Another Method on How China Spies

There has been so much domestic chatter about the FISA court granting warrants on U.S. citizens or intercepting communications between foreign nationals/diplomats and Americans, but in related reading –> US and Britain refine their ability to tap into airline passenger’s mobile phones while they are in the air.

Meanwhile…. Image result for chinese computer network african union photo

China built and paid for the African Union’s computer network  but inserted a backdoor allowing it access to the continental organisation’s confidential information

In January 2017, the information technology unit at the African Union’s headquarters in Addis Ababa noticed something strange, according to a stunning investigation in French newspaper Le Monde.

Every night, between midnight and 2am, there was a strange peak in data usage – even though the building was almost entirely empty. Upon further investigation, the technicians noticed something even stranger. That data – which included confidential information – was being sent to servers based in Shanghai.

The African Union’s shiny new headquarters was built and paid for by the Chinese government, as a gift to its “African friends”. But when the building was officially opened in 2012, China left a backdoor into the African Union’s computer network, allowing it to access the institution’s secrets at will.

“According to several sources within the institution, all sensitive content could be spied on by China,” wrote Le Monde. “It’s a spectacular leak of data, spread from January 2012 to January 2017.”

The Chinese mission to the AU did not respond to Le Monde’s request for comment.

Once the problem was discovered, African Union officials acted quickly to fix it. The organisation acquired its own servers, and began encrypting its communications. In July 2017, a team of experts from Algeria – a country with a notoriously efficient intelligence community – along with cybersecurity experts from Ethiopia combed the building from top to bottom, looking for hidden microphones and other potential weaknesses.

China would not be the first supposedly friendly superpower to spy on the African Union. A separate investigation in December 2016, conducted by Le Monde and The Intercept, revealed that African Union officials were targeted for surveillance by British intelligence.

*** The CIA and likely the NSA have a handle on all this but does the White House and the Congress, such that there is a cyber policy? Nope…. Just because there is a Chinese network in the Africa Union, does not mean it does not affect connected networks…..

A senior CIA analyst said China is continuing to conduct aggressive cyberespionage operations against the U.S., contrary to claims by security experts who say Beijing curbed cyberattacks in the past few years.

“We know the Chinese are very active in targeting our government, U.S. industry and those of our partners through cyberespionage,” said Michael Collins, deputy assistant CIA director and head of the agency’s East Asia Mission Center.

“It’s a very real, big problem, and we need to do more about it,” Mr. Collins told a recent security conference in Aspen, Colorado.

Mr. Collins said solving the problem of Chinese cyberattacks will require an “all-of-government, all-of-country approach to pushing back against it.”

The comments contradict a number of cybersecurity experts who have said Beijing’s digital spying and information theft decreased sharply as a result of the 2015 agreement between President Obama and Chinese President Xi Jinping.

The two leaders announced the cyber deal with great fanfare and said both countries had agreed to curtail cyberespionage against businesses.

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.”

DoJ Sessions’ Letter of Subpoena to Sanctuary Cities

Primer: In part from the New York Times/

Over the past year, the local jurisdictions have pushed back hard on the administration’s attempts to force them to abandon their stance by cutting off federal funding to them, with some like Chicago filing lawsuits against the Justice Department.

Mr. Emanuel’s office has called the Justice Department’s actions “misguided.” And district court judges in California and Illinois have filed preliminary nationwide injunctions blocking the department from denying grant money to sanctuary cities.

On Wednesday, 15 attorneys general filed a brief in support of the Chicago lawsuit, saying that the administration’s efforts to pull federal funds from sanctuary jurisdictions infringes on their right to set their own law enforcement policies.

“The Trump administration cannot strip a city or a police department of these critical funds, simply because they don’t like its policies,” Eric T. Schneiderman, the New York attorney general, said in a statement. More here.

