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LTN: Huawei’s Software Defect Rate Is 55 Percent

Major Taiwanese news network Liberty Times Network (LTN) recently reported that the security firm Finite State’s latest research report showed that, among a sample of nearly 10,000 Huawei software images, 55 percent had at least one potential backdoor vulnerability. The research indicated that, among similar products in the industry, Huawei’s security level ranked lowest nearly across the board in all of the technical categories that were inspected. This poses a high risk to Huawei’s customers. The research also showed that the security posture of Huawei’s products did not improve over time. In addition, many security holes were not patched, or the software did not receive upgrades. Similar products manufactured by Huawei’s competitors like Nokia and Ericsson scored much higher. Nokia’s Chief Technology Officer Marcus Weldontold also claimed to have far better information security scores. Huawei refused to comment on the completeness and objectiveness of the research report but insisted the company did not intentionally plant a backdoor into any of its products.

Source: LTN, June 28, 2019
https://ec.ltn.com.tw/article/breakingnews/2836629

Briefings | | |   Information/Technology US-China Relations

Qiushi: Keep a Clear Mind and Fight till the End

Qiushi, the official journal of the Chinese Communist Party, published a commentary in its twelfth Issue for 2019. The subject was the trade war between China and the United States. It urged keeping a clear mind and fighting until the end. Xinhua and People’s Daily have since re-published the commentary. The following is a summary of some of the highlights:

The Sino-U.S. economic and trade relationship is not a “zero-sum game.” Rather, it is mutually beneficial.

The “fair trade” that the United States emphasized is not really fair at all. The United States purchases resources, labor, and products at a low cost from developing countries while selling its technology products at a high price.

Unilateralism is a dead end. Only through open cooperation can one gain more development opportunities and more room for development.

The United States hegemonism in the area of technology will not succeed. China’ technological advances are the result of the competition and hard work of the Chinese people and not the result of stealing or forced technology transfer.

The ultimate pressure applied to China will not work because such pressure will expose the true nature of the U.S. hegemony and further isolate the United States in the international community.

The trade protectionism of the Trump Administration will not bring the manufacturing industry back to the United States. On the contrary, it will seriously damage the global value chain, impact global resource allocation, generate widespread negative spillover effects, and reduce the efficiency of the global economy.

The trade war between China and the United States will not promote the prosperity of the U.S. economy. What goes around comes around. There will be no winner. Whoever initiates the trade war will eventually hurt themselves.

The Sino-U.S. trade war will not crush the Chinese economy.

The commentary concluded by stating that China has been firm and consistent in its position regarding the key differences between China and the United States on the trade war: zero-sum game vs. mutual benefit and win-win; opposition vs. cooperation; monopoly vs. competition; and unilateralism vs. multilateralism.

Source: Xinhua, June 16, 2019
http://www.xinhuanet.com/fortune/2019-06/16/c_1124629943.htm

Briefings | | |   US-China Relations

Lianhe Zaobao: Multiple Chinese Exporters Fined for Forging Labels in Cambodia

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the U.S. authorities have caught and fined multiple Chinese exporters because they were found to have forged Country of Origin labels. These Chinese exporters shipped goods to Cambodia where they forged “Made in Vietnam” labels in the Cambodia Sihanoukville Special Economic Zone. This is in line with an earlier report that Vietnamese Customs discovered several cases of illegal labels designed to bypass the new U.S. tariffs. The U.S. Embassy confirmed this incident. The Sihanoukville Special Economic Zone is located 210 kilometers west of the Cambodian capital of Phnom Penh. It’s an economic development zone that Cambodia and China constructed jointly. It is one of the symbolic projects of China’s One Belt One Road initiative. According to the World Bank Group, the Cambodian economy saw a 7.5 percent increase in 2018 due to the strong growth of exports to the United States.

Source: Lianhe Zaobao, June 20, 2019
https://beltandroad.zaobao.com/beltandroad/news/story20190620-965996

Briefings | | |   Geo-Strategic Trend US-China Relations

Vietnam Tightens Inspections of Chinese Exports That Forge Vietnam As the Country of Origin

Well-known Chinese news site Sohu recently reported that the U.S tariffs against China are creating a significant challenge for Chinese exporters. More and more Chinese sellers are using a third country route in order to get their products into the United States. This circumstance places heavy pressure on Vietnam since Vietnamese Customs is now seeing a flood of fraud on manufacturing origin certificates. The Vietnamese government announced new rules and has increased the level of its penalties on illegal trade activities. In order to keep its positive trend on a rapid growth of exports to the U.S., Vietnam increased the cost and tightened up the verification process for “Made in Vietnam” labels under the name of protecting the reputation of the label and the nation. According to the U.S. data, in the first quarter, Vietnam saw a year-over-year 40.2 percent growth in exports that are being sent to the U.S. This has made Vietnam the top country that sees the fastest trade growth with the U.S. No wonder Vietnam is now willing to do anything to please the United States.

