China
Mao’s ‘people’s war’ revisited : China’s military cyber power and ‘cyber militias’
Mao’s ‘people’s war’ doctrine stressed that China’s military advantage lay in mobilising the vast Chinese population
China’s military cyber power capabilities are increasingly being augmented by a civilian dimension to increase their potency.
However, in this relatively new domain for civil–military integration, the Chinese Communist Party (CCP) is taking action to consolidate state control over China’s cyber power projection.
Just before the 19th CCP Congress in 2018, the Cyberspace Administration of China released one of the most authoritative policy documents to date outlining Chinese thinking on cyberspace.
The document outlines the need to ‘promote the deepened development of military–civilian integration for cybersecurity and informatisation’. It also features instructions to implement civil–military integration systems, cybersecurity projects and innovation policies.
This policy document followed the creation in January 2017 of the Central Commission for Integrated Military and Civilian Development.
Under the instructions of the Commission, China’s first ‘cybersecurity innovation centre’ was established in December 2017. Operated by 360 Enterprise Security Group (one of China’s primary cybersecurity companies), the centre’s remit is to foster private sector cooperation to ‘help [the military] win future cyber wars’.
The strong civil–military dimension of Chinese military power has existed since the formation of the People’s Republic of China. Mao’s ‘people’s war’ doctrine stressed that China’s military advantage lay in mobilising the vast Chinese population.
The push to leverage the civilian sector for the development of China’s military cyber capabilities is gaining steam outside of military circles as well.
The National Outline for Medium and Long Term Science and Technology Development Planning (2006–20) emphasises the importance of integrating civilian and military scientific and technical efforts.
The PLA has heeded such calls, deepening its partnerships with the civilian telecommunications sector — especially ZTE and Huawei — and developing further links with universities.
China’s ‘cyber militias’ are one of the clearest products of this shift
These groups have grown to feature a collective membership of more than 10 million people since the turn of the millennium, and are often based in universities and civilian corporations. While the PLA endorsed cyber militias as a concept in 2006, these groups will likely be restrained to cyber espionage as opposed to offensive cyber operations, given the risk of potentially undermining the work of regular PLA cyber units.
Of the cyber militias, China’s infamous ‘patriotic hackers’ are perhaps the most well known. While these hackers can be a useful tool in hampering state adversaries, they can also often be unruly, erratic and heavy-handed.
These hackers are typically driven by popular nationalism, as demonstrated by instances like the cyber stoushes between US and Chinese hackers that followed the US EP-3 incident in 2001.
The Strategic Support Force (SSF) has been the PLA’s answer to mitigating the risk of erratic cyber militias while still harnessing their capabilities. Established in December 2015 to merge and centralise all of the PLA’s space, cyber and ISR (intelligence, surveillance and reconnaissance) capabilities in one body, the SSF has also assumed control over a number of PLA research institutes.
The integration of these civilian entities into formalised state structures like the SSF represents a desire by China to mitigate the volatility of these hackers.
But this integration means the PLA and the Chinese state will have to forego plausible deniability when their hackers’ operations are uncovered by other states. The improved US ability to attribute cyber operations to Chinese actors, combined with Washington’s budding approach of sanctioning major Chinese state-owned enterprises in retaliation, has made Beijing realise it needs to run a tighter ship.
The centralisation that Beijing is pursuing is a manifestation of the so-called ‘corporate state’ that increasingly defines the Chinese political system. Here, the CCP acknowledges the presence of societal interest groups as an inevitable result of a pluralising society. At the same time, the CCP seeks to co-opt or direct the behaviour of these entities to serve its ends and maintain stability.
The civil–military dimension of China’s cyber power projection has been sporadically apparent since the early 2000s. But it is only recently that we are seeing concerted efforts to leverage the civilian sphere and, more importantly, to centralise and organise it so that it can consistently serve China’s defence and military aims.
Author: Nicholas Lyall, ANU
China
New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
The sixth revision of China’s Company Law is the most extensive amendment in history, impacting foreign invested enterprises with stricter rules on capital injection and corporate governance. Most FIEs must align with the New Company Law by July 1, 2024, with a deadline of December 31, 2024 for adjustments. Contact Dezan Shira & Associates for assistance.
The sixth revision of China’s Company Law represents the most extensive amendment in its history. From stricter capital injection rules to enhanced corporate governance, the changes introduced in the New Company Law have far-reaching implications for businesses, including foreign invested enterprises (FIEs) operating in or entering the China market.
Since January 1, 2020, the Company Law has governed both wholly foreign-owned enterprises (WFOEs) and joint ventures (JVs), following the enactment of the Foreign Investment Law (FIL). Most FIEs must align with the provisions of the New Company Law from July 1, 2024, while those established before January 1, 2020 have bit more time for adjustments due to the five-year grace period provided by the FIL. The final deadline for their alignment is December 31, 2024.
In this publication, we guide foreign investors through the implications of the New Company Law for existing and new FIEs and relevant stakeholders. We begin with an overview of the revision’s background and objectives, followed by a summary of key changes. Our in-depth analysis, from a foreign stakeholder perspective, illuminates the practical implications. Lastly, we explore tax impacts alongside the revisions, demonstrating how the New Company Law may shape future business transactions and arrangements.
If you or your company require assistance with Company Law adjustments in China, please do not hesitate to contact Dezan Shira & Associates. For more information, feel free to reach us via email at china@dezshira.com.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
The Lingang New Area in Shanghai has launched China’s first Cross-Border Data Service Center to facilitate data export for companies in Shanghai. The center will help with applications, data catalogs, and management, aiming to provide legal and safe cross-border data transfer mechanisms.
The Lingang New Area in Shanghai’s Pilot Free Trade Zone has launched a new cross-border data service center to provide administrative and consulting services to companies in Shanghai that need to export data out of China. The service center will help facilitate data export by accepting applications from companies for data export projects and is tasked with formulating and implementing data catalogs to facilitate data export in the area. The Shanghai cross-border data service center will provide services to companies across the whole city.
The Lingang New Area in the Shanghai Pilot Free Trade Zone has launched China’s first Cross-Border Data Service Center (the “service center”). The service center, which is jointly operated by the Cybersecurity Administration of China (CAC) and the local government, aims to further facilitate legal, safe, and convenient cross-border data transfer (CBDT) mechanisms for companies.
The service center will not only serve companies in the Lingang New Area but is also open to companies across Shanghai, and will act as an administrative service center specializing in CBDT.
In January 2024, the local government showcased a set of trial measures for the “classified and hierarchical” management of CBDT in the Lingang New Area. The measures, which have not yet been released to the public, seek to facilitate CBDT from the area by dividing data for cross-border transfer into three different risk categories: core, important, and general data.
The local government also pledged to release two data catalogs: a “general data” catalog, which will include types of data that can be transferred freely out of the Lingang New Area, and an “important data” catalog, which will be subject to restrictions. According to Zong Liang, an evaluation expert at the service center, the first draft of the general data catalog has been completed and is being submitted to the relevant superior departments for review.
In March 2024, the CAC released the final version of a set of regulations significantly facilitating CBDT for companies in the country. The new regulations increase the limits on the volume of PI that a company can handle before it is required to undergo additional compliance procedures, provide exemptions from the compliance procedures, and clarify the handling of important data.
Also in March, China released a new set of technical standards stipulating the rules for classifying three different types of data – core, important, and general data. Importantly, the standards provide guidelines for regulators and companies to identify what is considered “important” data. This means they will act as a reference for companies and regulators when assessing the types of data that can be exported, including FTZs such as the Lingang New Area.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
The application procedures for business visas to China have been simplified, with most foreigners now able to apply for an M/F visa using only an invitation letter from a Chinese company. Some countries are eligible for visa-free entry. However, a Verification Letter of Invitation may still be needed in certain cases. Consult the local Chinese embassy for confirmation.
In light of recent developments, the application procedures for business visas to China have undergone substantial simplification. Most foreigners can now apply for an M/F visa using only the invitation letter issued by a Chinese company. Additionally, citizens of certain countries are eligible to enter China without a visa and stay for up to 144 hours or even 15 days.
However, it’s important to note that some applicants may still need to apply for a “Verification Letter of Invitation (邀请核实单)” when applying for an M/F visa to China. In this article, we will introduce what a Verification Letter of Invitation is, who needs to apply for it, and the potential risks.
It’s important to note that in most cases, the invitation letter provided by the inviting unit (whether a public entity or a company) is sufficient for M/F visa applications. The Verification Letter for Invitation is only required when the Chinese embassies or consulates in certain countries specifically ask for the document.
Meanwhile, it is also essential to note that obtaining a Verification Letter for Invitation does not guarantee visa approval. The final decision on granting a visa rests with the Chinese embassy abroad, based on the specific circumstances of the applicant.
Based on current information, foreign applicants in Sri Lanka and most Middle East countries – such as Turkey, Iran, Afghanistan, Syria, Pakistan, and so on – need to submit a Verification Letter for Invitation when they apply for a visa to China.
That said, a Verification Letter for Invitation might not be required in a few Middle East countries, such as Saudi Arabia. Therefore, we suggest that foreign applicants consult with their the local Chinese embassy or consulate to confirm in advance.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
- New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
- Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
- A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
- Uyghurs remember 1990 Baren Uprising over China’s forced abortions
- New Capital Investment Entrant Scheme Launched in Hong Kong
- A Timeline of US-China Relations during the Biden Administration
