Skip to content

Geo-Strategic Trend - 70. page

Global Times: Japan Signed New Agreement with the U.S. after the Australian Agreement

Global Times recently reported that the Japanese and American governments signed a cooperation research agreement on defense equipment after the “Security Consultative Committee” (2+2) meeting attended by the foreign affairs and defense cabinet officials of the two sides. The agreement is aimed at countering the development of new weapons such as hypersonic missiles that China and North Korea have advanced. The joint statement of the meeting issued by both Japan and the United States repeated some of the same information about many negative China-related issues, such as the human rights concerns related to Xinjiang and Hong Kong, the importance of peace and stability in Taiwan, the East and South China Sea issues, the Senkaku Islands being subject to the Japan-US Security Treaty, as well as other issues. This was the first Japan-US “2+2” meeting since Fumio Kishida took office as Prime Minister of Japan. It is worth noting that just one day before, Australian Prime Minister Scott Morrison held a video conference with Japanese Prime Minister Fumio Kishida and signed a historic defense and security cooperation agreement. Before that, Japan had only signed such an agreement with the United States. The Australian Agreement was viewed as a blatant interference in China’s internal affairs, against the backdrop of China’s rising military and economic power.

Source: Global Times, January 7, 2022
https://world.huanqiu.com/article/46IsIXTegrG

Taiwan Bought Lithuanian Black Rum Because China Blocked it

Major Taiwanese news group Eastern Media International recently reported that, ever since Lithuania and Taiwan set up representative offices in each other’s capital last year, the Chinese Communist Party has been angry. Chna launched an economic and trade retaliation against Lithuania. On December 18 last year, Taiwan Liquor Company received a message from the Taiwan representative in Lithuania, and the Taiwanese Ministry of Finance, saying that there were 20,400 bottles of Lithuanian black rum blocked by Chinese Customs and the rum was about to face the fate of drifting in the Pacific. Taiwan Wine Company immediately approached the seller and acquired this shipment of black rum. In the meantime, Lithuanian beer has its own wholesaler in Taiwan. Together with private resellers, the sale of Lithuanian beer in Taiwan has exploded 24 times. Taiwanese consumers are cheering for Lithuania’s support of Taiwan’s position on the world stage.

Source: ETToday, January 3, 2022
https://finance.ettoday.net/news/2160176

China Revises Cybersecurity Review Measures

The Cyber Administration of China (CAC) announced on its website on January 4 that the agency, as well as 12 other government bodies, including the Ministry of Public Security and the Ministry of State Security, have revised the “Cybersecurity Review Measures.”

The original regulation already took effect in June 2020. CAC pointed out that the revision is due to the implementation of the “Data Security Law” in September 2021, which requires that the state establish a data security review system.

After the revision, article 7 of the Measures stipulates that online platform operators that possess personal information about more than 1 million users must report to the Office of Cybersecurity Review when they go public abroad.

The Measure also specifies that operators of “critical information infrastructures” such as transportation, communications, and finance must also apply for security a review when purchasing network products and services that may affect national security.

It also lists key national security risk factors, including illegal control, the interference or disruption of “critical information infrastructure, possible disruption of product services due to political, diplomatic and trade factors, and the possibility of core data or substantial personal data being influenced, controlled and maliciously used by “foreign governments.”

The revised regulation is to be effective on February 15. It also adds the China Securities Regulatory Commission (CSRC) to the cybersecurity review mechanism.

Source: Cyber Administration of China, January 4, 2021
http://www.cac.gov.cn/2022-01/04/c_1642894602144070.htm

Chinese Student Wanted for Acquiring Japanese Security Software under False Identity

Japanese media including NHK and Yomiuri News reported on December 28 that Japanese police have identified a Chinese student who entered Japan and was suspected of attempting to  purchase Japanese high-tech security software illegally. He was apparently under the command of a Chinese People’s Liberation Army (PLA) officer. The Japanese Police Department has obtained an arrest warrant for the student and will soon issue an international warrant.

Police investigators say the Chinese student, in his 30s, is suspected of having attempted the purchase used the name of a fictitious Japanese company and the person who was in charge in November 2016. The PLA officer who contacted him belonged to China’s “61419th Army,” a unit believed to be the Chinese hacking group Tick, which is responsible for cyberattacks on Japanese companies and research institutions.

Fortunately, the transaction was not concluded because the software company found it suspicious. As the Chinese student has returned to China, Japanese police have received permission to arrest him on suspicion of fraud. They will soon issue an international warrant through Interpol. The Japanese police believe that China is trying to buy Japanese high-tech security software to analyze the weaknesses of Japanese companies’ systems and collect intelligence to carry out cyberattacks.

Source: Radio Free Asia, December 28, 2021
https://www.rfa.org/cantonese/news/japan-12282021094647.html

Reference News: China and Japan Agreed to Establish a Defense Hotline

Reference News, a well-known branch of Xinhua News, recently reported that, on the December 27, Chinese State Councilor and Defense Minister Wei Fenghe held a video conference with the Japanese Defense Minister Nobuo Kishi. The call took about two hours, which exceeded the original scheduled time. The two defense ministers agreed to strengthen bilateral strategic communication and manage risks to prevent conflicts from escalating. Also, they agreed that a defense hotline will be established in 2022. The Japanese Cabinet recently approved a preliminary budget for 2022. The annual increase in the defense budget was 1.1 percent. It not only marks the tenth consecutive year of growth in Japan’s defense budget, but also breaks Japan’s long-standing rule of capping the increase in the defense budget at under one percent of the nation’s GDP. Singapore’s primary Chinese language newspaper Lianhe Zaobao also reported on this news and indicated that, during the call, Nobuo Kishi emphasized the importance of maintaining stability in the Taiwan Strait. This point was left out in the Reference News report.

Sources:
(1) Reference News, December 29, 2021
http://www.cankaoxiaoxi.com/china/20211229/2464431_2.shtml
(2) Lianhe Zaobao, December 28, 2021
https://www.zaobao.com.sg/realtime/world/story20211228-1227197

Global Times: China Mobile Forced to Terminate Canadian Operations

Global Times recently reported that CMLink, a subsidiary of China Mobile Canada, announced on December 28, that, at the request of the Canadian Federal Government, the company will cease its operations on January 5, 2022. Users can apply for refunds from the same day. This is yet another example of the Canadian government’s use of “national security” to suppress Chinese companies. Radio Free Asia (RFA) Chinese Edition also reported that China Mobile landed in Canada in 2015 and got popular among users who travel frequently  between Canada and the China/Hong Kong region. At the beginning of 2021, the Canadian government began to review China Mobile Canada based on national security considerations. It issued an order on August 9 instructing the company to divest itself of its parent company’s shares or terminate its Canadian operations. The company filed in court against the government’s order. It lost the case. Analysts expressed the belief that China Mobile Canada’s refusal to draw a clear line with the parent company confirmed the fact that the so-called Chinese overseas subsidiaries can operate independently is nonsense.

Sources:
(1) Global Times, December 30, 2021
https://world.huanqiu.com/article/46C1aJ3bt55
(2) RFA Chinese, December 29, 2021
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/lf2-12292021123434.html

Xi’An’s Pandemic Lockdown Impacted Global Chip Supply

Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that globalization demonstrated its power when a critical supply chain like the one for chip supply got impacted by lockdown policies in the Chinese city of Xi’An. Samsung issued an announcement on December 29 that its Xi’An manufacturing factories’ schedule had to be adjusted for the protection of the health of the employees due to the breakout of Covid in the city. Samsung has two large scale 3D NAND factories in Xi’An, which hold 42.3 percent of Samsung’s capacity, or 15.3 percent of the global supply. Samsung warned about the significant reduction of its output and stopped offering NAND quotes. Samsung is the world’s largest NAND Flash provider with a global market share of 34 percent. At the same time, Xi’An also has Micron’s DRAM memory packaging and testing plant. Micron is the world’s third largest DRAM chip manufacturer. The company said the factory is seeing manufacturing delays due to a lack of labor; as a result, new supply arrangements may be delayed accordingly. The Micron factory is currently running at 40 to 50 percent of its capacity. All these will cause the global short-term supply of storage semiconductors to face uncertainty.

Source: Sohu, December 30, 2021
https://www.sohu.com/a/513328179_351305

Lianhe Zaobao: China Is Helping Saudi Arabia Make Ballistic Missiles

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, according to U.S. Cable News Network (CNN), U.S. intelligence agencies said that Saudi Arabia is actively developing domestically produced ballistic missiles with the assistance of China. This development may cause a major chain reaction throughout the Middle East. The latest satellite images show that Saudi Arabia is currently manufacturing missiles. At a minimum one site is funded by China. Weapons experts at the Middlebury Institute of International Studies expressed the belief that, considering the facility was built with China’s assistance and new intelligence assessments show Saudi Arabia has recently purchased sensitive ballistic missile technology from China, China may have designed the missiles made there. Sources familiar with the matter said that U.S. officials from multiple agencies, including the White House National Security Council (NSC), have been informed in recent months that classified intelligence has shown that China and Saudi Arabia have conducted multiple large-scale transfers of sensitive ballistic missile technology. Both the NSC and the CIA declined to comment on this piece. If Saudi Arabia successfully develops and manufactures missiles, Iran will be unlikely to agree to stop manufacturing missiles. It will also become more difficult for the Biden administration to limit Iran’s ambitions to manufacture nuclear weapons.

Source: Lianhe Zaobao, December 24, 2021
https://www.zaobao.com.sg/realtime/china/story20211224-1226128