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Special News Focus

Special News Focus: China and Data Security Rules

By The ICAS Team

September 10, 2020
Cover Image: UnSplash

(Editor’s note: See the final section of this Bulletin for the China Foreign Ministry’s announcement of the Global Initiative on Data Security.)

In the News

China to Launch Initiative to Set Global Data-Security Rules
Chun Han Wong
The Wall Street Journal, September 7

“China is launching its own initiative to set global standards on data security, countering U.S. efforts to persuade like-minded countries to ringfence their networks from Chinese technology. Announcing the initiative on Tuesday at a Beijing seminar on global digital governance, Chinese Foreign Minister Wang Yi cited growing risks to data security and what he characterized as efforts to politicize security issues and smear rival countries on technology matters—in an apparent swipe at Washington.”

China Accuses U.S. of ‘hegemony’ after Trump Administration Threatens to Sanction Chipmaker SMIC
Ryan Browne
CNBC, September 7

“China has lashed out at the U.S. government over potential export restrictions on SMIC, the country’s biggest chipmaker. The U.S. Department of Defense said Saturday that it was considering adding SMIC to the Commerce Department’s so-called Entity List, which would make it more difficult for the company to obtain parts made in the U.S., potentially hurting production. On Monday, Chinese Foreign Ministry spokesman Zhao Lijian accused Washington of ‘blatant hegemony,’ adding that Beijing was ‘firmly opposed’ to such actions.”

Chinese Exports Beat Expectations with 9.5% Jump in August
Thomas Hale
Financial Times, September 7

China Lands Its First Reusable Spacecraft as State Media Hails It as an ‘Important Breakthrough’
Arjun Kharpal
CNBC, September 7

“China has successfully launched and landed an experimental reusable spacecraft, according to the state-run Xinhua news agency which lauded the achievement as an ‘important breakthrough.’ The spacecraft was launched on a Long March-2F rocket from the Jiuquan launch center located in Inner Mongolia on Friday. It spent two days in orbit and returned to the scheduled landing site on Sunday, Xinhua said. There are very few details on the project which appeared to be shrouded in secrecy.”

U.S. Happy to Help in China-India Border Dispute, Trump Says
Reuters, September 4

“The United States is ready to help resolve the dispute between India and China over the mountain border running through the western Himalayas, President Donald Trump said on Friday. Trump, asked about the dispute at a news briefing in the White House, said Washington was talking with both countries about what it could do to help defuse the situation.”

Press Statement: Advancing Reciprocity in U.S.- China Diplomatic Relations
Michael R. Pompeo
U.S. Department of State, September 2

“The Department of State will now require senior PRC diplomats in the United States to receive approval to visit U.S. university campuses and to meet with local government officials. Cultural events with an audience larger than 50 people hosted by the PRC embassy and consular posts outside of mission properties will also require Department of State approval. The Department of State will also take action to help ensure that all official PRC embassy and consular social media accounts are properly identified as PRC government accounts, since the U.S. Embassy is denied unfettered access to PRC social media and PRC citizens are blocked from using Twitter and Facebook, amongst other social media platforms.”

US Seeks Formal Alliance Similar to Nato with India, Japan and Australia, State Department Official Says
Robert Delaney
South China Morning Post, September 1

“Washington aims to formalise its closer Indo-Pacific defence relations with India, Japan and Australia – also known as ‘the quad’ – into something more closely resembling the North Atlantic Treaty Organisation (Nato), a senior US State Department official said on Monday.”

U.S. Slaps Trade Sanctions on More Chinese Entities, This Time for South China Sea Island Building
Jeanne Whalen
The Washington Post, August 26

“The Trump administration added 24 Chinese companies to a trade blacklist for helping China build islands in the South China Sea, a construction program the United States has labeled an illegal attempt to control an important shipping route. The newly listed firms, including the China Communications Construction Company (CCCC) and the China Electronics Technology Group Corporation, are big contractors in the Belt and Road initiative, which in building bridges, dams and digital infrastructure around the world has come under international criticism for saddling recipient countries with too much debt.”

