Category Archives: China aggression

China to Sanction U.S. Defense Contractors over Taiwan

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The One China Policy supported by previous administrations has been earnestly challenged by the Trump administration and rightly so. China has forcefully held dominion over Taiwan, an independent nation and since the Trump administration has approved arm sales to Taiwan, the tensions have increased substantially.

Context:

Jamestown: Events throughout 2020 have seen a measured but steady increase in tensions surrounding Taiwan. The government of the People’s Republic of China (PRC) continues to deny any legitimacy to the democratically-elected government of the Republic of China (ROC) in Taiwan. The PRC also continues to make menacing insistence upon unification on Beijing’s terms, in language that has grown more strident throughout the tenure of Chinese Communist Party (CCP) General Secretary Xi Jinping (China Brief, February 15, 2019; China Brief, November 1, 2019).

Against this background, the PRC has reacted with both harsh rhetoric and saber rattling to enhanced U.S.-Taiwan diplomatic contacts in August and September, as well as a reported further round of impending U.S.-Taiwan arms sales (see discussion further below). One PRC English-language outlet opined in late September that “The U.S. has been releasing all kinds of supportive signals to Taiwan this year, with the level and frequency of their so-called interactions flagrantly enhanced… While [some in Taiwan] jump at such signals, they’d better think long and hard whether the signals are sweet poisons from the U.S. for Taiwan” (PLA Daily, September 25).

U.S. Diplomatic Visits to Taiwan

Recent years have seen a noteworthy increase in official and semi-official U.S.-Taiwan diplomatic exchanges. In March 2018 the Taiwan Travel Act (TTA) was signed into U.S. law, providing a statement of support for increased travel by high-level Taiwan officials to the United States. This was followed by unofficial “transit stop” visits in the United States by ROC President Tsai Ying-Wen (蔡英文) in 2018 and 2019, and a May 2019 meeting between U.S. National Security Advisor John Bolton and his ROC counterpart David Lee (李大維) (China Brief, July 31, 2019). In early February this year ROC Vice President-elect Lai Ching-te (賴清德) traveled to the United States, where he met with senior U.S. political figures and attended the annual National Prayer Breakfast in Washington D.C. (Taiwan News, February 4). Although Lai had not yet assumed office at the time, and therefore visited in an unofficial role, the trip produced harsh condemnations in PRC state press (Xinhua, February 6). All of these visits by Taiwan officials have drawn similarly negative reactions from the PRC Foreign Ministry and state media, as with the “stern representations” presented over President Tsai’s stop in Hawaii in March 2019 (Xinhua, March 21, 2019).

These visits were reciprocated in summer and autumn this year by two visits made by U.S. officials to Taiwan. U.S. Secretary of Health and Human Services Alex Azar conducted a visit to Taiwan from August 9-12, described by his department as “the highest-level visit by a U.S. Cabinet official since 1979,” and “part of America’s policy of sending high-level U.S. officials to Taiwan to reaffirm the U.S.-Taiwan friendship” (HHS, August 4). Secretary Azar’s activities included a meeting with President Tsai; a visit to Taiwan’s Central Epidemic Command Center; and a speech at National Taiwan University (HHS, August 10; August 11; August 12). This trip was followed in mid-September by a visit from U.S. Under Secretary of State for Economic Growth, Energy, and the Environment Keith Krach, who traveled to Taiwan to attend a memorial service for former ROC President Lee Teng-hui (U.S. State Department, September 16).

***  Pentagon Approves $500 Million Taiwan F-16 Support Program ...

Bloomberg:

China will impose unspecified sanctions on the defense unit of Boeing Co., Lockheed Martin Corp., and Raytheon Technologies Corp. after the U.S. approved $1.8 billion in arms sales to Taiwan last week.

The sanctions will be imposed “in order to uphold national interests,” Chinese Foreign Ministry spokesman Zhao Lijian told reporters Monday in Beijing. “Boeing Defense” would be among those sanctioned, he said.

