IS the U.S. Taking Over the 5G Network?

 

 

A 5G network owned by the United States government? It’s not going to happen.

The U.S. government considering its own 5G network is nothing new, frightening, or likely to happen.

Could the Trump White House be pondering a nationalized 5G network? Yes, it’s distinctly possible. But it’s also highly unlikely to happen and the story is being blown dramatically out of proportion.

The latest Twitterverse kerfuffle was kicked up by an Axios report alleging consideration of “an unprecedented federal takeover of a portion of the nation’s mobile network to guard against China”. That’s an alarming claim, no matter what side of the political aisle you’re on. Axios is a relatively new publication, but they’ve made a name for themselves since their 2016 launch with a number high profile exclusives and well-sourced and researched pieces. This 5G report is well-sourced, but also takes a number of alarmist steps that ignore how the U.S. federal government actually functions.

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Here’s what Axios is reporting:

We’ve got our hands on a PowerPoint deck and a memo — both produced by a senior National Security Council official — which were presented recently to senior officials at other agencies in the Trump administration. … The documents say America needs a centralized nationwide 5G network within three years.

Axios goes on to describe two options laid out in the report: that the government builds its own 5G network or that the various competing carriers in the US build their own. It’s worth noting that this is a proposal made by a single NSC member. This is how the government is supposed to work. The NSC is just one of many competing interests in the federal government, and its mandate is to advance strategies to maintain and enhance the security of the United States. It would indeed be in the national defense interests of the U.S. military to have a government-controlled high-speed low-latency nation-wide wireless network — rapid and clear communication is vital for successful military operations, and a 5G network would be enormously useful in that.

But… the NSC is still just one of many loud voices in the United States government. The Departments of State and Commerce and Justice would all have competing opinions on the proposal for a federal network, from international trade implications to pushback from the carriers that spend billions on lobbying. Not to mention the cost of such an endeavor.

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There is historical precedent for large investments that would support both military operations and civilian needs. The Interstate Highway System was funded by the federal government not just to dramatically improve inter-state travel and commerce — the primary impetus for its creation was the need to be able to quickly deploy military force throughout the United States in the event of a foreign invasion. The constellation of GPS satellites we rely on for navigating the world today is a U.S. Air Force project that was originally built for military purposes (and the government still has a switch to downgrade GPS accuracy for non-U.S. military users if deemed necessary).

Talk of a federally owned communications cellular network has been going on for decades, but it was kicked into high gear after the September 11, 2001 terrorist attacks. The strikes on New York City and the Pentagon didn’t just reveal the unpreparedness of the United States for such an unsophisticated attack — it also exposed weaknesses in the civilian-owned and operated cellular networks of the time. On that day the cellular networks in New York and DC were overwhelmed by the sheer number of users trying to access services — and that was well before today’s high-speed wireless internet services.

The biggest pushback would come from cellular network operators. Every U.S. carrier has already invested heavily in 5G, from research to live regional tests to making preparatory upgrades to their transmission infrastructure to handle the eventual roll-out of 5G-capable transceivers and consumer devices. Billions of dollars have already been laid out with the expectation that there will be much more invested in the networks and billions more reaped in profit. You can be certain that Verizon, AT&T, T-Mobile, and Sprint have already contacted their lobbying firms to communicate their displeasure.

Specialized equipment has long been a part of the military’s inventory. Just this weekend the story of expensive new refrigerators for Air Force One provoked outrage once the context of what the purchase actually consisted of (five bespoke flight-grade walk-in cooling units to store up to 3,000 meals on what is essentially a flying White House). Equipment like tanks and aircraft carriers and grenades is all exclusively manufactured for the military, to its specification. But the military has long also used off-the-shelf civilian hardware when it meets its needs and costs. Walk into the Pentagon and you’ll find government-issued HP and Dell laptops and officers walking around with issued iPhones running on Verizon and AT&T.

The United States has long had an interplay between the needs of the federal government and the civilian population. Sometimes there are things that only the government could effectively fund, organize, and operate, like the interstate system or GPS satellites. The costs behind those become easier to justify when they’re also available to civilian users. Conversely, there are things the civilian market is far better at — AT&T, Verizon, Sprint, and T-Mobile all have enormous expertise in cellular networks, they’ve already made huge investments in their network infrastructure that they’ll be able to leverage in building their 5G networks, and they’re already responsive to the needs of their customers — both civilian and government.

This proposal was dead in the water before it was ever presented. It’s almost amusing, following the Trump administration’s push against Net Neutrality being framed as unleashing the potential of web services and internet providers, to now see a proposal to create a national 5G network that the government would then lease to the carriers.

It’s worth repeating: this is just a proposal from one part of the government. Axios notes that it was already presented to other agencies, where I have no doubt it was met with significant resistance, if not outright derision. After all, the Trump government is supposed to be one that gets out of corporate business (for better or worse), and “we’re going to build a 5G network and you’ll just rent access from us because we’re the federal government” runs 100% counter to that.

There’s much the government could do to promote and accelerate the development and deployment of 5G networks in the United States, though it’d have to come with oversight than the billions of government subsidies paid to Verizon for a fiber network it never built. Grants to ensure deployment into rural areas, subsidies for low income access, regulation clean-up to ease the way for new installations, funding of university and corporate research projects in artificial intelligence and domestic development of these technologies — all of this is already within the wheelhouse of what the federal government can do, and sometimes already does.

Proposals like this are just how the government works. The military side of the equation is going to propose everything they can think of to ensure the most efficient and most effective military they can imagine, while the diplomats will propose their own missions and initiatives to promote their goals, and the economists are going to come with an entirely different set of proposals about trade and monetary policy and financial regulations. These will all be simultaneously complementary and contradictory. This is the nature of government — a dozen departments with competing goals in different arenas jockeying for limited resources. Their proposals are just part of what feeds into the decision-making process of the President and Congress, which are supposed to strike a balance between the needs of the military, business, international partners, civilians, and (of course) politics.

I would be utterly shocked if a government-owned 5G network ever comes to fruition. It’d be massively expensive and inefficient, not to mention well outside the government’s expertise and capability. It’d also see immediate and costly legal challenges, not to mention stand on legally tricky ground when the carriers have already paid billions to the government for the frequency licenses they need to deploy their own 5G networks.

The government would also have to pay for this somehow, and after a $1.5 trillion-dollar tax cut, there’s not a lot of spare cash laying around for GovCell.

Updated 10:33 a.m. Jan. 29: Here’s a statement from FCC Commissioner Ajit Pai, who also says it ain’t gonna happen:

“I oppose any proposal for the federal government to build and operate a nationwide 5G network. The main lesson to draw from the wireless sector’s development over the past three decades—including American leadership in 4G—is that the market, not government, is best positioned to drive innovation and investment. What government can and should do is to push spectrum into the commercial marketplace and set rules that encourage the private sector to develop and deploy next-generation infrastructure. Any federal effort to construct a nationalized 5G network would be a costly and counterproductive distraction from the policies we need to help the United States win the 5G future.”

DAVOS, a Chinese Summit, Take Caution President Trump

But we cant trust the Chinese….now or ever. Is this World Economic Forum a setup for world leaders? Just could be. So far, full reliance and trust with China regarding control of North Korea has been a fool’s errand.

A ‘fractured’ world, enhancing globalization and then the United States…where does she fit in? Hummm

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There is this stupid thing called the One China Policy. President Xi Jinping has exploited this agreement from 1972 and he is taking control of Asia and moving east to the cultural and economic and military expense of other nations. The One China Policy devours Taiwan completely. But there is more as defined in the China Constitution.

The latest trade bout is over President Trump’s moves against hardware—solar panels for now, with steel, aluminum and billions of dollars in machinery behind that in the “imbalance” that the U.S. administration resolves to rectify.  These accounts are subject to various distortions—the iphone being the classic case of misplaced export-import value—but arithmetic is what matters in Washington today. (Is the weakening dollar buying any quiet?)

In technology there is a welter of issues ranging from perceived security threats to the American state (Huawei blocked again) to perceived threats to the Chinese state (Internet social media).   Mixed into that are matters of piracy and intellectual property and barriers to trade (for example, the Great Firewall’s boost to China’s internal Web economy).  Perversely, a cyber age that ought to bring the world closer is aggravating tensions between the two greatest economies.

This second contentious area connects to worsening fears among Western intellectuals about freedom of dissent in China as repression under Xi Jinping is stepped up. Even more broadly, the U.S. establishment has grown wearily cynical about the fundamental hope underlying China’s accession to the WTO in 2000:  That, in granting Beijing a pass on massive disruption of American industry through lower-cost production, the West was winning a liberalization of China that would pay dividends for generations.  Only the die-hard Sinophiles believe that now. One upshot: A heightened guardedness about strategic industries on the American side, too.

Finally, there’s the military front.  Xi has made clear his intent to finish modernizing the Chinese force to project power for, he says, his country’s legitimate (and peaceful) ends.  Those clearly entail more presence, or dominance, of naval areas, including the South China Sea, as well as the trade routes extended vastly through the Belt and Road Initiative.  That inevitably leads to encirclement alarms in smaller rival nations and, oh yes, in the US Navy as well.  This is likely to result in a series of skirmishes and other rubs that the world can survive.  More here from Forbes.

