The Other Items Complicating a China Trade Deal

Beyond the traditional trade talks between the U.S. Trade Representative and envoy with Beijing, there are complicating factors that enter into the debates and it is generally dealing with military aggression and espionage. So consider the following items:

  1. New Delhi: China has recently leased vast tracts of land along the coast of the Koh Kong province of Cambodia to turn into a seaside resort. An area of 45,000 hectares — 20 per cent of the coastline — has been leased for 40 years for a paltry annual rent of US $1 million.

    A Chinese private company called Union Development Group (UDG) is undertaking the project, named the Dara Sakor Seashore Resort Long Term Project.

    However, there has also been increased military cooperation between Beijing and Phnom Penh, and the US has raised concerns, with Vice-President Mike Pence writing to Cambodian PM Hun Sen that these facilities could be put to military use.

    Paul Chambers, professor of international affairs at the Naresuan University in Thailand, has claimed that senior Cambodian officials privately admitted that Hun Sen was considering approving a Chinese naval base at Kiri Sakor. The Chinese resort in Cambodia that can overnight be ...

    Hun Sen has claimed there are no foreign troops on Cambodian soil, but China has been accused of using debt traps to get its way. And according to satellite imagery accessed by ThePrint, there is a real possibility of the resort project currently under construction turning into a Chinese military base.

  2.   BRUSSELS (Reuters) – China’s ZTE opened a cybersecurity lab in Brussels on Wednesday, aiming to boost transparency four months after bigger telecoms equipment rival Huawei [HWT.UL] did the same to allay concerns about spying.Chinese vendors of network gear are being scrutinized by the United States and some of its allies who believe the equipment could be used by Beijing to spy on customers if deployed in 5G networks, which are beginning to be built around the world.

    Huawei, the world’s biggest maker of telecoms network gear, has been blacklisted by the U.S. government, meaning that U.S. companies need special approval – which they are unlikely to get – to export products to the Chinese company.

  3. The Chinese military has deployed military personnel and armored medical vehicles to Germany for joint drills, a first for the Chinese People’s Liberation Army as it attempts to forge closer ties with Europe.

    The joint exercise — Combined Aid 2019 — is focused on preparing troops with the medical service units of the Chinese and German armed forces to respond to humanitarian crises, such as mass casualty incidents and serious disease outbreaks, China’s Xinhua News Agency reported.

    The exercise follows a cooperative military medical training exercise in 2016 in Chongqing, where the PLA and the German Bundeswehr practiced responding to an imaginary earthquake scenario.

  4. Over one million Uyghurs and Muslims from other ethnic minority groups have been detained by the Chinese government and sent to “re-education” internment camps. Sources indicate that detainees are psychologically and physically abused. Uyghurs outside the camps in Xinjiang are also not free, as they are kept under constant surveillance, often using advanced technology. The Chinese government is increasingly testing this technology in Xinjiang and exporting it nationally and globally, with concerning implications for democracy and human rights.
  5. (UPI) China is condemning a recent U.S. decision to sell $2.2 billion worth of weapons to Taiwan, saying the “reckless” policy tampers with Chinese sovereignty.

    Beijing’s foreign ministry spokesman Geng Shuang said Tuesday at a regular press briefing China opposes U.S. weapons sales to Taiwan, a country China recognizes as a breakaway province.

    “The United States has recklessly interfered in Chinese domestic affairs,” Geng said. “It has undermined China’s sovereignty and security interests.”

    The U.S. State Department on Monday approved two potential arms sales to Taiwan, worth $2.2 billion.

    The weapons to be sold to Taiwan include 108 Abrams tanks, 250 Stinger missiles and related equipment.

    On Tuesday Geng reminded reporters Beijing does not recognize Taiwanese sovereignty.

    “Taiwan is an inseparable part of Chinese territory,” the foreign ministry spokesman said. “Do not underestimate the Chinese government and the people’s will to defend national sovereignty and territory.”

    Geng added the United States was in “severe violation” of Beijing’s “One-China” policy.

    Tensions have grown between Taiwan and China since President Tsai Ing-wen assumed office in 2016.

    Tsai’s recent decision to stay in the United States for four nights during a “layover” has angered China. Beijing, under its law, bans the Taiwanese leader from making contact with U.S. politicians.

 

Hey Social Media, Here Comes Anti-Trust Scrutiny

It has started with Google and this site has warned users of the Internet to stop using Google for years for various reasons. Now there are more. Oh, the Department of Justice may not stop with Google, so watch out Facebook, Yahoo News, Apple, Amazon and Twitter. Why?

Have you noticed how twisted news stories are? Have you noticed selective search engine results? Have you noticed search intrusions? Have you noticed censorship that may affect politics, truths or even voting habits?

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Well, it begins with these social media/tech companies stopping competition, free speech and lying by omission. Reliance on these investigative activities begin with the Sherman Anti-Trust Act. This is a law where the Federal government opposes monopolies when it comes to contracts, trade and commerce. Add in the Federal Trade Commission Act and consider the timing as we move towards the 2020 General Election(s).

A short definition of the Antitrust Laws is found here.

In part from C-Net:

The move by the Justice Department comes as Google and other Silicon Valley giants face renewed antitrust scrutiny in the United States. Sen. Elizabeth Warren, a Democratic 2020 presidential candidate, has made it a key part of her platform to break up the big tech companies, including Google, Facebook and Amazon. Earlier this month, Chris Hughes, a Facebook co-founder, also called for the breakup of the company he helped create.

In February 2018, President Donald Trump had signaled via his Federal Trade Commission leadership choice that he was open to investigating big tech companies.

Former US Attorney General Jeff Sessions last September reportedly met with state attorneys general to discuss whether Google and Facebook could be suppressing conservative views, after forming a task force to look into problems in the tech industry. However, once Sessions stepped down in November, the plan to follow up with the Justice Department was shelved.

The Journal report follows reports in March that Google could be facing an investigation over violations of antitrust or consumer protection regulations.

Google has also faced antitrust pressures from regulators in Europe. In March, the search giant was hit with a $1.7 billion fine from the European Commission for “abusive” online ad practices. The Commission said Google exploited its dominance by restricting its rivals from placing their search ads on third-party websites.

Last year, the EU’s executive arm fined Google a record $5 billion for unfair business practices around Android, its mobile operating system. The investigation focused on Google’s deals with phone manufacturers, requiring them to preload specific Google apps and services onto Android phones. After the EU announced the fine, Trump tweeted, “I told you so.”

***

Earlier Monday, the Wall Street Journal reported that the Federal Trade Commission will examine how Facebook’s practices affect digital competition. The Washington Post reported over the weekend that Amazon has come under heightened scrutiny by U.S. regulators. And on Friday, the Journal reported that the Justice Department is preparing a probe of Google, sending shares of parent company Alphabet down more than 7% Monday.

The possible Apple probe is linked to the Google probe, Reuters reported, and stems from meetings between the DOJ and the FTC.

The headlines together paint a daunting picture for Silicon Valley and the stock market’s most valuable companies. Big tech has long faced scrutiny from European regulators, but has so far shrugged off calls for government regulation in the U.S.

Apple has drawn increased criticism in recent months for what some — including streaming giant Spotify — see as anti-competitive behavior in the App Store. Apple owns and operates the online marketplace, collecting subscription fees from developers.

The so-called “Apple tax” accounts for a sizable percentage of Apple’s burgeoning services revenue segment, but draws the ire of developers who, in some cases, compete with Apple’s own apps in the store.

Spotify’s EU complaint against Apple, filed in March, is pending investigation by European authorities. More here.

Army’s Wish List Against China/Russia

It appears some real strategic thinking and application is happening here and that is a good thing. These lists for more reconnaissance aircraft is a good thing for sure.

