Image 01 Image 03

China Tag

Earlier this week, the Pentagon announced that the U.S. Navy planned on sending a destroyer into disputed waters in the South China Sea. In the first of a series of missions, the USS Lassen would breach the 12-mile "buffer" zone around the man-made islands in the Spratly archipelago as a way of challenging China's belligerent assertions of sovereignty in those waters. Today, China rebuked the US for this "freedom of navigation" patrol, protesting it as a form of harassment, and announced that they had "shadowed" the Lassen:
The U.S. destroyer sailed within 12 nautical miles of Subi Reef, one of seven artificial islands built up by China in the past year.

China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam have spent years debating whose sovereignty holds supreme over territory in the South China Sea. Back in 2014, China began the work of turning the Subi and Mischief reefs in the Spratly archipelago into permanent land forms; before China began this massive dredging project, these "islands" would disappear during high tide. Now, however, China has laid exclusive claim to the new islands, as well as a 12 nautical mile buffer zone around them. China has jealously guarded this territory, but the United States Navy is about to defy that claim. Tonight, the Navy will send the USS Lassen through those waters and into the 12 mile buffer zone surrounding the Spratly archipelago in the first of a series of missions into the area. Via Reuters:
The ship would likely be accompanied by a U.S. Navy P-8A surveillance plane and possibly P-3 surveillance plane, which have been conducting regular surveillance missions in the region, according to the defense official, who spoke on condition of anonymity.

According to one California-based cybersecurity firm, China is already violating its new cybersecurity agreement with the United States. According to CrowdStrike founder Dmitri Alperovich, his firm has seen "no change in behavior" since President Obama and Chinese President Xi Jinping announced the anti-hacking deal on September 25. CrowdStrike has documented seven attacks against US-based pharmaceutical and tech companies since then, "where the primary benefit of the intrusions seems clearly aligned to facilitate theft of intellectual property and trade secrets, rather than to conduct traditional national security-related intelligence collection." This, of course, is exactly why we signed this anti-hacking agreement to begin with. In addition to national security targets, cyberthieves most commonly target valuable intellectual property. Last month's deal did not (pretend?) to prevent cybersyping for national security purposes; instead, it prohibited "economic espionage," in which a hacker steals information from one company and sells it to a competitor.

As Indian President Pranab Mukherjee's 3-day historic visit to Israel comes to an end, Israel’s foreign policy is being redefined. During the first ever visit by an Indian head of state, both countries signed a series of agreements aimed at improving cooperation in commerce, technology and education. India, traditionally seen as a strong backer of the “Palestinian cause” at the world stage, has sharply changed its diplomatic position since Prime Minister Modi took office 17 months ago. Since his election, India has consistently voted against or abstained from anti-Israel resolutions tabled by Arab countries at UN and other international fora.  India’s recent pro-Israel stance has angered many Palestinians. During Indian President’s brief visit to the Al Quds University in Ramallah angry Palestinian demonstrators occupied the campus to register their protest. India, under Prime Minister Modi’s leadership, wants to further intensify cooperation with Israel, despite continued objections by the Palestinian Authority as well as Muslim and left-wing groups in India. Prime Minister Modi is also expected to visit Israel next year. Indian Prime Minister sees Israel as a key global partner in his drive towards a modern and prosperous India. Addressing the Israeli Knesset on Wednesday, October 14, the Indian President emphasised the need for closer cooperation between both the countries in the field of technology, research and higher education [Jerusalem Post, October 15, 2015]:

The Washington Post reported Friday afternoon that China arrested a handful of hackers at the American government's urging. The move would is a first for the Chinese and may be indicative of cooperation between the two governments. As we've discussed before, conventional wisdom holds the Chinese responsible for the massive OPM hacking, though the Obama administration refused to publicly blame China.
Citing concerns over national security, the Obama Administration has decided that they will not publicly blame China for the hack, even though conventional wisdom (and a fair amount of now-public evidence) suggests that they were responsible. Officials fear that coming out in an official capacity against Beijing will compromise what evidence investigators have been able to assemble. More from WaPo:

Today US authorities charged former United Nations General Assembly President John Ashe with accepting over a million dollars in bribes from Chinese real estate mogul Ng Lap Seng in exchange for lucrative government contracts. More via Fox News:
In exchange for the money, federal prosecutors say Ashe used his position as Permanent Resident to the United Nations for Antigua and Barbuda and General Assembly head to introduce a U.N. document in support of a real estate project being developed by Chinese billionaire Ng Lap Seng. Prosecutors say some of the bribe money was used to pay for Ashe's family vacation and to construct a basketball court at his home in Dobbs Ferry, N.Y. He opened two bank accounts to receive the funds and then underreported his income by more than $1.2 million, officials said. “There is a lot more work to do,” Preet Bharara, the U.S. Attorney for the Southern District of New York, told reporters on Tuesday when asked about the probe. He said more charges were possible, adding, “We will be asking the question: Is bribery business as usual at the U.N.?”

