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HP Comments on Reports Saying That it Will Reduce Production Footprint in China

According to well-known Chinese news site Sina (NASDAQ: SINA), some recent media reports have said that HP was seeking to move more than half of its PC production out of China. HP responded by calling these reports incorrect. Instead, HP confirmed that “In China, HP’s PC manufacturing business still maintains a pivotal position.” However, HP also indicated in the same response that “to further enhance the resilience of the supply chain, we are actively optimizing our strategy and enhancing flexibility to better serve our global customer base.”

Earlier, Nikkei Asia reported that HP is considering moving more than half of its PC production out of China and setting up a “backup” design center in Singapore, citing “geopolitical risks.” The Nikkei Asia article did point out that the move is HP’s most aggressive move to “diversify its supply chain.” At present, most of HP’s PCs are produced in China. Nikkei Asia reported that HP is currently negotiating with suppliers on the migration and plans to achieve this target within two to three years. The company has even set an internal goal to eventually have 70 percent of its laptops produced outside of China. Nikkei Asia also reported that HP’s main destination for this relocation is Thailand. At least five HP suppliers are building new manufacturing plants or warehousing centers in Thailand.

Source: Sina, August 8, 2024
https://finance.sina.com.cn/roll/2024-08-08/doc-inchxefi8595209.shtml

Briefings | | |   Information/Technology US-China Relations

China Successfully Launches First Batch of Satellites for Massive Internet Constellation to Compete with Starlink

On August 6, China’s Long March 6 rocket was launched from the Taiyuan Satellite Launch Center, successfully placing the Qianfan Polar Orbit 01 satellite group (18 satellites) into the designated level of orbit.

According to Reuters, China intends to build a massive internet constellation to compete with the Starlink satellite network operated by U.S.-based SpaceX. Starlink is an expanding commercial broadband satellite constellation with approximately 5,500 satellites in space, providing service to consumers, businesses, and government agencies.

The recent Chinese rocket launches are part of the “Qianfan Constellation (千帆星座)” plan, also known as the “G60 Starlink” plan, which aims to deploy over 15,000 low-orbit satellites. The “Qianfan Constellation” is one of three “Ten-Thousand-Star Constellation” projects that China hopes will help narrow its gap with SpaceX. The Qianfan Constellation plan aims to launch 108 satellites this year, 648 satellites by the end of 2025, to provide “global network coverage” by 2027, and to complete the deployment of 15,000 satellites by the end of 2030.

Source: Xinhua, August 7, 2024
http://www.news.cn/milpro/20240807/c7833a3629cd4ba18d1c363d7d7c56ea/c.html

Briefings | | |   Information/Technology

China Plans to Issue National ID Intermediating Citizens’ Internet Access

The Chinese authorities have announced the “National Network Identity Authentication Public Service Management Measures (Draft for Comments),” jointly issued by the Ministry of Public Security and the National Internet Information Office. According to the document, the “network number” (网号) is composed of letters and numbers and is linked to each person’s individual identity. The “network certificate” (网证) refers to the network authentication credential that carries the “network number.” These pieces of information, issued by authorities at the national level, can verify a natural person’s true identity when they use internet services.

Since 2017, Beijing has mandated a comprehensive real-name registration system for Chinese users of the internet. This enables the CCP to control people’s interactions online, as users are required to use their real identity when registering accounts on any major online platform. Each online platform has thus has collected users’ critical personal information. The authorities state that the recently-announced national “network number” and “network certificate” system will allow users to verify their identity using a government-issued app, meaning that individual commercial internet platforms will no longer need to be responsible for verification of users’ identities.

Although the draft specifies that the deadline for feedback is August 25, the “National Network Identity Authentication Pilot Version” app has already been launched on several mobile app stores in China. Users can now verify their identity and obtain an electronic network identity certificate with a “network number.” This pilot includes 10 government service apps and 71 internet apps, including Taobao, WeChat, and Xiaohongshu.

Critics pointed out that there is no legal basis for the government to require people to use “real name” to access Internet, and that requiring the use of a national-level identity will make it easier for authorities to completely block a person from using the internet.

Source: BBC, August 6, 2024
https://www.bbc.com/zhongwen/simp/chinese-news-69244432

Briefings | | |   @CS Information/Technology Social Stability

Lianhe Zaobao: China Plans to Issue Unified Internet IDs to Netizens

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the Chinese government plans to issue unified internet ID numbers and certificates to members of the Chinese public in order to verify the true identity of users. This raised concerns over control of speech.

China’s Ministry of Public Security and the Chinese Cyberspace Administration just released a document titled “National Internet Identity Authentication Public Service Management Measures (Draft for Comments).” According to the document, the purpose of the internet ID is “to strengthen the protection of people’s personal information.”

Some scholars said that the implementation of internet identification numbers and certificates will help avoid information leakage, reduce network violence, and combat telecommunications fraud. Skeptics expressed the belief that this is yet another way for the authorities to tighten control over speech. Some netizens commented that “in the future, if the government wants to block anyone, it only needs to block an online ID to ban the user across the entire network. Isn’t it scary?”

China has fully implemented an online real-name system since 2017. There have been many suspected database leaks. Some people found that their real personal information registered with Chinese social media platforms had been leaked to the dark web.