Russia's Hybrid Warfare Strategy • Full Version

U.S. Army leaders revealed Tuesday that they are briefing top military commanders about new weapons being built specifically for “high-intensity conflict” against China and Russia, in a new effort to assure that they could provide vital firepower for those potential battlefields of the future.

Reconnaissance aircraft, team reach milestone > U.S. Air ...

Army Secretary Mark Esper said he wants to shift some money away from vehicles and aircraft more suited for conflicts in Afghanistan and Iraq and into “what I need to penetrate Russian or Chinese air defenses.”

Among the new weapons and technologies he said are critical: long-range artillery, attack and reconnaissance aircraft, air and missile defenses, and command-and-control networks. Esper said the artillery — known as Long-Range Precision Fires — could be used “to hold at bay Chinese ships.”

Army officials recently briefed Adm. Philip Davidson, commander of U.S. Indo-Pacific Command, who oversees all U.S. military personnel in the Asia-Pacific region. This comes as the Army plans to rotate thousands of soldiers on expeditionary deployments throughout the Pacific — an expansive region often associated with Navy and Air Force military operations.

“We want to talk to [U.S. European Command] as well,” Esper said. “What we’re trying to do is go out and tell them what we’re doing.”

Last year, the Army held a series of reviews that recommended cutting or reducing nearly 200 weapons projects, freeing up $25 billion for investment in higher-priority programs. Among the projects cut are upgrades to Boeing-made CH-47 Chinook helicopters and buys of Oshkosh-made Joint Light Tactical Vehicles, the Army’s replacement for Humvees. Esper said he needs to shift money into “Future Vertical Lift,” an effort to build faster helicopters and tilt-rotor aircraft — similar to the V-22 Osprey —  instead of upgrades to older, larger, and slower helicopters.

“What I don’t have right now is an attack/reconnaissance aircraft,” Esper said, Tuesday during a briefing at the Pentagon. “That’s what I need to penetrate Russian or Chinese air defenses. I’m not going to do that with a CH-47.”

The Army is evaluating prototypes built by Bell and a Lockheed Martin-Boeing team, as it determines the makeup of a new generation of military helicopters.

Army leaders plan to cut the number of Joint Light Tactical Vehicles they will buy from Oshkosh but the size of the reduction has not been finalized, Esper said. Army Undersecretary Ryan McCarthy has previously said the service plans to cut 1,900 vehicles.

“We are certainly cutting the total number. I know that much,” Esper said. “But whether it … finals out; right here today, I can’t tell you. In five years, I could maybe have a different number for you.”

The secretary said that they decision to buy Chinooks and JLTVs was made before the Trump administration’s January 2018 National Defense Strategy put the Pentagon on a path to preparing for great power competition with Russia and China. That strategy reduced the Defense Department’s priority on counterterrorism and counterinsurgency fights in Afghanistan, Iraq, and other spots like Syria, which had dominated much of the past two decades. In its wake, the Army is building new doctrine that will be evaluated over the next 12 to 18 months. The results of those wargames will determine how many soldiers and weapons are needed in the future.

“They were in many ways designed for a different conflict,” he said, of Chinooks and JLTVs. “It doesn’t mean we won’t use them in future conflicts, but now my emphasis has to be on rebuilding my armor, rebuilding my fighting vehicles, having aircraft that can penetrate Russia and Chinese air defenses, that can shoot down Russian and Chinese drones and missiles and helicopters and fixed-wing aircraft. We’re in this transition period and so some folks are caught in that transition.”

Meanwhile, where is the strategic thinking when it comes to hybrid warfare?

The Pentagon wants to develop a way to detect those signs by analyzing the myriad actions in what it calls the “gray zone”–behaviors in a variety of areas that, considered separately, may or may not mean anything but when examined together could indicate malicious intent–and is putting artificial intelligence (AI) to work on the problem.

