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Foreign Resistance to China’s Forced Certification of IT Products

The China National Certification and Ratification Regulatory Committee announced that it will defer  implementation of its “IT Product Safety Forced Certification System” for one year. The scope of the forced certification has also been reduced to government-procured IT products only. However, Japan, European countries, and the US all expressed concerns about China’s policy.

The certification system dictates that makers of thirteen IT products, which have been either imported or produced in China, including anti-spam software, firewalls, network monitoring and control systems, and OS for IC chips, must disclose the source code to Chinese government for certification. However, the source code is the intellectual property and core compatibility of the software producers. Foreign countries are concerned that Chinese producers may produce copycat products once businesses disclose these trade secrets to China. Also, exposing source code for network tools will allow China freedom to browse private information on the Internet.

Source: The Liberty Times, May 1, 2009

Hangzhou Regulation: No Anonymous User on the Internet

The highly visible “Hangzhou City Computer Information Network Safety Protection Management Regulation” went into effect in Hangzhou City, Zhejiang Province on May 1, 2009. The regulation states that no company or person may use computer networks to spread rumors, disturb social order, or destroy social stability; encourage the public to criticize others, expose others’ privacy, or make even subtle personal attacks; or publicly insult or fabricate lies to slander others. On-line service providers must record the valid identification information of the user when he/she is applying for service. [1]

Yangcheng Evening News published several articles to point out that the internet users’ dismay about the tighter government’s restriction over freedom of speech on the Internet. [2] [3] [4]

[1] Zhejiang News, May 1, 2009
[2] Yangcheng Evening News, May 2, 2009
[3] Yangcheng Evening News, May 3, 2009
[4] Yangcheng Evening News, May 4, 2009

Internal Strife Drags the Progress of Combined Operations in Military

Xinhua published a People’s Liberation Army’s (PLA’s) Daily article reporting that internal strife has significantly impacted the military’s performance in combined operations.

The report listed the reasons for internal strife as: poor willingness to collaborate with other military units, out-of-date command structure and system, and lack of standardized information technology systems among military groups. Lack of processes, out-of-date combating systems and equipment, and insufficient training and practice are also listed as causes for poor performance in combined operations.

Source: Xinhua, April 23, 2009

Why Foreign Investments “Flee” China?

International Herald Leader, a newspaper under Xinhua, published an article reporting that it became popular for foreign business invested in China to take their money and run away, abandoning their companies or factories in China and without filing for bankruptcy.

There are reasons for foreign investors to choose the “flee” strategy instead of a normal exit process. First, China has a lengthy process for foreign companies to terminate business in China. The bankruptcy process lasts 65 to 165 days. Some local governments even drag it to six months or a year. Second, China’s law requires the company to bear “unlimited liability” for its debt even after it declares bankruptcy.

“(If it is) easy to enter but hard to exit, (it) is definitely not a good investment environment.” said a Japanese trade promoter in Beijing.

Source, International Herald Leader, April 24, 2009

China Loses 160 Thousand Acres of Cultivated Land Annually Due to Soil Erosion

China News reported that on April 12, 2008, Chen Lei, the Minister of the Ministry of Water Resources said that China lost more than eight million acres of cultivated land due to soil erosion in the past fifty years, averaging an annual loss of 160 thousand acres.

Chen Lei said that the northwest region loses one centimeter of surface soil every year. In some parts of northeast China, which has always had rich soil, the depth of cultivated soil has decreased from one meter to less than twenty centimeters. 77% of the land in northern China has less than 30 centimeters of surface soil.

Soil erosion not only destroys soil resources, but it is also a main factor for pollution. China’s scientists estimate that soil erosion creates economic loss of 2.25% of the GDP. The environmental damage is immeasurable.

Source: China News, April 12, 2009

Xinhua: China Is Building up Its Satellite Navigation System

After China launched the second satellite of its Compass Navigation Satellite System (CNSS) on April 15, Xinhua published articles stating that China is building up its own satellite navigation system. Ten satellites will be launched in this year and next year, a global navigation system with over thirty satellites covering the entire world will be in place by 2015.

Xinhua stated that the global navigation system is largely for military use. It also mentioned that CNSS will help break the US’ monopoly in the world’s global positioning and navigation system business.

The positioning accuracy of the newly launched satellite is at the centimeter level.

Source: Xinhua, April 17, 2009

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