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Briefings - 1142. page

Computers in China to Have Pre-Installed Internet Filtering Software

On May 19, 2009, the Ministry of Industry and Information Technology (MIIT) issued a notice regarding the pre-installation of Internet filtering software. The notice said that, in order to control the low and vulgar contents on the Internet and to protect minors from exposure to the harmful "bad information," all computers manufactured or sold in China after July 1 should have "Green Dam-Youth Escort" software pre-installed. The software provides functions to block sexual content, filter websites deemed improper, control Internet browsing time, and record the web site visiting history.

According to Computer Science and Engineering Division of The University of Michigan’s research, "Green Dam scans text entry fields in various applications for blocked words, including obscenities and politically sensitive phrases (for example, references to Falun Gong). Blacklisted terms are contained in three files…" The researchers "also found what appears to be a word list for a more sophisticated sentence processing algorithm in the unencrypted file FalunWord.lib," which is dominated by Falun Gong related terms and sentences.

Many newspaper and Netizens expressed their angst with MIIT’s forceful imposition of more Internet control. China News Services’ survey on June 11 showed that only 20% of the people supported MIIT’s position. MIIT declared that "(the Green Dam-Youth Escort) software will not monitor user’s Internet behavior, nor was it to collect any user information."

Source:
[1] Miit.gov.cn, June 9, 2009
http://www.miit.gov.cn/n11293472/n11293832/n11293952/12398220.html
[2] Nanfang Daily, June 9, 2009
http://www.nanfangdaily.com.cn/nfjx/200906090005.asp
[3] China News, June 11, 2009
http://www.chinanews.com.cn/it/it-itxw/news/2009/06-11/1729900.shtml
[4] The Computer Science and Engineering Division of the University of Michigan
"Ananlysis of the Green Dam Censorware System"
http://www.cse.umich.edu/~jhalderm/pub/gd/

Briefings | | |   Information/Technology

Outlook Weekly: Reflections on the Korean Peninsula

Outlook Weekly, in the 23rd issue of 2009, published an article by Zhu Kechuan, a researcher in Xinhua Research Center for World Affairs, regarding the current situation of the Korean Peninsula. It criticized the U.S., Japan, and South Korea’s approach to North Korea. Zhu argued that right now, the U.S. is falling into the mire of financial crisis and is also facing the hard-to-clean mess of Iraq and Afghanistan. "The U.S. government should think about that; it is not an easy thing to use hegemonism to ‘fix’ another country no matter how big or small and how rich or poor that country is." Zhu also stated, "Japan should also be clear: You can’t cheat the world to wash off the historical responsibility for Korea or take this opportunity to break through the constraint of ‘Peace Constitution’…South Korea should reflect too: What benefits do the government and people get from its changing the policy of national reconciliation since last year?"

Though China is always a strong backer of North Korea, the article also criticized North Korea: "What is the best way to achieve the dream of a ‘strong big country?’ Using ‘super-tough’ to respond to other countries’ ‘tough’ will get North Korea nowhere. Nuclear weapons can indeed scare people, but they still failed to prevent the collapse of the Soviet Union."

Source: Outlook Weekly, 23 rd issue of 2009
http://lw.xinhuanet.com/htm/content_4768.htm

Briefings | | |   Geo-Strategic Trend

Chinese Academy of Sciences Releases Technological Roadmap for Next 50 Years

On June 10, the Chinese Academy of Sciences released a strategic research report entitled “Innovation 2050: Scientific Revolution and Future of China.” A technological roadmap for the next 50 years, the report covers 18 key areas including energy, population health, space, the ocean, information, national, and public security.

Over 300 experts from the Chinese Academy of Sciences spent more than a year to develop the report, which clearly defines the focal point for future technology development and lists 22 strategic technology issues which will affect the modernization of China. The roadmap is divided into three phases which will be revised every five years.

Source: Xinhua, June 10, 2009
http://news.xinhuanet.com/politics/2009-06/10/content_11521348.htm

Briefings | | |   Information/Technology

China Concludes $4.7 billion Oil Deal with Iran

The International Herald Leader under Xinhua reported an Iranian government release that China National Petroleum Corp. (CNPC) and Iran had signed a $4.7 billion dollar contract on June 3 for the upstream development of phase 11 of the South Pars natural gas field. “The aim in implementing the project will be to produce 50 million cubic meters a day of natural gas and other products.” The implementation will begin in three months. Xinhua states that the agreement with CNPC was in response to the French oil company Total’s delays in finalizing negotiations. “Deputy Oil Minister for Production Affairs Seyfollah Jashnsaz expressed that the concluding the agreement fully demonstrates that the sanctions the West has imposed on the Iranian oil and gas industry has failed and has no effect.”