Source: Lianhe Zaobao, July 29, 2024
https://www.zaobao.com.sg/news/china/story20240729-4389461

Briefings | | |   Government/Politics Information/Technology Social Stability

US House Bans Use of All ByteDance Apps on Staffer Devices, Extending Policy Beyond TikTok

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, according to a memo sent to staff by the U.S. House of Representatives on July 30, all apps from TikTok’s Chinese parent company ByteDance will be banned from all House staffers’ devices in two weeks. ByteDance’s flagship product, TikTok, has been banned from official U.S. government devices since 2023. Now, the policy will be extended to ByteDance’s other products, including Lemon8, Capcut, Lark and Hypic.

The Congressional Cybersecurity Office will follow up with staff, asking them to remove any ByteDance apps on official devices. The memo explains that all ByteDance products will be blocked and removed from House-managed devices, starting with mobile devices.

The move comes after the Senate approved a House measure in April that would force ByteDance to divest TikTok in the U.S. lest the app be banned from Google’s and Apple’s app stores. President Biden later signed the measure into law. ByteDance has vowed to fight the bill in court. Oral arguments on a potential injunction against the new law will be held on September 16.

Source: NetEase, July 31, 2024
https://www.163.com/dy/article/J8DJ2PHN0511A6N9.html

Briefings | | |   Information/Technology US-China Relations

China Tests Robotaxis in 20 Cities

Similar to the pilot test of General Motor’s Cruise and Alphabet’s Waymo in San Francisco and Pheonix within the U.S., China now allowing domestic companies to test driverless taxis. Recently, China approved an initial 20 pilot cities, including Beijing, Shanghai, Chongqing, Guangzhou, and Wuhan, for self-driving tests. These cities have already allowed driverless taxi operators to test vehicles in suburban areas.

Starting in March, Apollo Go, one of China’s largest autonomous taxi companies under Baidu, began offering 24-hour driverless car services in some areas of Wuhan City, Hubei Province. It has more than 500 autonomous taxis in operation, which will increase to 1,000 by the end of the year. In fact, this test started in 2022.

Baidu CEO Robin Li told investors in May that over 70 percent of Apollo Go’s driverless taxi rides in April were fully autonomous. According to netizen’s posting, Baidu has human drivers in a service center. Using high-bandwidth, low-latency 5G networks, these “remote safety drivers” observe the 360-degree conditions around the cars from a screen array and can manually drive the unmanned vehicles using controllers such as steering wheels, gear sticks, and pedals. China allows the ratio of remote safety drivers to vehicles to be 1:3.

Sources:
1. VOA, July 11, 2024
https://www.voachinese.com/a/china-s-robotaxi-push-sparks-concerns-about-job-security-for-drivers–20240711/7693880.html
2. Guancha.cn, July 13, 2024
https://www.guancha.cn/economy/2024_07_13_741368.shtml

Briefings | | |   Information/Technology

China Develops Solar-Powered Micro-Drone

Solar power is a key technology for continuous drone flight. The technology to power large drones exists, but powering micro-drones via solar panels has been a challenge. Xinhua reported that a research team from Beihang University (Beijing University of Aeronautics and Astronautics) has successfully developed a solar-powered micro-drone weighing only 4.21 grams, capable of sustained flight under natural sunlight. The team created a new electrostatic drive scheme and developed a micro electrostatic motor with low rotational speed, low heat generation, and high efficiency. They also built an ultra-lightweight high-voltage power converter weighing only 1.13 grams, which boosts the voltage generated by solar cells from around 4.5 volts to 9000 volts, creating an electrostatic system.

Source: Xinhua, July 18, 2024
https://app.xinhuanet.com/news/article.html?articleId=d1b63946dc0ec93f9132f654cf97be27

Briefings | | |   Information/Technology

Lianhe Zaobao: Germany Starts Removing Huawei and ZTE 5G Components

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the German government has imposed a ban on Chinese telecom equipment giants on national security grounds and will remove Huawei and ZTE components from Germany’s 5G network in two phases over the next five years. The German Interior Ministry negotiated an agreement with three domestic telecom providers operating 5G networks to protect Germany’s critical infrastructure from Chinese influence. This is Berlin’s latest move to reduce economic dependence on Beijing, a dependence which some fear could leave Germany vulnerable.

The three domestic German telecom operators are Deutsche Telekom, Vodafone and Telefonica Deutschland. According to their agreement with the German government, these telecom operators will remove key components of Huawei and ZTE Technologies from the 5G core network by the end of 2026 and will replace all components of Huawei and ZTE Technologies in the 5G network access and transmission infrastructure by the end of 2029.

The German government has informed Beijing about the agreement and does not expect retaliation for the move. Other European countries including the UK, Denmark, Sweden, Latvia, Estonia and Lithuania have already imposed bans on components from Huawei and ZTE. The United States began to impose restrictions on the use of Huawei equipment as early as 2019. Germany is considered to have lagged behind in implementing EU 5G network security measures.

The Chinese Embassy in Germany criticized Germany’s move on its official website, saying “the so-called cyber security risks are just an excuse.”

Source: Lianhe Zaobao, July 12, 2024
https://www.zaobao.com.sg/news/china/story20240712-4249314

Briefings | | |   Geo-Strategic Trend Information/Technology