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China Chip Industry Uses High Pay and Benefits to Lure Taiwan Engineers

Deutsche Welle reported that the mainland chip industry uses high payments for labor and benefits to entice Taiwan engineers to work in the mainland. The engineers are promised double their current wages, eight free trips a year to visit Taiwan, subsidized tuition for their children to attend school, and a 40 percent housing allowance. Some engineers said that the amount of money they can make in the mainland would take ten years to make in Taiwan and that such an offer is hard to resist. A Taiwan recruiting firm estimated that, so far in 2018, over 300 senior Taiwan engineers accepted job offers from mainland chip manufacturers. Since 2014, after Beijing set up US$22 billion in funding for the chip industry, close to one thousand engineers from Taiwan have gone to work in the mainland. The number has increased as the U.S. China trade war escalated this year. Data that a research firm released projected that, by the end of 2017, China will have 400,000 professionals in the integrated circuit (IC) industry, which is still far short of the goal of 720,000 by the end of 2020. The mainland prefers engineers from Taiwan over Japan and Korea because there is no language barrier.

Source: Deutsche Welle, September 9, 2018

Huawei Faked Performance Data for Multiple Phone Models

Chinese technology news site Leiphone recently reported that well-known U.S. technology monitor Anandtech discovered that Huawei crafted cheating logic in its smartphone models that faked “high performance” behavior when it detects performance benchmarking software is running. UL Benchmark, the company behind widely-used benchmarking software 3DMark, delisted multiple Huawei smartphones with “suspect benchmark scores.” These include Huawei’s P20 Pro, Nova 3, and its Honor Play. Huawei’s head of software division admitted a “different experience” between benchmarking and real user experience. However, he emphasized that other companies did the same thing as well. Huawei has been caught creating false advertising many times before. For example, not long ago, it was found using photos taken with professional cameras in smartphone commercial videos. In the second quarter of this year, Huawei surpassed Apple to become world’s second largest smartphone vendor (in terms of units sold), after Samsung.

Source: Leiphone News, September 7, 2018

People’s Daily: Chinese Facial Recognition Technology Won Seven World Championships

People’s Daily recently reported that Chinese facial recognition technology company Cloud Walk has been building on China’s cutting-edge intelligent recognition technologies and won seven world championships in global competitions, such as PASCAL VOC, IMAGNET and FERA. The Chinese government recognizes the company as a national leader and invited it to establish the Chinese facial recognition national standard, a standard for the Ministry of Public Safety, as well as the Chinese industry standard. Its facial recognition products are deployed in 80 percent of the Chinese key airports, in over 400 banks, and in 29 provincial governments. In today’s China, facial recognition is widely used in banking, payment authorizations, airport security, and criminal investigations. Many Chinese intelligent recognition companies have been exporting their products overseas with big-data analysis, which is part of the One Road One Belt strategy.

Source: People’s Daily, August 23, 2018

RFA: Russia Tightening Up Import Permission on Huawei and ZTE Products

Radio Free Asia (RFA) Chinese Edition recently reported that the Russian government, following the United States, Australia, and India, is also considering tightening up the permission to import equipment from Huawei and ZTE. Various Russian media reported that multiple Russian electronic equipment industry associations have filed requests to restrict the importation of Huawei and ZTE products. The government is prepared to require all foreign manufacturers to mark the products clearly with original maker names and related information and the government will also ban “middlemen” who buy these products and resell them. Although the list of manufacturers also includes U.S. and Japanese vendors, yet China is the primary supplier of Russian communications equipment. Russian domestic communications equipment manufacturers only hold six to eight percent of the nation’s market.

Source: RFA Chinese, August 23, 2018

Short Videos Need to Conform to the “Main Theme”

On August 21, the China Internet Security and Information Office got a new director, Zhuang Rongwen. New censorship is now being directed against new social media in the form of short video platforms.

Since July, the Office has been urging all major short video platforms to impose “self-censorship.” So far more than 1.1 million accounts that violated the rules have been blocked, 8.1 million instances of “harmful” short videos have been deleted and 19 short video apps have been disciplined.

The Office also called for a meeting with 36 commercial short video platforms to give them guidelines. One example is that they must ensure “socialism’s core values” are reflected in their production. The Office also encouraged government and traditional media entering this new media platform “to occupy the new frontier of propaganda actively.” As a good example, it cited the “Youth League” setting up an account in the popular “Dou Yin” platform. The Dou Yin platform was one of the most popular social media in China. It has reported having .5 billion active users globally with overseas versions in Japan, Thailand, India, and Germany, among other countries.

On Aug 21, the Office together with Public Security Ministry issued a new notice. Short videos need to use “real names.” It also started to “blacklist” those (“rule-breaking”) broadcasters.

Source: Deutsche Welle, August 24, 2018

China Is Developing Cyberattack Technologies to Interfere in Neighboring Countries’ Politics?

Taiwan’s Central News Agency reported that China may have developed cyberattack technologies enabling it to intervene in neighboring countries’ politics. It is believed that China may have used Cambodia’s July 29 general election as a rehearsal, giving it the potential to interfere with intelligence collection and political elections in Asian countries in the future. According to the report, the practices include obtaining confidential information by illegal means, releasing false web information to manipulate voter psychology, and influencing the outcome of the elections by polarizing the target country’s public opinion and attacking the opposition camp.

The report expressed the suspicion that China set up its cyber warfare command center on Hainan Island. The evidence is an email received by Kem Monovithya, the daughter of Kem Sokha, the leader of Cambodia’s largest opposition party. The e-mail carried a virus that was capable of collecting confidential information. An Investigation showed that the server that the email was sent from is located on Hainan Island, China. Based upon the technology and hardware infrastructure, the investigation concluded that the email was undoubtedly linked to China.

This Hainan-based server, according to the report, was found to infringe frequently on Cambodian facilities. It is quite possible that China is using the Cambodian election as a drill to improve its cyber-attack technology. The ultimate goal may be to use the Internet to intervene in the politics of neighboring countries. This practice could be just treading on the heels of Russia.

Source: Radio France International, August 20, 2018

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