Source: Xinhua, June 8, 2009
http://news.xinhuanet.com/herald/2009-06/08/content_11506744.htm;
See also Islamic Republic News Agency at
http://www.irna.ir/En/View/FullStory/?NewsId=527336&IdLanguage=3

Briefings | | |   Geo-Strategic Trend

China to Raise Export Tax Rebates for the Seventh Time Since August 2008

The Chinese Ministry of Finance and the State Administration of Taxation announced that, effective June 1, 2009 export tax rebates will be raised for processed farm products, machinery, shoes, glassware, iron and steel products, covering more than 2,600 items. It is the seventh time since August 2008 that China has raised export tax rebates to shore up its exports.

Source: The Central People’s Government of the People’s Republic of China, June 8, 2009
http://big5.gov.cn/gate/big5/www.gov.cn/jrzg/2009-06/08/content_1334929.htm

Briefings | | |   Economy/Resources

China Loosening Controls over Domestic Enterprises’ Overseas Purchases

Nanfang Daily reported that China has made policy changes to smooth the process for domestic enterprises to buy properties overseas. There are three check points for such purchases: National Development and Reform Commission (NDRC) – checks on whether the investment is in line with national interests; Ministry of Commerce – checks on trade balance, anti-trust, WTO suit, etc; and State Administration of Foreign Exchange – approves use of foreign currencies. The Ministry of Commerce has relaxed their control.

In 2009, the State Administration of Foreign Exchange published “Foreign Currency Management Regulations on Domestic Enterprises’ Overseas Investments (Draft of Soliciting Opinions),” which changed the funds source verification process from approving before the investment to recording after the investment.

The Ministry of Commerce published “Measures for Overseas Investment Management” in March. The regulations have the following changes: 1. Ministry of Commerce will only review and approve a limited number of large overseas investments. 2. The process is simplified so that most companies only need to submit a form and receive an investment certificate in three working days. 3. The financial viability and feasibility of the investment is left to the company to decide.

Source: Nanfang Daily, June 2, 2009
http://www.nanfangdaily.com.cn/epaper/nfrb/content/20090602/ArticelB03002FM.htm

Briefings | | |   Economy/Resources

China May Discount J10 Fighter Plane

Eastday Website, the largest portal site in Shanghai, reported that China is likely to sell its J10 fighter plane on the international weaponry market at a discount. The Eastday report is based on a report from the S. Rajaratnam School of International Studies at Nanyang Technological University in Singapore. Eastday Website is partially owned by state-owned enterprises. The Rajaratnam School report stated that most of China’s weapon offerings lack technical competitiveness. Its buyers are limited to a few developing countries. To expand its weaponry sales, China may offer its J10 fighter jet at a discount. J10’s performance is similar to Israel’s Lavi fighter jet or the U.S. F-16C. Pakistan and Iran are likely to be the buyers of the J10.

Source, Eastday Website, June 5, 2009
http://mil.eastday.com/m/20090605/u1a4416686.html

Briefings | | |   Defense/Military

Behind China’s Largest Overseas Investment

The International Herald Leader published an article on the collapse of Rio Tinto’s controversial deal with China’s state-owned aluminum company, Chinalco. The Chinalco’s deal, valued at $24.3 billion, would have been China’s largest investment in a foreign company. Rio recently announced to would combine its large iron ore operations with BHP Billiton instead. 

The International Herald Leader blamed the scrap of the Chinalco deal on political reasons, mainly western countries’ anti-China mentality. The article stated that many politicians in the Canberra Congress raised the issue as jeopardizing Australia’s national interests. “The loss of the Chinalco Rio deal is not a loss of market competition, but rather a sacrifice resulting from a new form of ‘Cold War’ thought.” 
[Editor’s Notes: After Rio’s deal with Chinalco was announced, Australian businessman Ian Melrose spent $200,000 on television advertising, using images from the 1989 Tiananmen Square Protest to warn that the Chinese government-owned Chinalco should not be allowed to raise its stake in Rio Tinto to 18 per cent thereby increasing its control of Australia’s resources.] 
Source: International Herald Leader, June 8, 2009

http://news.xinhuanet.com/herald/2009-06/08/content_11506794.htm
Briefings | | |   Economy/Resources