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- Frustration Over Huawei-ZTE Congressional Hearing
- Wukan June 2012, by Remko Tanis
- Wukan Villagers Protest Over Lack of Progress
- Observations of a Protest
- Is Winter Coming For The Chinese News Media?
- London Exhibit: My Tiananmen
- China Probing Protest Outside U.S. Embassy
- The Daily Twit – 9/20/12: Stop Me If You’ve Heard This Before
- Details of the Trials of Wang Lijun
Frustration Over Huawei-ZTE Congressional Hearing Posted: 20 Sep 2012 11:01 PM PDT On September 13, representatives of both Huawei and ZTE, two of China's largest telecom companies, were invited to Capitol Hill to testify at a hearing held by the U.S. House of Representatives Permanent Select Committee on Intelligence. The committee, as well as other parts of the U.S. government, have been investigating these companies due to their perceived ties to the Chinese government in general, and (in the case of Huawei) in particular the People's Liberation Army. When I first heard about this hearing, several months ago I believe, I thought it was a big win for these companies. There was so much rumor and speculation about these firms that the hearing would give them the chance to present their side and "clear the air." Perhaps that would lead to a better environment for these companies to then ramp up their U.S. foreign investment plans. Then again, maybe not. Reporting on the hearing, tech site CNET went with this headine: "Lawmakers frustrated by Huawei, ZTE during hearings." What was the problem? Apparently several of the members of the committee expected these folks to be more forthcoming during Q&A:
Granted, there are some legitimate issues here. ZTE has been accused of violating sanctions against Iran, Huawei has been less than forthcoming about its corporate structure, and neither company has explained in detail their relationship with government regulators. As potential investors in the U.S. or suppliers of sensitive technology, it is quite reasonable for the U.S. government to take a close looks at these guys. We're not talking here about a chair or a pair of shoes, but telecommunications infrastructure. So I'm willing to meet the U.S. government at least halfway here when it comes to investigating these companies. Moreover, I can understand the frustration of the committee members when they ask questions and receive unclear or evasive answers. After looking at the press coverage and some of the materials from the hearing, I have to admit that I'm somewhat frustrated too. However, for me the frustration stems from the difficult position Huawei and ZTE have been forced into and the useless nature of a hearing where the committee members have already made up their minds on the subject at hand. Before we get to some of the details, I also want to point out that it's not like these guys from ZTE and Huawei showed up out of the blue and that this testimony was the first time that these House members were exposed to these companies. No, in fact, the committee has been investigating them for some time, and there has been plenty of Q&A (written and oral), submitted materials, and even site visits (in China) made by members of the committee. I have to wonder whether the questions raised at the hearing had already been asked and answered a long time ago. And if not, why not? Perhaps the hearing was all a big media show? {gasp!} OK, let's look at some of these "frustrating" exchanges. Here's Rep. Sue Myrick, which some of you may recognize as the co-author of that disgusting letter about ZTE's legal representation (I wrote a lengthy rant on that topic last week):
Come on. This is an ongoing investigation, for which, by the way, Myrick doesn't think that ZTE should be entitled to legal counsel. And she's asking if they shredded documents? Are you shitting me? I wonder if she's ever asked that question before at a hearing? She was obviously just throwing crap out there in an attempt to make these guys look bad. Very common at a House hearing unfortunately. Here's a question that actually includes reference to Chinese law:
I'm not surprised that Ding, who works for Huawei, isn't familiar with that law. Unless I missed an amendment somewhere, I believe Article 11 of the Constitution says this:
