China Policy Monitor No. 1603

Related Categories: Cybersecurity and Cyberwarfare; Human Rights and Humanitarian Issues; International Economics and Trade; Science and Technology; China; Germany; Middle East; Saudi Arabia

A NATIONAL INTERNET ID SYSTEM
China's Ministry of Public Security and the Cyberspace Administration will create a single national internet ID system to track users across all online platforms. The national internet ID would reduce "the excessive collection and retention of citizens’ personal information by internet platforms on the grounds of implementing real-name registration," the regulators said. Lao Dongyan of Tsinghua University warned in a post that has since been removed that the protection of personal information is a pretense to regularize social control, and likened the new system to the health code app that tracked people during COVID-19. Shen Kui of Peking University said the system would make people afraid to use the internet, warning that "the potential risks and harms of a unified 'internet ID' and 'internet license' are immense." (New York Times, July 31, 2024)

LOYALTY TRAINING FOR CHINESE PASTORS
To create politically correct and patriotic Christian leaders, the CPC's United Front Work Department held a "deepening Sinicization" training session in Guangzhou, Guandong from July 8 to 12 for the pastors of 100 major churches. "The strict governance of religion should be implemented throughout church governance and pastoral care of believers. Strict governance of religion is an important guarantee for creating a cleaner and upright social image for Christianity," the Protestant Church in China's website lays out. The seminar is part of the "Sinicization" of religion crackdown begun in 2017 to bring the religious practices of Christians and Muslims under party control. Churches have had crosses removed and mosques have lost their minarets, and both have been remodeled to look like Chinese temples and had cameras installed. Last year, Beijing released a list of approved religious leaders. (Radio Free Asia, July 30, 2024)

[EDITOR'S NOTE: China has about 68 million protestants, 23 million of whom worship in state-affiliated churches, and 9 million Catholics, most of whom attend state-sponsored churches. Churches must join the official Three-Self Patriotic Association, which rejects foreign influence and affirms their loyalty to the CPC. Security officials often raid unofficial "house churches," and sometimes target state sanctioned churches as well.]

STATE-OWNED ENTERPRISES INVEST $414BN IN NEW EQUIPMENT
Central enterprises, which refers to 97 of the top state-owned enterprises (SOEs) (e.g., China Railway Group, China Petrochemical and China National Building Material Company), will collectively invest 3 trillion yuan ($414 billion) over the next five years to upgrade their equipment. The SOEs will lead "the new round of technological revolution and industrial change," says Liu Shaowei of the State-owned Assets Supervision and Administration Commission. "They will buy the best level of technology and the most cost-effective equipment." Beijing has also announced 300 billion yuan ($42 billion) in subsidies to upgrade old equipment (e.g., elevators, buses, and farm machinery) and consumer goods (e.g., air conditioners, washing machines and electric cars). The cash will come from 1 trillion yuan in ultralong government bonds issued this year. (NikkeiAsia, July 26, 2024)

GERMANY THE LATEST TO ACCUSE CHINA OF CYBERATTACKS
Germany has accused China of launching a cyberattack on its federal mapping office back in 2021. The country's Interior Ministry said the German intelligence services was able to attribute responsibility for the cyberattack to PRC state actors. The Chinese embassy in Berlin responded by "urging Germany to stop engaging in anti-China political manipulation and public opinion smears under the pretext of cyber security issues." Germany is the latest country to accuse China of cyber-espionage, joining the U.S., Britain, Canada, the Netherlands, Philippines, and New Zealand. (Straits Times, August 1, 2024)

STATE BANKS SIGN $50B IN DEALS WITH SAUDI WEALTH FUND
To encourage two-way capital flows for both debt and equity, Saudi Arabia's Public Investment Fund (PIF) has signed six MoUs worth $50 billion with PRC financial institutions – the Agricultural Bank of China, the Bank of China, the China Construction Bank, the China Export and Credit Insurance Corporation, the Export-Import Bank of China, and the Industrial and Commercial Bank of China. One of the world's largest sovereign wealth funds, the PIF has a sprawling portfolio of investments. Last month, China welcomed Saudi companies, sovereign wealth funds, and oil giant Aramco to "take root" in China and called for more cooperation in infrastructure, energy resources, green development, and the digital economy. (Reuters, August 1, 2024)