Chinascope – Page 260

Banks Backed by Ant and Tencent to Join China’s Digital Currency Pilots

China Securities Journal reported that Zhejiang E-Commerce Bank Co., Ltd., (MYBank) backed by the Ant Group and WeBank backed by Tencent may participate in the digital currency pilot projects of six state banks. The status of the two private banks is “coming soon.”

Beyond these two private banks, most urban small and medium-sized banks in China will connect to the central bank digital currency infrastructure via City Bank Clearing Services Co., Ltd. (“City Bank Clearing”). Rural Credit Bank Clearing will provide a conduit for rural banks to access the digital currency infrastructure. The Digital Currency Research Institute of the Bank of China entered into agreements with the two intermediaries last fall.

The digital currency is issued and regulated by China’s central bank. All transactions will be completely under China’s central bank’s supervision. In contrast, transactions through Alibaba Group’s Alipay and Tencent’s WeChat Pay are electronic payments controlled by the companies.

Source: The Paper, February 20, 2021

https://www.thepaper.cn/newsDetail_forward_11388883

Briefings | | February 24, 2021 | Economy/Resources Government/Politics

Chinese Hackers Exploit NSA-linked Tools to Attack U.S. Targets

On February 22, Check Point Research, an American-Israeli cybersecurity company, published an exhaustive report discussing certain cyber tools. The report stated that cyber tools that the Equation Group, a group believed to be affiliated to the Tailored Access Operations (TAO) unit of the U.S. National Security Agency (NSA), had fallen into the hands of a Chinese hacker group, which then repurposed them in order to attack U.S. targets.

In 2014, the Chinese group APT31 (APT is abbreviation of Advanced Persistent Threat), also known as Zirconium or Judgment Panda, made a replica of an exploit originally attributed to the Equation Group, known as EpMe. An exploit is a hack that leverages a security hole or flaw, as opposed to a hack that requires installing malware. The Chinese hackers then used that tool, which Check Point has named “Jian” or “double-edged sword,” from 2015 until March 2017, when Microsoft patched the vulnerability it attacked.

Check Point pointed out, “Both exploit versions for APT31’s “Jian” or Equation Group’s “EpMe” are intended for … elevating the privileges of the attacker in the local Windows environment.” “The tool is used after an attacker gains initial access to a target computer — say, via zero-click vulnerability, a phishing email, or any other option — to give the attacker the highest available privileges, so they could “roam free” and do whatever they chose on the already infected computer.”

Check Point believed that the Equation Group exploit samples could have been acquired by the Chinese APT in one of these ways:

Captured during an Equation Group network operation on a Chinese target.
Captured during an Equation Group operation on a 3rd-party network which was also monitored by the Chinese APT.
Captured by the Chinese APT during an attack on the Equation Group infrastructure.

The research report also mentioned that APT31 used “Jian” to conduct network attacks from 2015 to March 2017 until Microsoft patched the vulnerabilities.

APT31, a state-sponsored hacking collective, is alleged to conduct reconnaissance operations at the behest of the Chinese Government, specializing in intellectual property theft and credential harvesting, with recent campaigns targeting U.S. election staff with spear-phishing emails containing links that would download a Python-based implant hosted on GitHub, allowing an attacker to upload and download files as well as execute arbitrary commands.

Sources: Check Point Research, February 22, 2021
https://research.checkpoint.com/2021/the-story-of-jian/
WIRED, February 22, 2021
https://www.wired.com/story/china-nsa-hacking-tool-epme-hijack/

Briefings | | February 23, 2021 | Defense/Military

Cyber Security Experts Warn Chinese Clubhouse Users to Be Careful When Using Clubhouse

Although China blocks Clubhouse, a social network based on voice, many Chinese netizens still break through the firewall to join the audio chat platform. However, cyber security experts in the U.S. warned that, since Clubhouse uses a server in China, the contents of the transmission may be intercepted. Therefore, it is not recommended to express sensitive views when using this software.

Alex Stamos, Director of the Stanford Internet Observatory and former Chief Security Officer at Facebook, posted on his Twitter account that his team “found that Chinese servers are being used for conversations, but he cannot recommend that individuals who might find themselves adverse to the security services of the PRC should use Clubhouse for sensitive conversations.”

According to the analysis that Stanford Internet Observatory published, Shanghai-based Agora is a key technology supplier to Clubhouse. A user’s unique Clubhouse ID number and chatroom ID are transmitted in plain text and Agora would likely have access to users’ raw audio, potentially providing access to the Chinese government. Stamos also mentioned that other than Agora, Clubhouse uses servers run by Guangzhou Enjoy VC Communication Technology.

Source: Central News Agency, October 22, 2021
https://www.cna.com.tw/news/acn/202102210114.aspx

Briefings | | February 23, 2021 | Information/Technology

UDN: Kim Jong-un Changed the English Translation of His Title

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that North Korea is changing the official English translation of the title of the country’s top leader. Up until January 22, the North Korean official news agency KCNA (Korean Central News Agency) was using “Chairman of the State Affairs Commission” as the title for Kim Jong-un. However, starting on February 11, the translation was officially changed to “President of the State Affairs.” The international community typically uses the word “president” to indicate the top leader of a county. This new move appears to be an effort to emphasize that North Korea’s leader is also an international leader. North Korea did not have an official explanation for this latest change. In the meantime, the Chinese translation and the Russian translation remain unchanged. In recent years, socialist countries like China also switched the translation from chairman to president. However, Xi Jinping’s official title in Chinese remains Chairman. The North Korean Constitution clearly designates the Chairman of the State Affairs Commission as the highest leader of the nation. Kim Jong-un has two other titles.

Source: UDN, February 20, 2021
https://udn.com/news/story/6809/5264234

Briefings | | February 23, 2021 | Geo-Strategic Trend

Global Times: Tom Cotton Announced His Plan to Give China a Total Screw-Up

Well-known Chinese news site Sina (NASDQ: SINA) recently republished an article published under Global Times’ official social media account, analyzing U.S. Senator Tom Cotton’s new report called “Beat China.” The article labeled Senator Cotton as a “Trump enthusiast,” a “right-wing extremist,” an “anti-China extremist,” a “daydreamer” and a “liar.” It called Cotton’s latest “Beat China” report a plan to “screw up China big time,” to start an economic cold war no smaller than the cold war against the Soviet Union, and to decouple the U.S. completely from China. The Cotton Report focused on two major topics: one is how to decouple and beat China to the ground and the second is how to minimize the damage to the U.S. in this war. In the first part, Cotton suggested further tightening up high-tech exports to China from the U.S. and U.S. allies, while also cutting off research cooperation with China as well as talent exchanges. Cotton also called for a significant reduction in U.S. dependency on Chinese rare earths. In the second part of the Report In the second part Cotton called for damage control. He called for developing new markets for U.S. products and forming a new anti-China trade alliance. In the meantime, the U.S. should act to “retake” control of international organizations like the WTO, or create new ones. Global Times thinks this whole narrative is just “wishful thinking.” However, it is worth noting that even some U.S. media and influential individuals on the left thought Cotton had some points “worth considering.” The Global Times article described Tom Cotton as “setting himself up as a 2024 presidential candidate.”

Sources:
1. Sina, February 20, 2021
https://finance.sina.com.cn/world/gjcj/2021-02-20/doc-ikftpnny8611704.shtml
2. Beat China: Targeted Decoupling and the Economic Long War Prepared by the Office of
Senator Tom Cotton
https://www.cotton.senate.gov/imo/media/doc/210216_1700_China%20Report_FINAL.pdf

Briefings | | February 23, 2021 | US-China Relations

DW Chinese: Chinese Spokeswoman Questioned Why Chinese People Cannot Use Twitter and Facebook

Deutsche Welle Chinese Edition recently reported that the Hua Chunying, the spokeswoman for the Chinese Ministry of Foreign Affairs, provided a surprising answer when a foreign reporter asked her at a press conference to comment on the fact that the Chinese Ministry’s number of Twitter and Facebook accounts increased by three and two times, respectively. Hua claimed in her response that many western media reporters and diplomats heavily use Chinese social media apps like Weibo and WeChat. Then she questioned the foreign reporter who asked for her comments earlier, “Foreigners can use Chinese social media, why can’t Chinese people use Twitter and Facebook?” This “official” answer and the video went viral across Chinese online communities. Massive numbers of Chinese netizens joined the “discussion” with comments like “I was wondering about that too!” “Great question!” “Now I finally understand it’s the West that blocked our access.” “Hua asked the question we Chinese did not dare to ask.” “So we are not Chinese people …” Some explained that “Hua meant to say Chinese reporters and diplomats should be able to use Twitter and Facebook just like foreign reporters and diplomats can use WeChat.” China’s Great Firewall blocks all foreign social media. Nearly all Chinese netizen have no access to Twitter and Facebook, except for privileged figures like Hua herself.

Source: DW Chinese, February 20, 2021
https://bit.ly/2NKNzLa

Briefings | | February 23, 2021 | US-China Relations

Chinese Defense Companies and the Burmese Military Regime

Although China has repeatedly denied assisting the Burmese (Myanmar) military in launching its February coup, many people believe the opposite. Recently, a Burmese citizen’s group disclosed in a report that five Chinese companies have long been selling weapons to the military government.

The civil organization “Justice for Myanmar” recently disclosed in a report that 16 foreign companies supplied conventional weapons and equipment to Tatmadaw (the official name of the armed forces of Myanmar). Among them there were five Chinese firms, namely China North Industries Group Corporation Limited (Norinco), Aviation Industry Corporation of China (AVIC), China Aerospace Science and Technology Corporation (CASC), China Aerospace Science and Industry Corporation (CASIC), and China National Aero-Technology Import & Export Corporation (CATIC). India, Israel, Russia, and Singapore, each have two companies on the list.

Zhang Shengqi, chairman of the Myanmar-Burma Assistance Association, told Radio Free Asia on Thursday, February 18, that Chinese companies have been selling weapons to Myanmar for a long time, and that this is no longer a secret. Zhang said, “It is no secret that China provides arms to the Burmese government forces. The Burmese military is a military ally of China in the south. Ten years ago, the Chinese government moved its security line from southern Yunnan province to southern Myanmar. The whole country of Myanmar is regarded as within the security line of China’s defense. The stability of Myanmar directly affects China’s interests and national security. If Myanmar chooses to have a pro-US, instead of pro-China, stance, Myanmar will once again fall into an endless civil war.”

In recent years, China invested in the Kyaukpyu deep-water port in the western Rakhine State of Myanmar, a US$ 1.3 billion project. After completion, it will become China’s gateway to the Indian Ocean. In addition, the US$ 8.9 billion Mandalay high-speed rail project will connect northern Myanmar with southwest China. In the future, China may transport energy and materials without relying entirely on the Malacca Strait.

Zhang Shengqi expressed the belief that China has huge economic and strategic interests in Myanmar and that geopolitics doomed the special relationship between the two countries. “The military port and China-Myanmar oil pipeline in the Bay of Bengal are the lifeblood for the Chinese military’s energy. China has to protect its military investment and presence in Burma and support Burma’s stability. … The Burmese people have no choice.”

Source: Radio Free Asia, February 17, 2021
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/ql2-02172021234248.html

Briefings | | February 23, 2021 | Geo-Strategic Trend

China’s Reaction to Trump’s Election Win

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized