Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
Image copyright GETTY IMAGESImage caption International students are uncertain of the future in the wake of Covid-19
Two years ago, 29-year-old Raunaq Singh started working towards his dream of pursuing an MBA from one of the world’s top business schools.
In January 2020, he was waitlisted by UC Berkeley’s Haas School of Business in California, and was asked to send more information to bolster his case for admission.
“So, I quit my stable job of five years and started working with a mental wellness start-up as a consultant,” Mr Singh says.
“I’m on a major pay cut because the purpose of joining this company wasn’t to earn money, but to add value to my application.”
Fortunately, he was accepted at Berkeley, and was due to start his course in September.
But then the world changed as Covid-19 spread, plunging the immediate future into uncertainty.
Mr Singh is one of hundreds of thousands of Indian students who were planning to study abroad. But now they are not quite sure what will happen given international travel restrictions, new social distancing norms and the sheer uncertainty of what the next few months will bring.
Image copyright MEEHIKA BARUAImage caption Ms Barua is one of the hundreds of thousands of Indians who wants to study abroad
Every year, in June and July, students flood visa centres and consulates to start the paperwork to travel and study abroad. But things look different this year.
“There’s a lot of stress and anxiety and tension at this time but not enough clarity,” says Meehika Barua, 23, who wants to study journalism in the UK.
“We don’t know when international travel restrictions will be lifted or whether we’d be able to get our visas in time. We may also have to take classes online.”
Some universities across the UK and the US are giving international students the option to defer their courses to the next semester or year, while others have mandated online classes until the situation improves.
The University of Cambridge recently announced that lectures will be online only until next year. Others, like Greenwich University, will have a mix of online and face-to-face approaches while its international students can defer to the next semester.
“It feels a little unfair, especially after spending a year-and-half to get admission in one of these schools,” Mr Singh says. “Now, a part of the experience is compromised.”
Like him, many others are disappointed at the prospect of virtual classes.
Image copyright PA MEDIAImage caption Cambridge University has announced that all lectures will be online
“The main reason we apply to these universities is to be able to get the experience of studying on campus or because we want to work in these countries. We want to absorb the culture there,” Ms Barua says.
Studying abroad is also expensive. Many US and UK universities charge international students a higher fee. And then there’s the additional cost of applications or standardised tests.
Virtual classes mean they don’t have to pay for a visa, air tickets or living expenses. But many students are hesitant about spending their savings or borrowing money to pay for attending college in their living room.
Even if, months later, the situation improves to some extent, and students could travel abroad and enrol on campus, they say that brings its own challenges.
For one, Mr Singh points out, there is the steep cost of healthcare, and questions over access to it, as countries like the US are experiencing a deluge of infections and deaths.
Image copyright GETTY IMAGESImage caption Students are also unsure of finding jobs overseas after graduation
And then there are the dimming job prospects. The pandemic has squeezed the global economy, so employers are less likely to hire, or sponsor visas for foreign workers.
“For international students, the roller coaster has been more intense because there is increased uncertainty about their ability to get jobs in the US after graduation, and for some, in their ability to get to the US at all,” says Taya Carothers, who works in Northwestern University’s international student office.
The idea of returning to India with an expensive degree and the looming unemployment is scaring students – especially since for many of them, the decision to study abroad is tied to a desire to find a well-paying job there.
“The risk we take when we leave our home country and move to another country – that risk has increased manifold,” Mr Singh adds.
The current crisis – and its economic impact – has affected the decision of nearly half the Indians who wanted to study abroad, according to a recent report by the QS, a global education network.
And logistics will also pose a challenge – colleges have to enforce social distancing across campuses, including dormitories, and accommodate students from multiple time zones in virtual classes.
“Regardless of how good your technology is, you’re still going to face problems like internet issues,” says Sadiq Basha, who heads a study abroad consultancy.
He adds that there might be a knee-jerk reaction as a large number of international students consider deferring their admission to 2021. But he’s positive that “in the long term, the ambitions of Indian students are not going to go down.”
Mr Singh is still waiting to see how things will unfold in the next few months, but he’s almost certain he will enrol and start his first semester of the two-year program online.
“Since I’ve been preparing for over a year now, I think mentally I’m already there,” he says.
Xi Jinping, general secretary of the Central Committee of the Communist Party of China (CPC) and Chinese president, holds talks with Kim Jong Un, chairman of the Workers’ Party of Korea (WPK) and chairman of the State Affairs Commission of the Democratic People’s Republic of Korea (DPRK), in Pyongyang, DPRK, June 20, 2019. (Xinhua/Ju Peng)
BEIJING, May 9 (Xinhua) — General Secretary of the Communist Party of China (CPC) Central Committee and Chinese President Xi Jinping on Saturday sent a verbal message of thanks to Kim Jong Un, chairman of the Workers’ Party of Korea (WPK) and chairman of the State Affairs Commission of the Democratic People’s Republic of Korea (DPRK), in reply to an earlier verbal message from the latter.
Saying he was very glad to receive Kim’s warm and friendly message, Xi recalled that in February this year, Kim sent him a letter of sympathy over the COVID-19 outbreak and provided support for China’s prevention and control efforts.