Source: Sohu, June 13, 2019
http://www.sohu.com/a/320230420_99994729

Briefings | | |   Geo-Strategic Trend US-China Relations

China Accuses U.S. of Cyber Attacks

According to China’s Xinhua News Agency, Beijing based National Computer Network Emergency Response Technical Team/Coordination Center (CNCERT) recently released the “Overview of China’s Cyber Security in 2018.” The data shows that cyber-attacks that originated in the U.S. lead the sources of attacks and the trend continues to worsen.

The CNCERT reported that in 2018 more than 14,000 U.S. based Trojan or botnet servers controlled more than 3.34 million mainframes in China. The number of attacked servers increased by 90.8 percent over the year 2017.  3,825 U.S. IP addresses implanted Trojans into 3,607 websites in China. The number of such U.S. IP addresses increased 43 percent over those in 2017. According to the statistics on the number of Chinese domestic mainframes and websites under attack, the U.S. tops the list of overseas attack sources. The report quotes experts who say that the U.S. has been accusing China of being a major threat to US cybersecurity, but the data shows that the U.S. itself is the largest source of cyber-attacks.

Source: People’s Daily, June 11, 2019
http://paper.people.com.cn/rmrb/html/2019-06/11/nw.D110000renmrb_20190611_2-02.htm

Briefings | | |   US-China Relations

Xinhua: Whoever Advocates Giving in to the U.S. in the Trade War Is a Rat Who All Should Chase

On June 9, 2019, Xinhua published a commentary on the  U.S.-china trade issues titled, “Let Everyone Chase the ‘Surrender Theory’ As If It Were a Rat Running across the Street.”

The commentary began with a reiteration of the Communist Party’s official position. “The attitude of the Chinese side has always been clear: not willing to fight, not afraid to fight, have to fight if necessary. In this regard, the vast majority of Chinese people are very firm on this position and are united as one in solidarity. However, a small number of people have developed ‘PF chondrosis,’ lost their national integrity, and have widely advocated a surrender theory because ‘China is in a disadvantaged position and should appeal to all to compromise,’ thus confusing, disturbing, and distracting the public. In this regard, we must unequivocally say ‘no.’ We will vigorously carry out the struggle and let the ‘surrender theory’ become a street rat.”

The commentary went on, “[T]hose who advocate the ‘surrender theory’ unconditionally tout the ‘rationality,’ ‘legality,’ and ‘necessity’ of the U.S. government’s trade bullying policy and power-political behavior against China. They put the blame for the Sino-U.S. trade war entirely on China. They allege that China bites the hand that feeds it ‘with no reasonable basis for resisting the U.S. trade bullying.’ It is an action to curry favor with the United States and it is an absurd theory that calls white black and black white.”

The commentary concluded with a warning, “I hereby notify those who worship, are eager to please, and are fearful of the United States that you should not continue to be an accomplice of the U.S. government in bullying; you should not try to use the ‘surrender theory’ to sabotage the Chinese people’s spirit of resistance. If you continue to be obsessed and stubbornly move forward, an abyss of 100,000 feet will be right in front of you.”

Source: Xinhua, June 7, 2019
http://www.xinhuanet.com/comments/2019-06/07/c_1124595223.htm

Briefings | | |   US-China Relations

Falun Gong Practitioners Are Called to Submit Perpetrators Information

Minghi.org, a website devoted to news about Falun Gong in China and around the world, recently announced that the U.S. government is collecting information about human rights abusers including the perpetrators involved in the persecution of Falun Gong. It called for Falun Gong practitioners (referred to as Dafa disciples in the notice below) to submit such information.

The Minghui Editorial notice stated:

“An official from the U.S. Department of State recently told various religious groups that the U.S. government is imposing stricter visa vetting and may deny visas to human rights violators and perpetrators of religious beliefs. This applies to both immigration visas and non-immigration visas such as tourism and business visas. Those who have already been granted visas (including “green card” permanent visas) may be denied entry.

“The official specifically told Falun Gong practitioners that they can submit a list of perpetrators involved in the persecution of Falun Gong.

“We urge Dafa disciples all over the world to take immediate action to collect, compile, and submit to Minghui.org information on the perpetrators, their family members, and their assets, so as to locate and verify their identities.

“We ask that Dafa disciples in the U.S. collect and submit information of people who have aided in the Chinese Communist Party’s persecution of Falun Gong outside of China. They include those who have attempted to interfere with Shen Yun Performing Arts, Shen Yun Symphony, Falun Dafa experience sharing conferences, and truth-clarification sites in different places such as Flushing. They also include those who spread CCP propaganda against Falun Gong on various websites.

“Falun Gong practitioners in Taiwan, Hong Kong, South Korea, Spain, and other countries please also provide information regarding perpetrators in their regions.”

Source: Minghui, May 31, 2019
http://en.minghui.org/html/articles/2019/6/1/177876.html

Briefings | | |   Government/Politics US-China Relations