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China to Discipline Mobile Browsers

On October 26, the Cyberspace Administration of China (CAC), the country’s top Internet censorship authority, made an announcement on its Wechat account that a campaign is underway to shake up the mobile browsers, that is, the web browsers designed for use on mobile phones. The first batch of targets includes eight popular mobile browsers in mainland China: UC, QQ, Huawei, 360, Sogou, Xiaomi, vivo, and OPPO.

The announcement vowed to focus on three prominent problems. “The first is about online news and information that the ‘self-media’ illegally edited and published. The second is sensational headlines that feature malicious exaggeration, smear campaigns, and publicity stunts. The third is harmful information that violates ‘socialist core values.’”

Between October 27 and November 9, those who operate the browsers are required to “conduct in-depth self-inspection and rectification according to the list of issues and submit a rectification report and standard of contents to the cybersecurity authorities by 5:00 pm November 9.”

The cybersecurity regulators will inspect and reevaluate the self-inspections by the operators. For the mobile browsers that have outstanding problems after the inspection, there will be punishment as serious as the suspension of business.

Source: Cyberspace Administration of China, October 26, 2020
http://www.cac.gov.cn/2020-10/26/c_1605276242092309.htm

Wang Qishan Warned against Risk of Financial Bubbles

According to Hong Kong Economic Times, China’s Vice president Wang Qishan gave a video speech at the Bund Summit 2020 held in Shanghai on October 24. Wang said, “The Financial sector, when separated from the real economy, is ‘water without a source and a tree without roots.’ The financial sector cannot take the crooked path of speculation and gambling, the wrong path of the self-circulation of financial bubbles, and the evil path of Ponzi schemes.”

Wang also emphasized that, among the three principles of safety, liquidity, and efficiency that the financial industry must follow, “safety always comes first.” He also maintained that the bottom line is that no systemic risks should be taken.

He added that, as new financial technologies have been widely used and new business models have emerged, financial risks are on the upsurge. It is necessary to strike a balance between encouraging financial innovation, expanding financial openness, and strengthening supervision over the industry.

Source: Hong Kong Economic Times, October 25, 2020
https://china.hket.com/article/2785682

Package Delivery Companies in China on Strike

Recently, people in many parts of China have complained about the delay in package delivery. The media reported that a number of package delivery companies are on strike due to wage cuts. The strike highlights the unhealthy price competition among the booming package delivery companies in China.

Metropolitan newspapers reported that due to rising logistics costs, some delivery companies chose to cut the delivery fee paid to couriers to save money. One company cut the delivery fee from the original 1.2 yuan (18 cents) per item to 0.5 yuan (7.5 cents).

The couriers who went on strike came from companies including ZTO Express, Yunda Express, Best Express, and the YTO Express Group. The affected areas included Changsha in Hunan province, Sanming in Fujian province, Hebei province, Suzhou in Jiangsu province, and Changchun in Jilin province.

The booming e-commerce in China has sent the package delivery industry on a high growth path. Although companies such as SF Express, Yunda Express, and STO Express have gone public, the industry has been stuck in a price war for a long time.

For example, in 2015, in Yiwu city of Zhejiang province, the delivery fee was 7.44 yuan (US$ 1.11) per item, and in the first half of 2019, it dropped to only 3.45 yuan (52 cents). Parcels under one kilogram had a fee as low as 1 yuan (15 cents).

In addition, most couriers, except SF Express employees, are paid using a piece rate only and have no minimal pay.

Source: Central News Agency, October 18, 2020
https://www.cna.com.tw/news/acn/202010180200.aspx

India warned Amazon and Flipkart about Products’ Country of Origin

The Indian government issued warning letters to Amazon’s Indian unit and Walmart’s Flipkart, stating that the two e-commerce companies did not indicate the country of origin for the goods sold on their platforms, a violation of government regulations.

Reuters reported on Saturday, October 17, that at a time of intense India-China relations, the letter that the Ministry of Consumer Affairs, Food and Public Distribution issued on Friday showed that the Indian government has strengthened the implementation of the regulation as one of its attempts to slash imports of goods made in China.

The Ministry gave these two companies 15 days to explain why the goods sold on the platform did not indicate the country of origin, and threatened that it would then take action. However, the letter did not mention the specific actions to be taken, referring only to legal actions that have provisions for fines.

After the bloody border conflict between India and China broke out in June of this year, relations between the two countries have continued to escalate. India has since blocked at least 177 mobile applications from China, and Chinese products exported to India have also met with additional inspections and delays.

Source: Voice of America, October 17, 2020
https://www.voachinese.com/a/amid-tensions-with-china-india-warns-amazon-flipkart-over-country-of-origin-rule-20201017/5625414.html

Concerns over China and UN’s Joint Data Center

China’s investment in data collection has increased in recent years, with its tentacles extending around the globe. There have been concerns about the news that China will cooperate with the United Nations to establish a data center.

Xi Jinping, the head of Chinese Communist Party, said at the general debate of the 75th session of the UN General Assembly, “China will set up a UN Global Geospatial Knowledge and Innovation Center and an International Research Center of Big Data for Sustainable Development Goals to facilitate the implementation of the 2030 Agenda for Sustainable Development.”

According to the Chinese government website and state media, as early as April last year, the Ministry of Natural Resources signed a memorandum of intent with the UN Department of Economic and Social Affairs in Beijing to initiate preparations for the establishment of a United Nations Global Geospatial Knowledge and Innovation Centre in Deqing, Zhejiang. The work aims to share global geospatial data and promote exchanges and cooperation among UN member states in the field of geographic information. In addition, the National Bureau of Statistics of China and the United Nations Department of Economic and Social Affairs will jointly establish the big data research institute which will also be located in Hangzhou, less than an hour away from Deqing.

Ms. Rosett, an adjunct fellow with the Hudson Institute, wrote a Wall Street Journal opinion article in which she stated, “Mr. Xi’s promised U.N.-China geospatial and big-data complex would allow for detailed mapping of everything from topography and infrastructure to human behavior, across time and around the globe. China under its own steam is already collecting and in some cases pilfering troves of data world-wide. However, the U.N. badge of legitimacy would make it easier for Beijing to secure flows of data from member states, influence U.N. standards and norms for such data collection, shape the results, feed them into the U.N. system—and project the Chinese Communist Party’s techno-tyranny around the world.”

Source: Radio Free Asia, October 14, 2020
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/hj-10142020135400.html

Hong Kong Government Requires New Civil Servants to Swear Allegiance

In response to the demonstrations reflecting the anti-extradition law amendment movement, the Hong Kong government now requires new civil servants to swear allegiance to the Basic Law and the Special Administrative Region (SAR).

The SAR Government announced on October 12 that civil servants appointed on or after July 1 of this year will have to declare their support for the Basic Law, swear loyalty to the Hong Kong SAR and vow to be accountable to the SAR government.

A spokesperson for the Civil Service Bureau (CSB) said that the move is to strengthen civil servants’ awareness of the expectations and responsibilities of public office, help further maintain and promote the values that civil servants should abide by, and ensure that the Hong Kong government has effective governance.

After the outbreak of the anti-extradition law amendment movement in Hong Kong last year, some civil servants who participated were punished. According to the figures, as of July, 46 civil servants had been arrested in the demonstrations.

Source: Central News Agency, October 12, 2020
https://www.cna.com.tw/news/acn/202010120207.aspx

China’s Draft Data Security Law: Foreign Companies Caught in the Middle

In July of this year, the Chinese government introduced the Draft Data Security Law. Article 2 of that law states that the law’s jurisdiction extends to “organizations and individuals outside of” China who engage in data activities that harm China’s national security or the public interest of the Chinese people. It is expected that the law will take effect after being discussed and passed at the National People’s Congress next year.

Observers pointed out that the Chinese government may use Article 2 of the law, which extends the legal responsibility for data security to other parts of the world, to achieve its political purposes.

James Andrew Lewis, senior vice president and director of the Technology Policy Program at CSIS, (The Center for Strategic and International Studies) told Voice of America, “The bill gives Chinese authorities the ability to regulate data controllers, whether they are in China or outside of China, so it has an extra-territorial effect.”

Dr. Lynette Ong, an associate professor of political science at the University of Toronto, said that the draft law is certainly a deterrent to foreign companies, just like the Hong Kong National Security Law. “In fact, the effect of this law is to legalize their (the government’s) actions … but this does not mean that, without this law, no action would be taken. If any foreign organization’s actions harm China’s interests, they would also take action, even if there were no such law.”

In addition, under Article 32, as long as the police or another law enforcement agency adheres to relevant law and procedures vis-à-vis a request to access data, data holders will be obliged to cooperate.

Professor Ong said that this legal provision may worry the chief executive of a foreign company. “If I were the chief executive officer of a data company, I might be worried about whether to continue to operate in China. I think data companies are particularly sensitive, because their customers have high expectations for data security. Therefore, if a certain standard cannot be met, they may leave mainland China completely. In fact, this will have a certain impact on the Chinese economy.”

 

In 2005, Shi Tao, a Chinese journalist, writer and poet, was sentenced to 10 years in prison for releasing a document of the Communist Party to an overseas Chinese democracy site. Yahoo!-China was later discovered to have facilitated his arrest by providing his personal details to the Chinese government.

Source: Voice of America, October 12, 2020
https://www.voachinese.com/a/China-data-security-law-its-impact-on-foreign-companies-in-China-20201012/5618170.html

China Tightens Control of Muslims and Bans Private Hajj Affairs

On October 12, the United Front Work Department of the Chinese Communist Party (CCP) released the “Administrative Measures for Islamic Hajj Affairs” on its WeChat public account and announced that it will be implemented in December. According to the new regulation, except for the Islamic Association of China (IAC), the government organization of Muslims, no one else can organize Hajj activities. Hajj is an annual Islamic pilgrimage to Mecca, Saudi Arabia, the holiest city for Muslims. Hajj is a mandatory religious duty for Muslims that must be carried out at least once in their lifetime by all adult Muslims who are physically and financially capable of undertaking the journey and can support their family during their absence.

The “Measures,” consisting of seven chapters and 42 articles, specifies that Chinese citizens who believe in Islam can only participate in the activities that the IAC has organized if they want to participate in the Hajj. The activities have to be organized and planned in an orderly manner, and proceed in accordance with the law. Except for the IAC, no other organization or individual may organize Hajj activities.

The “Measures” declares that those who organize citizens’ Hajj affairs without authorization or who provide resources for illegal Hajj activities shall be punished. If a crime is committed, criminal responsibility shall be investigated and pursued.

The “Measures” also mentions that people who intend to participate in the Hajj must register in advance with the religious affairs office in the location of their household registration. After unqualified applicants are reviewed and eliminated through screening, the provincial governments will announce the province’s approved list. “Patriotism, being law-abiding, and having good character” are the top qualifications for applicants.

The “Measures” require relevant government bodies to carry out the administrative work, stop illegal Hajj activities, and also oppose religious extremism.

Source: Central News Agency, October 12, 2020
https://www.cna.com.tw/news/acn/202010120217.aspx