The State Department last week approved $1.8 billion in new weapons for Taiwan and submitted the package to Congress for a final review. The submission comes two months after the U.S. and Taiwan completed the sale of 66 new model F-16 Block 70 aircraft from Lockheed, and as tensions between the two superpowers continue to escalate ahead of the American election.

Boeing Defense is one of the broader company’s three business units, according to its website. Shares in Boeing, down almost 50% this year, dropped as much as 2.2% in U.S. pre-market trading.

A spokesperson for Boeing emphasized the firm’s relationship with China in the aviation space. Boeing has “worked together successfully with the aviation community in China for almost 50 years to support Chinese efforts to ensure a safe, efficient and profitable aviation system to keep pace with the country’s rapid economic growth.”

“It’s been a partnership with long-term benefits and one that Boeing remains committed to,” the spokesperson said in the emailed statement.

One China Principle

Representatives from Raytheon weren’t immediately available for comment outside of normal U.S. business hours.

Zhao condemned Lockheed’s F-16 Block 70 sale at the time, saying it violates the One China principle, interferes in China’s internal affairs and will have a “major impact” on U.S.-China relations. Taiwan’s presidential office thanked the U.S for the sale. In July, China — which considers Taiwan part of its territory and resists any recognition of its de facto independence — had announced sanctions on Lockheed Martin for a previous arms sale to the island.

U.S. arms manufacturers face strict limitations on what kind of business they can do with countries deemed by Washington to be strategic rivals, such as China. Lockheed generated 9.7% of its revenue in the Asia-Pacific region last year, according to data compiled by Bloomberg, though that’s not broken down by individual countries.

China has previously threatened to sanction U.S. companies, including General Dynamics Corp. and Honeywell International Inc., on numerous occasions over arms sales to Taiwan. It also warned it could blacklist FedEx Corp., while Ford Motor Co.’s main joint venture partner in China was fined 162.8 million yuan ($24.3 million) last year, days after the U.S. put a ban on doing business with Huawei Technologies Co.

While China has often invoked the threat of putting U.S. companies on a blacklist — or list of “unreliable entities” — in response to various actions by U.S. President Donald Trump’s administration over the past year, it has yet to name any, at least publicly.

Delicate Time

For Boeing, China’s action comes at a delicate time. The company, reeling from the hit to air travel from the coronavirus pandemic, is trying to get its besieged 737 Max plane back into the air after two fatal crashes saw it grounded around the world. China was the first place to ground the plane, and also has the world’s biggest 737 Max fleet.

Europe’s top aviation regulator said earlier this month the plane will be safe enough to fly again before the end of this year, while U.S. Federal Aviation Administration chief Steve Dickson flew the Max in September and said the controls were “very comfortable.” More detail here.

Former Astronaut Mark Kelly, AZ Democratic Senate Candidate and China

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Primer: With U.S.-China relations taking on increasing importance in all spheres of life — economic, geopolitical, cultural — it becomes vital to enhance the dialogue between our countries and build lasting, direct, and informative ties between our peoples. The Young Leaders Forum (YLF), now in its second decade, does just that.

Each year, YLF holds a four-day retreat to which a select group of exceptional American and Chinese young professionals are invited. Together, participants explore substantive issues, identify commonalities, and develop enduring friendships and partnerships in a casual, intimate environment.

Comprised of influencers and change-makers, the accomplished group of YLF fellows works in a variety of fields. Fellows include government officials and politicians, authors, university leaders, entrepreneurs, and musicians and artists. Attention is given to geographic, gender, and ethnic diversity. An alphabetical listing of all YLF participants since the program’s inception has been posted on the right side of this page.

The Forum’s location alternates each year between the United States and China. Each Forum is packed with interesting, provocative cross-cultural conversation and activity.

The National Committee, the Chinese People’s Institute of Foreign Affairs (CPIFA), and the Forum’s U.S. sponsors—led in 2019 by Chubb and Xcoal—cover all lodging, food, and program costs of the YLF retreat for the first two years of our fellows’ participation, allowing them to attend one Forum in the United States and one in China. Participants are asked to pay their own travel expenses to and from the venue, but some full or partial subsidies are available.

And maybe there are some others that we need to question on membership or participation:

George Stephanopoulos moderates a national webcast discussion on U.S.-China relations with experts Stephen Orlins, Melanie Hart, Yasheng Huang, and Ely Ratner. The panelists address a range of current topics, from the trade war to protests in Hong Kong, from visa restrictions to the NBA. This webcast is part of the thirteenth annual CHINA Town Hall, held at 80+ venues across the United States and China on November 18, 2019.

(someone be sure that the Republican Senator Martha McSally knows the details)

Gabby Giffords and Mark Kelly

Yuichiro Kakutani – September 28, 2020 5:00 AM

FB: The Chinese government invited then-astronaut Mark Kelly, now an Arizona Democratic Senate candidate, to an all-expenses-paid retreat at a countryside resort in 2003. He left China five days later not only with a future spouse, former Rep. Gabby Giffords (D., Ariz.), but also with lucrative regime business contacts.

Kelly attended the annual Young Leaders Forum, a five-day junket cohosted by the Chinese People’s Institute of Foreign Affairs, which is “under the leadership of the Communist Party of China.” The conference allowed Kelly an opportunity to mingle with high-profile Communist Party officials and rising stars in Chinese society. Attendees included Cui Tiankai, now Chinese ambassador to the United States; Fang Xinghai, former director of the CCP’s top committee on the economy; and Zhou Mingwei, the party’s former top foreign propaganda honcho.

China analyst Gordon G. Chang said that party connections—such as those Kelly fostered—are “absolutely essential” for securing Chinese business deals.

“The Communist Party tries to control everything, whether it’s a state enterprise or a private company,” he said. “And so it’s extremely important to have Communist Party contacts [to do business].”

Kelly has also had extensive ties with China since becoming a civilian. World View Enterprise, an aerospace company he cofounded and in which he still holds investments, received funding from Chinese tech giant Tencent, which censors the internet for Beijing. As the Washington Free Beacon reported, he also held a financial stake in a Colorado company that courted investments from a Chinese state-funded tech enterprise.

He now has assets worth up to $27 million, according to his financial disclosure.

A Kelly campaign spokesman said that the former aviator’s participation was “coordinated by NASA,” but did not answer questions about whether the Democrat used any of the contacts he met on the YLF trip for his business ventures. Instead, the campaign said that prominent Republicans also participated in the campaign.

Kelly and Giffords told multiple media outlets that they met during the Young Leaders Forum, without mentioning the Chinese People’s Institute of Foreign Affairs. The retreat took place in a luxury hotel in the scenic Chinese countryside, where attendees went on pleasure cruise rides in between their panel discussions. Kelly gave a one-hour speech about his space experience, while Giffords participated in a panel discussion with Chinese politicos.

Kelly would participate in the 2004 and 2005 conferences as well. He called the experience “one of the absolute highlights of my life, second only to flying in space,” and even took a Forum banner into space in 2006.

Kelly’s campaign has been trying to deflect concerns about the candidate’s business ties by emphasizing his military service and calling China a “threat to American interests.” Nevertheless, they have remained contentious in the race, with Republicans spending millions on ads accusing him of dependence on China. He holds a 5.5 point lead against Republican incumbent Martha McSally, according to RealClearPolitics.

SecDef Says China, Russia Have ‘Weaponized Space’

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Primer: Now we are beginning to understand the creation of the new military branch known as the Space Force and further it is important to embrace the work of NASA and SpaceX.

Is the Space Force Necessary? If Done Correctly, Yes | CyberDB

A year ago, two intelligence agencies have recently released documents that describe in general terms the nature of the threat. Russia and China are developing kinetic and non-kinetic means designed to disrupt, degrade and destroy U.S. space systems. Mechanisms being tested include directed energy weapons such as lasers, spacecraft that can physically manipulate satellites, terrestrial anti-satellite munitions, jammers that can disrupt uplinks and downlinks, and cyber tools that can impair satellites, ground stations and the equipment of warfighters reliant on space-based systems.

For instance, China is believed to possess 120 intelligence and reconnaissance satellites, many of which are operated by the People’s Liberation Army to track the movements of U.S. forces. Russia only possesses about 20 such satellites. And while Russia pioneered development of systems for hacking and attacking U.S. space systems, it is China that is continually increasing it outlays for counterspace technologies. For example, Beijing tested an anti-satellite weapon in 2007 and has continued refining that technology.

With a typical Army combat brigade containing 2,000 pieces of equipment dependent on space systems to function, this is a serious matter. In wartime, counterspace attacks could prevent the joint force from accessing GPS signals vital to the operation of smart bombs, block the transmission of critical intelligence, and even impede the ability of the president to receive timely warning of a nuclear attack. The nation’s entire global military posture could be degraded by disruption of links traveling through orbital assets. More here from Forbes

The U.S. plan for a Space Force risks escalating a 'space arms race'

China and Russia have introduced weapons to space, including killer satellites, Secretary of Defense Mark Esper said Wednesday.

“In space, Moscow and Beijing have turned a once peaceful arena into a warfighting domain,” Esper said.

“They have weaponized space through killer satellites, directed energy weapons, and more in an effort to exploit our systems and chip away at our military advantage.”

Directed energy weapons use converted chemical or electrical energy and focus it on a target, resulting in physical damage. Weapons used by the U.S. military include systems that use high energy lasers.

Directed energy weapons can be very effective against swarm attacks, a Pentagon official said in 2018.

“We often think about directed energy as large lasers, and I’ve certainly been involved with some of that for decades, but we also have high power microwaves which can be very effective as what we call an electronics kill,” Dr. Michael D. Griffin, under secretary of Defense for Research and Engineering, said at the time.

NTD Photo

Chief of Naval Operations Adm. John Richardson inspects new technologies being developed and tested at the High Energy Laser Systems Test Facility and USS Desert Ship, a land-based launch facility designed to simulate a ship at sea, at White Sands Missile Range, N.M., on Jan. 25, 2017. (Navy photo by Chief Petty Officer Elliott Fabrizio)

“That sort of thing—it’s really hard to envision handling swarming attacks by purely kinetic means—so that’s one of the future threats that I think we face.”

Killer satellites are satellites with the capability to kill and destroy.

**

Esper said America’s competitors and adversaries “exploit cyberspace to undermine our security without confronting our conventional strengths.”

“They do this all in an increasingly gray zone of engagement that keeps us in a perpetual state of competition. The national defense strategy guides us as we adapt the force to this challenging complex security environment by status quo and continue outpacing the competition,” he added.

But strong investment is enabling the military to move forward with developing hypersonic weapons and other modern tools.

“Thanks to our largest research and development budget in the department’s history, we are advancing critical technologies to maintain our military edge in areas such as hypersonic weapons, directed energy and autonomous systems,” Esper said.

Esper was speaking during the Air Force Association’s Virtual Air, Space & Cyber Conference.

Following an increase of $3.6 billion, the Department of Defense’s budget for research and development was $95.3 billion in fiscal year 2019, according to its financial report (pdf).

President Donald Trump’s administration officially launched Space Force late last year, establishing it as a sixth branch of the military.

“Amid grave threats to our national security, American superiority in space is absolutely vital,” Trump said when signing legislation that included funding for the branch.

The Defense Space Strategy, released earlier this year, outlines what the United States needs to do to achieve a “comprehensive military advantage” in space within 10 years.

Three key objectives are identified for the Space Force: to maintain America’s space superiority; to provide space support to all joint military operations; and to “ensure space stability”—or to deter aggression and uphold international agreements in space with a persistent presence, similar to how the Navy polices international waters.

Esper said he’s proud of the progress made in implementing the strategy, which will “ensure our dominance across all domains.”

Esper spoke a day after Gen. John Raymond, who heads Space Force.

Raymond revealed that the force’s Space Based Infrared System satellites were used to detect Iranian missiles aimed at American war planes in January.

Raymond praised the 2nd Space Warning Squadron at Buckley Air Force Base, Colorado.

“They operated the world’s best missile warning capabilities and they did outstanding work, and I’m very very proud of them,” he said at the conference.

Trump had said “an early warning system that worked very well” helped avoid U.S. casualties, but didn’t disclose the nature of the system.

 

U.S. Charges 5 Chinese for Hacking 100 Companies

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US says APT41 orchestrated intrusions at more than 100 companies across the world, ranging from software vendors, video gaming companies, telcos, and more.

The US government has filed charges today against five Chinese nationals for hacking into more than 100 companies across the world, part of a state-sponsored hacking group known as APT41.

According to court documents unsealed today, US officials said the group has hacked software development companies, computer hardware manufacturers, telecommunications providers, social media companies, video game companies, healthcare, non-profit organizations, universities, think tanks, from where they stole proprietary source code, code-signing certificates, customer data, and valuable business information.

Image

Victim companies resided in countries such as the US, Australia, Brazil, Chile, Hong Kong, India, Indonesia, Japan,
Malaysia, Pakistan, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

US officials said APT41 members also compromised foreign government computer networks in India and Vietnam, as well as pro-democracy politicians and activists in Hong Kong. Attacks against he UK government were also executed, but were not successful.

The APT41 group is one of today’s most infamous and most active state-sponsored hacking groups. ATP41’s operations were first detailed in their full breadth in a FireEye report published in August 2019, with the report linking the group to some of the biggest supply-chain attacks in recent years, and to older hacks going to as early as 2012.

 

At the time, the report was also ground-breaking, as FireEye researchers revealed how the the group conducted both cyber-espionage for the Chinese regime but also intrusions for personal financial gain, usually executed outside normal working hours. Most of these side-hacks usually targeted gaming companies, from where the hackers stole source code or in-game digital currency.

In some cases, APT41 was also spotted deploying ransomware and installed malware that mined cryptocurrency for the group’s members. While it’s unknown how many of these incidents have occurred, the DOJ named one victim of a ransomware attack as “a non-profit organization dedicated to combating global poverty.”

Five Chinese nationals indicted

According to court documents obtained by ZDNet, the indictments came in two waves, but were unsealed today. The first two APT41 members were identified and charged in August 2019, following the FireEye report. According to a copy of the 2019 indictment, these charges stemmed from allegedly hacking high technology and video gaming companies, and a United Kingdom citizen. The two suspects were identified as:

  • Zhang Haoran (张浩然), 35
  • Tan Dailin (谭戴林), 35

Three more APT41 members were charged in a separate indictment filed last month, in August 2020. These three were charged with most of the APT41 intrusions.

  • Jiang Lizhi (蒋立志), 35
  • Qian Chuan (钱川), 39
  • Fu Qiang (付强), 37

US officials said the three were employees of Chengdu 404 Network Technology, a front company that operated under the close supervision of PRC officials. Court documents also revealed that US officials intercepted online chats between Jiang and another Chinese hackers, conversations where Jiang touted knowing and operating under Gong An, a high-ranking official in the Chinese Ministery of Public Security.

All five APT41 members remain at large, and their names have been added to the FBI’s Cyber Most Wanted List.

In addition, two Malaysian businessmen were also charged for conspiring with two of the APT41 members to profit from intrusions at video game companies. The two were arrested on Monday, September 14, by Malaysian authorities in the Malaysian city of Sitiawan.

According to court documents, the two have been identified as Wong Ong Hua, 46, and Ling Yang Ching, 32, owners of Sea Gamer Mall, a website that sold digital currency for various online games — currency that US officials believe was sometimes provided by APT41 members illegally, following intrusions at gaming companies.

In a live-streamed press conference today, FBI Deputy Director David L. Bowdich, said the Bureau is currently seeking the extradition of the two Malaysian businessmen to the US, to face their charges.

The FBI, which spearheaded the investigation, also obtained a court warrant earlier this month and seized “hundreds of accounts, servers, domain names, and command-and-control (C2) ‘dead drop’ web pages” used by APT41 in past operations.

Third Chinese state hacking group disrupted by US officials since 2017

The arrests today are part of a larger US crackdown against Chinese cyber-espionage and theft of intellectual property from US companies. US authorities previously charged three other Chinese hackers in November 2017 (believed to be part of Chinese hacker group APT3) and two other hackers in December 2018 (believed to be part of Chinese hacker group APT10).

Earlier this year, the FBI said it was investigating more than 1,000 cases of Chinese theft of US technology.

“Today’s charges, the related arrests, seizures of malware and other infrastructure used to conduct intrusions, and coordinated private sector protective actions reveal yet again the Department’s determination to use all of the tools at its disposal and to collaborate with the private sector and nations who support the rule of law in cyberspace,” said Assistant Attorney
General John C. Demers.

“Regrettably, the Chinese communist party has chosen a different path of making China safe for cybercriminals so long as they attack computers outside China and steal intellectual property helpful to China,” added Deputy Attorney General Jeffrey A. Rosen.

Now they Want a Trump Crimes Commission

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Yup, both Congressman Eric Swalwell and Joy Reid of MSNBC are calling for a post Trump presidency Crimes Commission. Be careful what you ask for considering the work being done by AG Barr, John Durham and John Bash, not to mention the work of Senators Graham and Johnson. Timing is everything is Washington DC….lots to still be revealed. This comes on the heels of the Senate Intelligence (bi-partisan) report on Russia and the Trump campaign. Betcha, as Joy Reid refers to it, she hardly read it at all.

You gotta wonder if Reid or Swalwell have even considered ALL the crimes of the Obama administration or just a few of the Biden family clan….those from say Iraq or Ukraine or China.

How about this –>

The “U.S.-China Strong” group was founded to continue two Obama-era initiatives known as “100,000 Strong” and “1,000,000 Strong,” both of which sought to increase the number of Americans studying in China and introduce China-focused curricula into American schools.

The programs were promoted by the Obama-Biden administration despite valid concerns over Chinese Communist Party (CCP) sanctioned espionage, intellectual property theft, and propaganda.

Repeatedly praised by then-Vice President Biden, the initiative is no longer able to tap into U.S. tax dollars and now collaborates with a host of CCP-linked – and in some cases wholly-owned – entities including the Bank of China and Confucius Institutes. More here.

Joe Biden to Authoritarian Chinese President: U.S. Only ... source

But read on…

The Blaze reports: MSNBC host Joy Reid floated the idea of a potential future Biden administration establishing a “Trump Crimes Commission” to investigate President Donald Trump’s actions while in office — and perhaps even during his campaign, Mediaite reported.

Such a move would be unprecedented in American politics, as it is a longstanding norm that successors do not use their authority to investigate former political opponents.

Reid, an outspoken Trump critic, made the suggestion Tuesday night while discussing the final release of the bipartisan Senate report on Russian interference in the 2016 election with former Obama deputy national security adviser Ben Rhodes.

“It strikes me in just reading through this that Paul Manafort did to the United States what he had previously done to Ukraine,” Reid said. “He had messed with their elections in the past in order to put a [Russian President Vladimir] Putin puppet in charge. And now you have a president who is ruminating apparently on meeting with Vladimir Putin in New York, has talked about putting him back in the G7, and seems to be doing everything — you know, if there was a Christmas list that Vladimir Putin would have put together, it couldn’t have gotten any better than what Donald Trump is doing.

Reid is not the first to float such an idea. Journalist Andrew Feinberg and MSNBC legal analyst Glenn Kirschner have also called for a crimes commission to be empaneled, along with Democratic Rep. Eric Swalwell of California.

**

Rhodes, in response to Reid’s prompting, essentially agreed with the proposition but with a few caveats about how it would look and how it should be executed.

“There is no question in my mind, Joy, that there has to be an accountability process if Joe Biden wins, to protect the integrity of our democracy,” he said. “It’s not about getting revenge. It’s not about going after political opponents. That’s what Donald Trump does. It’s about sending a message that if you collude with, facilitate, coordinate with a foreign adversary and hacking private materials and releasing them that there are going to be consequences.”

He added: “We cannot just say we’re going to turn the page. We have to deal with this as a country. And so I really think it’s essential that we have some accountability process if Joe Biden wins the election.”