Eager eyes are currently turning to Geneva – even before her departure as UN High Commissioner for Human Rights, Michelle Bachelet promised the publication of her controversial China report. Bachelet has barely two weeks left to do so. More than a few observers fear that she has fallen for the Chinese narrative. Her report will show if that is true – when it finally comes out.
Another, no less important UN report is already making serious accusations against the People’s Republic. The Special Rapporteur on contemporary forms of slavery appointed by the United Nations Human Rights Council, considers it proven that “forms of slavery” occur both in the autonomous region of Xinjiang and Tibet. Marcel Grzanna took a closer look at the document. The report bluntly states exactly those accusations that China has always rejected
The involvement of Huawei or ZTE in the European 5G network expansion is an ongoing issue. In the past, it was primarily the distribution network between the stations and the providers’ backbone lines that were considered critical. However, since the Huawei debate and with 5G, the focus has begun to shift to the mobile network‘s endpoints, writes Falk Steiner. One idea to ensure more security at the endpoints is Open RAN, a system of predefined, standardized radio network components and software. Of all parties, Chinese players are currently shaping the Open RAN Alliance. The EU Commission and the German Federal Office for Information Security (BSI) are raising concerns.
Jack Ma apparently wanted to alleviate concerns among authorities. Our Beijing team reports that Ma wants to transfer a large part of his voting shares in Ant to executives to clear the way for an IPO. However, this is not only good news for the group.
A few days after the solemnly presented ratification of international conventions against forced labor, the People’s Republic of China is facing serious accusations by a UN body. A Special Rapporteur of the United Nations Human Rights Council, Tomoya Obokata, considers it proven that “forms of slavery” occur both in the autonomous region of Xinjiang and Tibet.
According to a 20-page report released Tuesday, “independent academic research, open sources, testimonies of victims, consultations with stakeholders, and accounts provided by the Government,” justified that conclusion. Even more, “excessive surveillance, abusive living and working conditions, restriction of movement through internment, threats, physical and/or sexual violence and other inhuman or degrading treatment” could constitute crimes against humanity, it said.
The drastic conclusion of the Japanese Special Rapporteur on contemporary forms of slavery is part of a paper that deals not only with forced labor in China but also in other parts of the world. It will serve as a basis for discussion at the Human Rights Council for its 51st session in Geneva in September.
When the Council assembles, the UN Human Rights Commissioner Michelle Bachelet, who is currently in office, will no longer attend. Actually, Bachelet was supposed to present a report on the situation of the Uyghurs and other minorities. But the publication has been postponed several times. The High Commissioner, who visited the People’s Republic at the end of May, is accused of delaying the report in the interests of the Chinese government and adopting its linguistic trivialization.
Now, the document will reportedly be published on her last day in office at the end of August. Beijing has already seen the report and commented on its assessments. It is very likely that they will wrangle over critical formulations until the very end and that China will want to smooth out the accusations.
Obokata’s report is not in any way to China’s liking, as it formulates precisely those accusations that the country always states to be mere fabrications. On Wednesday, a spokesman for the Chinese Foreign Ministry once again reacted with verbal counterattacks, reflexively casting the People’s Republic in the victim role. Obokata chose to believe “lies and misinformation fabricated by the US as well as anti-Chinese forces.” The Special Rapporteur “maliciously” besmirched China’s reputation.
For years, the People’s Republic has tried to paint a different picture of Xinjiang with a meticulously controlled information policy. To lessen the impact of the increasingly massive accusations, Beijing also relies on economic coercion against foreign companies, many of which are afraid of consequences for their sales in the country. Therefore, they either remain silent on the issue or engage in dubious whitewashing.
Accordingly, Obokata’s report also takes international companies to task. He cites the Uyghur Forced Labor Prevention Act (UFLPA) in the US or supply chain laws in Germany, France, the UK, or the EU level as good examples to oblige companies to exercise diligence.
Uyghur stakeholders reacted hopefully. “This report’s findings must be a wake-up call to those that have so far refused to take action on the proliferation of Uyghur forced labor-made goods in global supply chains”, said World Uyghur Congress (WUC) President Dolkun Isa. The WUC also calls on Michelle Bachelet to immediately publish her report.
There was positive feedback from Tibetan organizations. The International Campaign for Tibet (ICT) welcomed the report’s explicit reference to forced labor in Tibetan settlement areas of the People’s Republic. “The Special Rapporteur’s finding also underscores the dramatic nature of the situation in Tibet and the fact that it also deserves special attention,” ICT Executive Director Kai Mueller said in a statement. “We have repeatedly pointed out so-called labor programs of the Chinese government, into which hundreds of thousands of Tibetans are forced,” said Mueller, who added his voice to the call for the immediate publication of Bachelet’s report.
Just last week, China ratified International Labor Organization (ILO) Conventions 29 and 105. The Forced Labor Convention of 1930 and the Abolition of Forced Labor Convention of 1957 require the People’s Republic to prohibit any form of forced or compulsory labor, including “as a means of political coercion or education or as a punishment for holding or expressing political views or views ideologically opposed to the established political, social or economic system.”