Are you confused? Me too. Maybe he's trying to hang everything on that "supervision and control" language? I don't know where Schiff was going with that Constitution reference, but I understand his general point. What would Huawei or ZTE do if the State came knocking on their door and demanded that they cooperate in some way that would compromise privacy or integrity, etc.? Everyone knows the answer: they would cooperate! Ding replied that Huawei would refuse, which was obviously disingenuous, but what was he supposed to say? There was no good answer there, and Schiff certainly knew that when he asked it. And the underlying issue is an important one. If you believe, as it seems many House members do, that the Chinese government will use these companies to spy on the U.S., then it is troubling that they essentially cannot refuse a direct order from the public security folks. Fair enough, but then why bother asking the question? Everyone already knew the answer, and again, if you believe all that about Beijing and spying, then isn't your mind already made up on these companies anyway? Why bother with the hearing at all? The opening statement by Chairman Mike Rogers sheds more light on this. His prepared statement set out a very scary scenario, filled with the following kinds of accusations:
Rogers' statement ties all this in to accusations that have been made against China with respect to hacking and a variety of other cybersecurity and commercial espionage activities. The bottom line for Rogers is this: 1. China is a big time spy. 2. People say that Huawei and ZTE work closely with the government. 3. Chinese law forces Huawei and ZTE to work closely with the government. 4. Telecom is a sensitive sector. The argument makes sense, but the bottom line is frustrating not only for ZTE and Huawei, but for any Chinese telecom firm hoping to do business in the U.S. Why? Although Rogers and his fellow House members complained that these companies did not turn over sufficient documentation, the question remains what could have satisfied their concerns. To a certain extent, these companies are being asked to prove a negative. Prove that you are not somehow controlled by the government, or the army. Prove that you would not accede to the government's wishes when it comes to espionage. While there was obviously some documentation that the committee asked for that Huawei and ZTE, for whatever reason, simply refused to turn over, I'm not sure that doing so would have allayed fears anyway. If you read Rogers' statement, it doesn't just say that the House is investigating these companies because of the rumors surrounding them. His distrust also stems from the perception of China's record on cybersecurity issues and the inability of Chinese companies to refuse to cooperate with the State. As a practical matter, there is some merit to these arguments. However, what this means is that all Chinese telecom companies will suffer similarly, and none of them will be able to rise above suspicion sufficient to pass muster with the U.S. government. If I'm a Chinese telecom company with designs on the U.S. market, this is extremely disturbing. In addition to Rogers' statement, we also see this broad brush approach in the words of the ranking member, Rep. Ruppersberger, whose prepared remarks included this little nugget, which was apparently written by a third grader:
Poor grammar aside, his point is clear: these companies are Chinese, and the commies can force them to do their bidding. End of story. At the end of the day, I share the concern of U.S. lawmakers and believe an investigation makes sense. Moreover, if Huawei and/or ZTE refused reasonable document requests, this is a problem. On the other hand, it also seems clear that these House members are looking at all this in very simple, stark terms (i.e., China – Communist – authoritarian) that lead me to the conclusion that the hearing was a huge waste of time and not at all the opportunity that I originally assumed it could be. The big news here is that compared to the U.S. Congress, I come off as hopelessly optimistic and naive. Imagine that. © Stan for China Hearsay, 2012. | Permalink | No comment | Add to del.icio.us |
Wukan June 2012, by Remko Tanis Posted: 20 Sep 2012 11:56 PM PDT © Scott Greene for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us |
Wukan Villagers Protest Over Lack of Progress Posted: 20 Sep 2012 11:53 PM PDT A year after land grab protests began in the Guangdong fishing village of Wukan, and just six months after electing a new village committee in what many hailed as a new approach to dealing with social unrest in China, about 100 villagers gathered outside the village's Communist Party offices to voice their frustration at the lack of progress that their new leaders have made in securing the return of their land. From Reuters' James Pomfret:
The Financial Times reports that while some villagers have argued for more patience, others prefer action:
Meanwhile, the South China Morning Post reports that Guangdong party chief Wang Yang, who earned praise for his progressive handling of the Wukan incident, has made a fresh call for reform as he continues to maneuver for a seat on the next Politburo Standing Committee. But while The New York Times' Didi Kirsten Tatlow writes that Wang has positioned himself well as a reformer, The South China Morning Post's Mimi Lau asks whether the party is ready for him:
© Scott Greene for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us |
Posted: 20 Sep 2012 11:37 PM PDT The following dispatch was sent to CDT by an American who was visiting Shanghai during the recent anti-Japan protests:
© Sophie Beach for China Digital Times (CDT), 2012. | Permalink | One comment | Add to del.icio.us |
Is Winter Coming For The Chinese News Media? Posted: 20 Sep 2012 10:30 PM PDT Tea Leaf Nation's Yueran Zhang explores the shifting winds in the Chinese news media, where a number of "personnel earthquakes" have seen influential members of the country's independent media leave or be forced out of their positions this year:
Zhang's piece stirred up a lively debate in Chinese social media, even drawing comments from journalists such as Liu Jianfeng who had received mention in the article:
© Scott Greene for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us |
Posted: 20 Sep 2012 05:35 PM PDT A multimedia, cinematic exhibit exploring Tiananmen and its aftermath opens at London's Hundred Years Gallery tomorrow. In My Tiananmen: The Polyphonic History, classic films such as Lou Ye's Summer Palace and newer pieces like Shu Haolun's No. 89 Shimen Road will be complemented by artist Francis Chen's original work, including her short film Fireworks of 1989. From the website remotegoat:
Originally scheduled for just two days, the exhibit will now run through September 27. More information about the video installation, film screening and live events that comprise the exhibition is available from My Tiananmen's Tumblr site. © Anne.Henochowicz for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us |
China Probing Protest Outside U.S. Embassy Posted: 20 Sep 2012 08:31 AM PDT Chinese authorities are investigating a Tuesday incident in which a group of protesters harassed U.S. ambassador Gary Lockein his car outside the U.S. embassy. From Bloomberg Businessweek:
Dissident artist Ai Weiwei filmed the incident and posted the above video to Youtube, according to The New York Times, which also posted several photos and tweets that Ai had added about the incident. Professor Joseph Chung of Hong Kong's City University told Voice of America that the protest likely took Beijing by surprise:
See also CDT coverage of the recent anti-Japan protests. © Scott Greene for China Digital Times (CDT), 2012. | Permalink | One comment | Add to del.icio.us |
The Daily Twit – 9/20/12: Stop Me If You’ve Heard This Before Posted: 20 Sep 2012 07:08 AM PDT So I looked over my list of China news stories I flagged throughout the day for this post, and it occurred to me that with only a couple of exceptions, most of the articles cover ongoing topics. In other words, nothing much new happening over here, just updates. Maybe that's a good thing. What with the spat with Japan, crazy rumors about the health of the country's leaders, and the usual trade disputes, we could all use a moment to relax. So put your feet up, open a bottle of wine, put on some music, and read on, safe in the knowledge that nothing here is going to freak you out: Shanghai Daily: Japanese car production at a standstill — As I mentioned earlier in the week, there will be a lot of cleaning up to do following the anti-Japanese protests. The private sector will take some time to get back to normal. MarketWatch: Anti-foreigner sentiment hurts the economy — This article is not just about protest in China, but about nationalistic fervor across the world and how it negatively impacts globalization and liberalization. Some very good food for thought, particularly for foreign investors. Want China Times: Proview to be liquidated despite victory in Apple case — I keep saying that this story is over, and then something else happens. But actually, this is not exactly unexpected. After Proview failed to get 400 million bucks out of Apple, the writing was on the wall with respect to bankruptcy. This was inevitable. Financial Times: China: running short of water — OK, definitely not a new story. China's water woes are well known. The wrinkle here, though, is how this will effect the energy sector and production facilities. Hint: it's not good news. The Economist: Trade and the campaign - Chasing the anti-China vote — Discussion of the recent dual WTO cases filed by China and the US, and how this is being driven by the US election. Nothing new here, but a good analysis. Forbes: The Missing $1 Billion In The US Trade Complaint — Speaking of the auto parts dispute, Jack Perkowski takes a look at the numbers and concludes that the case is bullshit (I'm loosely paraphrasing). Seeking Alpha: Is China The Biggest