China Policy Monitor No. 1568

Related Categories: Cybersecurity and Cyberwarfare; Intelligence and Counterintelligence; Public Diplomacy and Information Operations; Science and Technology; Warfare; SPACE; Border Security; China; Germany; Southeast Asia; United Kingdom ; United States

BERLIN BLOCKS CHINESE FIRM'S TAKEOVER OF STARLINK RIVAL 
The German government has forbidden Shanghai Spacecom Satellite Technology from taking nearly full control over satellite startup KLEO Connect. The country's cabinet affirmed a decision by the German economy ministry not to let the Chinese firm, which already owns 53% of the company, acquire another 45% stake. KLEO Connect is building a global communications services network to rival SpaceX's Starlink constellation, including more than 300 small, low earth orbit satellites that will be fully operational by 2028. (Reuters, September 13, 2023) 

CHINA INSTALLS "FLOATING BARRIER" TO SCARBOROUGH SHOAL 
China has installed a 300m (1000ft) "floating barrier" to stop Filipino boats fishing in the Scarborough Shoal. A Philippine coast guard patrol discovered the barrier, which was installed by three Chinese coast guard boats and a maritime militia boat. The Chinese boats issued 15 radio challenges and accused the Philippine ships of violating international law. They stopped after realizing there were members of the media on board the Filipino vessel. (BBC, September 25, 2023) 

[EDITOR'S NOTE: China, which claims more than 90% of the South China Sea, seized the Scarborough Shoal in 2012. Although Beijing allowed vessels to fish there when relations were better under former Philippine President Rodrigo Duterte, China has cracked down since Ferdinand Marcos Jr. became president last year and restored security ties with the U.S.] 

CHINA SPY AGENCIES HEADHUNTING WELL-PLACED BRITISH NATIONALS 
China's spies are targeting British officials in politics, defense, and business as part of an increasingly sophisticated operation, the British government said. "Chinese recruitment schemes have tried to headhunt British and allied nationals in key positions and with sensitive knowledge and experience," London said, highlighting the scale of PRC espionage as "prolific." After a four-year inquiry, the government concluded that China is involved in a "whole state" assault on Britain. MI5 is now running seven times as many investigations into Chinese espionage as it did in 2018. More than 25,000 people used the government's "Think Before You Link" app, launched last year, to report approaches from people suspected of using fake profiles, including PRC spies. (Reuters, September 14, 2023) 

RETIRED BRITISH PILOTS FACE PROSECUTION FOR TRAINING CHINESE PILOTS 
Royal Air Force (RAF) veterans who train Chinese pilots will be "pursued and brought to justice" under the new National Security Act for sharing tactics with a foreign power, British Defense Secretary Grant Shapps has said. Last October, the British Ministry of Defense issued a security alert after it emerged that about thirty former Royal Air Force, Navy and Army pilots had been training PLA Air Force pilots. They were contracted through a South African firm and paid around £250,000 each to move to China for the training. The Act criminalizes "obtaining or disclosing protected information" including tactics, techniques and procedures. "Anyone found to be acting against the UK's interests by training our competitors' militaries can now expect to be pursued and brought to justice. The Government has acted decisively following the identification of this threat, and has made rapid changes to legislation to help shut it down," Shapps said. (The Telegraph, September 17, 2023) 

U.S. ACCUSES CHINA OF GLOBAL MEDIA MANIPULATION 
China is manipulating global media through censorship, data harvesting and covert purchases of foreign news outlets, according to a new U.S. State Department report. Each year, Beijing spends billions on information manipulation efforts, including acquiring stakes in foreign media through "public and non-public means," sponsoring online influencers, and securing distribution agreements that promote unlabeled official content. Citing "newly acquired government information," the new report says China has co-opted foreign political elites and journalists into its own information ecosystem. China's data harvesting overseas "has enabled Beijing to fine-tune global censorship by targeting specific individuals and organizations. Unchecked, Beijing's efforts could result in a sharp contraction of global freedom of expression," the report said. (CNN, September 28, 2023)