“Beijing wants to prevent sensitive data from going abroad
with stricter rules on information transfer. This affects researchers, entrepreneurs
and journalists.
The uncertainty among analysts in China can be felt. The
only thing that seems clear so far is that Beijing is closing more and more
data sources to other countries. One of them says he would also like to know
where all this is leading to. And he cannot say which areas the Chinese
measures against the flow of information affect. Signs of lockdown extend to
the information realm.
A few days ago, the Chinese leadership tightened a security
law that extends the criminal offense of espionage to the disclosure of all
documents, data, materials and objects that affect national security. It does
not define what falls under national security. This could potentially affect
any disclosure of information.
US Ambassador to Beijing Nicholas Burns said on Tuesday the
legislation could "endanger" academics, professors and journalists
and make everyday activities and due diligence also required of international
companies illegal. "When you combine that with some of the punitive
measures that the Beijing government has recently taken against American
companies, we are very concerned about that," Burns said.
Xi wants to 'build a protective wall around the nation'
The Chinese leadership has been strengthening its defenses
against foreign influences for some time. Dependencies are reduced,
vulnerability avoided in all areas. Beijing sees itself surrounded economically
and militarily by America and its partners. As early as 2020, head of state and
party leader Xi Jinping stated in a Politburo meeting that "we will build
a protective wall around the nation". To this end, Beijing has enacted a
series of new security laws. Increasingly, this also applies to information
areas.
It goes against research: As of April, China restricted
access to the CNKI, the largest research database to date, for foreigners. The
scientific publications or statistical yearbooks offered there can hardly be
viewed from abroad. The provider of the Chinese database justified the step
with new "measures for cross-border data transfer".
It hits companies: The important Shanghai financial and
economic database Wind, which claims to have data on millions of companies,
employees and legal cases, has recently stopped offering to extend its
subscriptions from abroad, reports the “Wall Street Journal”. Wind justified
this by having to comply with "regulations".
Exit bans for foreigners too
It goes against journalists: The editor Dong Yuyu, who
worked for the big party newspaper "Guangming Daily", was arrested on
charges of espionage. Dong had regular meetings with foreign diplomats,
journalists and researchers. Chinese political scientists, who occasionally
shared their analyzes with the foreign press in the past, are now turning their
backs. If their phone numbers and email addresses aren't already deactivated
recently.
It hits consultants and auditors: In the past few weeks, the
Chinese offices of the American auditing firms Bain and Mintz have been
searched, and Mintz's Chinese employees arrested.
The "Financial
Times" quotes those involved as saying that American sanctions against
China have increased the need for reliable testing of supply chains. In
addition to the semiconductor sector, this affects, for example, the inspection
of textile suppliers so that, as required by law in the USA, no materials made
by forced labor in the Uyghur province of Xinjiang reach the USA.
And finally it affects people with knowledge: The new
anti-espionage law enables the authorities to impose exit bans on people who
are considered a risk to “national security”. In fact, that was there before.
Most recently, the longtime China office manager of the Japanese pharmaceutical
company Astellas was arrested on espionage charges shortly before he wanted to
return home. The pharmaceutical industry has very sensitive data.
Beijing is sending conflicting signals
China's relations with the United States are on a rampant
decline, and relations with Japan are also steadily deteriorating. The power
struggle is now also reflected in the information measures that have so far been
used primarily against American and Japanese institutions. Europeans seem less
affected so far.
“After the new security law, I see more among European
companies in China no concerns,” says Jörg Wuttke, President of the European
Chamber of Commerce in Beijing.
In the company headquarters, however, there are
"irritations," says Wuttke. “The wording of the new law is so vague
that it is unclear what that means for foreigners in detail. This vague
language bothers me the most.”Beijing sends conflicting signals."
Since taking office in 2012, Xi has emphasized national
security and the concentration and preservation of the Communist Party. This
contrasts with the current pervasive message that China is reopening to foreign
investment and travel after the end of draconian Covid measures. According to
the state news agency Xinhua, only last week the Politburo called for greater
efforts to bring foreign investment into the country. Xi chaired the Politburo
meeting.
"On the one hand, China is taking action against American
consulting firms and stopping the disclosure of information," says Wuttke.
"On the other hand, there is an absolute charm offensive here - especially
towards the Europeans, but the provinces are fighting for any investment, so
money from America and Japan is also welcome." For Wuttke, this shows once
again "what kind of silo system China is in: Here is the economy and there
is security. Often the right hand does not know what the left hand is doing.”
The American ambassador in Beijing complained similarly.
"We've seen a decoupling of our societies over the past three years,"
said Nicholas Burns. "That is not healthy. It's not wise.” America is
“ready to talk,” Burns said, but hopes “that China will meet us halfway.” So
far, Beijing has not shown any signs of this. Distrust dominates.”
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