Malinvestment Case Of All Time? — Economic doom and gloom story. Short version: China doesn't spend money very well because it is a command economy. It will therefore crash and burn (sometime). CNN: Manufacturing growth slows in China — More bad news, but not terrible and not surprising. PMI still under 50, but perhaps the slowdown has slowed down, if you catch my meaning. I could better illustrate what's going on with calculus . . . if I understood calculus. Wall Street Journal: Formerly Full Steam, China Shipping Risks Running Aground — Let's call this one of the "new" news stories of the day. It's another slow economy piece, which definitely isn't new, but it's the first article I've read about effects on shipping, so in my book, that qualifies as groundbreaking. Note: aside from the headline, the article contains no painful nautical puns or word play. Want China Times: Citron Steps Up Fight Against Chinese Entrepreneurs — The epic battle between investor Kai-Ful Lee and short seller Citron is proceeding apace. Sounds like the two sides are now lawyering up, perhaps in anticipation of a defamation case. Just between you and me, I'm enjoying the hell out of this. And the end of the day, though, I hope for Mr. Lee's sake that he has evidence showing that Citron made false statements in bad faith. Bloomberg: Microsoft Said to Ask China to Stop Piracy at Four Firms — Microsoft has had remarkable success here working with the government to stop piracy at government offices. Today's story involves four SOEs, including China Post. © Stan for China Hearsay, 2012. | Permalink | 2 comments | Add to del.icio.us |
Details of the Trials of Wang Lijun Posted: 20 Sep 2012 06:37 AM PDT Xinhua has published a detailed nine-page account of Wang Lijun's trial, held in Chengdu on Monday and Tuesday this week, for defection, abuse of power, corruption and "bending the law for selfish means".
Speaking to The New York Times, Wang's lawyer endorsed the Xinhua account as, for the most part, a faithful record of the proceedings. It offers some explanation for the unannounced early start of what, it was initially reported, would be an "open" trial:
Despite the gravity of these crimes, Xinhua explained, Wang's sentence is likely to be somewhat reduced because of his "meritorious reporting" of others' criminal acts. These others may include his former superior, fallen Chongqing Party chief Bo Xilai, who for the first time was officially linked to the events surrounding his wife's murder of Neil Heywood. The Xinhua account describes what would turn out to be a pivotal moment, soon after which Wang fled to the U.S. consulate in Chengdu; Bo is not named, but his identity is clear.
That Bo was told of his wife's crime and failed to bring it to light appears to implicate him in the cover-up for which Wang and four other police officers have already stood trial. Observers disagree, however, over what the episode's inclusion in the official record means for Bo's fate. From The Guardian:
But others have read it as a sign of possible criminal proceedings. June Teufel Dreyer of the University of Miami told Bloomberg, for example, that "the nuggets are the clues which could lead to a Bo Xilai indictment later on. They have very cleverly left the door open with several phrases." The Financial Times' Kathrin Hille wrote that this interpretation is consistent "with information recently given to senior party members. Lin Zhe, a professor at the Central Party School, said the main point that the internal investigation had found Mr Bo guilty of was helping to cover up for his wife." The Wall Street Journal's Deborah Kan discussed the issue with Jeremy Page, who concluded that an announcement on Bo's fate is likely "in the next couple of weeks, or immediately after [the] National Day holiday". The final section of the Xinhua account is devoted to emphasising the investigation and trial's thoroughness, fairness and strict adherence to procedure:
Global Times elaborated, stressing the inevitability of justice in China and invoking a favourite recent theme, the awesome "moral whip" of online scrutiny.
But the Xinhua account leaves some questions unanswered. Siweiluozi wondered, for example, what evidence exists that Wang had applied to the U.S. for asylum, justifying the charge of defection.
Xinhua's description of Wang's actions after he was drawn into Gu's conspiracy, such as secretly keeping hold of evidence against her, shows his acute awareness of being on treacherous ground. But according to a profile of Wang's earlier career by The Telegraph's Malcolm Moore, he had known for many years that his position was precarious:
© Samuel Wade for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us |
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