China Reform Monitor No. 1490

Related Categories: Cybersecurity and Cyberwarfare; Military Innovation

POLICE JAIL DOZENS FOR COMPLAINING ABOUT XI'AN LOCKDOWN ONLINE
Police in Xi'an have arrested dozens of people for spreading "rumors" after authorities banned the city's 13 million residents from posting negative reports online from coronavirus lockdown. On January 4, Xi'an residents received a text message announcing a ban on any "negative news" and warning that the authorities are carrying out "background surveillance" on all WeChat groups. "Cyberspace and public security departments will strictly and promptly deal with online rumors, malicious attacks, and related hype about the pandemic," the Cyberspace Administration warned. Xi'an residents have been venting on social media about sufficient food and necessities during the lockdown. (Radio Free Asia, January 7, 2022)

CANADA'S SPY AGENCY WARNS: BEWARE CHINA'S INFLUENCE OPS
The Canadian Security Intelligence Service (CSIS) has warned members of the country's Parliament to watch out for China's influence operations and report any suspicious activity. Canada's spy agency is concerned about PRC agents cultivating relations with elected officials to gain sway over parliamentary debates and government decisionmaking. "CSIS delivers these briefings in order to promote awareness of foreign interference and the actions of other hostile actors," said CSIS spokesperson John Townsend. Last summer, CSIS released a primer on foreign interference that identified methods, including exploitative relationships, gifts, free travel, blackmail, bribes, disinformation, cyber-attacks, and espionage. (Globe and Mail, January 11, 2022)

BRITAIN'S SPY SERVICE PUTS PARLIAMENT ON ALERT ABOUT PRC AGENT
Britain's domestic spy service, MI5, has warned lawmakers about Christine Lee, who they accuse of "involvement in political interference activities" on behalf of the Communist Party of China. The House of Commons circulated the alert, which found that Lee "facilitated financial donations to serving and aspiring parliamentarians on behalf of foreign nationals based in Hong Kong and China." Home Secretary Priti Patel said Lee's behavior was "deeply concerning," but below the threshold to prosecute her. Labour Party lawmaker Barry Gardiner, for instance, has admitted receiving hundreds of thousands of pounds from Lee and until this week employed her son as a secretary. "This is the sort of grey-zone interference we now anticipate and expect from China," said former defense minister Tobias Ellwood. (Reuters, January 14, 2022)

CHINA BEGINS NATIONWIDE DIGITAL CURRENCY ROLLOUT
China has started to roll out the digital yuan (a.k.a., the e-CNY and digital RMB) nationwide with an eye toward eventually replacing cash. Unlike Bitcoin, which is a decentralized digital currency without a single administrator, the digital yuan is controlled and issued by China's central bank. Tens of millions of digital yuan have been handed out to residents in cities across China, and this week e-commerce giant JD.com said it will allow merchants on its platform to start accepting e-CNY. Despite Beijing's efforts, however, for the foreseeable future digital RMB usage is likely to remain minimal compared to popular payment platforms like WeChat Pay and Alipay. (CNBC, January 10, 2022)

XINJIANG COMMANDER TO LEAD PLA IN HONG KONG
China has selected Major General Peng Jingtang, the deputy chief of staff of China's People's Armed Police (PAP), as the new chief of the People's Liberation Army garrison in Hong Kong. Peng was previously PAP chief of staff in Xinjiang, tasked with suppressing Uighurs Muslims and other minorities. In Xinjiang, Peng trained an elite squad known as the Mountain Eagles, which, he bragged in 2019, had fired as many rounds of ammunition as all other Xinjiang security forces combined. The PAP is a paramilitary police force charged with containing domestic disturbances such as riots. (Wall Street Journal, January 10, 2022)