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UDN: Canadian Bans WeChat on Government Devices

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that Canada has banned the use of Chinese messaging app WeChat on government-issued mobile devices, citing privacy and security risks. The Canadian government stated in an announcement that the applications WeChat and Kaspersky will be removed immediately from government-issued devices and that users of those devices will be blocked from downloading those two programs in the future.

The new bans follow action by Ottawa authorities to ban TikTok on government devices in February of 2023. Anita Anand, chairwoman of the Canadian Treasury Board, which oversees Canada’s federal public services, said Canada’s information chiefs believe the two apps “pose an unacceptable risk to privacy and security.” She added that no information leaks have been detected yet, but that the two platforms’ data collection methods on mobile devices “provide substantial access to device content.” She concluded that “the decision to remove and block WeChat and Kaspersky apps is to ensure that Canadian government networks and data remain secure and protected, in line with the practices of our international partners.”

According to UDN, WeChat did not respond to a request for comment.

Source: UDN, October 31, 2023
https://udn.com/news/story/6809/7541156

Briefings | | |   Geo-Strategic Trend Information/Technology

China Quickly Removes the Word “Emigrate” from Search Rankings

According to a recent report by Taiwanese news site NewTalk, there was a recent surge of search volume for the word “emigrate” on China’s top social media network WeChat. Volume surged by 1,156 percent, with an astonishing 510 million searches in one day. A few days later, the term “emigrate” (移民, also translated as “migrate”) was directly deleted from the WeChat Index, demonstrating China’s authoritarian control and the fear it has of its own people.

WeChat’s search index, based on big data collected by the company, represents the change in popularity of a certain keywords on WeChat. As early as when China first implemented the Zero Covid policy, many people began searching for terms related to emmigration, and the keyword’s popularity in WeChat increased rapidly, exceeding 100 million searches. Later during the White Paper Protests near the end of 2022, people’s desire for physical mobility became even stronger, with the WeChat Index recording 116 million searches. China’s economic difficulties have led to more and more Chinese people being dissatisfied with their living conditions.

Although the Chinese authorities attempted to remove terms related to migration from the supported vocabulary of WeChat’s hot-search system, this amounts to nothing more than an act of self-deception; the population’s dissatisfaction with the government will not disappear just because the word “emigrate” has been deleted from the search index.

Source: Newtalk, October 25, 2023
https://newtalk.tw/news/view/2023-10-25/893847

Briefings | | |   Information/Technology Social Stability

China News: China National Data Bureau Open for Business

China News recently reported that the newly established China National Data Bureau officially opened for business on October 25. Below are some key excerpts from the article:

The main responsibilities of this ministry-level organization are to promote the construction of data infrastructure systems, to coordinate the integration, sharing, development and utilization of data resources, and to establish Digital China, Digital Economy, and Digital Society.

Data has been playing an increasingly important role in China’s national economic and social development. Data as a critical resource should be managed by a central ministry. At present, the scale of China’s digital economy has developed significantly. In 2022, it has reached RMB 50.2 trillion (US$6.86 trillion), accounting for more than 41 percent of the Chinese GDP, and the total volume ranked second in the world.

The Bureau will focus on improving China’s data infrastructure, which is still “hard infrastructure” based on traditional information network infrastructure and digital infrastructure designs. However, based on the characteristics of the industrialization of data elements, the second “soft infrastructure” level should include well-coordinated standards, specifications, tools, etc. This is a key point in entering the data digitization stage. More importantly, for certain industries where the data scale is relatively large, the data quality is relatively high, and the data potential is relatively rich, a data space must be established to form a new data infrastructure from bottom to top, to support the industrialization of data use.

Source: China News, October 27, 2023
https://www.chinanews.com.cn/gn/2023/10-27/10101575.shtml

Briefings | | |   Government/Politics Information/Technology

Telegram to Collaborate with Tencent

In September, the instant messaging app Telegram and its partner, the TON Foundation, announced a collaboration with Chinese company Tencent (owner of the popular Chinese social media app WeChat). It will transform Telegram into a “super app ecosystem” similar to WeChat. Telegram boasts 800 million active users, including many from China who use it to circumvent the Chinese Communist Party’s (CCP’s) Internet censorship. Industry experts caution that this partnership may pose risks to user privacy and financial information. A commentator stated that Telegram, previously a platform independent of the CCP’s authority, is now controlled by Tencent, indicating that the CCP is working to eliminate the information platform as a threat to its rule.

During Hong Kong’s anti-extradition protest, many protesters used the Telegram app to discuss strategy and communicate information about gatherings.

Source: Radio Free Asia, September 29, 2023
https://www.rfa.org/mandarin/Xinwen/4-09292023113707.html

Briefings | | |   Government/Politics Information/Technology

Apple’s iPhone15 Pre-Sale in China Was Much More Successful Than Huawei

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, within ten minutes of going on sale, Apple’s Chinese official website crashed and remained unavailable for six to seven minutes. And in the official Tmall Apple flagship store, the first batch of iPhone 15 Pro and iPhone 15 Pro Max were sold out within one minute. According to the online sales manager in charge of the Tmall site, in half an hour, they restocked nine times and are still restocking. For now, iPhone 15 Pro Max is selling the fastest, and iPhone 15 Pro sales are also very high.