The Defense Advanced Research Projects Agency (DARPA) has launched a new program intended to better understand and interpret an adversary’s gray zone engagement as potential signals of pending aggression. The Collection and Monitoring via Planning for Active Situational Scenarios (COMPASS) program will incorporate AI, game theory, modeling, and estimation technologies to decipher the often subtle signs that precede a full-scale attack.

“The ultimate goal of the program is to provide theater-level operations and planning staffs with robust analytics and decision-support tools that reduce ambiguity of adversarial actors and their objectives,” said Fotis Barlos, DARPA program manager. “As we see increasingly more sophistication in gray zone activity around the world, we need to leverage advanced AI and other technologies to help commanders make more effective decisions to thwart an enemy’s complex, multi-layered disruptive activity.”

The attention to gray zone activity reflects the multi-pronged tactics used in hybrid warfare, of the type employed by Russia in Georgia in 2008 and in Ukraine since 2014. Cyber attacks to shut down the power grid, conduct digital espionage, and sow economic disruption, along with social media campaigns aimed at manipulating public opinion, coincided with the covert movement of troops and equipment into Ukraine. Not only have these tactics proved to be effective, their subtle, sometimes untraceable methods can lend a level of plausible deniability to the attacks. And NATO has said that clandestine hybrid attacks can achieve their aims before being noticed, too late for an effective response.smilelaugh

Is China an Adversary of the United States?

Yes, and frankly, we should completely reconsider an trade agreements in total with China. The whole launch of a harmonious relationship between the United States and China established by President Nixon in 1972 is not today’s condition. China is hostile to not only the United States but to any country frankly for the sake of money, China needs it by any and all means possible.

Exclusive: Secret NSA Map Shows China Cyber Attacks on U.S ...

China is using ‘debt traps’ effectively to financially punk foreign governments to gain power, influence and assets.

  • China is working to influence media outlets beyond its borders in an effort to impose its ideology and deter criticism of its actions, a press freedom group said.

    In a report released Monday, Reporters Without Borders detailed what it said was China’s impact on a global decline in press freedom and analyzed President Xi Jinping’s strategy to control information outside his own country. The group found that Beijing was using advertising buys, paid-trips for journalists and an expanding global propaganda network to impose its “ideologically correct” terminology and to obscure darker chapters of the country’s history.

  • Huawei has been a theft and spy operation for decades. A major concern and consequence is a renewed U.S. campaign to pressure and persuade America’s allies to keep Huawei technology and equipment out of the next generation of wireless networks, known as 5G. The stakes in this campaign are much bigger than U.S. market share or the effectiveness of Iran sanctions. If Huawei’s chips and routers find their way into this new network, everything from digital privacy to intellectual property could be at risk.
  • Chinese employees stole corporate secrets from Dutch semiconductor equipment maker ASML, resulting in hundreds of millions of dollars in losses, Dutch financial newspaper Financieele Dagblad (FD) reported on Thursday.

    The paper said, citing its own investigation, technology had been stolen by high-level Chinese employees in the research and development department of ASML’s U.S. subsidiary and ultimately leaked to a company linked to the Chinese government.

  • That Chinese worker employed by that farm in Iowa is likely a spy, performing agricultural/intellectual property theft.
  • China has and continues to infect the American education system. It is called the Confucius Institute. It ranges from Kindergarten to graduate school. China has already spent $200 million USD on this effort. So, the Senate held a hearing. Legislation? Still waiting.
  • U.S. government contractors hired by China to be a hacker/ perform espionage or to steal technology. Examples are here, here and here.

Just this past December, the Assistant Director of the FBI for the Counterintelligence Division gave an extended statement and testimony before the Senate Judiciary Committee that spoke to the non-traditional espionage methods employed by China against the United States. Simply put, he described it as a Cold War and honestly it is.

In part:

The Chinese government is attempting to acquire or steal, not only the plans and intentions of the United States government, but also the ideas and innovations of the very people that make our economy so incredibly successful. The Chinese government understands a core lesson of the Cold War between the United States and the Soviet Union: economic strength is the foundation of national power. The competition between the United States and China will be greatly influenced, if not ultimately decided, on the strength of our economies.

The Chinese government means to compete with us in every way possible, playing by the rules at times, bending them at others, and breaking them when necessary to ensure their success. They also aim to rewrite the rules to shape the world in their image, and they have already made progress on this front. The rules they write seek to guarantee the dominance of their businesses and root Chinese national power in the very fabric of an international system.

From my vantage point, it appears we are at the early stages of a hyper-competitive world. This is not simply a competition between businesses and industries but also between governments and the ways in which they govern their societies. Make no mistake: the Chinese government is proposing itself as an alternative model for the world, one without a democratic system of government, and it is seeking to undermine the free and open rules-based order we helped establish following World War II. Our businesses and our government must adapt in order to compete and thrive in this world.

Perhaps AOC, Omar, Nadler, Pelosi, Tlaib and Schiff should be concentrating on the real work to protect American….eh? Better still, perhaps CNN should report on the real stuff….uh huh

When an F-35 Goes Missing

Some panic has set in for the United States, the need to find the most expensive fighter jet ever built before enemies of the United States find it first.

Japan’s Air Self-Defense Force says the F-35A stealth jet went missing Tuesday while flying off the eastern coast of Aomori. It says the plane disappeared from radar about half an hour after taking off from the Misawa air base with three other F-35As for a flight exercise.

Defense Minister Takeshi Iwaya told reporters that a search and rescue operation was underway for the missing jet and its pilot. The cause of the mishap was not immediately known.

This could be  matter of several countries in the region doing the search.

A US Navy P-8A Poseidon maritime patrol aircraft and the Arleigh Burke-class guided-missile destroyer Stethem with the Navy’s 7th Fleet are assisting the Japanese air and maritime assets dispatched to find the missing aircraft and its pilot, the Navy said in a statement Wednesday.

Japan has sent out U-125A search-and-rescue aircraft, UH-60 Black Hawk helicopters, and P-3C maritime surveillance aircraft, as well as three coast-guard vessels to search for the downed F-35, according to The Diplomat.

“We continue to hope for the safe recovery of the pilot, and our thoughts are with his family and all of our Japanese partners as they conduct this search,” United States Forces Japan said in a statement.

The F-35A was being flown by an experienced pilot with more than 3,200 flight hours, including 60 hours in the new stealth fighters. Radar contact with the aircraft was lost while it was about 85 miles east of Misawa Air Base in northern Japan. The Japan Air Self Defense Force has grounded its entire fleet of F-35s in response.

So far, only parts of the missing aircraft have been recovered. The discovery indicates that the plane crashed, most likely marking the first F-35A crash. (A US Marine Corps F-35B crashed in South Carolina in September; the pilot was able to eject.)

While both the US and Japan are committed to finding the pilot, another aspect of the search is securing the technology aboard the advanced aircraft before someone else finds it.

 

“There is no price too high in this world for China and Russia to pay to get Japan’s missing F-35, if they can,” Tom Moore, a former senior professional staff member with the US Senate Foreign Relations Committee, tweeted Tuesday. “Big deal.”

“If one of Japan’s F-35s is sitting at the bottom of the Pacific, we are probably about to see one of the biggest underwater espionage and counter-espionage ops since the Cold War,” Tyler Rogoway, the editor of the respected defense publication The War Zone, tweeted.

The stealth fighter was specifically built to give the US advantages in high-end conflict against great-power rivals. Neither Russia nor China has been able to field a comparable fifth-generation aircraft. More here.

*** Update: Iwaya said that the pilot sent a signal to abort the mission, according to the broadcaster. Shortly after the signal, all communications with the fighter jet were lost. Parts of the jet have been located.

The Japanese defense ministry said the male pilot, who’s in his 40s, remains missing.

The fighter jet went off the radar while flying off the eastern coast of Aomori, just about half an hour after taking off the Misawa air base with three other F-35As.

All F-35’s based in Japan have been grounded.