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Chinese Police Demand to Inspect Students’ Phones to Remove Chat Apps like Telegram

Chinese authorities have issued notifications in several regions, urging parents, under the pretext of “preventing online crimes,” to check their children’s mobile phones in order to remove “secret chat apps.”

According to reports from state media outlets like Guangming Daily Online, the official WeChat public account of the Nanjing Public Security Bureau stated on the 16th that secret chat apps, known for their strong encryption and features like “disappearing messages,” provide criminals with a convenient means to destroy evidence, making these apps a “gray area.”

Law enforcement agencies have expressed concern that criminals exploit secret chat apps to manipulate minors through deception, coaxing them into providing personal information and engaging in illegal activities. In some cases, individuals who assist in such online crimes can be charged with “assisting information network criminal activities,” which carries a penalty of up to three years’ imprisonment, detention, or a fine for serious offenses.

Apart from the Nanjing police, similar warnings have been issued by authorities in various locations, including Fuzhou City in Fujian Province, Dazhou City in Sichuan Province, Hainanzhou in Qinghai Province, Hezhou City in Guangxi Province, Tongliao City in Inner Mongolia, and Lanzhou City in Gansu Province.

Some notifications also urge teachers and parents to check if their children have installed such apps on their phones, warning that their children may be assisting overseas fraudsters in illegal activities. If any installed apps are discovered, it is advised to take the matter seriously, inform the child about the potential harm, and accompany them to the nearest public security agency to investigate whether they are involved in any illegal activities.

The mentioned problematic apps include WhatsApp, Telegram, and Twitter, which are commonly used overseas.

Source: Central News Agency (Taiwan), May 22, 2023
https://www.cna.com.tw/news/acn/202305220035.aspx

CBN: LinkedIn to Shut Down Chinese Jobs App

China Business Network (CBN) recently reported that Microsoft’s workplace social media network, LinkedIn, just announced layoffs and that it will shut down its job-seeking application service in China. The company further said it plans to cut 716 jobs as demand fluctuates. It is worth noting that LinkedIn continues to downsize its business in China. The company decided to withdraw most of its Chinese business in 2021, and it shifted its business focus in China to meet the needs of job hunting and recruitment, and no longer produce content. After the latest business adjustment, LinkedIn said that, due to fierce competition and a challenging macroeconomic environment, it will take its only remaining application InCareers offline on August 9. However, a company spokesperson said LinkedIn would maintain a presence in China to help companies with operations in China recruit and train workers abroad. LinkedIn CEO Ryan Roslansky said in a letter to employees, that the company will be offloading more work to external partners in the future, who will then take on some of LinkedIn’s current work. The company also said the move to cut positions in sales, operations and support teams is aimed at simplifying the company’s operations and will move towards a more flattened management structure for faster decision-making. Microsoft acquired LinkedIn in 2016 for an estimated US$26 billion. According to Microsoft CEO Nadella previously revealed that, in 2021, LinkedIn’s global annual revenue was about US$10 billion.

Source: CBN, May 9, 2023
https://www.yicai.com/news/101751217.html

China Times: Austria Joins Countries Banning TikTok from Business Phones

Major Taiwanese newspaper China Times recently reported that the Austrian Federal Interior Minister, Gerhard Karner, announced that the government will ban civil servants from using the Chinese-owned short video sharing application TikTok on their official mobile phones. This means another country joins the growing list of those who have banned the use of TikTok, Including the United Kingdom, the United States and several European Union (EU) member states. Many Western countries have banned the use of TikTok on official devices based on national security concerns. The EU’s two largest decision-making bodies also imposed a ban on TikTok in March. When Gerhard Karner was interviewed before the regular weekly cabinet meeting today, he was asked whether Austrian government officials could continue to use TikTok. He told reporters that official mobile phone use will be banned. However, using TikTok with private mobile phones outside the federal network is still possible. TikTok is owned by the Chinese company ByteDance. It is under scrutiny from a number of governments and regulators amid concerns that the Chinese government could use the app to collect user data or advance its own interests.

Source: China Times, May 11, 2023
https://www.chinatimes.com/cn/realtimenews/20230510006402-260408?chdtv

HKET: Germany is Checking All Chinese Components in Its 5G Network

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that, German Interior Minister Nancy Farser said the ministry is checking all Chinese components already installed in Germany’s 5G network. The practice is to protect the country’s communications network. The three priorities of the inspection are to identify risks, avoid crises and avoid dependencies. She emphasized that relevant inspection is particularly important for key 5G network infrastructure. This could be an important move by German authorities to deal with security concerns. Domestic German media earlier quoted sources as saying that Berlin is considering banning certain components from Chinese companies such as Huawei and ZTE in the telecommunications network. The Ministry of the Interior later denied it, emphasizing that it only comprehensively reviewed all suppliers to avoid over-reliance on individual suppliers. The Chinese embassy in Germany responded that China firmly opposes Germany’s generalization of the national security concept, abusing state power to interfere in the free market, and undermining the principle of fair competition.

