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RFA: Chinese Internet Surveillance Technology Can Reach Overseas

RFA reported that China has expanded its Internet surveillance technology overseas. Zhongkedianji Beijing Technology (, a big data firm in Beijing disclosed that a software it developed called “junquanyuqun” ( is capable of detecting more than 8,000 “sensitive” websites in Hong Kong, Macao, and Taiwan. In addition, it has established 18,000 information outlets in China which can monitor news, forums, blogs, microblogs, pictures, and videos. It can even collect information in 53 languages including English, French, Spanish, and the languages of ethnic minorities in China. According to the company’s website, the surveillance system can carry out public opinion analyses, information warnings, and hot spot analyses. It can collect negative public opinion, public opinion trends, briefings, analyses, forwarded information, and do statistical analyses for the government. It can monitor news, forums, blogs, Weibo, pictures, videos, QQ groups and it has search and documentation capabilities. According to, Zhongkedianji Beijing Technology was founded in 2007. Its customers include a wide range of industries such as state-owned enterprises, governments, military organizations, and private companies. Recently, in November 2017, it secured US$15.15 million in financing. The company is worth US$150 million.

The RFA article also reported that, during the recent 2018 Procuratorial Technologies and Equipment Exhibit held on May 15 in Beijing, a scanner that Beijing HiSign Technology Company developed could recover Facebook and Twitter messages that had been deleted from a mobile phone. Meiya Pico from Xiamen City claimed that their handheld scanner could break into a mobile phone within seconds to retrieve customer data. The RFA article reported that, because of the latest technological developments, overseas Chinese have become very concerned that they could be subjected to retaliation if they publish any opinions that criticize the Chinese government.

1. Radio Free Asia, June 28, 2018
2. Yicai, November 24, 2017

NBD: Lenovo Showed World’s Worst Stock Performance

National Business Daily (NBD), a Chinese national daily newspaper which reports business news, recently reported that the Hong Kong Hang Seng Index announced on May 4 that it would remove Lenovo from its index of constituent stocks. Since Lenovo was included in Hang Seng’s index of constituent stocks in 2013, Lenovo has lost 56 percent of its value. According to Bloomberg, of 171 global technology stocks, Lenovo had the worst stock performance. In the past five years, it appears the Lenovo Group could not manage to sustain a healthy growth in its core business of PC manufacturing as well as the growth of its business of mobile devices. A large number of competitors in China grew at a much faster pace. In 2017, on a global level, the U.S. company HP took back its number one PC manufacturer title from Lenovo. As the Motorola brand owner, Lenovo was China’s number one smartphone vendor in 2014. However, by the end of 2017 Lenovo had only one percent of China’s smartphone market share. Lenovo responded to press inquiries saying the company is entering a new growth era, and Hang Seng’s poor rating will not have a concrete long term negative impact.

Source: National Business Daily, May 5, 2018

China Finance Online: ZTE Issued Internal Memo Disclosing Progress of Recovery Effort

China Finance Online, China’s only online financial information service listed on NASDAQ, recently reported that ZTE issued an internal memo to its staff on the status of its recovery effort after the U.S. government banned American companies from exporting critical supplies to ZTE. The memo said the company was seeking a stay of the U.S. government ban and was “actively communicating” with the U.S. regulators by submitting additional supporting compliance materials. The memo emphasized that, ever since the U.S. ban, “as a globalized enterprise that grew in China,” ZTE has “strictly aligned with China’s national strategy.” The company has been actively taking steps, “firmly under the guidance of the Chinese government,” in order to “resolve the issues quickly.” The memo was issued immediately after the completion of the US-China trade negotiation between high ranking Chinese officials and the U.S delegation in Beijing. Taiwanese high-tech chip maker MediaTek just received clearance from the Taiwanese authorities to resume shipment to ZTE in a few weeks.

Source: China Finance Online, May 5, 2018

Global Times: China Fiber Broadband and 4G Cellular Networks Now the Largest in the World

Global Times recently reported on a recent study of the status of the deployment of global broadband. The study showed that, by the end of first quarter, China’s fiber-based broadband customers held an 85.3 percent share of all landline broadband markets in China. This percentage surpassed previously leading countries Japan and South Korea to make China the number one in the world. The average download speed of overall Chinese landline broadband reached above 20 mbps (megabits per second). This marks a year-over-year growth of 54.9 percent. In addition, China’s 4G cellular network now has around 3.4 million 4G base stations, which makes the Chinese 4G network the largest in the world. China’s 4G market is still expanding rapidly.

Source: Global Times, May 3, 2018

HKET: China Smartphone Market Suffered Largest Quarterly Setback in History

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that the Mainland’s first quarter smartphone sales suffered a year-over-year decline of 21 percent. Total smartphone handset volume dropped below 100 million to 91 million. This was the lowest point since 2013 and was the biggest quarterly decline in history. With the exception of Huawei and Xiaomi, all smartphone vendors saw a sales decline. Apple iPhone’s sales ranking fell out of the top-four list. At this point, Huawei, Oppo, Vivo and Xiaomi – all are domestic manufacturers – lead China’s smartphone market. The top-four occupy 73 percent of the Chinese Mainland market. Analysts expressed the belief that Apple’s lack of innovation (except for the iPhone X) and high price were the reasons for its loss. In the past two quarters, China’s smartphone market had already suffered a decline. Most of the consumers in the market have completed the conversion from basic phone to smartphone. As the quality and lifespan of a smartphone improve, customers have less of an interest in switching to a handset.

Source: Hong Kong Economic Times, April 27, 2018

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