That has fully reflected the profound bond of amity Kim as well as the WPK and the DPRK government and people share with their Chinese counterparts, and vividly illustrated the solid foundation and strong vitality of the traditional friendship between China and the DPRK, said Xi, who also conveyed his deep gratitude and high appreciation.
Xi pointed out that after the coronavirus disease broke out, China, under the firm leadership of the CPC Central Committee and with strong support from various sides, has achieved significant strategic results in COVID-19 prevention and control through arduous efforts.
Senior students walk into Wuhan No. 6 High School in Wuhan, central China’s Hubei Province, May 6, 2020. Senior students in 121 high and vocational schools returned to campus on Wednesday in Wuhan City. (Xinhua/Xiao Yijiu)
He added that he pays great attention to the epidemic prevention and control situation in the DPRK and the health of its people, and noted that Kim has guided the WPK and the DPRK people to carry out a series of epidemic prevention and control measures, which are leading to positive progress. The Chinese president said he is gratified and pleased with that.
China, Xi added, is willing to enhance anti-epidemic cooperation with the DPRK and provide as much support as its capacity allows for the DPRK in line with the latter’s needs.
He also expressed his confidence that with the joint efforts of China and the DPRK as well as the international community, a final victory will be won in the fight against COVID-19.
Meanwhile, Xi said he highly values the development of China-DPRK relations and stands ready to work with Kim to guide relevant departments of the two parties and countries to effectively implement the important consensuses between the two sides, strengthen strategic communication, and deepen exchanges and cooperation.
In so doing, the two neighbors can promote the continuous development of China-DPRK relations in the new era, bring more benefits to both countries and their people, and make positive contributions to regional peace, stability, development and prosperity, added the Chinese president.
In his verbal message sent to Xi on Thursday, Kim congratulated Xi on leading the CPC and the Chinese people to splendid achievements and great victories in the battle against the unprecedented epidemic, saying he highly appreciates that.
Kim expressed his firm belief that under Xi’s leadership, the CPC and the Chinese people will surely further consolidate and expand the successes made so far and win a final victory.
He also wished Xi good health, sent greetings to all CPC members, and expressed his hope that the relationship between the WPK and the CPC will grow closer and enjoy sound development.
Hong Kong’s rule of law has been pushed to the “brink of total collapse” after more than five months of protests, police have warned.
The warning came as protesters clashed with police across the city on Tuesday.
At the Chinese University of Hong Kong, police fired tear gas and rubber bullets at protesters who built barricades on the campus.
Earlier in the day, around 1,000 protesters rallied in central Hong Kong during the lunch hour blocking roads
Protesters, wearing office clothes, were seen chanting: “Fight for freedom, stand with Hong Kong!”
The demonstrations come just a day after the territory saw a marked escalation in violence, with police shooting one activist in the torso. A pro-Beijing supporter was set on fire by anti-government protesters.
The protests started in June against a now-withdrawn plan to allow extradition to mainland China, but have since morphed into wider demonstrations, with activists demanding greater democracy and police accountability in Hong Kong.
On Tuesday afternoon, police spokesman Kong Wing-cheung hit out at the protesters, saying they had “countless examples of rioters using random and indiscriminate violence against innocent” people.
“Hong Kong’s rule of law has been pushed to the brink of total collapse as masked rioters recklessly escalate their violence under the hope that they can get away with it,” he told reporters, adding that Monday’s attack on the pro-Beijing supporter was being investigated as attempted murder.
Image copyright AFPImage caption Protesters and office workers were seen blocking roads in Hong Kong’s financial district
Speaking at the same conference, Supt Li Kwai-wah defended the officer’s decision to shoot the protester on Monday.
“We found out that our colleague did not only face threat from one person, instead it was a group of people with an organised plan attempting to steal the gun,” he said.
“In a situation like this, we believe our police are reacting according to the guideline, to protect themselves as well as the people around them.”
Both the protester and the pro-Beijing supporter remain in hospital, with the latter in a critical condition.
What happened on Tuesday?
Clashes erupted at the Chinese University of Hong Kong, with police firing tear gas to disperse students, while at City University there was a standoff between students and riot police which continued into the evening.
Police continued to use tear gas to try to disperse the protesters who responded with bricks and petrol bombs. Hundreds of protesters remain at the Chinese University of Hong Kong.
Image copyright REUTERSImage caption Students at Hong Kong’s Chinese University fought with police throughout the day
Students built roadblocks on streets in and around City University campus to stop police from entering. At one stage, a van used as part of a street barricade was set on fire.
Students at Hong Kong Polytechnic also tried to disrupt traffic near their campus.
In the morning, suspended railway services and road closures had already led to long traffic jams in the early rush hour. At noon, protesters moved into the city’s central business district for a flash mob protest.
Image copyright REUTERSImage caption At Festival Walk shopping mall, a Christmas tree was set on fire
Protests continued to intensify throughout the day. A Christmas tree inside Festival Walk shopping mall was set on fire by protesters while others were seen smashing a glass railing with hammers.
Train stations were closed across the city.
