Tuesday, December 29, 2020

Beijing Playing Prison Warden on the World Stage

"You may have a very small chance of being the one they decide to detain, but it's years of your life."
"I have lots and lots of friends and relatives in China, as well as a business. But I feel like it's just not worth the risk."
"[The company has however compartmentalized information to protect the organization on the ground], because you never know what can be construed in the wrong way."
"We’ve become very careful about that sort of thing [unintentionally arousing Beijing's ire, and facing arbitrary detention in China]. And we didn’t used to be."
Anne Stevenson-Yang, co-founder J Capital Research, Northeast U.S.

"Beijing's record of detaining individuals in retaliation for the perceived transgression of their home government should be a geopolitical risk on the radar of every C-suite executive."
Hugo Brennan, Asia analyst, risk consultancy firm Verisk Maplecroft

"We have received calls from member companies about the possibility of arbitrary detention."
"Our view is that the risk is small, but it's not zero."
Ker Gibbs, president, American Chamber of Commerce, Shanghai
 
"It works because, while it is shocking, deeply harmful for the detainee and places enormous political pressure on the foreign government, it is also judged by foreigners as sufficiently rare as to be a manageable risk, something that doesn’t really disrupt profitable business for China."
David Mulroney, former Canadian ambassador to China
A passenger walks through the near empty departure hall at the Wuhan Tianhe International Airport in Wuhan, China, on Saturday, May 2, 2020. The big three state-run Chinese airlines reported a slump in earnings in the first quarter as the coronavirus upended travel demand, but there are signs the worst of the crisis is over for them. Photographer: Qilai Shen/Bloomberg

The Panopticon Is Already Heren  The Atlantic

Xi Jinping is using artificial intelligence to enhance his government’s totalitarian control—and he’s exporting this technology to regimes around the globe.

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Monday, April 08, 2019

The Huawei Charm Offensive

"That's more than just Huawei. This is just a western bias against China. That goes back culturally."
"The country and the company all need to learn how to tell a better story. This is why I'm now able to talk to you."
"I don't think we trust anybody. We've operated for a long time on the basis you can't trust vendors to have secure equipment."
Huawei spokesman

"There's nobody that does customer centric the way Huawei does customer centric."
"Anybody that breaks those rules is automatically terminated. We've always had to pay more attention than our peers in the industry just to keep the playing field level."
"It's time that we come together as an industry to get working with regulators, to get working with governments to build a common standard to say if you want to play in this space, this is what you have to do."
Leroy Blimegger, global president, assurance and managed services, Huawei

"They've been a little naive perhaps ... all these political shenanigans are not something that they're used to."
"It's the old chestnut that it's impossible to prove a negative. They can say till they're blue in the face, 'We'd never share information with the Chinese government'."
Peter Richardson, research director, Counterpoint Research

Map of Shenzhen

Ren Zhengfei, a former military engineer with the Chinese military, began his now-giant communications/electronics corporation with modest funding soon after Deng Xiaoping had declared Shenzhen, a semi-rural city, open for business on a modified Communist free-enterprise model. The-then fishing village of some 30,000 inhabitants in 1987 has since grown through its status as a special economic zone with freer markets, into a massive metropolis of 12.5-million people. As Shenzhen has grown, so too has Huawei.

In 2017, the Chinese Communist Party brought the National Intelligence Law into service whereby all Chinese organizations and citizens are obligated to support, assist and co-operate with intelligence officials. This is their first order of business; to spy for or along with the CCP. Yet Huawei insists all security protocols are scrupulously adhered to by them. Charging that it is being targeted with anti-China biases by those resentful of its ascent to the top of its game worldwide. As though to stress its bona fides Huawei calls for industry-wide cybersecurity standards.

Since Huawei's chief financial officer, Meng Wanzhou, daughter of the company's founder, was arrested in Vancouver on an extradition request from the U.S. on charges of conspiracy to commit bank fraud, and China responded with great alacrity and even greater recrimination by arresting two Canadian businessmen, upgrading a third's prison sentence to a death sentence for drug running, the suspicion with which Huawei's security is viewed globally has intensified.

Huawei is busy courting contracts for 5G communications upgrades, assuring its potential clients of its security protocols and that the 32-year-old company has never and never would, acquire data on foreign nations through its systems distribution, holding to industry-wide cybersecurity standards. Its reputation has suffered quite a blow with the detention of Ms. Meng and the U.S. charges against the company erupting from manoeuvring to do business with Iran, despite U.S. sanctions.

Close to 50 percent of Huawei's $107-billion in global revenue emanates from business outside China; over a quarter of its revenues derive from contracts in Europe, the Middle East and Africa. North America, minus the U.S., supplied about $7-billion of Huawei's global revenue. It has invested research and development in Canada to the tune of $30 million annually; the third-largest target for R&D spending; 5G innovation centered to a large degree in Ottawa.
A hostess waits to welcome journalists at the Huawei Beijing Executive Briefing Centre in Beijing. Fred Dufour/AFP/Getty Images

Ten percent of its global research budget goes to basic research at Canadian universities. Recently a new report was released in the United Kingdom focusing on its Huawei CyberSecurity Evaluation Centre, set up as an oversight facility to test the company's gear for the presence of vulnerabilities. The report revealed "serious and systemic defects in Huawei's software engineering and cybersecurity competence"; that the U.K. security system could provide only limited technical assurance for the equipment; on the other hand that it "does not believe that the defects identified are a result of Chinese state interference".