Adrian Zenz commented on Twitter, that “the report’s timing is quite sensitive in light of China’s very recent ratification of two ILO conventions forbidding the use of forced labor.” The German anthropologist’s meticulous research on forced labor in Xinjiang dramatically raised awareness of the issue worldwide. Zenz evaluates the UN paper as an “extremely significant and strong assessment.”
However, as pressing as the evidence on which the report is based is, China is likely to continue to field a front of advocates seeking to invalidate the allegations. In early August, the Chinese government invited envoys from 30 Islamic states to Xinjiang, including representatives from Saudi Arabia, Pakistan, Algeria, Iraq, and Yemen. According to Chinese media, the delegation concluded that participants had come to believe that the rights of ethnic minorities such as the Uyghurs would be upheld. The Algerian ambassador enthused, “The fruit here is so sweet, just like the life of people here.”
Actually, the goal is clear: Untrusted hardware and software should not be used in critical infrastructures, especially not in telecommunications infrastructures. The debate about the role of the Chinese supplier Huawei had also arrived in the EU and Germany in 2018, mainly at the instigation of the USA. The fear: The components of the Chinese manufacturers and their software could be used both for espionage and – in the event of confrontation – as a kill switch, i.e., misused to shut down entire network areas.
Particularly in the area of the rollout of 5G networks and subsequent generations, there has therefore been a hectic political search for solutions as to how a clear preference can be placed on other providers, above all the European equipment suppliers Nokia and Ericsson. At the same time, Chinese providers should not be subject to legal market exclusion. The EU then published its so-called 5G toolbox, and in Germany, the IT Security Act and the BSI Act were amended.
The core of the political debates: Whereas in the past, it was primarily the distribution network between stations and the providers’ backbone lines that were considered critical since the Huawei debate, and with 5G, the focus has increasingly been on the endpoints of the mobile network. This is because 5G gives them a larger and more active role. The RAN is the mobile network area that establishes the radio link to the end users and connects antennas and hardware at the radio tower with the core network of the providers. One idea for ensuring greater security there: Open RAN – a system of predefined, standardized radio network components and software.
With interoperable individual elements, Open RAN is intended to enable security and interchangeability – without blanket exclusion of certain manufacturers. German and European mobile communications companies, therefore, see Open RAN as a way of minimizing risks. On the other hand, however, the fact that completely different providers can be used should keep costs low. Chinese providers jumped on the allegedly open concept early on and have been supporting it intensively ever since.
In a recently published paper (PDF) by the Digital Power China research consortium, authors Jan-Peter Kleinhans and Tim Rühlig warn against credulity in connection with Open RAN. They say a very precise distinction must be made between what is meant by Open RAN in the first place – and which actors with which interests were involved in the Open RAN definitions. “At least 16 members of the O-RAN Alliance have ties to the Chinese security apparatus,” the paper says, adding that all three of the People’s Republic’s state-owned mobile operators are also involved.
China Mobile, in particular, is problematic as a founding member because it co-chairs ten working groups and is represented on the supervisory board and management board. In addition, China Mobile is a member of the technical steering committee, which decides on technological matters even before publication. The EU Commission and the German government are also warning with increasing intensity of the threat of Chinese players having too much power in such standardization bodies.
The authors see another major problem in the fact that Open RAN committees specify not only hardware but also software. Even if the source code is open, the sheer volume of RAN code is almost impossible to check.
The authors warn against narrowing the debate to Huawei alone – it is about China. Overall, the O-RAN Alliance is “anything but a trustworthy partner”. It is “highly questionable whether cooperation within and use of O-RAN Alliance-compatible equipment can effectively address the issues that are surfacing around Huawei’s role in the 5G rollout.”
At the beginning of May, the EU Commission published a study on the security of Open RAN, in which the European Network and Information Security Agency (ENISA) was involved. This study also identified significant security risks for Open RAN. According to the
The German Federal Office for Information Security (BSI) had already commissioned a study in 2019 to examine security risks posed by Open RAN. At the time, the authors from the Barkhausen Institute and Advancing Individual Networks had concluded that the status at that time “contained multiple security risks”. One of these is particularly relevant: Open RAN had not been designed according to the principles of security by design or security by default; building security into standards after the fact was extremely difficult.
The past two years have been anything but easy for Ant Group employees. Many of them would have made a lot of money from their stock options in the fall of 2020 if the IPO of Alibaba’s financial subsidiary Ant Group had gone ahead as planned. According to estimates, the company’s value was over $235 billion, and it could have been one of the largest IPOs of all time. But as we know, China’s regulators intervened out of anger over a government-critical speech by Alibaba founder Jack Ma and denied the plans at the last minute.
After challenging months for all shareholders, there is new hope for them. According to the Wall Street Journal, citing people familiar with the matter, Ma plans to transfer a large part of his voting shares in Ant to executives, including CEO Eric Jing. Ma’s stake in Ant is expected to drop from just over 50 percent to 8.8 percent. Alibaba sources say that this step could eliminate Beijing’s last concerns. In the medium term, nothing would stand in the way of an IPO.