Davos’ theme in sync with China’s policies: expert

China’s shared future ideal will benefit ‘fractured world’


This year’s theme of the World Economic Forum (WEF) meeting in Davos, Switzerland – Creating a Shared Future in a Fractured World – fits perfectly with China’s economic foreign policies and the Belt and Road initiative, say Chinese economists and experts.

Some 70 heads of state and government and 38 leaders of international organizations are heading for Davos and the annual WEF which runs from Tuesday to Friday.

This year China’s participation at the forum will focus on more specific areas and measures to boost the world economy and promote rulemaking to reform globalization, experts said.

China will be represented by Liu He, a member of the Political Bureau of the Communist Party of China Central Committee and director of the General Office of the Central Leading Group for Financial and Economic Affairs, the Xinhua News Agency reported.

National leaders including French President Emmanuel Macron, Canadian Prime Minister Justin Trudeau, German Chancellor Angela Merkel and Indian Prime Minister Narendra Modi will also attend the WEF.

Chinese President Xi Jinping told last year’s WEF that China was determined to safeguard free trade and globalization.

His ideas were well received and have encouraged leaders of other countries to use the WEF to expand their influence, Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Monday.

“This year, Liu, as the senior official in charge of financial and economic areas, will bring more specific and targeted ideas to the forum,” said Bai.

With this year’s theme focused on a “Fractured World,” Klaus Schwab, founder and chief executive of the WEF, told the Xinhua News Agency that nations and economies are increasingly adopting competitive positions due to divergent interests, and fractures are also emerging within countries, as many societies continue to face instability.

“Regional integration, which has been encouraged globally in the past, has also caused fractures for globalization,” said Wang Yiwei, the Jean Monnet chair professor at Renmin University of China, while commenting on the competition between countries and coalitions from different regions.

Wang believes China’s Belt and Road initiative will turn competition into cooperation by establishing inter-connection between countries of different regions by boosting infrastructure cooperation, free trade and investment.

“China’s ambition to build ‘a community of a shared future for mankind’ has perfectly matched the theme of the WEF this year,” he said.

China can also push rulemaking in emerging fields like artificial intelligence and e-commerce, which could activate the next round of economic growth, with China as a leading country in these areas, Wang added.

Jack Ma and Liu Qiangdong, founders of China’s e-commerce giants Alibaba and JD.com, will also attend the forum.

China’s representative Liu has been an advocate of open and common interests with other countries.

Divided and uncertain West

However, the US will sell “America First” at the WEF, and Trump’s tax reforms are likely to directly impact the EU by attracting high-tech enterprises from Europe. This scenario could lead other major economies to back away from seeking common interests, and struggles of different interests could emerge at the WEF, Bai said.

“Western leaders are all impacted by their domestic politics, and in many cases, domestic pressure will impact their decision-making in the international arena. China is the most united and certain major economy, and it will continue to be the main engine of the global economic recovery,” Wang said.

“China is more reliable than others,” he added.

Russian Trolls, DAVOS and President Trump

So, while President Trump has again changed his schedule to attend the DAVOS World Economic Forum, there are some key items on the agenda.

With cybersecurity a top concern at the annual World Economic Forum meeting in Davos, Switzerland, Yahoo Finance asked experts: What is the topic or topics that business and government leaders should be focusing on when it comes to cybersecurity and policy in 2018?

Jason Glassberg, co-founder of Casaba Security, responded that currently the most pressing topics are “cryptocurrency ecosystems, election security, ‘DevSecOps’ (this may sound dull, but think: IoT, cars, airline computer systems, smart homes, smart cities, Intel chips, Juniper routers, Huawei, the Internet, basically everything digital under the sun), increased regulation, cyber warfare, and attribution.”

Glassberg broke down each of these six issues:

Cryptocurrency is obviously a major financial story these days. Everybody and their brother is looking into how to capitalize on it. These markets are notoriously murky, however – fraud and scams are rampant, as are the cyber attacks. So how do you make it safe? How do you take a Wild West gunslinging town, and turn it into the suburbs? It’s a tough issue, and I think we’ll have to look at the gambling industry as an example. The key to this is establishing better security within this ecosystem for the real players. The next step is finding a way to guarantee losses due to theft, similar to the FDIC [Federal Deposit Insurance Corporation] or SIPC [Securities Investor Protection Corporation].

Election security needs no introduction. But while everybody has been freaking out about voter suppression via phony Facebook ads, the reality is that the 2016 election interference was just a sample. It was a nation-state gently dipping its toe in the water, but deciding not to go all the way in. If a country wanted to get serious about election attacks, it could go much further. This is what we need to be prepared for.