Source: HKET, April 16, 2023
https://bit.ly/41AvDUC

UDN: Apple’s India Focus Enhanced Taiwanese Supply Chain

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that, Apple’s rush to “Made in India” has been fruitful, with over US$7 billion worth of iPhones assembled in India in its last fiscal year. This means tripling iPhone production in the world’s fastest growing smartphone market. Foxconn, Wistron and Pegatron played an important role. The three major Taiwanese foundries’ Indian manufacturing business grew simultaneously and became big winners. With the help from its Taiwanese partners, Apple produced about 7 percent of iPhones in India in the last fiscal year, a huge jump from the previous 1 percent. In the current fiscal year, Apple assembled more than US$7 billion in iPhones in India by the end of March, of which US$5 billion was exported, nearly four times the amount in the previous year. Apple may attempt to produce the next generation of mobile phones simultaneously in India and Mainland China, possibly in the fall of this year, which will be the first time that Apple mobile phones get assembled simultaneously in China and India. A quarter of Apple’s phones could be assembled in India by 2025, if suppliers continue to expand aggressively.

Source: UDN, April 14, 2023
https://udn.com/news/story/7240/7096899

Ukraine Listed Xiaomi as Russia’s “International Sponsor”

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, the Ukrainian National Agency for the Prevention of Corruption issued an announcement, adding Xiaomi to the list of so-called “war sponsors” and imposing sanctions. The “Sponsors of International War” list includes a number of foreign companies that Ukraine believes have been “funding” Russia since the outbreak of the Russia-Ukraine conflict. Most of these companies did not withdraw from the Russian market after February 24 last year. The reason for Xiaomi’s inclusion on the list is that “the company continues to operate in Russia and maintains a leading position in the Russian smartphone market.” The announcement also cited some of Xiaomi’s efforts to increase the size of its Russian office staff. Since 2018, Xiaomi has ranked first in the sales of online stores in Russia, and has a large offline official authorized retail network throughout Russia. Based on the data for the third quarter of 2022, compared with the previous quarter, Xiaomi’s supply to Russia has increased by 39 percent. Currently, Xiaomi ranks third in the global smartphone shipment rankings, with a global market share of 12.8 percent.

Source: NetEase, April 15, 2023
https://www.163.com/dy/article/I2ATRES80512B07B.html

Global Times: Australia and NATO Issued Ban on TikTok

Global Times recently reported that Australian media disclosed earlier that, on April 4th, Australian Prime Minister Albanese approved a ban on the use of TikTok on equipment within the Australian government, and notified the state and territory governments about the ban. They are expected to follow suit. The Australian government decided that the ban will target all government-issued equipment, citing a so-called “espionage risk.” The move is in line with Australia’s “Five Eyes” partners – the US, the UK, Canada and New Zealand. The Australian Federal Attorney General declared in a statement that this decision was made on the advice of intelligence and security agencies and that the ban will come into effect as soon as it is practical. TikTok denied there are security issues and said the app poses no risk to Australian users.

Earlier, Global Times also reported that two people familiar with NATO said that NATO officials sent a notice to all staff in the organization on March 31st, announcing the prohibition of downloading and using the short video social app TikTok on NATO-provided equipment on the grounds of so-called “security considerations.”

A Chinese Foreign Ministry spokesperson stated that China has always maintained that data security issues should not be used as a tool to generalize the concept of national security and unreasonably suppress companies from other countries.

Source: Global Times, April 4 and March 31, 2023
https://world.huanqiu.com/article/4CLwKcdRX1L
https://m.huanqiu.com/article/4CJMAljHzeB

Huawei’s Net Profit Dropped 68.7 Percent Last Year

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that Huawei released its 2022 annual report. The report shows that Huawei’s global sales revenue was RMB 642.3 billion yuan (around US$93.5 billion), a year-over-year increase of 0.9 percent, and its net profit was RMB 35.6 billion yuan (around US$518 million), a sharp decrease of 68.7 percent year-over-year. In 2022, Huawei’s sales in the high-end smartphone market fell sharply by 44 percent year-over-year, and its share in the high-end smartphone market further dropped from 5 percent in 2021 to 3 percent. Regarding Huawei’s return to the 5G smartphone market, Huawei’s rotating chairman responded that the mobile phone business has been most affected by the U.S. sanctions, from the second in the world to “others.” Currently Huawei can only make 4G phones. To buy a Huawei 5G mobile phone, one would have to wait for permission from the U.S. Department of Commerce. Huawei also confirmed its strategy of not building cars, but helping car companies build good cars. According to Huawei’s CFO, in 2022, Huawei’s operations faced greater pressure. Overall, the operating performance was in line with expectations. At the end of 2022, Huawei’s asset-liability ratio was 58.9 percent  and its net cash balance was RMB 176.3 billion yuan (around US$25.7 billion), showing a stable financial position.

Source: Sina, March 31, 2023
https://cj.sina.com.cn/articles/view/7501277582/1bf1c698e02001dxw4