As our East Coast deals with the effects of Hurricane Joaquin and tens of thousands are evacuated in Southern China from the path of typhoon Mujigae, it appears that the relationship between the two nations is headed for equally turbulent weather. While Obama was meeting with Chinese President Xi Jinping to complain about his nation's hacking of our cyber systems and carping about Russian escalation in Syria, reports indicate that China was preparing to increase its presence in the Middle East conflict:
Earlier this week, Chinese naval vessels have allegedly traveled through Egypt’s Suez Canal and entered the Mediterranean Sea. According to a senior officer in the Syrian Arab Army, and confirmed by a Russian Senator (in the propaganda outlet Pravda), the naval vessels are headed for Syria’s Port of Tartus, and that “China has joined [Russia’s] military operation in Syria.” The reports indicate that the Chinese vessels will reach Tartus within six weeks. No explanation is given in these reports for the long time frame.

Today before the United Nations General Assembly, Barack Obama and Vladimir Putin sparred publicly over how their respective nations have approached a solution to crises in Ukraine and Syria. For both leaders, these speeches were an opportunity to regain control of a spiraling military, security, and human rights narrative that is now being influenced not only by the spread of Islamic terrorism, but the effects of mass migration out of the Middle East and Africa and into Europe. President Obama lashed out at Putin over Russia's aggression toward Ukraine and criticized Putin's leadership (or, lack thereof) on the Syrian crisis. Oddly enough, though, Obama somehow managed leave himself space to justify a partnership with Russia as a way of addressing conflict in Syria. From the New York Times:
Mr. Obama made a forceful defense of diplomacy but also castigated Russia by name multiple times in his speech for its defense of the Syrian government, its takeover of Crimea and its actions supporting Ukrainian rebels. “Dangerous currents risk pulling us back into a darker, more disordered world,” Mr. Obama said. Those currents include major powers that want to ignore international rules and impose order through force of military power, he said.

As more details of the massive Office of Personnel Management (OPM) hack are made public, China's likely roll in the unprecedented hack is increasingly difficult to ignore. In July, Amy explored why China is at least for official purposes, off the the hook for the OPM hack.
Citing concerns over national security, the Obama Administration has decided that they will not publicly blame China for the hack, even though conventional wisdom (and a fair amount of now-public evidence) suggests that they were responsible. Officials fear that coming out in an official capacity against Beijing will compromise what evidence investigators have been able to assemble. More from WaPo:

Back in July, the federal government let it slip that they had evidence that China was responsible for compromising the records of nearly 22 million federal employees. It was one of the largest thefts of government data ever recorded, and exposed gaping holes in the security protocols protecting sensitive information. The wake of the breach was plagued by resignations and recriminations, and new protocols were pitched, but these "solutions" left those affected feeling completely out in the cold. Unfortunately for those people, things just got a lot worse. OPM revealed today that they believe hackers stole the fingerprints of 5.6 million federal employees and applicants---a far cry from the 1.1 million that OPM originally reported. Of note: this news was released just as the Pope arrived at the White House, which was a terribly convenient happenstance. More from the NY Times:
Before Wednesday, the agency had said that it lost only 1.1 million sets of fingerprints among the more than 22 million individuals whose records were compromised.

While the EPA is dealing with the fallout from the Animas River spill that it created, China is responding to a chemical catastrophe of its own:
Fires shot plumes of black smoke into the sky Saturday at the site of a chemical warehouse in Tianjin, China, where explosions earlier this week killed at least 105 people. But officials denied news reports that an evacuation order had been issued for everyone within 1.8 miles (3 kilometers), with Tianjin government spokesman Gong Jiansheng calling the reports "false information." The Beijing News, citing Armed Police, had reported the evacuation order. CNN has reported that at least one disaster recovery shelter is located within the reported evacuation zone. However, photographs made it appear that vehicles in a parking lot had caught fire rather than new explosions having taken place at the warehouse, as the Xinhua news agency had reported.
The Chinese have ordered an evacuation radius of nearly 2 miles due to the presence of numerous toxic chemicals and irritating vapors. Drone footage of the port area where the detonation took place is now available, and the extent of the damage is breathtaking.

For the past five years, Chinese cyber spies have been reading the private emails of an undisclosed but presumably large number of top Obama administration officials. A report released Monday from NBC news sites an anonymous U.S. senior intelligence official and a secret document. Evidently, U.S. officials have been aware of the email security breech since April of 2010.

As President Obama is busy waging “quixotic” war on Greenhouse Gases, China is making real geostrategic and territorial gains in Indian Ocean and South China Sea. China is not only reclaiming Islands in its backyard -- furnished with airstrips and Naval bases in the South China Sea, but also building a corridor connecting the western Chinese city of Kashgar to the Arabian Sea. China’s plans are so aggressive and ambitious that it would make even a seasoned foreign policy expert’s head spin -- don't expect that from anyone in the current U.S. administration. While Obama administration spends big on climate change and works to shrink U.S.'s carbon-footprint, the administration is equally committed to shrinking U.S.'s geostrategic footprint in the world. Sensing U.S's disengagement from the Asia-Pacific and Indian Ocean, China is pasturing aggressively in the Indian Ocean to encircle its Asian rival, India. China and India share historic rivalries. After invading Tibet, China attacked India in 1962 -- successfully pushing back Indian defences and occupying roughly 40,000 km of Indian territory. Since 1960s, China has made further territorial claims in India. In September 2014, China docked a nuclear submarine at Sri Lanka's Colombo port [near India’s southern-most coastline], followed by an attack submarine just few weeks later. 

The federal government has finally decided how to publicly handle an OPM data breach that compromised over 20 million federal employee records this past June. Rather, they've decided what they aren't going to do about it. Citing concerns over national security, the Obama Administration has decided that they will not publicly blame China for the hack, even though conventional wisdom (and a fair amount of now-public evidence) suggests that they were responsible. Officials fear that coming out in an official capacity against Beijing will compromise what evidence investigators have been able to assemble. More from WaPo:
“We have chosen not to make any official assertions about attribution at this point,” said a senior administration official, despite the widely held conviction that Beijing was responsible. The official cited factors including concern that making a public case against China could require exposing details of the United States’ own espionage and cyberspace capabilities. The official was among several who spoke on the condition of anonymity to describe internal deliberations.

Things are bad in both of China's big exchanges; both the Shanghai and Shenzen are seeing companies halting their trading on both:
Over 700 Chinese companies have halted trading to "self preserve," according to the state media. That means about a quarter of the companies listed on China's two big exchanges -- the Shanghai and Shenzhen -- are no longer trading. China's stock markets are in trouble. The Shanghai Composite Index has fallen over 25% since mid-June. The Shenzhen, which has more tech companies and is often compared to America's Nasdaq Index, is down even more.
Government intervention has not helped:
Chinese stocks fell on Tuesday, taking little comfort from a slew of support measures unleashed by Beijing in recent days, and unnerved by Chinese Premier Li Keqiang's failure to mention the market chaos in a statement on the economy. Before the market opened, Li said in comments posted on a government website that China had the confidence and ability to deal with challenges faced by its economy, but had nothing to say on the three-week plunge that has knocked around 30 percent off Chinese shares since mid-June.
Morgan Stanley Asia Chairman Stephen Roach said some of China's problems can be traced back to issues related to the debt-to-GDP ratio:

US officials suspect hackers in China are responsible for a cyber attack on the Office of Personnel Management's (OPM) computer systems that left the personal information of almost four million current and former federal government employees exposed. The breach, which was detected back in April, is now being described as one of the largest thefts of government data ever seen. DHS concluded back in May that the information had indeed been compromised and stolen, but so far neither OPM of the FBI have indicated exactly whose records have been exposed. More from WaPo:
“Certainly, OPM is a high value target,” said OPM Chief Information Officer Donna Seymour, in an interview. “We have a lot of information about people, and that is something that our adversaries want.” With that understanding, she said, within the last year “OPM has undertaken an aggressive effort to update our cybersecurity posture, adding numerous tools and capabilities to our networks. As a result of adding these tools, we were able to detect this intrusion into our networks.” “Protecting our federal employee data from malicious cyber incidents is of the highest priority at OPM,” said the agency’s director, Katherine Archuleta, in a statement.

This would be funny were it not for the fact that the Boycott, Divestment and Sanctions movement is such a sad sack of haters. Activists from Ithaca Jewish Voice for Peace were behind the recent failed effort to get GreenStar Food Coop in Ithaca, NY (home of Cornell University) to boycott Israel. Those activists formed a group called Central NY Committee for Justice in Palestine, later reconfigured as Ithaca Food Justice for Palestine. But two JVP activists, Ariel Gold and Beth Harris -- who (in)famously got themselves arrested at the AIPAC annual conference -- were behind it all. Details on that GreenStar boycott effort, including the hateful messages used as part of the campaign (See Featured Image for one example), are in my post, Huge BDS loss – GreenStar Food Coop rejects Israel boycott. Attempts were made to take the GreenStar boycott movement national, involving such "stars" as Angela Davis and Medea Benjamin, but that didn't help them much: Greenstar Boycott Angela Davis Medea Benjamin One aspect of the failed boycott effort involved China. China?

This week, the United States and China shocked the world with a joint announcement pledging to address greenhouse gas emissions. The plan has been touted as "historic" by Administration leaders, but critics say that the end game of this plan is less about controlling climate change, and more about creating a favorable political environment. From CBS News:
Mr. Obama announced that the U.S. would move much faster in cutting pollution, with a goal to reduce emissions by 26 percent to 28 percent by 2025, compared with 2005 levels. Earlier in his presidency, he set a goal to cut emissions by 17 percent by 2020. Xi, whose country's emissions are still growing as it builds new coal plants, didn't commit to cut emissions by a specific amount. Rather, he set a target for China's emissions to peak by 2030, or earlier if possible. He also pledged to increase the share of energy that China will derive from sources other than fossil fuels. Together, the U.S. and China create more than one-third of all greenhouse gas emissions worldwide.
Anyone who has paid attention to China's economic model over the past decade (and beyond,) or the political climate in the U.S. going into the lame duck session, knows that a plan that has the potential to impact economic growth is beyond unrealistic. Republican leadership in the Senate is not impressed: