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China Tightens Grip on Data Security with New Regulations

China has unveiled its latest move in the realm of cybersecurity with the publication of the “Network Data Security Management Regulations.” Set to take effect on January 1st next year, these regulations signify a significant escalation in the government’s approach to data security oversight.

The new rules, signed into order by Premier Li Qiang, establish a comprehensive framework for managing network data security. They emphasize a system of data classification and graded protection while strictly prohibiting illegal data processing. Under these regulations, network data processors are required to implement robust security management systems and fulfill obligations related to risk reporting and security incident handling.

In a notable shift from the 2021 draft, the current version has softened its stance on certain controversial elements. The previously proposed comprehensive approval mechanism for data exports has been replaced with more flexible conditions for cross-border data transmission. Additionally, the regulations have streamlined algorithm review requirements for platforms, aiming to enhance transparency and social responsibility standards.

Personal information protection receives particular attention in the new regulations. They outline specific measures governing the use of automated collection technologies and clearly define the responsibilities of network data processors in ensuring lawful collection and processing of personal information.

For cross-border data transfers, the regulations stipulate that such transfers must comply with international treaties and agreements to which China is a party. Importantly, data not categorized as “important” will not require cross-border security assessments.

Despite these adjustments, concerns persist among foreign businesses operating in China. While some controversial elements have been removed, uncertainties remain regarding the practical implementation of these regulations. Foreign companies continue to face strict data control measures, as exemplified by Apple’s requirement to store Chinese user data on servers in Guizhou.

As China’s digital economy continues to grow, these new regulations underscore the government’s commitment to maintaining a firm grip on data security while attempting to balance domestic control with international business practices.

Source: Radio Free Asia, October 1, 2024
https://www.rfa.org/mandarin/yataibaodao/meiti/jw-china-online-data-security-management-regulations-10012024102348.html

Europe’s Industrial Challenge: Balancing Chinese Dependency and US Pressure in the Automotive Sector

German newspaper Süddeutsche Zeitung argues that Europe must develop its own robust industrial policy in response to US actions and Chinese market strategies. The US has preemptively banned Chinese components and software in smart connected cars, and Europe should follow suit to avoid dependence on China and protect against product dumping.

Unlike US automakers who have largely abandoned the Chinese market, German manufacturers like Volkswagen, Mercedes, and BMW heavily rely on it. This dependency makes them vulnerable to potential retaliation from Beijing. Chinese firms are also investing billions in battery and car factories in Europe, making it costly for Europeans to suddenly exclude Chinese products.

The article warns that the US may pressure its allies to adopt similar restrictive measures, especially if Trump returns to power. Meanwhile, China is reportedly instructing its companies to avoid transferring technology to local firms when entering the European market, potentially creating a dependency similar to that in the solar energy sector.

The EU has begun developing strategies to reduce dependence and subsidize strategic industries like chips and batteries. It has also launched anti-dumping investigations. The article concludes by urging EU member states, particularly Germany, to actively support a unified EU strategy rather than pursuing individual, potentially conflicting policies.

Source: Deutsche Welle, September 28, 2024
https://p.dw.com/p/4lC1T

Chinese Scholars’ Deleted Article Condemns ‘Patriotic’ Violence After Japanese Boy’s Murder

The stabbing death of a Japanese schoolboy in Shenzhen sparked controversy in China. Two Chinese scholars, Zhao Hong and Chen Bi, published an article condemning violence under the guise of “patriotism” and urging people to speak up against such acts. However, their article was quickly deleted.

The scholars drew parallels to a similar attack on a Japanese school bus in Suzhou less than three months prior. They argued that attributing these killings to “frenzied populism” or “irrational hate education” does not justify or excuse such barbaric acts.

The article emphasized that defending savagery and brutality desecrates civilization and life. It called for severe punishment of violent crimes and criticized silence as tacit approval of violence and disregard for victims.

The authors expressed concern over the misuse of “patriotism” to justify crimes, from harassing people wearing kimonos to attacking innocent children. They stressed that remembering historical Japanese aggression should not lead to more killings and brutality.

The article advocated for not tolerating violent propaganda under the banner of patriotism and warned against using hatred to commemorate history. It urged people to maintain common sense and conscience as weapons to defend civilization.

The scholars noted the current hostile online environment in China towards Japan and the difficulty in expressing dissenting views. They concluded by stating that remaining silent in the face of such tragedy makes everyone complicit.

Source: Central News Agency (Taiwan), September 23, 2024
https://www.cna.com.tw/news/acn/202409230197.aspx

Chinese Naval Ship Displays Cannons Near Malaysian Oil Platform

The Chinese Communist Party (CCP) uses its “Internet Army” to publish articles promoting its political positions. A recent article posted on Chinese platform Net Ease stated that a Chinese Frigate ship had recently intimidated Malaysia.

“There’s been another incident in the South China Sea, but this time it’s not the Philippines — it’s Malaysia.” The article stated that Malaysia had been “secretly engaged in ‘stealing oil’ in the South China Sea.”

“However, in Chinese waters, you can’t just do as you please,” the article said. “The People’s Liberation Army responded swiftly, dispatching a 1,000-ton 053H3-class frigate and Coast Guard vessels to the area, with the frigate’s main guns on display. This was China’s practical response: any actions that infringe on China’s rights in the South China Sea will be met with a strong counterattack.”

Source: Net Ease, September 19, 2024
https://www.163.com/dy/article/JCDVNPIR05568UZV.html

Lianhe Zaobao: The Philippines Does Not Plan to Withdraw U.S. Typhon Missiles

According to Singapore’s primary Chinese language newspaper Lianhe Zaobao, Philippine International Security Advisor Eduardo Ano stated that The Philippines currently has no plans to withdraw the Typhon medium-range missile system deployed by the United States in the northern Philippines. He said the Philippine authorities plan to purchase medium-range missiles in the future and currently use the Typhon system for military training. Reuters also reported earlier that, although China clearly opposes the deployment of intermediate-range missile systems by the United States in the Philippines, the U.S. currently has no plans to immediately remove the Typhon system. Ano said there is no specific timetable, and the decision will be made by a panel of officials from the Philippines and the United States.

Satellite images show the Typhon system stays at Laoag International Airport in Ilocos Province, northern Philippines, close to the Taiwan Strait and facing the South China Sea. Ano said “we need to understand how to operate the system because we intend to purchase this type of equipment in the future.” China’s Foreign Ministry expressed serious concern earlier over the Philippines’ plan to maintain the Typhon system. Ano responded that: “we know what is in the best interests of the country and therefore no one has the right to dictate to us, especially when it comes to the deployment of missile launchers.”

In April, the US military deployed the latest land-based Typhon Weapons System the Philippines for military exercises with the Philippines. The system can be equipped with the Standard 6 Supersonic Missile with a range of 450 kilometers as well as the Tomahawk cruise missile with a maximum range of over 1,600 kilometers, which is enough to hit targets in China.

Source: Lianhe Zaobao, September 20, 2024
https://www.zaobao.com.sg/realtime/world/story20240920-4796861

India-Made iPhone 16 Set for Global Sales

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that India’s Minister of Electronics and Information Technology issued a statement saying Apple’s latest iPhone 16 will be produced in Indian factories and sold globally. Prime Minister Modi’s “Made in India” plan is currently promoting the creation of iconic products for the world. Apple has been working hard to move its supply chain to India. The Indian government is also encouraging more companies to manufacture locally in India, and has reduced the import tax on parts required for mobile phone production from 15 percent to 10 percent. Apple currently plans to produce more than 50 million iPhones in India this year, including the iPhone 15 and iPhone 16 series.

Previously, it was reported that the yield rate of Indian factories is only 50 percent, which is far from Apple’s standards, and the sanitary conditions of the manufacturing facilities are unqualified. However, Foxconn Chairman explained that the yield rate of iPhones produced in India is no different from that in China. The 50 percent yield rate refers to the production of iPhone cases manufactured in factories affiliated to the Tata Group, not the iPhone yield rate.

There are currently four foundries for the iPhone 16 series, namely Foxconn, Luxshare, Pegatron and Tata Group. Foxconn and Pegatron have factories in both China and India, while Luxshare only has factories in China and Tata only has factories in India. From the perspective of production location allocation, China and India already have a 1:1 ratio. However, as Apple requires Foxconn and other OEMs to invest in India, it is likely that by the time the iPhone 17 is released next year, India’s iPhone production capacity will surpass China’s.

Source: Sina, September 12, 2024
https://www.163.com/dy/article/JBSQMSK10511DG68.html

CNA: Poll Shows British People Don’t Trust China

Primary Taiwanese news agency Central News Agency (CNA) recently reported that independent and non-partisan British think tank British Foreign Policy Group just released its poll results on China. Overall, the British public has clear doubts about China.

About 71 percent of the British public do not trust China as a responsible international actor, and 43 percent support reducing dependence on Chinese technology and resources. Only 13 percent of British people support allowing Chinese technology companies (such as TikTok) to operate in the UK, and only eight percent support China developing infrastructure in the UK, including nuclear power plants and 5G telecommunications. Last year, 15 percent of British people believed it was necessary to cooperate with China in the fields of technology and infrastructure. However, 25 percent of British people aged 18 to 25 support allowing Chinese technology companies to operate in the UK.

Regarding the areas to be given priority in UK-China interaction, the results show that the British people believe that “seeking to reduce dependence on China’s technology and resources” is the most important. The second most important item is “seeking cooperation in addressing common global challenges such as climate change”. The third is “challenging China’s human rights record.”

In addition, 56 percent of British people believe that the UK should reduce trade with China.

Source: CNA, September 21, 2024
https://www.cna.com.tw/news/aopl/202409210003.aspx

Global Times: Saudi Arabia is Willing to “Try New Things” with China

Global Times recently reported that Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said in a Hong Kong press interview that Saudi Arabia is “open to new ideas” including the use of Chinese currency RMB in cross-border crude oil transaction settlements, and is willing to cooperate with China to “try new things.” Alkhorayef also said that Saudi Arabia “welcomes Chinese companies to invest”, and “we try not to mix politics with business.”

Alkhorayef described Saudi Arabia’s “positive” view on using the “Petro-Yuan” instead of US dollar in transactions, but he did not give a specific timetable for the implementation. “From a commercial point of view, between suppliers and customers, I think such an arrangement can be realized according to the free will of both parties,” Alkhorayef continued, “this is not a problem that we look at from a policy point of view.” He looks forward to more cooperation with China, mainly in the form of Chinese investment, in areas such as metals, pharmaceuticals, smart cities, robotics and renewable energy. “We welcome Chinese companies to invest in electric vehicles too,” he added.

The Saudi industrial and mining delegation led by Alkhorayef visited China and Singapore from September 1st to 8th. Alkhorayef’s office said, “The goal of the delegation’s visit to China is to strengthen cooperation with China and make Saudi Arabia a key automotive center in the region.”

Source: Global Times, September 9, 2024
https://hqtime.huanqiu.com/article/4JN7P2H87FS