Media caption This Hong Kong protester’s shooting was livestreamed on Facebook
Eight universities have announced they will suspend classes on Wednesday.
Monday’s protests saw 260 people arrested bringing the number to more than 3,000 since the protests began in June.
Students swear they will not surrender
Grace Tsoi, BBC World Service, at the Chinese University of Hong Kong
Image copyright AFPImage caption Hundreds of protesters remain at the university
The ground was strewn with bricks. The air was filled with the smell of tear gas. Fire was raging on campus. Hundreds of protesters, most of them clad in black, formed human chains to pass bricks and petrol bombs to the front line.
One of the best universities in Hong Kong has turned into a battlefield after another day of intense clashes between students, who have been at the forefront of anti-government protests, and police.
The Chinese University students have been putting up resistance since the morning. On Monday, police seemed to change strategy by deploying forces to campuses. Students told me they should not be allowed there.
The university’s management has tried to deescalate the situation. Vice-chancellor Rocky Tuan was also tear gassed as he was negotiating with police.
Dozens of students have been injured, including at least one hit in the eye by a projectile. The night is young and students swear they will not surrender.
BEIJING, Sept. 1 (Xinhua) — As the autumn semester started Sunday, Chinese education departments, schools and military authorities have geared up for military training programs for students.
The Ministry of Education and three departments of the Central Military Commission jointly issued a directive earlier this week underlining adequate preparation of trainers, careful design of training programs and proper security management.
Freshman college students across the country and entrants to middle schools in many places are required to attend a short military training program mostly on campus but sometimes at training camps.
The military should select competent servicemen to be trainers and provide them with adequate training on teaching policies and skills, according to the directive.
Civilian and military authorities were also asked to introduce more interactive and creative training models and design courses that suit students’ physical and psychological conditions.
Analysts say mood is shifting in mainland China as demonstrators ‘cross a line’ with national symbols
Staff and students from Pui Kiu Middle School in North Point hold flag-raising ceremony on campus on Monday. Photo: Nora Tam
A Hong Kong protester’s decision to tear down a Chinese flag and throw it in Victoria Harbour on Saturday set off an outpouring of criticism, from Chinese internet users and celebrities to pro-Beijing businesses and schools in the city.
Then on Monday at about 7pm, a group of protesters went to the same flagstaff in Tsim Sha Tsui, tore down the flag again and threw it into the harbour, the second such incident in three days. In both cases, the protesters escaped.
In North Point, the Pui Kiu Middle School organised a flag-raising ceremony at the campus on Monday even though the school was officially on summer holidays.
Principal Ng Wun-kit said teachers and students were called back on short notice to take part.
“We saw [on the news] that some rioters in helmets threw the Chinese national flag in the harbour and we strongly condemn such behaviour. It was disrespectful,” Ng said.
“We wanted to show that we are one of the 1.4 billion Chinese people who want to protect the national flag. We hope that the students, teachers, and [Hong Kong] citizens who love the country and the Chinese Communist Party can respect the Chinese flag.”
Other Hong Kong businesses and organisations flying the Chinese flag on Monday included international hotel chain Courtyard by Marriott Hong Kong, Chinese engineering firm Shanghai Zhenhua Heavy Industries and Chinese pharmaceutical giant Beijing Tong Ren Tang.
Beijing’s Hong Kong affairs office condemns protesters who threw Chinese flag in the sea
A spokeswoman from the hotel chain said it had flown the flag for many years and Monday was no exception.
“We display the flag because we are a Chinese-funded company. We do not have plans to take it down any time soon,” she said.
On Sunday, a group of Beijing supporters sang the national anthem and raised the Chinese flag in Tsim Sha Tsui to replace the one taken down.
On microblogging site Weibo, mainland Chinese and Hong Kong celebrities were among those forwarding pictures of the flag or salutes to it, adding the hashtag “the Chinese national flag has 1.4 billion flag bearers”, a topic started by China Central Television (CCTV) on Sunday. As of Monday night, the trending topic had been read more than 2 billion times, with more than 8 million posts and support from Hong Kong actors Jackie Chan, Jordan Chan Siu-chun and Hawick Lau Hoi-Wai.
In a commentary published online on Sunday, CCTV said the topic had attracted a strong response because patriotism ran deep among the Chinese people.
“We protect the flag, the national emblem, our country, and we protect our country like we protect our own homes,” it said.
Hong Kong Chief Executive Carrie Lam blasts violence at Yuen Long and liaison office, amid further extradition bill unrest
Analysts said the mood on Chinese social media had changed as protesters in Hong Kong vandalised symbols of the central government, crossing a line for most mainland Chinese.
Wang Jiangyu, an associate law professor at the National University of Singapore, said that although many mainlanders had admired Hong Kong and sympathised with its civil movements in the past, the situation had changed.
“The Chinese flag being insulted is on the top of a list of things mainlanders dislike, and for state media, which represent the central government’s position, focusing on such issues can frame the protesters as enemies of the Chinese nation or the people,” Wang said.
“It can increase the hatred of mainlanders towards the Hong Kong protesters and gain support for the central government to take action in the future.”