According to the iPhone reservation data released by the JD.com platform, the number of reservations for the iPhone 15 Pro model exceeds 1.13 million; the number of reservations for the iPhone 15 Pro Max, which has higher specifications and a higher price, is even greater, with more than 1.43 million reservations. Judging from this reference data, the iPhone 15 Pro models are already far ahead, unmatched by any other manufacturer, not even the breakthrough Huawei Mate 60 series made recently. Huawei recently announced a new Mate model that utilized 7-nm technology which was considered an answer to the U.S. blockage. However, Apple’s latest iPhone employs 3-nm cutting-edge technology which is far ahead and attracted much more enthusiasm in China.

Sources:
(1) NetEase, September 16, 2023
https://www.163.com/dy/article/IEPM2QJ80526D8LR.html
(2) Economy Daily (Taiwan), September 17, 2023
https://money.udn.com/money/story/5603/7444856

Briefings | | |   Information/Technology US-China Relations

CNA: Beef Soup Restaurant Fined for Providing Free Wi-Fi

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, the Public Security Bureau of Zhenjiang City, Jiangsu Province recently fined a beef soup restaurant for providing consumers with open Wi-Fi for failing to fulfill its network security protection obligations. This restaurant provided free Wi-Fi, and you only need to enter a password to log in. They did not record the real names of customer users and was imposed an administrative penalty – the source of the law is the Cyber Security Law. Recently China has been strengthening domestic data security law enforcement, and law enforcement agencies have increased monitoring efforts and strengthened control intensity. There have been several recent cases of administrative penalties against restaurants, massage parlors and other small businesses and stores accused of not complying with the official network security requirements. China issued the Cybersecurity Law in 2016, emphasizing the maintenance of national sovereignty over cyberspace and national security control, and it came into effect on June 1, 2017. On this basis, the Data Security Law was later implemented on September 1, 2021, citing national security interests. Experts pointed out that these recent enforcement actions are a clear signal from Chinese authorities that any informal grace period is over and that companies, regardless of size, must comply with the country’s data privacy and data security laws. However, small businesses may be less able than larger businesses to take compliance measures that sometimes bring high costs.

Source: CNA, September 10, 2023
https://www.cna.com.tw/news/acn/202309100145.aspx

Briefings | | |   Government/Politics Information/Technology

China’s Top Computer Server Manufacturer Suffered Major Profit Decline

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, with the advent of the artificial intelligence era, the traditional CPU server market has gradually shrunk, and new AI servers have soared. However, Inspur Information is subject to tight supply of GPUs, and it has not been able to jump onto the bandwagon. According to the global server market report for the third quarter of 2022 released by Gartner, Inspur ranked first in China, and second in the world, after Dell, with a global market share of 10.3 percent. However, in the first half of this year, Inspur’s server revenue fell by 29.03 percent year-over-year. Its net profit in the second quarter of this year suffered a year-over-year decrease of 81.46 percent. Inspur explained that its server product revenue was “affected by factors such as the tight supply of global GPUs and related special chips.” With the short supply of AI chips by Nvidia and Intel, the company emphasized that “the raw materials of the domestic server industry are currently mainly imported.” If there are major changes in supply, it will have an impact. Inspur’s server products are highly dependent on upstream chip suppliers. The company’s 2019 annual report showed that Intel and Nvidia are its top two suppliers respectively. Since 2020, Inspur has no longer published information about its main suppliers.

Source: Sina, September 7, 2023
https://finance.sina.com.cn/tech/csj/2023-09-07/doc-imzkwctn6755618.shtml

Briefings | | |   Information/Technology US-China Relations

SMIC’s Net Profits Down Significantly During First Half of 2023

Chinese semiconductor manufacturing company SMIC has released an earnings report for the first half of 2023. Well-known Chinese news site Sohu (NASDAQ: SOHU) reported that SMIC’s revenue was approximately US$3.023 billion during this period, a year-over-year decrease of 19.3 percent. Net profits were approximately US$634 million, a year-over-year decrease of 34.10 percent.

The company’s revenue from wafer fabrication decreased to US$2.759 billion during the reporting period, a 21.0 percent year-over-year decrease. Wafer fabrication represents nearly 90 percent of SMIC total business. Management stated that, due to global changes in the structure of the industrial chain and the re-integration and allocation of resources, it is foreseeable that future competition will be more intense.

SMIC expects that the unfavorable situation of “volume growth with price decline” in the second quarter will continue into the third quarter. This is due to the United States’ intensified pressure on China’s chip industry as well as the laggardly recovery of the global smartphone and consumer electronics industries.

According to the latest 2022 sales rankings released by pure-play foundry companies around the world, SMIC ranks fourth in the world and first among Mainland Chinese companies. As of now, China is still the world’s largest consumer market for integrated circuits and discrete devices.

Source: Sohu, August 25, 2023
https://www.sohu.com/a/714900415_258768

Briefings | | |   Information/Technology