Group reports-critique, grades, Week 4
China Adopts Cyber Security Law, to Dismay of Foreign Business
Shanghai, Nov. 13--China adopted its first cyber security law on Monday to counter what Beijing said are growing threats such as hacking and terrorism, which triggered concerns among foreign business and rights groups.
The law requires internet operators to cooperate with investigations involving crime and national security, and imposes mandatory testing and certification of computer equipment. Companies must also give government investigators full access to their data if wrong-doing is suspected.
More than 40 global business groups petitioned Chinese Premier Li Keqiang in August, urging Beijing to amend what they said were controversial sections of the law. Chinese officials claimed that the adopted rules, without interfering with foreign business interests, would help stop cyber attacks and prevent acts of terrorism, while critics said they would further erode internet freedom.
The law could freeze multinational banks and companies out of key economic sectors. Those sectors deemed subject to review are: communication infrastructure, energy, transport, water supply, finance, public utilities and e-government services, while the law’s ambiguity also leaves the door open for inspections of areas that might affect “national security”, the “citizens’ well-being” or “public interest”. Some experts warn that tech companies might be forced to reveal their source code to the Chinese government.
Companies could be forced to evaluate whether the benefit of selling tech products to Chinese SOEs and banks outweighs the potential cost of sharing their intellectual property with the Chinese government.
Given that the critical sectors include transport and finance, companies involved in China’s domestic Belt and Road plans could be affected, as could banks working in the transactional stage.
Restrictions on the flow of data across borders “provide no security benefits but will create barriers to Chinese as well as foreign companies operating in industries where data needs to be shared internationally,” James Zimmerman, chairman of the American Chamber of Commerce in China, wrote in an emailed statement.
Meanwhile, Zhao Zeliang, director of the Cyberspace Administration of China's cyber security coordination bureau, said that every article in the law accorded with rules of international trade, and China would not close the door on foreign companies. The law is to make a “secure and reliable” environment to ensure “trade protectionism”.
The law's adoption comes amid a broad supervision by President Xi Jinping on civil society, including rights of lawyers and the media.
The Standing Committee of China’s legislature and the National People’s Congress (NPC) passed the Cyber Security Law of 2016 after two drafts in July 2015 and June 2016. The law will be effective on June 1, 2017.
Rotating Editor：Ma Yufei（Phoebe）
Jim Wolf - Sun, 13 Nov 2016, 3:08 PM
Is the wind of change in Taiwan-USA relations after Trumb`s victory in USA presidential elections will be exist?
TAIPEI, Taiwan -
Taiwan was no different from the rest of the world Wednesday. When Donald Trump steamed toward victory in the United States presidential election in Taiwan time, reactions ranged from shock to disbelief to dismay.
President Tsai Ing-wen congratulated US president-elect Donald Trump on his victory and reaffirmed the Taiwan-US relationship, saying the two nations will continue to build a strong relationship based on common values. Tsai sent her congratulations to Trump and his running mate, Indiana Governor Mike Pence.
United States-Taiwan relations will continue to thrive whether the U.S. has a Republican or Democrat president, the de facto U.S. ambassador to Taiwan said Wednesday in Taipei before the election was called. While many are concerned that the election result will pose challenges to U.S.-Taiwan relations, some analysts are less concerned.
On U.S. arms sales to Taiwan, Trump is likely to continue to allow them in line with the Taiwan Relations Act, enacted by the U.S. 1979, The Congress has substantive relations after braking diplomatic ties between Washinghton and Taipei. Then established them with Beijing, said Yen Chen-shen, a research fellow at the Institute of International Relations at National Chengchi University. However, Taiwan may suffer economically as the U.S. Congress is now all the more unlikely to pass the Trans-Pacific Partnership trade deal, which Taiwan had hoped to benefit from. Trump has come out against it. Taiwanese businesspeople may also suffer because Trump has floated the idea of imposing double-digit tariffs on goods from such countries as China and Mexico where they have operations, Yen said.
“The US is the most important democracy in the world as well as Taiwan’s most solid partner. We are looking forward to working with Trump’s administration in deepening the US-Taiwan relationship and turning a key foundation for maintaining peace and stability in the Asia-Pacific region,” Tsai said in a statement issued by the Presidential Office.
Relations between Taiwan and the U.S. can be approached from different dimensions: politics and diplomacy, defense, and trade. On the diplomatic front, there seems to be a feeling that Trump will be tough on China, and therefore he might automatically favor Taiwan.
In the military field, early comments in Taiwan, after the election result expressed optimism that Trump would be more likely to sell weapons to Taiwan, though there was no direct evidence in statements by the president-elect. The drive to sell arms might also be motivated by the new administration’s wish to ramp up exports and let partners of the U.S. pay more for their defense.
Jim Wolf - Sun, 13 Nov 2016, 4:48 PM
Trump’s Victory Fuels Concern over Sino-US economic relations
Uncertainty has been aroused about the future of China-US economic and trade relations, after Donald Trump’s victory as US president-elect, who said that “China is cheating the United States out of millions of jobs and will be forced to behave” during his campaign.
On his campaign trial, Trump given his 45% tariff-on-China speech, said that China is "killing us" on trade policy. If implemented, his ideas could lead to "devastating" results, from global trade wars to higher costs of living, and "spell the end of globalization," according to Darrell West, a vice-president at the Brookings Institution.
"If there are disruptions in trade, it would impact the willingness and likelihood of US brands and retailers to take an active part on Tmall.” said Gil Luria, an analyst at Wedbush Securities Inc. Alibaba, one of Chinese top e-commerce operator, could suffer the biggest threat, for its significant part of business tied to trade with the US if Trump's policies implemented.
The US Treasury Department also has repeatedly said that China is not manipulating its currency since last year. The threat to impose tariffs of up to 45 percent on goods from China would be "unrealistic," said Tu Xinquan, director of the China Institute for WTO studies
The Trans-Pacific Partnership(TPP), an ambitious trade deal involving a dozen Pacific Rim countries, would represent "the death blow" for American manufacturing, according to Trump. The first pledge in his seven-point plan to rebuild the American economy is to withdraw from that deal.
“Bilateral trade had brought benefits to the two peoples and increased employment in the United States."Stated Chinese Foreign Ministry spokesperson Lu Kang on a routine press briefing on Nov,9th, who mentioned that trade volume had surged from over 2 billion U.S. dollars in the 1970s to more than 500 billion U.S. dollars last year. “China became the largest trading partner of the United States in 2015”, added Lu.
"If his goal is to bring jobs back to the US, his first and foremost job is not to be tough on others, but to improve the US economy and industries first," said Xu Gao, chief economist at China Everbright Securities Co."Trump's win might help ease pressure on the yuan exchange rate and capital outflows.
Rotating Editor: Wang Qi (Mira)
Jim Wolf - Sun, 13 Nov 2016, 5:12 PM
South China Sea Group
India, Japan stand in line on South China Sea
Indian Prime Minister Narendra Modi met his counterpart Shinzo Abe in Japan on Nov.11. Despite China had warned other countries against any dalliance over South China Sea, India and Japan issued a joint statement between the two heads of state referring to the case of the South China Sea arbitration in the meeting.
"Regarding the South China Sea, the two Prime Ministers stressed the importance of resolving the disputes by peaceful means, in accordance with universally recognized principles of international law including the UNCLOS," said the joint statement. They stressed the significance of United Nations Convention on the Law of the Sea (UNCLOS) in resolving South China Sea disputes.
Before Modi's visit to Japan, Japanese Foreign Ministry spokesman said that Tokyo has been encouraging the India to voice in the South China Sea issue. Modi in Japan will sign a landmark nuclear energy pact and strengthen ties with Japan as China's regional influence is increasing and Donald Trump's election has increased the uncertainty of the future of Asia’s political situation. India hopes to obtain nuclear and military technology from Japan, and at the same time use Japan's capital to construct the high-speed rail, Japan is hoping to pull India into the containment of China's plan.
Last month, India has suggested that Singapore should mention the results of the South China Sea arbitration, and refute the claims of the historical rights of China in the South China Sea，but this proposal was finally rejected by Prime Minister Lee Hsien Loong. He suggested that Singapore is not the claimant country of the South China Sea, and Singapore did not want to take sides on the “controversial” South China Sea issue.
Different from Singapore, Japan has a different response. Japanese officials have recently told the India Times that Japan has encouraged India to voice over the disputed South China Sea issue. And in the East China Sea, Japan is increasingly warning of China's strong power. The two countries’ joint statement will certainly lead to more hostile reaction from China.
In response to the questions about Modi's visit to Japan, China’s Foreign Ministry spokesman Lu Kang said, "we would like to see the normal development of bilateral relations between the neighboring countries, of course, we also hope that in the process of the development of bilateral relations they should in respect of other countries especially the legitimate concerns of the countries in the region in order to keep the stabilization of the region".
Rotating Editor: Tian Tian
Jim Wolf - Sun, 13 Nov 2016, 5:25 PM