Huawei has built over 1,500 networks around the world, built a base station on Mount Everest, its equipment was used in one of the first LTE networks with Telia Sonera in Norway. After three decades of accelerated growth Huawei is the world's largest telecommunications equipment manufacturers. It employs close to 188,000 people, operating in over 170 countries and regions of the world. In 2018 the company sold over 200 million smartphones as the third-largest smartphone provider globally.

The company has offered a lower price point to establish its foothold in emerging markets. Carriers in developed countries understood by 2009 that Huawei gave good service at a competitive price: "4G was the first time Huawei showed it could compete with the best", said Dexter Thillien, telecom analyst at Fitch Solutions based in London. With higher quality on offer, the company was able to compete even in Chinese cities where western company services had dominated. According to Thillien and other analysts, Huawei is in the lead with 5G, thanks to its massive investment in R&D.

Yet many governments nervously view what they see as a lack of transparency over Huawei's ownership structure and its relationship with the Chinese government. Australia and the U.S. have acted on that suspicion by banning Huawei. Parts of Europe seem to be swaying in the same direction, even while Germany, Italy and France seem to be leaning toward the Telus view in Canada to continue its collaboration with Huawei on the basis that the company's equipment is permitted in the periphery but not the core network.

While swearing it has never, would never spy for the Chinese government, that it follows the rule of law wherever it operates and blames suspicion on rogue employees, it isn't convincing everyone who matters. Huawei cannot shake itself free of suspicions that it acts as an arm of the state, its high-tech equipment could contain back doors allowing the Chinese government to conduct espionage or insert code with the potential to shut down an entire network....

A staff member of Huawei uses her mobile phone at the Huawei Digital Transformation Showcase in Shenzhen, China.Wang Zhao/AFP/Getty Images

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Monday, October 08, 2018

Desperately Seeking Haven

"In Yemen, bomb, bomb, bomb every time. No water, no electricity, no job, no school, nothing. How can I give a good life for my son?
"Word spread about Jeju, and I heard I may have a chance."
Muaadh Galal Mohammed al-Razeqee, Jeju, South Korea

"They can take many wives and produce many children."
"Now, there are five hundred of them. In ten and twenty years, how many of them will there be?"
Yang Eun-ok, 70, leadr, Jeju protest

"There was no safe place in Yemen for me to hide."
"I heard South Korea was open for Yemenis."
Hani al-Junaid, 37, journalist, Jeju, South Korea
Anti-immigration activists attend a protest against a group of asylum-seekers from Yemen, in Seoul on June 30, 2018.
Anti-immigration activists attend a protest against a group of asylum-seekers from Yemen, in Seoul on June 30, 2018.

AirAsia in December began flying direct budget flights from Kuala Lumpur, Malaysia to Jeju in South Korea. Yemenites fleeing the deadly sectarian-fuelled civil war that has become a proxy war between the Shiite Islamic Republic of Iran and the Sunni Kingdom of Saudi Arabia, who were allowed temporary visas to travel to Malaysia -- yet another Muslim-majority country -- saw those direct flights representing a way into mainland South Korea for asylum seekers on the subtropical island.

In the last several months the island that has a reputation as a honeymoon resort island has been visited by asylum seekers for whom their homeland has become an utter catastrophe; death by Houthi Shiites, or Saudi bombs, desperation of malnutrition and disease, nothing left for them in their homeland -- a place of conflict that the United Nations titles "the world's largest humanitarian crisis".

Jeju, off South Korea's southern coast, is where Yemeni refugees wait for the South Korean government to respond to their refugee applications. Their presence on the island, however, has led to an organized anti-asylum movement of "Let's kick out fake refugees!" A summer anti-refugee protest rally on Jeju reflected one held in Seoul. President Moon Jae-in received an online petition with 714,000 signatures, demanding a stop to taking in asylum seekers.

In the tumult of the violence of the civil war in Yemen, thousands of its citizens fled to Malaysia. One Muslim nation surrendering its population to another, for haven from destruction and death. But Malaysia will only permit the refugees a maximum relief of 90 days, refusing to even consider granting them refugee status. So they flee to Jeju and in so doing the former domestic vacation spot is no longer popular with South Koreans.

South Korea in 2002 granted permission to the island to introduce a no-visa policy for most foreign visitors; the perfect solution to fleeing Yemenis' search for haven, the refugees imagined. More recently, however, South Korea placed Yemen on its list of 11 other countries requiring visas to enter Jeju. The South Korean government barred 487 Yemeni asylum seekers still on Jeju from leaving for the mainland.

They must await the results of their applications for refugee status review while on Jeju. There are a relatively paltry several hundred Yemenis on the island, a minuscule percentage of the Island population of 660,000, yet their presence generates concern, sliding into fear. "If these people are safe, why doesn't the government let them move on to the mainland as they wanted to?" questioned Kim Jin-yi 32, an attendee of the Jeju protest.

Like Japan, South Korea prides itself on its homogeneous society, has been traditionally averse to receiving asylum seekers. Its location has helped in not presenting it as a major destination for refugees other than from its neighbour, North Korea and for whom the South has no qualms about accepting as compatriots.

In 2013, under pressure from rights groups, South Korea adopted a new law providing protection for refugees, seeing since then the number of asylum applications rise from 2,896 in 2014 to 9,942 last year. There are warnings internally circulating on the Internet of an invasion of Arab terrorists or rapists. The dysfunctional world of Islam creates the world's greatest number of refugees desperately fleeing oppression, violence and death.

Those Islamic countries not in conflict refuse to give haven to their co-religionists.

Anti-immigration activists attend a protest against a group of Yemen asylum seekers, Seoul, June 30, 2018.
Anti-immigration activists attend a protest against a group of Yemen asylum seekers, Seoul, June 30, 2018.

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