American and Chinese Officials Take Pulse on Trade Deal, Six Months In
Ana Swanson and Keith Bradsher
The New York Times, August 24

“American and Chinese officials on Monday discussed the status of the trade deal both nations signed in January. Robert E. Lighthizer, the United States trade representative, and Steven Mnuchin, the Treasury secretary, spoke with Liu He, the Chinese vice premier, as part of a six-month checkup on the trade agreement both countries spent the last several years negotiating.”

Articles and Analysis

The Ideology Delusion: America’s Competition With China Is Not About Doctrine
Elbridge Colby and Robert D. Kaplan
Foreign Affairs, September 4

“The United States is indeed in an exceptionally serious competition with China that requires it to take a hard line on many fronts. And Washington should never shy away from its unabashed embrace of republican government and respect for human dignity. But ideology does not lie at the root of the matter between the United States and China—even if elements in China’s Marxist-Leninist elite think it does. The very scale of China’s economy, population, and landmass and its consequent power would cause profound concern for U.S. policymakers even if the country were a democracy.”

Chinese Investment in the Maldives: Appraising the String of Pearls
Asia Maritime Transparency Initiative, September 4

“Chinese investment in the Maldives is a frequent subject of concern. The archipelagic nation is strategically located along major Indian Ocean shipping routes.” 

“Its former president has very publicly speculated that China is being allowed to buy up whole islands and extend loans that the government cannot afford. And media articles in India, long the most important external partner for the Maldives, often assume that prominent Chinese investments are a stalking horse for military access. The most frequently cited example of late is a resort development on Feydhoo Finolhu island. But the available data suggests these fears, and those surrounding other Chinese projects in the Maldives, are overblown. … Continued vigilance is warranted, especially as the share of Maldivian debt held by China rises. But there is no evidence that the projects currently under development by Chinese companies are more than they appear.”

Don’t be fooled by US claims of Chinese military superiority
Alex Lo
South China Morning Post, September 3

“When the United States starts warning how militarily strong an adversary is, it means it is gearing up for war.”

American Support for Taiwan Must Be Unambiguous
Richard Haass and David Sacks
Foreign Affairs, September 2

“For four decades, successive Republican and Democratic administrations resisted answering the question of whether the United States would come to Taiwan’s defense if China mounted an armed attack. Washington’s deliberate ambiguity on the matter helped dissuade China from attempting to ‘reunify’ Taiwan with the mainland, as it could not be sure that the United States would remain on the sidelines.”

America, Don’t Try to Out-China China
Jessica Chen Weiss and Ali Wyne
The New York Times, September 2

“Republicans and Democrats disagree about many foreign policy issues, but not about the perception that the United States risks losing out to China. For the Republicans, China is an existential threat, and President Trump warned recently, about the former vice president, ‘China would own our country if Joe Biden got elected.’ For the Democrats, China is a challenge, but manageable. Still, Mr. Biden has pledged that as far as pandemic preparedness goes, America ‘will never again be at the mercy of China and other foreign countries in order to protect our own people.’”

Stay Calm About China
Anatol Lieven
Foreign Policy, August 26

“Rivalry between the United States and China is not a battle to the death of this kind, and it is very important that the United States not see it as such.

Past Events

Face-Off: Twitter is banned in China. Should Chinese diplomatic accounts be banned on Twitter?
Event hosted by The German Marshall Fund of the United States, September 10

Superpower Interrupted: The Chinese History of the World
Event hosted by National Committee on U.S.-China Relations, September 10

Your Chinese Supply Chain: Complexities and Challenges
Event hosted by The US-China Business Council, September 10

Virtual Event: The Enemy Within: The Security Risks of U.S. Law Enforcement’s Use of Chinese Drones
Event hosted by The Heritage Foundation, September 10

China in Central Asia: COVID-19 and Beyond
Event hosted by Carnegie Endowment for International Peace, September 8

Fateful Decisions: Choices that Will Shape China’s FutureEvent hosted by National Committee on U.S.-China Relations, August 20

FPCI Virtual Discussion: “Calming Troubled Waters in the South China Sea”
Event hosted by Foreign Policy Community of Indonesia, August 19

Virtual Meeting: Hong Kong Update — Autonomy and National Security
Event hosted by Council on Foreign Relations, August 12

Upcoming Events

Webcast – The Modern Politics of Mulan
Event hosted by the Wilson Center, September 11

Online Event: Tenth Annual South China Sea Conference, Session Three
Event hosted by Center for Strategic & International Studies, September 14

China Aerospace Studies Institute Conference 2020 – PRC Space
Event hosted by the Air University,  September 17

Online Book Event: The Emperor’s New Road: China and the Project of the Century
Event hosted by Center for Strategic & International Studies, September 29

Commentary

(Editor’s note: On September 8, China’s Foreign Ministry announced its Global Initiative on Data Security. The full text of the release is appended below. [Original Article])

Global Initiative on Data Security

Ministry of Foreign Affairs, P.R. China

The phenomenal development of information technology revolution and digital economy is transforming the way of production and life, exerting far-reaching influence over social and economic development of States, global governance system and human civilization.

The explosive growth and aggregation of data, as a key element of digital technology, has played a crucial role in facilitating innovative development and reshaping people’s lives, bearing on security and economic and social development of States.

In the context of closer global cooperation and new development of international division of labor, maintaining supply chain security of ICT products and services has never become more important for boosting users’ confidence, ensuring data security and promoting digital economy.

We call on all States to put equal emphasis on development and security, and take a balanced approach to technological progress, economic development and protection of national security and public interests.

We reaffirm that States should foster an open, fair and non-discriminatory business environment for mutual benefit, win-win outcomes and common development. At the same time, States have the responsibility and right to ensure the security of important data and personal information bearing on their national security, public security, economic security and social stability.

We welcome governments, international organizations, ICT companies, technology communities, civil organizations, individuals and all other actors to make concerted efforts to promote data security under the principle of extensive consultation, joint contribution and shared benefits.

We underscore that all parties should step up dialogue and cooperation on the basis of mutual respect, and join hands to forge a community with a shared future in cyberspace featuring peace, security, openness, cooperation and order. To make this happen, we would like to suggest the following:

  • States should handle data security in a comprehensive, objective and evidence-based manner, and maintain an open, secure and stable supply chain of global ICT products and services.
  • States should stand against ICT activities that impair or steal important data of other States’ critical infrastructure, or use the data to conduct activities that undermine other States’ national security and public interests.
  • States should take actions to prevent and put an end to activities that jeopardize personal information through the use of ICTs, and oppose mass surveillance against other States and unauthorized collection of personal information of other States with ICTs as a tool.
  • States should encourage companies to abide by laws and regulations of the State where they operate. States should not request domestic companies to store data generated and obtained overseas in their own territory.
  • States should respect the sovereignty, jurisdiction and governance of data of other States, and shall not obtain data located in other States through companies or individuals without other States’ permission.
  • Should States need to obtain overseas data out of law enforcement requirement such as combating crimes, they should do it through judicial assistance or other relevant multilateral and bilateral agreements. Any bilateral data access agreement between two States should not infringe upon the judicial sovereignty and data security of a third State.
  • ICT products and services providers should not install backdoors in their products and services to illegally obtain users’ data, control or manipulate users’ systems and devices.
  • ICT companies should not seek illegitimate interests by taking advantage of users’ dependence on their products, nor force users to upgrade their systems and devices. Products providers should make a commitment to notifying their cooperation partners and users of serious vulnerabilities in their products in a timely fashion and offering remedies.

We call on all States to support this initiative, and confirm the aforementioned commitments through bilateral, regional and international agreements. We also welcome global ICT companies to support this initiative.