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Office of Public Affairs

FOR IMMEDIATE RELEASE
Wednesday, January 24, 2018

Justice Department Demands Documents and Threatens to Subpoena 23 Jurisdictions As Part of 8 U.S.C. 1373 Compliance Review

The Department of Justice today sent the attached letters to 23 jurisdictions, demanding the production of documents that could show whether each jurisdiction is unlawfully restricting information sharing by its law enforcement officers with federal immigration authorities.

All 23 of these jurisdictions were previously contacted by the Justice Department, when the Department raised concerns about laws, policies, or practices that may violate 8 U.S.C. 1373, a federal statute that promotes information sharing related to immigration enforcement and with which compliance is a condition of FY2016 and FY2017 Byrne JAG awards.

The letters also state that recipient jurisdictions that fail to respond, fail to respond completely, or fail to respond in a timely manner will be subject to a Department of Justice subpoena.

“I continue to urge all jurisdictions under review to reconsider policies that place the safety of their communities and their residents at risk,” said Attorney General Jeff Sessions. “Protecting criminal aliens from federal immigration authorities defies common sense and undermines the rule of law. We have seen too many examples of the threat to public safety represented by jurisdictions that actively thwart the federal government’s immigration enforcement—enough is enough.”

Failure to comply with section 1373 could result in the Justice Department seeking the return of FY2016 grants, requiring additional conditions for receipt of any FY2017 Byrne JAG funding, and/or jurisdictions being deemed ineligible to receive FY2017 Byrne JAG funding.

The following jurisdictions received the document request today:

  • Chicago, Illinois;
  • Cook County, Illinois;
  • New York City, New York;
  • State of California;
  • Albany, New York;
  • Berkeley, California;
  • Bernalillo County, New Mexico;
  • Burlington, Vermont;
  • City and County of Denver, Colorado;
  • Fremont, California;
  • Jackson, Mississippi;
  • King County, Washington;
  • Lawrence, Massachusetts;
  • City of Los Angeles, California;
  • Louisville Metro, Kentucky;
  • Monterey County, California;
  • Sacramento County, California;
  • City and County of San Francisco, California;
  • Sonoma County, California;
  • Watsonville, California;
  • West Palm Beach, Florida;
  • State of Illinois; and
  • State of Oregon.
Attachment(s):
Topic(s):
Immigration
Press Release Number:
18-81

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.

The U.S. has a Russian Problem, but it is Worse in the UK

Remember the polonium death in Britain? There was a chilling documentary about it. The case still rolls on.

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The United Kingdom has frozen the assets of two Russians accused of carrying out the 2006 killing in London of former Federal Security Service officer Aleksandr Litvinenko.

London on January 22 issued the order to freeze the assets of Andrei Lugovoi and Dmitry Kovtun under the terms of the Antiterrorism, Crime, and Security Act of 2001.

Dmitry Kovtun (left) and Andrei Lugovoi have denied any involvement in Aleksandr Litvinenko's death. (combo photo)

On January 21, Judge Robert Owen, who chaired the British government inquiry into the Litvinenko killing, said he was certain Lugovoi and Kovtun killed Litvinenko by placing a lethal dose of polonium 210 in his tea during a meeting on November 1, 2006.

Litvinenko, who was an outspoken critic of Russian President Vladimir Putin, died several days later.

Both men deny any involvement in Litvinenko’s death. However, British investigators found traces of polonium 210 in hotels, restaurants, and aircraft used by Lugovoi. Lugovoi was reportedly treated for radiation poisoning in Moscow in December 2006.

Lugovoi, a former Soviet KGB agent, was elected a member of the Russian State Duma in 2007. Putin awarded him a state medal “for services to the motherland” in 2015. Hat tip

Meanwhile, we have the case of Andrey Borodin that lives in Britain and he is a wanted man by none other than Vladimir Putin.

Mr Borodin, who is sought by Moscow on fraud and corruption charges, which he strongly denies, and who was granted asylum in February, told The Independent: “Given that my successful application for asylum in the UK included all details of the Russian criminal investigations and argued that they are politically motivated, I now believe that the Russian authorities are via the media trying to lend credibility to their claims by referring to the Swiss investigation.”