It would be possible for a serious player to delete or alter voter registration databases, DDoS the servers used to run those database or the actual voting machines; not to mention, hack the voting machines themselves. The latter would definitely cross a red line, if for instance we found out that Russia had re-tabulated voting machines to directly affect the outcome of an election. But what if the attack was a little less black-and-white? For instance, what if the machines were just infected with random malware that didn’t actually do anything, other than make itself known to the IT team? That would send shockwaves through the system and call into question the voting results, even though the votes weren’t actually affected. This is what we need to be thinking about.

DevSecOps is one of those terms that causes people’s eyes to glaze over when they hear it (if they ever do), but it’s actually very relevant to our lives today. What it refers to is incorporating security into the software or hardware development process. This is hugely significant today because as we’re seeing with the Internet of Things devices that are flooding the market, and the connected cars that are rolling out onto our public streets, software security is usually not the first priority of these manufacturers.

But not to just pick on those two markets, the reality is that DevSecOps is a problem for every industry on the planet, even the security field. Businesses aren’t doing enough to bake in rigorous security into the DNA of their products from the very beginning. Too often they are relying on software updates and patches to fix the problem after the fact, and that is never an ideal solution. This will continue to become a bigger issue in the months and years ahead.

Increased regulation is another issue that businesses could face, as governments try to contend with the growing risk of data breaches and attacks on key infrastructure, whether it’s the GDPR [General Data Protection Regulation] in Europe or the Singapore Cybersecurity Bill. In my own opinion, I think that companies that store consumer data (whether it’s credit card numbers or credit reports), as well as private infrastructure entities like telecom and power companies, are probably most at risk of higher costs due to regulation.

Cyber warfare is another pressing issue today, as more countries are investing in offensive cyber operations. This often puts businesses in the crosshairs and it sticks government in a tough position too because there is no easy solution for preventing or responding to these incidents. A key question when it comes to cyber warfare is do we engage in “active defense”?

That is more commonly referred to as hack-back, but it’s a more complex concept than simply tit-for-tat cyber retaliation. Active defense can mean anything from advanced investigative techniques to disabling the servers behind an attack or turning a city’s lights off for 30 minutes in order to send a message to a rival nation. How we deter and respond to cyber warfare tactics will be a key question for policymakers and businesses over the next five to 10 years.

Attribution is another ongoing issue for governments and businesses, and it’s related directly to the cyber warfare question, although it also encompasses cybercrime as well. What’s also key with attribution is that the pressure to solve these cases could lead to encroachments on digital privacy. In fact, I’d be very surprised if that did not happen. Potential targets here include Tor, VPNs, and encryption tools in general.”

Maoist Confucius Institute Infecting U.S. College Campuses

A China Post article reported in 2014 that “Certainly, China would have made little headway if it had named these Mao Institutes, or even Deng Xiaoping Institutes. But by borrowing the name Confucius, it created a brand that was instantly recognized as a symbol of Chinese culture, radically different from the image of the Communist Party. Where indoctrination is incubated and spies are made, courtesy of China and idiot university presidents.

Modern day Mao era propaganda and education explained.

Thank you Ethan Epstein:

Last year, the University of North Carolina at Charlotte made an announcement to great fanfare: The university would soon open a branch of the Confucius Institute, the Chinese government-funded educational institutions that teach Chinese language, culture and history. The Confucius Institute would “help students be better equipped to succeed in an increasingly globalized world,” says Nancy Gutierrez, UNC Charlotte’s dean of the College of Liberal Arts and Sciences, and “broaden the University’s outreach and support for language instruction and cultural opportunities in the Charlotte community,” according to a press release.

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But the Confucius Institutes’ goals are a little less wholesome and edifying than they sound—and this is by the Chinese government’s own account. A 2011 speech by a standing member of the Politburo in Beijing laid out the case: “The Confucius Institute is an appealing brand for expanding our culture abroad,” Li Changchun said. “It has made an important contribution toward improving our soft power. The ‘Confucius’ brand has a natural attractiveness. Using the excuse of teaching Chinese language, everything looks reasonable and logical.”

Li, it now seems, was right to exult. More than a decade after they were created, Confucius Institutes have sprouted up at more than 500 college campuses worldwide, with more than 100 of them in the United States—including at The George Washington University, the University of Michigan and the University of Iowa. Overseen by a branch of the Chinese Ministry of Education known colloquially as Hanban, the institutes are part of a broader propaganda initiative that the Chinese government is pumping an estimated $10 billion into annually, and they have only been bolstered by growing interest in China among American college students.

Yet along with their growth have come consistent questions about whether the institutes belong on campuses that profess to promote free inquiry. Confucius Institutes teach a very particular, Beijing-approved version of Chinese culture and history: one that ignores concerns over human rights, for example, and teaches that Taiwan and Tibet indisputably belong to Mainland China. Take it from the aforementioned Li, who also said in 2009 that Confucius Institutes are an “important part of China’s overseas propaganda set-up.” Critics also charge that the centers have led to a climate of self-censorship on campuses that play host to them.

Despite years of these critiques—including a recent outcry at the University of Massachusetts at Boston and the shuttering of Confucius Institutes at two of the nation’s top research universities—they’re still growing in number in the United States, albeit at a slower clip than a few years ago. Several opened on American campuses last year. And vanishingly few schools have rethought the institutes and closed them, suggesting that once they’re implanted, they’re entrenched. At several campuses, they’re actually expanding their footprints with bigger facilities and new courses. I contacted more than a half-dozen Confucius Institutes, and several officials said in interviews that they’re not looking back. (Others declined to comment or simply ignored me, further suggesting a commitment to keeping the Institutes going. The Chinese Embassy in Washington also did not respond to a request to comment by publication time.)

That so many universities have welcomed the Confucius Institute with open arms points to another disturbing trend in American higher education: an alarming willingness to accept money at the expense of principles that universities are ostensibly devoted to upholding. At a time when universities are as willing as ever to shield their charges from controversial viewpoints, some nonetheless welcome foreign, communist propaganda—if the price is right.

“Coordinate the efforts of overseas and domestic propaganda, [and] further create a favorable international environment for us,” Chinese minister of propaganda Liu Yunshan exhorted his compatriots in a 2010 People’s Daily article. “With regard to key issues that influence our sovereignty and safety, we should actively carry out international propaganda battles against issuers such as Tibet, Xinjiang, Taiwan, human rights and Falun Gong. … We should do well in establishing and operating overseas cultural centers and Confucius Institutes.”

Liu’s orders have been heeded. The first Confucius Institute opened in South Korea in 2004. They quickly spread to Japan, Australia, Canada and Europe. The United States, China’s biggest geopolitical rival, has been a particular focus: Fully 40 percent of Confucius Institutes are stateside. In addition to the Institutes at universities, Hanban also operates hundreds of so-called Confucius Classrooms in primary and secondary schools. The public school system of Chicago, for example, has outsourced its Chinese program to Confucius Classrooms.

Beijing treats this project seriously, as evidenced by who runs the show. Hanban (shorthand for the ruling body of the Office of Chinese Language Council International, a branch of the Ministry of Education) is classified technically as a nonprofit agency, but it is dominated by Communist Chinese officialdom. Representatives from 12 top state agencies—including the Ministry of Foreign Affairs and the State Press and Publishing Administration, a propaganda bureau—sit on its executive council. Hanban’s director general is on the Chinese state council, the 35-member board that basically runs the country.

Hanban has been shrewd in compelling universities to host Confucius Institutes. Marshall Sahlins, a retired University of Chicago anthropologist and author of the 2014 pamphlet Confucius Institutes: Academic Malware, reports that each Confucius Institute comes with “$100,000 … in start up costs provided by Hanban, with annual payments of the like over a five-year period, and instruction subsidized as well, including the air fares and salaries of the teachers provided from China. … Hanban also agrees to send textbooks, videos, and other classroom materials for these courses—materials that are often welcome in institutions without an important China studies program of their own.” And each Confucius Institute typically partners with a Chinese university.

They’re kind of like restaurant franchises: Open the kit, and you’re in business. American universities can continue to collect full tuition from their students while essentially outsourcing instruction in Chinese. In other words, it’s free money for the schools. At many (though not all) Confucius-hosting campuses, students can receive course credit for classes completed at the institute.

But the institutes go to some length to obscure their political purpose. There’s the name, for example: Most Americans associate Confucius with wisdom, or cutesy aphorisms. It’s likely the centers would be less successful were they called Mao Institutes. The Institutes also offer a plethora of “fun” classesnot for academic credit, and often open to members of the general public—in subjects like dumpling making and tai chi.

The Chinese teachers are thoroughly vetted by Hanban, according to Sahlins’ report. They “must have a strong sense of mission, glory, and responsibility and be conscientious and meticulous in [their] work,” Hanban says. They’re also explicitly instructed to toe Beijing’s line on controversial political questions. There can be no discussion whatsoever of human rights in China, or the Tiananmen Square massacre. Sahlins found that should a student raise an uncomfortable question about, say, the political status of Tibet, Hanban’s instructors are ordered to refocus the discussion on, say, Tibet’s natural beauty or indigenous cultural practices (which, ironically, Beijing has spent decades stamping out).

Matteo Mecacci of the advocacy group International Campaign for Tibet requested a sampling of the Institute’s course materials from a D.C. area university several years ago. “Instead of scholarly materials published by credible American authors, not to speak of Tibetan writers, what we received were books and DVDs giving the Chinese narrative on Tibet published by China Intercontinental Press,” he wrote in Foreign Policy, “which is described by a Chinese government-run website as operating ‘under the authority of the State Council Information Office … whose main function is to produce propaganda products.’”

One student I spoke to—a junior at the University of Kentucky, which is home to a Confucius Institute—recalls attending a Confucius event at which another student, who was considering studying abroad in China, asked about the air pollution there. The response from the Confucius faculty was that the reports of pollution were “misinformation promoted in the U.S. media.” The student says Confucius faculty also “glorified and glossed over” negative aspects of Chinese culture and politics. Another student, a Kentucky senior who has taken classes at the same Confucius Institute, agrees that the institute “promotes an overly rosy picture of Chinese culture,” though, the student adds, “I don’t think it’s a problem for students to take advantage of [Confucius Institute] resources as long as they view the institute with a critical eye and round out their perspective on China with other experiences and points of view.”

Meanwhile, if Hanban’s instructors are not adequately vetted back home, there can be trouble. Consider the case of Sonia Zhao. Zhao, a Chinese national, was dispatched by Hanban to McMaster University in Hamilton, Ontario, in 2011 to teach Chinese language. She’s also a practitioner of Falun Gong, the Buddhist-tinged spiritual movement that Beijing despises as a threat to its authority. Zhao quit a year into her tenure, arguing that McMaster University was “giving legitimization to discrimination.” That’s because, in order to secure her employment with Hanban, Zhao said she was forced to disguise her fealty to Falun Gong. Her employment contract with Hanban explicitly stated that she was “not allowed to join illegal organizations such as Falun Gong,” she said. This kind of open religious discrimination is illegal in Canada, as it would be in the United States. McMaster University, in light of this disclosure, subsequently shuttered its Confucius Institute in 2013, citing the institute’s “hiring practices.”

Self-censorship has become an issue as well. In 2008, a court in Israel found that Tel Aviv University, home to a Confucius Institute, had illegitimately closed an art exhibition on Falun Gong because of Chinese government pressure. A year later, North Carolina State University, host to a Confucius Institute, scuttled a planned appearance by the Dalai Lama for fear of Chinese backlash: The director of the Institute warned NC State officials that such a visit could hurt “strong relationships we were developing with China.” A few years later, similar events transpired at the University of Sydney in Australia, which drew heat from members of the Parliament of Australia.

***

In recent weeks, I contracted administrators at several universities with Confucius Institutes, primarily ones that had opened recently, and none expressed regret or indeed much concern. The George Washington University, the private university nestled in the heart of the nation’s capital, has hosted a Confucius Institute for several years. The institute’s founding director, Peg Barratt, says her university’s “eyes were open” when GW opened its center in in 2013. “We were aware there was some controversy” surrounding Confucius Institutes when other universities opened theirs, she told me. “Some [other universities] had internal censorship,” she readily acknowledges. Nonetheless, she says the Institutes are innocuous, modeled, she argues, on European cultural institutes like the British Council, Goethe Institute and Alliance Française. Of course, not only are Great Britain, Germany and France not communist regimes, but those institutes are standalone enterprises, not on college campuses.

Western Kentucky University, where the Confucius Institute is expanding—it just moved into a new building—also defends its partnership. Terrill Martin, director of the Institute, told me, “I don’t believe the Confucius Institute program is controversial at all. I just believe that people don’t understand, don’t ask the right questions and make a lot of unfounded assumptions about the program, based on the failures of a few.”

Nancy Gutierrez, at the University of North Carolina at Charlotte, says the institute there will fill an unmet need. “We made the decision to host a [Confucius Institute] because we believe that this partnership will allow us to expand understanding of Chinese culture very broadly—for community members and for our students,” she says. In other words, Hanban can provide resources that UNC presently can’t. Gutierrez also says, “A faculty advisory committee will provide the intellectual guidance … ensuring that we are guided by principles of academic freedom.” And she notes that Confucius Institute courses will not offer academic credit at UNC Charlotte—at least not yet. The same is true at Western Kentucky University.

Eric Einspruch, who chairs Portland State University’s Confucius Institute, also defends it: The Confucius Institute simply offers “noncredit Chinese courses, cultural programs of interest to the community, and faculty-initiated scholarly activity,” he says. But even the Institute’s innocuous-seeming language courses have come in for criticism. They only teach simplified characters, which are used on Mainland China but not in Taiwan, Hong Kong or Singapore, estranging language learners from Chinese texts produced anywhere but the Mainland.

One institution that bucked the trend was the University of Chicago. The school opened a Confucius Institute in 2010, which quickly proved controversial. To Bruce Lincoln, a now-retired religion professor at Chicago who then served on the faculty senate, the Confucius Institute represented the “subcontracting [of the] educational mission” in the United States—a “hostile takeover of U.S. higher education by a foreign power,” as he told me. (Prior to his battle against the Confucius Institute, Lincoln was involved in another fight at the University of Chicago, against the establishment of a Milton Friedman Institute, which would have been largely funded by conservative donors. That too represented a subcontracting of the education mission, he believes—in this case, the “corporatization of universities.”)

When Hanban’s contract came up for renewal in 2014, Lincoln, along with Marshall Sahlins, led a petition drive, which garnered the support of more than 100 other faculty members, demanding that the contract be canceled. (There was very little student involvement, Lincoln says.) That year, the University of Chicago booted the Institute because of academic freedom concerns. Chicago’s move won praise from outlets as ideologically diverse as Forbes and the New York Review of Books. Shockingly few universities have followed Chicago’s lead, though, Penn State being one notable exception; it also closed its institute in 2014, as well.

Many of those universities who maintain Confucius Institutes appear to go to great lengths to shield them from criticism. Last year, Rachelle Peterson released a thorough report about Confucius Institutes for the National Association of Scholars, a right-leaning academic organization where Peterson is a scholar. At the heart of her report were 12 case studies of Confucius Institutes at New York and New Jersey universities. Over the course of her reporting, Peterson says, “There were a lot of unanswered emails, a lot of unanswered phone calls” (an experience shared by this journalist). When she did manage to set up interviews with Confucius Institute staff, they were often canceled at the last minute, like those at the University of Albany and the University of Binghamton. Another time, when she managed to secure an interview with a Confucius Institute staff member, he insisted that the meeting “happen in a basement … not in his office.” He seemed afraid of being caught, she says.

The most disturbing event transpired at Alfred University in upstate New York. There, Peterson, says, she had “called the Confucius Institute, spoken to a teacher … and received permission to sit in on [a class].” As she observed the Chinese-language class, she recalls, the provost of the university charged into the classroom, interrupting the lesson. He ordered her removal from the classroom and told her she had to leave the campus immediately. The provost and a Confucius staffer swiftly escorted her off campus. (Alfred University did not respond to a request for comment asking to confirm or deny Peterson’s account.)

Today, there are signs of a nascent, if isolated, backlash. Just last month, a group of students and alumni from UMass Boston, home of the Bay State’s only Confucius Institute, wrote a letter to the school’s chancellor expressing deep concern that the university is “unwittingly assisting the Chinese government to promote censorship abroad, while undermining human rights and academic freedom.” The UMass group requested a meeting with the chancellor to discuss their concerns, but according to Lhadon Tethong, a pro-Tibet activist who helped spearhead the letter, that request has yet to be answered. (A spokesperson for the university told the Boston Globe that the institute has succeeded in promoting “the mutual understanding of language and culture.”)

The National Association of Scholars suggests universities shutter their Confucius Institutes. But such counsel is hardly limited the ideological right. The American Association of University Professors, America’s leading professorial guild, also recommended in 2014 that “that universities cease their involvement in Confucius Institutes unless the agreement between the university and Hanban is renegotiated,” so that the universities have unilateral control over the curriculum and faculty, Confucius faculty have the same rights of free inquiry as their fellow teachers, and contracts between Hanban and the partner universities are made public. Nonetheless, none of the schools I contacted said that they had any plans to shutter or reform their institutes.

***

Instead, Confucius Institutes continue their forward march. In 2015, they opened at Tufts University, New Jersey City University, Southern Utah University and Northern State University in South Dakota. In 2016, Savannah State University added one. And last year, in addition to UNC-Charlotte, Transylvania University in Kentucky is launching a new branch. Gutierrez of UNC concedes that, when her school announced it would open one earlier last year, many faculty members were concerned and “raised serious questions.” But the structure the school developed—so as not allowing courses to be taken for credit—allayed such fears, she says.

Confucius Classrooms, for younger students, are also ascendant these days: In October, local media reported that three new ones would be planted in Texas public schools, and UMass Boston is helping develop them at schools in Massachusetts, including the prestigious Cambridge Rindge and Latin School, where a Confucius Classroom just launched. At scores of universities, meanwhile, the institutes are expanding both physically and programmatically. New courses and scholarships at existing ones are announced all the time. And they’re growing rapidly overseas, particularly these days in Africa, where China has been aggressively expanding its footprint in recent years.

Lincoln, of the University of Chicago, says the institutes have proved successful, in a sense, because Hanban offers a “cheap way to teach classes that [otherwise] wouldn’t have been taught.” Public universities have suffered punishing funding cuts over the past decade: “A decade since the Great Recession hit, state spending on public colleges and universities remains well below historic levels, despite recent increases,” reads a recent report from the left-leaning Center on Budget and Policy Priorities. According to the Center, adjusting for inflation, public spending on community colleges and universities was about $9 billion below 2008 levels in 2017. It’s unsurprising, then, that many institutes have sprung up at public universities, or that a huge amount of growth occurred from 2010 to 2012, when budgets were particularly hard hit. But those conditions could return: President Donald Trump’s proposed 2018 budget would also severely slash funding for universities, likely pushing more schools to outsource programs.

The Economist, meanwhile, estimates that China is spending $10 billion a year to promote its image abroad through efforts like cultural festivals, foreign media (think of those China Daily inserts that are slipped into the Washington Post) and educational exchanges. Confucius Institutes are a vital part of this mission. It’s not hard to envision how they might work, for example, by one day weakening Americans’ loyalty to Taiwan.

It seems that Beijing probed, and found a weakness: money. It may be intellectually indefensible for universities to host Confucius Institutes, but at a time of reduced funding, it makes eminent sense. How ironic that the ostensibly communist Chinese seem to understand financial imperatives better than we Yankees do.

*** Meanwhile: Cases of individuals spying on the United States of America on behalf of the intelligence services of the People’s Republic of China.

 

 

Singapore IP Address Hacking the Winter Olympics

BBC: Hackers have attempted to steal sensitive data from groups involved with next month’s Winter Olympics, cyber-security firm McAfee said.

The report found malware-infected emails were sent last month to organisations linked to the Pyeongchang Games.

It did not identify those responsible, but said more attacks tied to the upcoming Olympics were likely.

In similar past attacks, hackers tried to obtain passwords and financial data.

‘Casting net wide’

McAfee said a number of groups associated with the Olympics had received malicious emails – including several affiliated with ice hockey.

“The majority of these organisations had some association with the Olympics, either in providing infrastructure or in a supporting role,” the security firm said.

“The attackers appear to be casting a wide net with this campaign.”

The emails were sent from a Singapore IP address and told readers to open a text document in Korean.

McAfee said the hackers were trying to trick recipients into believing the emails had come from South Korea’s National Counter-Terrorism Center – which at the time was in the process of conducting anti-terror drills in the region.

In some cases the hackers used a technique in known as steganography which hides malware in text and images.

McAfee echoed recent warnings from University of California researchers to expect more cyber-attacks targeting major sporting events.

“With the upcoming Olympics, we expect to see an increase in cyber attacks using Olympics-related themes,” the security firm said.

It comes as Pyongyang prepares to hold official talks with South Korea for the first time in more than two years.

North Korea accepted an offer to attend the meeting on 9 January that will focus on finding a way for its athletes to attend the Games.

***

It uses a previously unseen form of malware designed to hand control of the victim’s machine over to the attackers. Among those sent the messages are individuals associated with the ice hockey tournament at the Games. The attack has been dubbed ‘Operation PowerShell Olympics’ by the researchers at McAfee Labs, who uncovered it taking place in late December.

winter-oympic-phishing.png

The lure document used in the cyber-attacks targeting the South Korea Winter Olympics.

Image: McAfee Labs

During the course of the investigation, researchers discovered a cached Apache server log which showed an IP address from South Korea connecting to the specific URL paths contained in the PowerShell implants, indicating that the intended targets were likely to have been infected.

Further investigation revealed the IP address from the PowerShell implant was connected to an anonymous domain provider based in Costa Rica, with the attacker using this domain to link up to the South Korean Ministry of Agriculture and Forestry, which the attacker has somehow managed to use parts of to carry out the attack.

Researchers are uncertain how many have been infected by the attack, but the campaign is thought to have targeted a wide range of South Korean organisations in the run up to the Winter Olympics. In similar campaigns in the past, victims were targeted for their passwords and financial information.

The phishing document was created on December 22, but rather than containing macros, it uses OLE (Objective Linking and Embedding) streams to carry out the attack. The document has been created by the same author, ‘John’, who created the malicious PowerShell script.

However, despite some evidence about how the attacks took place, researchers haven’t been able to identify the perpetrator — but they do note that whoever is behind the campaign must be fluent in the Korean language and the motive is to gather intelligence about organisations involved in the South Korea-hosted Winter Olympics.

“Technical details alone are often not enough to determine attribution. We are able to ascertain that the attackers have been trained in Korean language to ensure that the targets open the attachment, and the objective seems to be to gather information on the planning, direction and infrastructure related to the Olympics,” said Sherstobitoff.

Researchers warn that in the run up to the Winter Olympics, attackers will continue to use the event as a lure to carry out cyber-attacks.

To avoid falling victim to such attacks — including fileless malware distributed as part of Operation Powershell Olympics — organisations should educate their employees to be mindful of suspicious emails and unexpected attachments. More here from zdnet