News: IP theft - no more worries

 

Just a brief note -  the FBI has more than 1,100 China IP theft  cases pending against Chinese entities or individuals.  Not a typo - 1,100.

 For American companies not doing business in China - we should not say, no exposure to China - the FBI investigations may still be something of a bulwark against theft.  Although, one notes, most of the investigations and arrests are in arrears of the crime.

And back nearly a year ago, Mr. Xi promulgated a new IP theft policy which threatened Chinese businesses that steal.  The policy was announced within hours of a Xi-Trump meeting last December, and comprised a coordinated efforts across 38 Chinese government agencies with 38 different punishments.  The insincerity of this announcement, coming immediately upon the leaders' meeting, was palpable.  If you want to believe, you may.  I wrote about this at the time in Everything new is old again

But with a new Chinese government policy, IP theft in China is no more.

Now comes the latest entry in China's bid to become the first panopticon state - the cybersecurity law that permits government access to all information, IP or otherwise, stored on any server available to any foreign business operating in China.  China Law Blog has details - China's New Cybersecurity System - There is NO Place to Hide.  From the blog post -

This result then leads to the key issue. Confidential information housed on any server located in China is subject to being viewed and copied by China’s Ministry of Public Security and that information then becomes open to access by the entire PRC government system. But the PRC government is the shareholder of the State Owned Entities (SOEs) which are the key industries in China. The PRC government also essentially controls the key private companies in China such as Huawei and ZTE and more recently Alibaba and Tencent and many others. See China is sending government officials into companies like Alibaba and Geely and China to place government officials inside 100 private companies, including Alibaba. The PRC government also either owns or controls China’s entire arms industry.

Simply put, the data the Ministry of Public Security obtains from foreign companies will be available to the key competitors of foreign businesses, to the Chinese government controlled and private R&D system, and to the Chinese arms industry and military.

The takeaway on this is that the fear of IP theft in China is no more.  What used to be considered theft, done by stealth, is now a legal process.  As Steve Dickinson from China Law Blog says, welcome to the new normal.   And anyway, remember - information wants to be free.

 

 

Deer in the headlights

 

Aggressive moves by the Xi Jinping government have sensitized the world to skullduggery, lying, theft, and threats to foreigners in their own country by Chinese organizations in business and government. Infiltration of politics and government in Australia and New Zealand has become a recurring story. 

Unfortunately, such actions can bias some people against Chinese everywhere.  So - what to make of Gladys Liu?

Update at October 7, 2019 - The NBA self-censors for China

The NBA is a business - we know that.  But the NBA has been the professional league in which players and coaches have had the most freedom to speak their minds about issues of rights and morality.  Now, apparently, that freedom of speech stops at the Chinese border.  The New York Times has the story - NBA executive's Hong Kong tweet starts firestorm in China.

Daryl Morey, the general manager of the Houston Rockets, tweeted an expression of support for protesters in Hong Kong.  This upset the Chinese Basketball Association, and some Chinese fans, who see Hong Kongers as only hooligans and destroyers of Chinese harmony.  Morey's tweet suggested that he "stands with Hong Kong."  He has now apologized to the NBA's largest international market.  The NBA has disavowed his comment, although it did suggest weakly that he had a right to say what he said.  Of course, the Chinese league commented with the old trope, that Morey had hurt the feelings of all Chinese people (who are basketball fans). 

Videos of police extremism in the Hong Kong subway
 

update at October 5 -  after months of protest and escalation, and some excessive violence by police and thugs against protesters, I am starting to admire the Hong Kong police a bit for their restraint.

Video of destruction at subway stations  - there are many such videos from the last few months, but the extent of the damage is causing Hong Kong to shut down - more here and here. No one knows where this goes or at this point what the intent can be.  At some point, shutting down Hong Kong only plays into the hands of the government.  The mainland needs Hong Kong, that is true; but Hong Kongers need Hong Kong as well. 

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In case you've not been watching.  No need for further comment on this. 
 
 
 
 
 
 
 
 
If you can get this from the New York Times, it is a chilling video of a student
protester talking about his actions.  He seems to treat the protests as an
extracurricular activity.  Not to doubt his sincerity, but he really could be killed
in this confrontation, and I doubt that has sunk in.  A bit like Tian'anmen or
Kent State.
 
 
 
 
Update:  The anthem, written hastily but embraced by those in the streets, in Cantonese, pointedly not in Mandarin -
 
Glory to Hong Kong
 
A version with English subtitles
 
 
 
 
 https://twitter.com/tictoc/status/1167867063097946112?s=20
 
https://twitter.com/tictoc/status/1167867063097946112?s=20

Chinese Officials Threaten Mainland Parents of Student Attending Australian Protest

It is important to remember what we are dealing with.  Let's review -

From the Sydney Morning Herald, August 7 - Chinese authorities approached the family of an international student who participated in high-profile protests at an Australian university and warned his parents of the potential consequences of political dissent.

Let's remember what we are dealing with ...

 News reporting is so uneven.  No mass shooting in the US is censored information in China - in fact, the news is prominently featured.   From China Xinhua News on Twitter -

China Xinhua News

@XHNews

 Shootings this weekend at a Texas Walmart and a bar in Ohio have left 30 people dead. Retail employees are taking to social media to say they're terrified to go to work. Workers fear getting shot at their workplace