Ma Ngok, a political scientist at Chinese University of Hong Kong, said mainland media were using the incident to achieve their own propaganda purposes.
“Mainland media made it seem like [the flag protest was] the theme for the whole movement … but it does not represent the main demands of the anti-extradition movement. They are turning single actions into broad propaganda, and biasing mainland sentiment about Hong Kong,” Ma said.
The African Union headquarters in Addis Ababa is a shiny spaceship-like structure that glistens in the afternoon sun.
With its accompanying skyscraper, it stands out in the Ethiopian capital.
Greetings in Mandarin welcome visitors as they enter the lifts, and the plastic palm trees bear the logos of the China Development Bank.
African Union HQ, Addis Ababa
Everywhere, there are small indications that the building was made possible through Chinese financial aid.
In 2006, Beijing pledged $200m to build the headquarters. Completed in 2012, everything was custom-built by the Chinese – including a state-of-the-art computer system.
For several years, the building stood as a proud testament to ever-closer ties between China and Africa. Trade has rocketed over the past two decades, growing by about 20% a year, according to international consultancy McKinsey. China is Africa’s largest economic partner.
But in January 2018, French newspaper Le Monde Afrique dropped a bombshell.
It reported that the AU’s computer system had been compromised.
The newspaper, citing multiple sources, said that for five years, between the hours of midnight and 0200, data from the AU’s servers was transferred more than 8,000km away – to servers in Shanghai.
This had allegedly continued for 1,825 days in a row.
Le Monde Afrique reported that it had come to light in 2017, when a conscientious scientist working for the AU recorded an unusually high amount of computer activity on its servers during hours when the offices would have been deserted.
It was also reported that microphones and listening devices had been discovered in the walls and desks of the building, following a sweep for bugs.
The reaction was swift.
Both AU and Chinese officials publicly condemned the report as false and sensationalist – an attempt by the Western media to damage relations between a more assertive China and an increasingly independent Africa.
But Le Monde Afrique said that AU officials had privately expressed concerns about just how dependent they were on Chinese aid – and what the consequences of that could be.
In the midst of all of this, one fact remained largely unreported.
The main supplier of information and communication technology systems to the AU headquarters was China’s best-known telecoms equipment company – Huawei.
The company says it had “nothing” to do with any alleged breach.
Huawei “served as the key ICT provider inside the AU’s headquarters”, said Danielle Cave of the Australian Strategic Policy Institute, in a review of the alleged incident.
Huawei headquarters in Shenzhen, China
“This doesn’t mean the company was complicit in any theft of data. But… it’s hard to see how – given Huawei’s role in providing equipment and key ICT services to the AU building and specifically to the AU’s data centre – the company could have remained completely unaware of the apparent theft of large amounts of data, every day, for five years.”
There is no evidence to indicate that Huawei’s telecoms network equipment was ever used by the Chinese government – or anyone else – to gain access to the data of their customers.
Indeed, no-one has ever gone on record to confirm that the AU system was compromised in the first place.
But these reports played into years of suspicions about Huawei – that a large Chinese company might find itself unduly influenced by the Chinese government.
Ren and the rise of Huawei
“When I first started out 30 years ago… we didn’t really have any telephones. The only phones we had were those hand-cranked phones that you see in old World War II films. We were pretty undeveloped then.”
Huawei’s founder and chairman Ren Zhengfei is reminiscing to the BBC about the origins of the world’s second-biggest smartphone firm, while sitting in the Huawei headquarters in Shenzhen – a symbol of the success that he’s worked his whole lifetime for.
A long marbled staircase, covered in plush red carpet, greets you as you first walk in.
At the top of the stairs, a giant painting depicts a traditional Chinese New Year scene.
Inside Huawei’s Shenzhen HQ
A few kilometres away in Dongguan, Huawei’s latest campus is even more eye-catching.
The site – designed to accommodate the company’s 25,000 R&D staff – comprises 12 “villages”, each of which recreates the architecture of a different European city, among them Paris, Bologna and Granada.
It’s as if Silicon Valley had been re-imagined by Walt Disney. Long corridors of Roman pillars and picturesque French cafes adorn the campus, with a train connecting the different areas, running through manicured gardens and past an artificial lake.
It’s a world away from the environment that Mr Ren found himself in when he first started the company in 1987. “I founded Huawei when China began to implement its reform and opening up policy,” he says. “At that time, China was shifting from a planned economy to a market economy. Not only people like myself, but even the most senior government officials, did not have the vaguest idea of what a market economy was. It seemed it was hard to survive.”
Ren was born in 1944 in Southern China – a tumultuous, chaotic place, one of the poorest regions in an already destitute country.
For a long time, hardship was all he ever knew.
He was from a family of seven children. “They were very poor,” says David De Cremer, who has co-written a book on Ren and Huawei.
“I think hardship is something that you can see throughout his life, and which he keeps emphasising himself.”
To escape that life of poverty and drudgery, Ren did what many young Chinese men of that era did. He joined the army.
Soldiers from the People’s Liberation Army, 1972
“I was a very low-ranking officer in the People’s Liberation Army,” he says. “I served in an ordinary construction project, not a field unit. At the time, I was a technician of a company in the military, and then I became an engineer.”
He left the military in 1983 when China began to downsize its forces, and went into the electronics business.
By his own admission, he wasn’t a great businessman at first.
“I was someone who had been in the military all my life at the time, used to doing what I was told,” he says. “Suddenly, I began to work in a market economy. I was at a total loss. So I too suffered losses, I too was deceived, and I was cheated.”
But he was quick to learn, and was a keen student of Western business practices and European history.
“I did research on what exactly a market economy was all about,” he says. “I read books on laws, including those about European and US laws. At that time, there were very few books on Chinese laws, and I had to read those on European and US laws.”
Five years later, he founded Huawei – the name can be translated as “splendid achievement” or “China is able” – to sell simple telecoms equipment to the rural Chinese market. Within a few years, Huawei was developing and producing the equipment itself.
Sometime in the early 90s, Huawei won a government contract to provide telecoms equipment for the People’s Liberation Army.
By 1995, the company was generating sales of around US$220,000, mainly from selling to the rural market.
The following year Huawei was given the status of a Chinese “national champion”. In practice, this meant the government closed the market to foreign competition.
At a time when China’s economy was growing by an average of 10% per year, this was no small advantage. But it was only when Huawei started to expand overseas in 2000, that it really saw its sales soar.
In 2002, Huawei made US$552m from its international market sales. By 2005 its international market contracts exceeded its domestic business for the first time.
Ren’s early days in business instilled in him a desire to protect his company from the whims and fancies of the stock market. Huawei is privately held and employee-owned. This gave Ren the power to plough more money back into research and development. Each year, Huawei spends US$20bn on R&D – one of the biggest such budgets in the world.
“Publicly listed companies have to pay a lot of attention to their balance sheets,” he says. “They can’t invest too much, otherwise profits will drop and so will their share prices. At Huawei, we fight for our ideals. We know that if we fertilise our ‘soil’ it will become more bountiful. That’s how we’ve managed to pull ahead and succeed.”
One story from the early days of the company tells how Ren was cooking for his staff (he loves to cook, or so the story goes). Suddenly he rushed out of the kitchen and announced to the room: “Huawei will be a top three player in the global communications market 20 years from now!”
And that’s exactly what happened. In fact, those ambitions were surpassed.
Today, Huawei is the world’s biggest seller of network telecommunications equipment.
From aspiring to be a company like Apple, it now sells more smartphones than Apple.
But shadows have continued to loom over Huawei’s international success.
Ren and Huawei’s links to the Chinese Communist Party have raised suspicions that the company owes its meteoric rise to its powerful political connections in China. The US has accused Huawei of being a tool of the Chinese government.
It’s an accusation which Ren denies. “Please don’t think that Huawei has become what it is today because we have special connections,” he says. “Even 100% state-owned companies have failed. Do good connections mean you will succeed then? Huawei’s success is still very much due to our hard work.”
The case against
It was 1 December 2018. US President Donald Trump and China’s President Xi Jinping were dining on grilled sirloin followed by caramel rolled pancakes at the G20 summit in Buenos Aires.
They had a lot to discuss. The US and China were in the middle of a trade war – imposing tariffs on each other’s goods – and growth forecasts for both countries had recently been cut as a result. This was adding to the fear of a slowing global economy.
In the event, the two leaders agreed a truce in the trade war, with Donald Trump tweeting that “Relations with China have taken a BIG leap forward!”
Xi Jinping and Donald Trump at dinner, December 2018
But thousands of kilometres north in Canada, an arrest was taking place that would throw doubt on this rapprochement.
Meng Wanzhou, Huawei’s chief financial officer and Ren Zhengfei’s eldest daughter, had been detained by Canadian officials while transferring between flights at Vancouver airport.
The arrest had come at the request of the US, who accused her of breaking sanctions against Iran.
“When she was detained, as her father, my heart broke,” says Ren, visibly emotional. “How could I watch my child suffer like this? But what happened, has happened. We can only depend on the law to solve this problem.”
Meng Wanzhou being driven to court in Canada
Huawei’s problems were just beginning. Nearly two months later, the US Department of Justice filed two indictments against Huawei and Ms Meng.
Under the first indictment, Huawei and Ms Meng were charged with misleading banks and the US government about their business in Iran.
The second indictment – against Huawei – involved criminal charges including obstruction of justice and the attempted theft of trade secrets.
Both Huawei and Ms Meng deny the charges.
January 2019: Acting US attorney general Matthew Whittaker announces charges against Huawei and Meng Wanzhou
The charge of stealing trade secrets centres on a robotic tool – developed by T-Mobile – known as Tappy.
According to legal documents, Huawei had tried to buy Tappy, a device which mimicked human fingers by tapping mobile phone screens rapidly to test responsiveness.
T-Mobile was in partnership with Huawei at the time, but it rebuffed the Chinese firm’s offers, fearing it would use the technology to make phones for T-Mobile’s competitors.
It’s alleged that one of Huawei’s US employees then smuggled Tappy’s robotic arm into his satchel so that he could send its details to colleagues in China.