He added: “My lawyers are engaging with the Swiss authorities and I am confident that a satisfactory conclusion will be reached in the not too distant future.”

It emerged in April that Mr Borodin was the target of a potential assassination plot involving a hitman who claimed to have been approached by Chechen political figures and offered as much as £600,000 to kill him in Britain.

The banker, who is a close ally of the former mayor of Moscow Yury Luzhkov, arrived in Britain in March 2011 after a warning that, following years of lucrative success negotiating Moscow’s treacherous nexus of business and politics, his star was on the wane.

The details of the assassination plot, brought to the attention of MI5 after the hitman pulled out of the deal, were considered to be credible. More chilling details to the story here.

So why do should we care? Perhaps the pressure of nefarious Russian plots and history would explain much of the goings-on in the U.S. political architecture…right? Russia, Russia, Russia….everywhere.

Yes…it seems that Andrey Borodin has hired a U.S. lobby firm, BGR Government Affairs to represent him. The filing form is here. Apparently at issue is a visa problem and well the case is assigned to  Haley Barbour, former Mississippi governor and Republican National Committee chair, and Maya Seiden, a former State Department aide under Secretary Hillary Clinton.

Related reading: Russia posing most complex challenge since Cold War: UK army chief 

In another meanwhile, after the unchallenged Hillary Clinton scandal of Skolkovo and Silicon Valley, there is yet another operation underway.

(Reuters) – Masha Drokova, a 28-year-old Russian political activist turned venture capitalist, on Tuesday joined a small family of Russian nationals who have set up shop as Silicon Valley venture investors.

Drokova’s new firm, Day One Ventures, will make investments of $100,000 to $1 million from a fund that initially totals nearly $50 million, a person familiar with the matter said. Drokova hopes her experience as an angel investor and a prior career in public relations will give her edge.

“Masha knows a lot of people,” said Serguei Beloussov, a senior investing partner at venture firm Runa Capital and who worked with Drokova until 2014. “She is good in that she gets access to very good startups.”

Drokova’s new fund comes as relations between the United States and Russia remain fraught and foreign investments of all types into U.S. technology companies receive more scrutiny.

She is following the lead of several other Russian investors who say that being based in the United States – and raising money from wealthy individuals rather than institutions – helps them get better access to startups and curtails concerns about the source of their money, even if some of it still comes from Russia.

Close to 20 percent of Runa Capital’s $135 million fund comes from wealthy Russian individuals, said Beloussov, who is Russian-born but now a Singapore citizen. Silicon Valley firm GVA Capital, managed by Russian native Pavel Cherkashin, has raised money from individuals in Russia, Ukraine, Kazakhstan and Georgia.

“There is a growing number of funds like us – Russian-speaking fund managers in the U.S. but sourcing checks from Russia and the former Soviet Union,” said Cherkashin. “That trend is growing.”

Cherkashin estimates startup investments from U.S.-based fund managers who raise capital from Russia has more than tripled over the last three years. This would include a 2016 investment in Uber by FortRoss Ventures, which has an office in Silicon Valley and whose funds come mostly from Russian investors, including state-owned Sberbank.

Drokova said her fund comes from individual entrepreneurs in the United States and Europe.

Drokova spent five years as a leader of a Kremlin-backed youth political movement in Russia called Nashi before moving to the United States at age 23. She now describes her political views as “liberal” and says she is no longer involved in Russian politics.

Drokova said her nationality and political work have not yet posed any challenges in her new career. But other Russians who have venture firms in Silicon Valley say they still run into obstacles, including extra scrutiny when they try to open U.S. bank accounts.

Sergey Gribov of Flint Capital, a venture firm whose partners are Russian-born but does not raise money in Russia, said he discloses all the details of his funding sources to head off suspicions.

“From time to time it comes up,” he said. “I would say it helps to be transparent.”