that could have easily been avoided, and quite frankly, they should have avoided. Both Trump and Ivanka should have sold their assets when they got into the White House.” 
The Senate plans to challenge Trump’s decision to lift sanctions with a measure in the annual defense bill that would essentially block the deal, The Washington Post reported earlier this month.
Ivanka Trump's business was granted preliminary approval for three trademarks last year the same day she had dinner with Xi Jinping at Mar-a-Lago.
The Associated Press cast a wider net in its analysis of her trademark approvals in late May, reporting that she had been granted 13 within the previous three months.

mercredi 27 juin 2018

China Put on Notice by Australia's Anti-Interference Laws

U.S. looking to pass its own anti-foreign interference rules
By Jason Scott
Turnbull says Australia will stand up to China

Australia is set to become the first developed country to pass sweeping laws against foreign interference, in a move aimed at reducing Chinese meddling in national affairs and seen as the inspiration for legislation introduced in the U.S. Congress.
Two bills that toughen penalties for espionage and require people or organizations acting in the interests of overseas powers to register and disclose their ties were debated in the Senate Wednesday, a day after passing the lower house. 
They are supported by both major political parties, meaning they have enough support to become law as early as Wednesday.
“This is all about security and sunlight and sovereignty,” Prime Minister Malcolm Turnbull told reporters in Canberra. 
“We want to ensure that people who influence and make decisions about our democracy are Australians.”
The law risks exacerbating a diplomatic spat with Beijing, triggered in December when Turnbull said reports of Chinese meddling in Australia’s government, media and universities highlighted the need for the legislation. 
Since then, Australian exporters have blamed strained ties for delays of shipments into China, while the U.S. has pushed ahead with its own legislation.
These laws are a firm way for Australia to define its interests and protect its sovereignty as China seeks to expand its influence,” said John Blaxland, a senior fellow at the Australian National University’s Strategic and Defence Studies Centre in Canberra. 
“Chinese officials may be uncomfortable” because it will probably be demonstrative for other liberal, Western democracies, he said.
While Turnbull’s government has attempted to play down the diplomatic tensions, Chinese officials have been blunt. 
Foreign Minister Wang Yi last month blamed the difficulties on Australia while on June 19 China’s ambassador called for an end to the “Cold War mentality” and bias and bigotry affecting the relationship. 
Tensions began to escalate last year when Sam Dastyari resigned as an opposition senator over close ties with a Chinese-born businessman, who paid a $1,200 travel bill for him. 
The former lawmaker also warned the businessman that his phones were being tapped by Australian intelligence agencies.

Channeling Mao

Turnbull cited Dastyari’s behavior when the government introduced the foreign-interference legislation. 
Using broken Mandarin, Turnbull told reporters that the Australian people “stand up and assert their sovereignty” -- adapting a phrase attributed to Mao Zedong in 1949.
A worsening spat with Beijing could have economic implications for Australia, which is the most China-dependent major economy in the world.
The Australian legislation will widen the definition of espionage offenses and toughen penalties, as well as require registration and additional disclosure for parties acting on behalf of foreign governments. 
The two bills were agreed upon after being amended by a parliamentary committee to include protections for charities and religious groups.
Australian Federal Police Commissioner Andrew Colvin has welcomed the legislation amid what he’s called “unprecedented levels of foreign activity.”

U.S. Bill

The legislation has been closely followed in the U.S., which shares Australia’s concerns about China’s militarization of the South China Sea and is engaged in a trade war with Beijing.
A bill was introduced into Congress earlier this month by New Jersey Republican Chris Smith and six co-sponsors that would require the Trump administration to deliver a report to Congress within one year on Chinese attempts to influence U.S. politics, “including efforts to corrupt United States governmental or nongovernmental institutions or individuals.” 
The bill isn’t expected to receive a House vote for months, however.
China is making a coordinated effort to influence U.S. affairs through surveillance, Smith said in an interview from Washington on Monday.
“It’s an all-out effort,” by China, Smith said. 
“It’s happening all over Europe, all over Latin America and all over Africa. It’s happening in Australia as well, without a doubt.”