Ma himself is on a grand European tour these days. The Alibaba founder’s yacht was last seen off the coast of Mallorca. The 57-year-old also made a detour to Austria and visited a university in the Netherlands to learn about sustainable agriculture. The formerly richest man in China has not been seen so frequently in such quick succession since he felt the wrath of the Chinese leadership a good two years ago.
The fact that Ma is now appearing more frequently in public is a sign that he has probably reached an agreement with Beijing: The Alibaba founder will stay out of all business matters, and Alibaba and Ant will be allowed to prosper again.
Recently, the situation in China’s tech industry has cooled down considerably. Beijing has concluded that, in the context of the current economic crisis, it is better to take the companies off the short leash again, at least to a certain extent. In this way, they can help to provide the economy with new momentum. The tech crackdown of the past two years seems to be over for the time being.
For Ma, relinquishing control of Ant is justifiable. After all, he had a similar scenario in mind years before the dispute with Beijing. At Alibaba, he already stepped down as CEO in 2013 and later as chairman of the board in 2019. And back in 2014, he said publicly that he wanted to one day reduce his stake in Ant to no more than 8.8 percent and donate shares to charity. Now the relinquishment of power takes place faster than planned.
Ma’s admission to the authorities is good and bad news for Ant. On the one hand, the transfer of control should finally clear the way for the long-awaited IPO. However, it will still take time. This is because, under Chinese law, an immediate listing after a change of ownership is impossible. In the event of a change of majority ownership, Ant in Shanghai would have to wait at least two years. In Hong Kong, it is only one year. Ant’s original plan was to go public in Shanghai and Hong Kong simultaneously.
It is also already apparent that Ant will only be a shadow of its former self when it goes public. Under pressure from Beijing, the group had to accept numerous new rules over the past two years, which led to a collapse in profits and permanently changed the business model. The ongoing restructuring also includes Ant having to register as a financial holding company, which would make it subject to even stricter regulations and officially no longer a tech company. All of this has hurt the group’s valuation.
According to estimates, the former valuation of $235 billion had already melted down to just $78 billion a year ago. As analysts from Bloomberg have calculated, if the conversion into a financial holding company demanded by Beijing takes place, the value could even slip to just $29 billion in the worst case.
In addition, Beijing’s tech crackdown has permanently shaken investor confidence. Investors have suffered significant losses since the end of 2020. Alibaba shares alone lost more than 70 percent at their peak, so it seems more than doubtful that investors will soon euphorically lunge on Ant shares. Joern Petring/Gregor Koppenburg
China will take part in a military maneuver in Russia. Soldiers from the People’s Liberation Army are sent to Russia for the exercises jointly scheduled with Russia, India, Belarus, Tajikistan, Mongolia, and other countries, the Chinese Defense Ministry announced Wednesday. It stated the participation was not related to the current international and regional situation and was rather part of a bilateral agreement that has been ongoing for years. In July, Moscow announced the so-called Vostok military exercise for late August. Details on the participating states were not available at the time.
The last military maneuver of this kind took place in 2018. Back then, China participated for the first time. “The aim is to deepen practical and friendly cooperation with the armies of participating countries, enhance the level of strategic collaboration among the participating parties, and strengthen the ability to respond to various security threats,” the Defense Ministry statement said.
Meanwhile, Taiwan’s top representative in Berlin, Jhy-Wey Shieh, called for closer military cooperation between his country and Germany and its allies (China.Table reported). Should there be a new maneuver by the German Armed Forces with its Indo-Pacific partners, he would like to see “Taiwan also invited and Taiwan’s role to be better reflected,” Shieh said in an interview with Reuters news agency. “And I believe that will happen.” The point, he said, is for Taiwan to be re-evaluated.
It would be very tragic, if Taiwan fell into China’s hands, even for Europe, Shieh said. “Taiwan is a (…) beacon of freedom.” He added that this also applies to Chinese who are system-critical. Therefore, he said, there must be close cooperation between Europe and the United States and Indo-Pacific partners such as Japan, South Korea, and Australia. ari/rtr
In China’s housing crisis, some cities are resorting to drastic measures. In Shimen, in Hunan province, an official called on state employees to buy new properties. According to a Reuters report, the official said at a property fair, that he hopes “attendees, including government officials, will lead the way in buying another home.” In the city of Sixian, Anhui Province, with a population of 800,000, state officials are expected to sell properties to their friends and family, a report from the municipal government states.
China’s real estate sector is in a severe crisis. Many real estate developers are heavily indebted. Most recently, there was a mortgage strike, with buyers threatening to suspend their payments because the completion of their homes was more and more delayed. Real estate prices have recently declined after years of only rising (China.Table reported). As a result, demand continues to drop and many properties remain unsold. Whether this vicious circle can be stopped with a few purchases by state officials is more than questionable. nib
China’s car market has regained momentum, but German automakers have lost market share. China is once again the “locomotive,” industry expert Ferdinand Dudenhöffer of the Duisburg-based Center Automotive Research (CAR) wrote Wednesday in an analysis quoted by news agency dpa. Although global car sales are expected to decline by 3.2 percent this year, the market in China is expected to grow by five percent, Dudenhöffer estimates.
Sales by German manufacturers in their most important market dropped massively in the first half of the year. The VW Group recorded a 20 percent drop compared to the same period last year. Mercedes and BMW each sold 19 percent less. VW’s market share in China has thus fallen from 18.4 to 14.2 percent. For Mercedes, it fell from 4.4 to 3.4 percent, and for BMW from 4.7 to 3.7 percent, the analysis showed, according to dpa.
“The winners are clearly the Chinese and Tesla,” writes Dudenhöffer. One important reason, he says, is the boom in battery EVs. “German carmakers are still having a hard time in China.” The same applies to software functions in premium vehicles, he adds. Another reason why German carmakers are lagging is their poorer purchasing and production systems, which is also evident in comparison to Toyota.
In an interview with ntv, Dudenhoeffer warns of a possible decoupling of the German economy from China. “For Germany, a China embargo would be the GAU,” says Dudenhoeffer. “In a China conflict, sales markets collapse, possibly the Chinese end their foreign engagements, and technology imports fall by the wayside.” flee
The World Uyghur Congress (WUC) and the Uyghur Human Rights Project (UHRP) are seeking to hold the former party secretary of the Xinjiang region accountable for genocide. On Wednesday, the advocacy coalition filed a lawsuit in an Argentine court against Chen Quanguo and other Chinese Communist Party officials. They include European Union-sanctioned senior party cadres Zhu Hailun, Wang Junzheng, Wang Mingshan, and former Xinjiang police chief Chen Mingguo.
The plaintiffs’ lawyers chose Argentina as the venue for the lawsuit because the South American nation’s constitution allows for international investigations into genocide allegations – but only against natural persons, not governments. Neither the International Criminal Court nor the International Court of Justice had been considered for such a suit because China does not recognize the jurisdiction of either court. grz
“Every 20 years, the tide turns in China.” This is how Christian Soffel observes politics in the People’s Republic. The sinologist identified the last turning point in 2008 when openness to the West peaked. Under Xi Jinping, things are going downhill at the moment, which also applies to European-Chinese relations. More than two years of the pandemic have made the exchange between the two blocs even more difficult. In big politics and exchange between scientists: “I miss the coffee breaks,” says the sinologist, “where the backgrounds are discussed.”
The 55-year-old is a Professor of Sinology at the University of Trier. When he began studying sinology in Munich in the early 1990s, the mood was at an all-time low. After the Tiananmen massacre, hardly anyone in Europe wants anything to do with the People’s Republic. “I remember a language course in my second year of study. There were three of us,” says Soffel.
He initially studies Slavic studies, mathematics, and theoretical physics. Rather by chance he visits a friend in Beijing – and is fascinated. Soffel begins to learn Mandarin and studies in Taiwan for several months. There he encounters the texts of Confucius for the first time. “The profoundly humane values appealed to me,” says Soffel: “Patience, modesty, humanity.”
In Chinese turbo-capitalism, values are changing. In mainland China, Confucianism is developing in a very materialistic direction, says Soffel. That fits well with economic growth in the People’s Republic. “The main argument of the Communist Party is that it has brought a lot of prosperity to the people,” Soffel says. In a materialistic Confucianism that prosperity is an important reason for humane action, he explains. This, in turn, can legitimize the party, he says.
This does not necessarily mean that the everyday life of the Chinese has much to do with basic Confucian values. Nevertheless, Confucianism is now on the rise again, tolerated and promoted by the party. The CP wants to use philosophical ideas for its benefit. “The party invokes traditions and can thus encourage positive energies in the population,” says Soffel.
“In Taiwan, you get a very different picture,” says the sinologist. The Confucian scene on the island is more open and creative. He says: “Morals and ideals like human dignity are more important there.”
Soffel hopes that he will soon be able to discuss such ideas in person with colleagues again. He is Secretary of the European Association for Chinese Philosophy, and next year its members plan to meet for a conference in Italy. The sinologist cannot yet estimate when the next trip to China will be possible. Nevertheless, Soffel is certain: “I will probably see the relationship improve again.” Jana Hemmersmeier
Dominik Fischer is the new Market Manager for China and East Asia at Würth Group. Fischer has held the position since July, having previously spent four years in International Direct Sales, also at Würth.
Dominik Brugger is the new Head of Engineering for China at Rena Technologies in Furtwangen. Brugger was previously a development engineer at Rena.
Is something changing in your organization? Why not let us know at heads@table.media!
Workstation overlooking the Yangtze River: Utility engineers wait for one of the final parts for a power transmission tower on the 800-kilovolt Baihetan-Zhejiang UHV direct line. This week, work on several transmission towers was completed. With a total length of about 2,140 kilometers, the project is an important part of China’s west-east power supply.
Eager eyes are currently turning to Geneva – even before her departure as UN High Commissioner for Human Rights, Michelle Bachelet promised the publication of her controversial China report. Bachelet has barely two weeks left to do so. More than a few observers fear that she has fallen for the Chinese narrative. Her report will show if that is true – when it finally comes out.
Another, no less important UN report is already making serious accusations against the People’s Republic. The Special Rapporteur on contemporary forms of slavery appointed by the United Nations Human Rights Council, considers it proven that “forms of slavery” occur both in the autonomous region of Xinjiang and Tibet. Marcel Grzanna took a closer look at the document. The report bluntly states exactly those accusations that China has always rejected
The involvement of Huawei or ZTE in the European 5G network expansion is an ongoing issue. In the past, it was primarily the distribution network between the stations and the providers’ backbone lines that were considered critical. However, since the Huawei debate and with 5G, the focus has begun to shift to the mobile network‘s endpoints, writes Falk Steiner. One idea to ensure more security at the endpoints is Open RAN, a system of predefined, standardized radio network components and software. Of all parties, Chinese players are currently shaping the Open RAN Alliance. The EU Commission and the German Federal Office for Information Security (BSI) are raising concerns.
Jack Ma apparently wanted to alleviate concerns among authorities. Our Beijing team reports that Ma wants to transfer a large part of his voting shares in Ant to executives to clear the way for an IPO. However, this is not only good news for the group.
A few days after the solemnly presented ratification of international conventions against forced labor, the People’s Republic of China is facing serious accusations by a UN body. A Special Rapporteur of the United Nations Human Rights Council, Tomoya Obokata, considers it proven that “forms of slavery” occur both in the autonomous region of Xinjiang and Tibet.
According to a 20-page report released Tuesday, “independent academic research, open sources, testimonies of victims, consultations with stakeholders, and accounts provided by the Government,” justified that conclusion. Even more, “excessive surveillance, abusive living and working conditions, restriction of movement through internment, threats, physical and/or sexual violence and other inhuman or degrading treatment” could constitute crimes against humanity, it said.
The drastic conclusion of the Japanese Special Rapporteur on contemporary forms of slavery is part of a paper that deals not only with forced labor in China but also in other parts of the world. It will serve as a basis for discussion at the Human Rights Council for its 51st session in Geneva in September.
When the Council assembles, the UN Human Rights Commissioner Michelle Bachelet, who is currently in office, will no longer attend. Actually, Bachelet was supposed to present a report on the situation of the Uyghurs and other minorities. But the publication has been postponed several times. The High Commissioner, who visited the People’s Republic at the end of May, is accused of delaying the report in the interests of the Chinese government and adopting its linguistic trivialization.
Now, the document will reportedly be published on her last day in office at the end of August. Beijing has already seen the report and commented on its assessments. It is very likely that they will wrangle over critical formulations until the very end and that China will want to smooth out the accusations.
Obokata’s report is not in any way to China’s liking, as it formulates precisely those accusations that the country always states to be mere fabrications. On Wednesday, a spokesman for the Chinese Foreign Ministry once again reacted with verbal counterattacks, reflexively casting the People’s Republic in the victim role. Obokata chose to believe “lies and misinformation fabricated by the US as well as anti-Chinese forces.” The Special Rapporteur “maliciously” besmirched China’s reputation.
For years, the People’s Republic has tried to paint a different picture of Xinjiang with a meticulously controlled information policy. To lessen the impact of the increasingly massive accusations, Beijing also relies on economic coercion against foreign companies, many of which are afraid of consequences for their sales in the country. Therefore, they either remain silent on the issue or engage in dubious whitewashing.
Accordingly, Obokata’s report also takes international companies to task. He cites the Uyghur Forced Labor Prevention Act (UFLPA) in the US or supply chain laws in Germany, France, the UK, or the EU level as good examples to oblige companies to exercise diligence.
Uyghur stakeholders reacted hopefully. “This report’s findings must be a wake-up call to those that have so far refused to take action on the proliferation of Uyghur forced labor-made goods in global supply chains”, said World Uyghur Congress (WUC) President Dolkun Isa. The WUC also calls on Michelle Bachelet to immediately publish her report.
There was positive feedback from Tibetan organizations. The International Campaign for Tibet (ICT) welcomed the report’s explicit reference to forced labor in Tibetan settlement areas of the People’s Republic. “The Special Rapporteur’s finding also underscores the dramatic nature of the situation in Tibet and the fact that it also deserves special attention,” ICT Executive Director Kai Mueller said in a statement. “We have repeatedly pointed out so-called labor programs of the Chinese government, into which hundreds of thousands of Tibetans are forced,” said Mueller, who added his voice to the call for the immediate publication of Bachelet’s report.
Just last week, China ratified International Labor Organization (ILO) Conventions 29 and 105. The Forced Labor Convention of 1930 and the Abolition of Forced Labor Convention of 1957 require the People’s Republic to prohibit any form of forced or compulsory labor, including “as a means of political coercion or education or as a punishment for holding or expressing political views or views ideologically opposed to the established political, social or economic system.”
Adrian Zenz commented on Twitter, that “the report’s timing is quite sensitive in light of China’s very recent ratification of two ILO conventions forbidding the use of forced labor.” The German anthropologist’s meticulous research on forced labor in Xinjiang dramatically raised awareness of the issue worldwide. Zenz evaluates the UN paper as an “extremely significant and strong assessment.”
However, as pressing as the evidence on which the report is based is, China is likely to continue to field a front of advocates seeking to invalidate the allegations. In early August, the Chinese government invited envoys from 30 Islamic states to Xinjiang, including representatives from Saudi Arabia, Pakistan, Algeria, Iraq, and Yemen. According to Chinese media, the delegation concluded that participants had come to believe that the rights of ethnic minorities such as the Uyghurs would be upheld. The Algerian ambassador enthused, “The fruit here is so sweet, just like the life of people here.”
Actually, the goal is clear: Untrusted hardware and software should not be used in critical infrastructures, especially not in telecommunications infrastructures. The debate about the role of the Chinese supplier Huawei had also arrived in the EU and Germany in 2018, mainly at the instigation of the USA. The fear: The components of the Chinese manufacturers and their software could be used both for espionage and – in the event of confrontation – as a kill switch, i.e., misused to shut down entire network areas.
Particularly in the area of the rollout of 5G networks and subsequent generations, there has therefore been a hectic political search for solutions as to how a clear preference can be placed on other providers, above all the European equipment suppliers Nokia and Ericsson. At the same time, Chinese providers should not be subject to legal market exclusion. The EU then published its so-called 5G toolbox, and in Germany, the IT Security Act and the BSI Act were amended.
The core of the political debates: Whereas in the past, it was primarily the distribution network between stations and the providers’ backbone lines that were considered critical since the Huawei debate, and with 5G, the focus has increasingly been on the endpoints of the mobile network. This is because 5G gives them a larger and more active role. The RAN is the mobile network area that establishes the radio link to the end users and connects antennas and hardware at the radio tower with the core network of the providers. One idea for ensuring greater security there: Open RAN – a system of predefined, standardized radio network components and software.
With interoperable individual elements, Open RAN is intended to enable security and interchangeability – without blanket exclusion of certain manufacturers. German and European mobile communications companies, therefore, see Open RAN as a way of minimizing risks. On the other hand, however, the fact that completely different providers can be used should keep costs low. Chinese providers jumped on the allegedly open concept early on and have been supporting it intensively ever since.
In a recently published paper (PDF) by the Digital Power China research consortium, authors Jan-Peter Kleinhans and Tim Rühlig warn against credulity in connection with Open RAN. They say a very precise distinction must be made between what is meant by Open RAN in the first place – and which actors with which interests were involved in the Open RAN definitions. “At least 16 members of the O-RAN Alliance have ties to the Chinese security apparatus,” the paper says, adding that all three of the People’s Republic’s state-owned mobile operators are also involved.
China Mobile, in particular, is problematic as a founding member because it co-chairs ten working groups and is represented on the supervisory board and management board. In addition, China Mobile is a member of the technical steering committee, which decides on technological matters even before publication. The EU Commission and the German government are also warning with increasing intensity of the threat of Chinese players having too much power in such standardization bodies.
The authors see another major problem in the fact that Open RAN committees specify not only hardware but also software. Even if the source code is open, the sheer volume of RAN code is almost impossible to check.
The authors warn against narrowing the debate to Huawei alone – it is about China. Overall, the O-RAN Alliance is “anything but a trustworthy partner”. It is “highly questionable whether cooperation within and use of O-RAN Alliance-compatible equipment can effectively address the issues that are surfacing around Huawei’s role in the 5G rollout.”
At the beginning of May, the EU Commission published a study on the security of Open RAN, in which the European Network and Information Security Agency (ENISA) was involved. This study also identified significant security risks for Open RAN. According to the
The German Federal Office for Information Security (BSI) had already commissioned a study in 2019 to examine security risks posed by Open RAN. At the time, the authors from the Barkhausen Institute and Advancing Individual Networks had concluded that the status at that time “contained multiple security risks”. One of these is particularly relevant: Open RAN had not been designed according to the principles of security by design or security by default; building security into standards after the fact was extremely difficult.
The past two years have been anything but easy for Ant Group employees. Many of them would have made a lot of money from their stock options in the fall of 2020 if the IPO of Alibaba’s financial subsidiary Ant Group had gone ahead as planned. According to estimates, the company’s value was over $235 billion, and it could have been one of the largest IPOs of all time. But as we know, China’s regulators intervened out of anger over a government-critical speech by Alibaba founder Jack Ma and denied the plans at the last minute.
After challenging months for all shareholders, there is new hope for them. According to the Wall Street Journal, citing people familiar with the matter, Ma plans to transfer a large part of his voting shares in Ant to executives, including CEO Eric Jing. Ma’s stake in Ant is expected to drop from just over 50 percent to 8.8 percent. Alibaba sources say that this step could eliminate Beijing’s last concerns. In the medium term, nothing would stand in the way of an IPO.
Ma himself is on a grand European tour these days. The Alibaba founder’s yacht was last seen off the coast of Mallorca. The 57-year-old also made a detour to Austria and visited a university in the Netherlands to learn about sustainable agriculture. The formerly richest man in China has not been seen so frequently in such quick succession since he felt the wrath of the Chinese leadership a good two years ago.
The fact that Ma is now appearing more frequently in public is a sign that he has probably reached an agreement with Beijing: The Alibaba founder will stay out of all business matters, and Alibaba and Ant will be allowed to prosper again.
Recently, the situation in China’s tech industry has cooled down considerably. Beijing has concluded that, in the context of the current economic crisis, it is better to take the companies off the short leash again, at least to a certain extent. In this way, they can help to provide the economy with new momentum. The tech crackdown of the past two years seems to be over for the time being.
For Ma, relinquishing control of Ant is justifiable. After all, he had a similar scenario in mind years before the dispute with Beijing. At Alibaba, he already stepped down as CEO in 2013 and later as chairman of the board in 2019. And back in 2014, he said publicly that he wanted to one day reduce his stake in Ant to no more than 8.8 percent and donate shares to charity. Now the relinquishment of power takes place faster than planned.
Ma’s admission to the authorities is good and bad news for Ant. On the one hand, the transfer of control should finally clear the way for the long-awaited IPO. However, it will still take time. This is because, under Chinese law, an immediate listing after a change of ownership is impossible. In the event of a change of majority ownership, Ant in Shanghai would have to wait at least two years. In Hong Kong, it is only one year. Ant’s original plan was to go public in Shanghai and Hong Kong simultaneously.
It is also already apparent that Ant will only be a shadow of its former self when it goes public. Under pressure from Beijing, the group had to accept numerous new rules over the past two years, which led to a collapse in profits and permanently changed the business model. The ongoing restructuring also includes Ant having to register as a financial holding company, which would make it subject to even stricter regulations and officially no longer a tech company. All of this has hurt the group’s valuation.
According to estimates, the former valuation of $235 billion had already melted down to just $78 billion a year ago. As analysts from Bloomberg have calculated, if the conversion into a financial holding company demanded by Beijing takes place, the value could even slip to just $29 billion in the worst case.
In addition, Beijing’s tech crackdown has permanently shaken investor confidence. Investors have suffered significant losses since the end of 2020. Alibaba shares alone lost more than 70 percent at their peak, so it seems more than doubtful that investors will soon euphorically lunge on Ant shares. Joern Petring/Gregor Koppenburg
China will take part in a military maneuver in Russia. Soldiers from the People’s Liberation Army are sent to Russia for the exercises jointly scheduled with Russia, India, Belarus, Tajikistan, Mongolia, and other countries, the Chinese Defense Ministry announced Wednesday. It stated the participation was not related to the current international and regional situation and was rather part of a bilateral agreement that has been ongoing for years. In July, Moscow announced the so-called Vostok military exercise for late August. Details on the participating states were not available at the time.
The last military maneuver of this kind took place in 2018. Back then, China participated for the first time. “The aim is to deepen practical and friendly cooperation with the armies of participating countries, enhance the level of strategic collaboration among the participating parties, and strengthen the ability to respond to various security threats,” the Defense Ministry statement said.
Meanwhile, Taiwan’s top representative in Berlin, Jhy-Wey Shieh, called for closer military cooperation between his country and Germany and its allies (China.Table reported). Should there be a new maneuver by the German Armed Forces with its Indo-Pacific partners, he would like to see “Taiwan also invited and Taiwan’s role to be better reflected,” Shieh said in an interview with Reuters news agency. “And I believe that will happen.” The point, he said, is for Taiwan to be re-evaluated.
It would be very tragic, if Taiwan fell into China’s hands, even for Europe, Shieh said. “Taiwan is a (…) beacon of freedom.” He added that this also applies to Chinese who are system-critical. Therefore, he said, there must be close cooperation between Europe and the United States and Indo-Pacific partners such as Japan, South Korea, and Australia. ari/rtr
In China’s housing crisis, some cities are resorting to drastic measures. In Shimen, in Hunan province, an official called on state employees to buy new properties. According to a Reuters report, the official said at a property fair, that he hopes “attendees, including government officials, will lead the way in buying another home.” In the city of Sixian, Anhui Province, with a population of 800,000, state officials are expected to sell properties to their friends and family, a report from the municipal government states.
China’s real estate sector is in a severe crisis. Many real estate developers are heavily indebted. Most recently, there was a mortgage strike, with buyers threatening to suspend their payments because the completion of their homes was more and more delayed. Real estate prices have recently declined after years of only rising (China.Table reported). As a result, demand continues to drop and many properties remain unsold. Whether this vicious circle can be stopped with a few purchases by state officials is more than questionable. nib
China’s car market has regained momentum, but German automakers have lost market share. China is once again the “locomotive,” industry expert Ferdinand Dudenhöffer of the Duisburg-based Center Automotive Research (CAR) wrote Wednesday in an analysis quoted by news agency dpa. Although global car sales are expected to decline by 3.2 percent this year, the market in China is expected to grow by five percent, Dudenhöffer estimates.
Sales by German manufacturers in their most important market dropped massively in the first half of the year. The VW Group recorded a 20 percent drop compared to the same period last year. Mercedes and BMW each sold 19 percent less. VW’s market share in China has thus fallen from 18.4 to 14.2 percent. For Mercedes, it fell from 4.4 to 3.4 percent, and for BMW from 4.7 to 3.7 percent, the analysis showed, according to dpa.
“The winners are clearly the Chinese and Tesla,” writes Dudenhöffer. One important reason, he says, is the boom in battery EVs. “German carmakers are still having a hard time in China.” The same applies to software functions in premium vehicles, he adds. Another reason why German carmakers are lagging is their poorer purchasing and production systems, which is also evident in comparison to Toyota.
In an interview with ntv, Dudenhoeffer warns of a possible decoupling of the German economy from China. “For Germany, a China embargo would be the GAU,” says Dudenhoeffer. “In a China conflict, sales markets collapse, possibly the Chinese end their foreign engagements, and technology imports fall by the wayside.” flee
The World Uyghur Congress (WUC) and the Uyghur Human Rights Project (UHRP) are seeking to hold the former party secretary of the Xinjiang region accountable for genocide. On Wednesday, the advocacy coalition filed a lawsuit in an Argentine court against Chen Quanguo and other Chinese Communist Party officials. They include European Union-sanctioned senior party cadres Zhu Hailun, Wang Junzheng, Wang Mingshan, and former Xinjiang police chief Chen Mingguo.
The plaintiffs’ lawyers chose Argentina as the venue for the lawsuit because the South American nation’s constitution allows for international investigations into genocide allegations – but only against natural persons, not governments. Neither the International Criminal Court nor the International Court of Justice had been considered for such a suit because China does not recognize the jurisdiction of either court. grz
“Every 20 years, the tide turns in China.” This is how Christian Soffel observes politics in the People’s Republic. The sinologist identified the last turning point in 2008 when openness to the West peaked. Under Xi Jinping, things are going downhill at the moment, which also applies to European-Chinese relations. More than two years of the pandemic have made the exchange between the two blocs even more difficult. In big politics and exchange between scientists: “I miss the coffee breaks,” says the sinologist, “where the backgrounds are discussed.”
The 55-year-old is a Professor of Sinology at the University of Trier. When he began studying sinology in Munich in the early 1990s, the mood was at an all-time low. After the Tiananmen massacre, hardly anyone in Europe wants anything to do with the People’s Republic. “I remember a language course in my second year of study. There were three of us,” says Soffel.
He initially studies Slavic studies, mathematics, and theoretical physics. Rather by chance he visits a friend in Beijing – and is fascinated. Soffel begins to learn Mandarin and studies in Taiwan for several months. There he encounters the texts of Confucius for the first time. “The profoundly humane values appealed to me,” says Soffel: “Patience, modesty, humanity.”
In Chinese turbo-capitalism, values are changing. In mainland China, Confucianism is developing in a very materialistic direction, says Soffel. That fits well with economic growth in the People’s Republic. “The main argument of the Communist Party is that it has brought a lot of prosperity to the people,” Soffel says. In a materialistic Confucianism that prosperity is an important reason for humane action, he explains. This, in turn, can legitimize the party, he says.
This does not necessarily mean that the everyday life of the Chinese has much to do with basic Confucian values. Nevertheless, Confucianism is now on the rise again, tolerated and promoted by the party. The CP wants to use philosophical ideas for its benefit. “The party invokes traditions and can thus encourage positive energies in the population,” says Soffel.
“In Taiwan, you get a very different picture,” says the sinologist. The Confucian scene on the island is more open and creative. He says: “Morals and ideals like human dignity are more important there.”
Soffel hopes that he will soon be able to discuss such ideas in person with colleagues again. He is Secretary of the European Association for Chinese Philosophy, and next year its members plan to meet for a conference in Italy. The sinologist cannot yet estimate when the next trip to China will be possible. Nevertheless, Soffel is certain: “I will probably see the relationship improve again.” Jana Hemmersmeier
Dominik Fischer is the new Market Manager for China and East Asia at Würth Group. Fischer has held the position since July, having previously spent four years in International Direct Sales, also at Würth.
Dominik Brugger is the new Head of Engineering for China at Rena Technologies in Furtwangen. Brugger was previously a development engineer at Rena.
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Workstation overlooking the Yangtze River: Utility engineers wait for one of the final parts for a power transmission tower on the 800-kilovolt Baihetan-Zhejiang UHV direct line. This week, work on several transmission towers was completed. With a total length of about 2,140 kilometers, the project is an important part of China’s west-east power supply.