After the alleged theft was discovered, the Huawei employee claimed that the arm had mistakenly fallen into his bag.
Huawei claimed that the employee had been acting alone, and the case was settled out of court in 2014. But the latest case is built on email trails between managers in China and the company’s US employees, linking Huawei management to the alleged theft.
The indictment also details evidence of a bonus scheme from 2013, offering Huawei employees financial rewards for stealing confidential information from competitors.
Huawei has denied any such scheme exists.
Meng Wanzhou, photographed in 2014
This is not the first time that Huawei has been accused of stealing trade secrets. Over the years companies like Cisco, Nortel and Motorola have all pointed the finger at the Chinese firm.
But US fears about Huawei are about much more than industrial espionage. For more than a decade, the US government has seen the company as little more than an arm of the Chinese Communist Party.
These concerns have been brought to the fore with the advent of “fifth generation” or 5G mobile internet, which promises download speeds 10 or 20 times faster than at present, and much greater connectivity between devices.
As the world’s biggest telecoms infrastructure provider, Huawei is one of the companies best placed to build new 5G networks. But the US has warned its intelligence partners that awarding contracts to Huawei would be tantamount to allowing the Chinese spy on them.
US Secretary of State Mike Pompeo recently cautioned against Huawei, saying, “If a country adopts this and puts it in some of their critical information systems, we won’t be able to share information with them.”
US Secretary of State Mike Pompeo
The UK, Germany and Canada are reviewing whether Huawei’s products pose a security threat.
Australia went a step further last year, and banned equipment suppliers “likely to be subject to extrajudicial directions from a foreign government”.
Huawei was not mentioned by name, but Danielle Cave of the Australian Strategic Policy Institute says the company posed a national security risk because of its government links.
She cites an article in Chinese law that makes it impossible for any company to refuse to help the Chinese Communist Party in intelligence gathering.
“Admittedly, what is missing from this debate is the smoking gun,” she says.
“For the average person who has a Huawei smartphone it’s not a big deal. But if you’re a Western government that has key national security to protect – why would you allow this access to a company that is in the political system that China is in?”
For his part, Ren says that Huawei’s resources have never and would never be used to spy for the Chinese government.
“The Chinese government has clearly said that it won’t ask companies to install backdoors,” he says. A “backdoor” is a term used to describe a secret entry point in software or a computer system that gives access to the person or entity who installed it to the inner workings of the system.
“Huawei will not do it either,” he continues. “Our sales revenues are now hundreds of billions of dollars. We are not going to risk the disgust of our country and our customers all over the world because of something like that. We will lose all our business. I’m not going to take that risk.”
Xi’s China
Zhou Daiqi is Huawei’s chief ethics and compliance officer.
He’s been with the company for nearly 25 years, in a number of different positions – chief engineer, director of the hardware department, head of the research centre in Xi’an, according to his biography on the company’s website. He is also understood to combine his high-ranking executive duties with another role – party secretary of Huawei’s Communist Party committee.
All companies in China are required by law to have a Communist Party committee.
Zhou Daiqi’s profile on Huawei’s website
The official line is that they exist to ensure that employees uphold the country’s moral and social values. Representatives of the committee are also often tasked with helping workers with financial problems.
But critics of China’s one-party system argue that they allow the state to exert control on corporate China. And they say the level of this control has increased in recent years.
“[President] Xi Jinping is exerting greater control over the business community in China,” says Elliott Zaagman, who regularly advises Chinese companies on their PR strategy. “As these companies gain power and influence overseas, the party doesn’t want to lose control over them.”
Ren, however, argues that the role of Huawei’s Communist Party committee is far less important than many in the West believe.
“[It] serves only to educate its employees,” he says. “It is not involved in any business decisions.”
In China, most chief executives are Communist Party members.
Every year, they dutifully turn up to the National People’s Congress along with local and national party chiefs, officials and chief executives.
It’s where the big economic decisions are voted on – although no proposal is put forward which hasn’t already been agreed upon.
Still, big CEOs come to show their commitment to the party, and to contribute to working papers that are meant to help the government understand the concerns of the business community.
Being a member of the party is very much a networking opportunity – in the way one would join a business association.
Elliott Zaagman argues that this is a system that demands loyalty.
“There is no separation from the party and the state,” he says.
“The system in China encourages the lack of transparency in companies like Huawei.”
The worry is that these close links mean that if the Communist Party asked a company to do something, they would have no choice but to comply.
And if that company is one that is involved in sensitive global telecoms infrastructure projects, it’s easy to see why Western observers would be worried.
There is no evidence to indicate that Huawei is in any way under the orders of the Chinese government, or that Beijing has any plans to dictate business plans and strategy at Huawei – particularly when it comes to spying.
But the way in which the Chinese Communist Party has robustly defended Huawei has raised questions about how independent the company is of its influence.
For example, Beijing stated that Ms Meng’s detention was a rights abuse .
And while her extradition case to the US was moving forward, China detained two Canadian citizens and accused them of stealing state secrets. Critics say the detentions are linked to Ms Meng’s arrest.
December 2018: Chinese police patrol outside Canada’s embassy in Beijing
While not commenting on the arrest of the Canadians, Ren says China’s defence of Huawei is understandable.
“It is the Chinese government’s duty to protect its people,” he says. “If the US attempts to gain competitive edge by undermining China’s most outstanding hi-tech talent, then it is understandable if the Chinese government, in turn, protects its hi-tech companies.”
Over the past few years, there have been signs of a bigger push by the government to get private companies, and in particular tech firms, to cooperate with party rules – even when they are firmly resistant.
A Didi Chuxing logo adorns a building in Hangzhou, China
China’s ride-hailing giant Didi Chuxing’s troubles are an example of the struggles Chinese firms face when they try to uphold their independence in the face of government pressure.
Chinese attitudes to data collection and data privacy are different to those in the West – many people don’t care if businesses have access to their data, arguing that it adds to the convenience of life and work.
Government access to data in China is not the free-for-all that many outside of China assume it to be
Samm Sacks, CSIS
So it wasn’t unusual when, after the murders of two of its passengers by Didi drivers, regulators used the scandal to force Didi to share more corporate data with the government. But Didi resisted – citing customer privacy. Under Chinese law, it had no choice but to comply.
When it did, it handed over “three boxes of data printed on paper, including 95 hard copies for authorities to review”.
According to Samm Sacks of the Center for Strategic and International Studies (CSIS), the case demonstrates that “government access to data in China is not the free-for-all that many outside China assume it to be”.
She says this indicates that there appears to be “a kind of tug of war between the government and companies over data”.
How this plays out will determine how Chinese companies are viewed by foreign governments when they do business overseas.
Companies like Huawei have grown up in a system where to survive and thrive they needed strong links to the Chinese government – there was and is no other choice. But these links could harm their reputation abroad.
“It’s two different systems,” says Zaagman. “Think of it like an electrical outlet. China’s plug doesn’t fit in to the outlets we have in the West.”
What’s at stake
“Basically you want to connect to everything that can be connected.”
Zhu Peiying, head of Huawei’s 5G wireless labs, is showing off devices that can connect to the new technology. From a smart toothbrush that collects data about how well you brush your teeth, to a smart cup that reminds you when you should drink some water, this is a world where everything you can think of is being measured and analysed.
At its most sophisticated, everything in entire cities would be connected – driverless cars, the temperature of buildings, the speed of public transport – the list is endless.
Huawei is thought to be a year ahead of its competitors in terms of its technological expertise and what it can offer customers, according to industry sources.
It’s also thought that the company can offer prices that are about 10% cheaper than its competitors, although critics claim this is because of state support.
Ren dismisses this, saying that Huawei doesn’t receive government subsidies.
He says the real reason behind the US resistance to Huawei is its superior technology.
“There’s no way the US can crush us,” he says. “The world needs Huawei because we are more advanced. Even if they persuade more countries not to use us temporarily we could just scale things down a bit.”
Many analysts say that Huawei’s exclusion from US networks could actually cause the US to fall behind in its 5G capabilities.
“It would mean we wouldn’t be able to participate in any blended network [using Huawei] in Europe or Asia,” says Samm Sacks of CSIS. “That would put us at a significant disadvantage.”
What this would mean in reality is a world of two internets – or what analysts are calling a “digital iron curtain” – dividing the world into parts that do business with Chinese companies like Huawei, and those that don’t.
Because of US pressure on its allies, Huawei has been on an aggressive public relations campaign to win over customers and government stakeholders.
In recent days, Vodafone’s boss Nick Read called on the US to share any evidence it has about Huawei, while Andrus Ansip, the European Commission’s vice president for the digital single market, said in a tweet that he had met with Huawei’s rotating CEO to discuss the importance of being open and transparent, as they explored ways of working together.
But suspicions about Huawei remain.
One security firm reports a sharp rise in inquiries by Asian government clients about Huawei.
“Some have asked us how much they should worry about whether Huawei is really a liability,” says an analyst who consults to Asian governments, on condition of anonymity.
Ren is sanguine about such concerns.
“For countries who believe in them [suspicions about Huawei] we will hold off,” he says. “For countries who feel Huawei is trustworthy, we may move a little faster. The world is so big. We can’t walk across every corner of it.”
But this is about more than just one company or one CEO and his family.
Increasingly, this is perceived as a battle between two world orders, and which one is the future.
In the early days of China opening up, US presidents like George HW Bush espoused the merits of engagement.
“No nation on Earth has discovered a way to import the world’s goods and services while stopping foreign ideas at the border,” he said in a 1991 speech. “Just as the democratic idea has transformed nations on every continent, so, too, change will inevitably come to China.”
1989: George HW Bush in Beijing – he encouraged economic engagement with China
Previous US administrations believed that economic engagement in China would lead to China following a freer, more “liberal” path.
There’s no denying China has made remarkable strides in the past 40 years. The economy grew by an annual average of 10% for three decades, helping to lift 800 million people out of poverty. It is now the second-largest economy in the world, only surpassed by the US.
Some estimates put China’s economy ahead of America’s by 2030.
It achieved this while maintaining one-party rule and the supremacy of the Communist Party.
But its success has raised concerns that it is only possible with a huge amount of government control over the country’s companies. The fear is that control could be used to achieve the Communist Party’s goals – which are at this point unclear.
“It’s a double-edged sword for China,” says Danielle Cave. “[Because of its laws] the Chinese Communist Party has made it virtually impossible for Chinese companies to expand without attracting understandable and legitimate suspicion.”
Added to this, China has become more authoritarian under Xi Jinping’s rule.
President Xi Jinping
“Xi is systematically undermining virtually every feature that made China so distinct and helped it work so well in the past,” writes Jonathan Tepperman, editor in chief of Foreign Policy.
“His efforts may boost his own power and prestige in the short term and reduce some forms of corruption. On balance, however, Xi’s campaign will have disastrous long-term consequences for his country and the world.”
But Ren dismisses this, insisting that China is more open than ever before.
“If this meeting took place 30 years ago,” he says of our interview, “it would have been very dangerous for me. Today, I can be straightforward when answering difficult questions. This shows that China has a more open political environment.”
Still, Ren is hopeful of the direction China will take in the future.
“China has more or less tried to close itself off from the outside world for 5,000 years,” he says. “Yet we had found ourselves poor, lagging behind other nations. It was only in the past 30 years since Deng Xiaoping opened China’s doors to the world that China has become more prosperous. Therefore, China must continue to move forward on the path of reform and opening-up.”
In one of Huawei’s vast campus sites across Shenzen, lies a man-made lake. Swimming in these serene waters are two black swans.
There is a story that Ren put the birds here to remind employees of “black swan” events – unpredictable and catastrophic financial eventualities that are impossible to prepare for. He dismisses this as an urban myth, but it’s hard not to read something into it.
For Huawei, and Ren, these are highly uncertain times with no way of telling what lies ahead.
A dozen Peking University students clashed with guards on Friday as they protested over a change to the Marxist Society that was imposed after it organised an event to mark the 125th anniversary of Mao Zedong’s birth.
Witnesses said the students held placards near a science building at the campus in Beijing as they protested against the decision to install a new committee to run the society.
They said the students had locked arms during the peaceful protest but some were injured when security guards forced them to go into the building, manhandling and in some cases carrying them inside.
“Several of them were pushed to the ground and suffered cuts to their hands and some had their glasses broken in the struggle,” according to one witness.
At least eight of the students were still inside the building on Friday evening, according to a source.
Among the protesters taken inside by guards was Qiu Zhanxuan, chairman of the society. Qiu was not reachable on Friday night.
On Wednesday, Qiu was taken away by plain-clothes police ahead of an event he had arranged to commemorate the Mao anniversary. He was released the following day with a warning.
But a notice also appeared on the university’s online bulletin board on Thursday announcing that a new 32-member committee had been put in place to run the student Marxist Society.
The notice was issued by the university’s extracurricular activities office on behalf of Sun Guoxi, the academic in charge of the society.
It said the reshuffle was needed because society members had “severely deviated” from promises made when they registered and had repeatedly organised activities that violated regulations. It added that Qiu was “not qualified to lead [the society]”.
The young protesters have vowed to fight the change, which they said would force them underground.
“We are deeply shocked and angered by such an absurd scene happening on the campus of Peking University,” read a petition letter posted online on Friday and signed by about 30 students.
“This is a clear move to place the Marxist Society under the control of campus bureaucrats.”
Ning Yue, a PhD student majoring in Marxism, will lead the society as director general, with Ma Ning, a postgraduate Marxism student, as director, according to the notice.
But the protesters said both Ning and Ma were new to the society.
The university’s campus security could not be reached for comment on Friday.
In the past six months, authorities have widened a crackdown against nascent grass-roots activism on university campuses led by young Marxists.
Last month, more than 20 labour activists and young Marxists who were recent graduates from top universities were arrested. Their actions, which began in July in Shenzhen, were limited in scale but were seen by China watchers as a sign of rising left-leaning social activism in China.
In recent years, Marxism has inspired a growing number of young activists appalled by China’s poor protection of workers, rampant corruption and widening wealth gap. These activists have taken steps to speak up on social issues such as labour and farmers’ rights as well as income inequality.
An enterprising student is creating a buzz at a university campus in southwest China, where his cheap and reliable haircuts are in demand.
Ding Weijie, 19, opened an “express hairdressing salon” in his dormitory at the Sichuan Hope Automotive Vocational College in early November, Chengdu Economic Dailyreported on Friday.
Although Ding is self-taught, his hairdressing skills have already turned heads on the campus in Ziyang. His 5 to 6 yuan (73 to 87 US cents) cuts for men have become so popular that appointments need to be booked a few days in advance.
The first-year student, whose major is new energy vehicles, said he had been looking for a way to make some extra cash.
“After I started university, I wanted to find a part-time job to earn some money for my living costs,” Ding, who is from Yibin in Sichuan province, told the newspaper.
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He initially took a job as a dishwasher in the university canteen, but it did not pay well and left him with little time for studying.
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