The 23-year-old, who declined to be identified for fear of backlash from recruitment agents, signed a two-year contract with a Malaysian cleaning company but has not started work. He said he, like others there, had borrowed 300,000 Nepali rupees (US$2,300) to pay an agent for the job. He was promisedContinue Reading
Chinese national security authorities have accused a local consulting firm of allowing overseas clients to access perceived as sensitive information from government and state-owned-enterprise employees.
The Suzhou office of the Shanghai-based Capvision Partners was raided by national security officers in a recent operation, according to China Central Television (CCTV) and Chinese state broadcaster Jiangsu Television.
Capvision was set up in 2008 by ex-Bain consultants and Morgan Stanley bankers, according to news reports. It offers consulting services to more than 2,000 clients with headquarters in Shanghai and New York, according to the firm’s website.
In one case, a senior analyst surnamed Han, who worked for a large SOE, was jailed for six years because he allegedly sold 5,000 confidential documents to an overseas client via Capvision.
CICC Capital, a unit of Chinese investment bank CICC, has stopped using Capvision’s services in the wake of the crackdown, Reuters reported on Wednesday, citing three unnamed sources.
The move against Capvision follows a recent probe into US consultancy Bain & Company’s office in China and the March detention of Chinese staff at US firm Mintz Group.
Western investors often hire industry experts or consultants to help analyze businesses in which they are considering to invest. Such due diligence often provides extra information for potential investors to make more accurate growth, returns and risk forecasts.
In China, however, the consulting sector is still relatively new and insufficiently regulated. With the Capvision clampdown, it appears Beijing now wants consulting firms to serve more as gatekeepers for monitoring rather than informing their clients and experts, and to help prevent the leakage of perceived as sensitive SOE and government information.
The Capvision case was announced after the National People’s Congress standing committee on April 26 passed an amendment bill to strengthen China’s counterespionage law, which now covers the theft of not only “state secrets and intelligence,” but also “other documents, data, materials and items related to national security and interests.”
The definition of offenders will be expanded from people who “join or accept tasks from” an espionage organization to those who “take refuge in” such an organization. The amended law, which gives Chinese authorities more powers to forcibly search belongings or request data of individuals suspected of spying, will take effect on July 1.
“In recent years, some Western countries have become increasingly rampant in stealing intelligence and information activities in key areas such as our country’s military industry, economy and finance,” CCTV news anchor Hou Feng said in a report.
“Many overseas institutions with complex backgrounds have hidden their identities and used domestic consulting companies to steal state secrets and intelligence in key sensitive industries in an attempt to bypass our laws and regulations,” state media reporter Hou said.
“Some domestic consulting firms have weak awareness of national security, and try to make money by frequently walking on the edge of the law,” the journalist added.
Capvision has more than 1,000 clients and 300,000 experts and generates 80% of its revenue by connecting them over the phone, according to a national security agent quoted in reports.
These experts come from different sectors including national defense, military, finance, technology, energy, pharmaceutical and health. The experts are reportedly required to sign disclaimers to confirm that they will accept all legal responsibility for providing information requested by clients.
Han, the SOE employee who was convicted for stealing state secrets, said in the CCTV report that he had initially refused to tell a client about a product’s cost, margin and profit but then he was offered double their initially agreed fees to disclose the figures.
Han says he had told Capvision that he would only talk to local clients but then he discovered that 60% of inquiries he handled were from overseas clients. He says he later downloaded and sold 5,000 documents, including what the report said were three pieces of state secrets, 13 intelligence documents and 18 commercially confidential documents.
A man surnamed Lei, who worked for a Chinese military industry firm, said in the CCTV report that in July 2020 he did not receive any warning from Capvision when he was asked by a client in 2015 about the fleet size of a Chinese warplane. He says he then disclosed a large amount of sensitive information to the client.
The CCTV report says Capvision received a total of US$70 million from more than 100 overseas firms between 2017 and 2020. The television network says China’s national security department has recently started looking into some other cases.
On May 10, the Beijing Business Today published an article titled “Capvision blocked its own listing plan.”
Xu Rujie, founder of Capvision, directly owns a 28.65% stake in the company. It said before setting up the firm in 2008, Xu had managerial positions at China Resources (Holdings), Siemens (China) and General Motors (China) Investment Co Ltd.
The Beijing Business Today report said Capvision had failed to go public in the A-share market in 2020 and Hong Kong market in 2021 and 2022, and would probably be unable to push forward an initial public offering in the short term due to the ongoing investigation.
According to its listing prospectus, Capvision received 597 million yuan ($86 million) from its clients and paid Chinese experts a total of 195 million yuan during the first nine months of 2021. On average, an expert receives a fee of 1,456 yuan per hour.
Liu Shengyu, a partner of Gaohe Investment Management, says the investigation of Capvision has raised alarms across the entire consulting sector.
However, Eric Zheng, president of the American Chamber of Commerce, said on May 9 that many foreign companies are worried by the tightening rules in the consulting sector as many of them need to hire due diligence firms to obtain data to do business in China.
Zheng said the Chinese authorities should more clearly delineate the areas in which companies can or cannot conduct such due diligence.
Jorge Toledo Albinana, the European Union’s ambassador to China, said the latest news on crackdowns on consultancies is not good news” for those who expected the Chinese economy to further open up after the government ended its “zero Covid” approach last December.
The investigation of Capvision is consistent with Chinese laws that aim to promote sound and well-regulated growth of the consulting sector and safeguard national security and development interests, Wang Wenbin, a spokesperson of the Chinese foreign ministry, said on May 9.
Read: US envoy worries about China anti-spy law overreach
Follow Jeff Pao on Twitter at @jeffpao3
WASHINGTON: China is facing a growing backlash from the United States and other Western governments over its controversial efforts to pressure dissidents and their advocates abroad, but Beijing has appeared undeterred. Authorities in the US, Canada, Britain and elsewhere recently have taken a hard line, including with expulsions, indictments, arrestsContinue Reading
Academics and human rights defenders have expressed mixed responses to calls to scrap compulsory military service, which is gaining national attention in the lead-up to the May 14 polls.
The Move Forward Party and the Pheu Thai Party have pledged to end it in favour of voluntary enlistment if they take office as part of the next government.
They suggested the Defence Ministry lower the number of young men they need under the system. Thai men aged 21 can be drafted into military service for up to two years.
People have started to have negative thoughts towards military conscription amid reports of violence in military camps, poor food quality, and improper use of their labour, they say.
Panitan: Training officers is pricey
Panitan Wattanayagorn, an independent academic and security expert, told the Bangkok Post the army has conducted a study on the voluntary military system which has been put in place in some areas.
However, the cost of training one soldier under this system is pricier than the conscription model, Mr Panitan said.
Conscription also has advantages as those conscripted can be trained and learn self-discipline and serve the country.
For these reasons, the army has not considered entirely changing from conscription to a voluntary system, while some volunteers’ qualifications may not even meet criteria, he said.
“Actually, we should make use of both systems. Remote areas which are home to many elderly or vulnerable groups and with fewer people interested in the army may be suitable for conscription.
“Apart from that, the younger generation are not interested in joining the military unless they can earn a high salary and have proper welfare,” Mr Panitan said.
Future changes may take the form of a hybrid system, which may help draw attention from people in the city as they apply to experience work in a military hospital or military enterprise, as well as the prospect of promotion as part of a military career.
Regarding proposals to downsize the military, the former lecturer from Chulalongkorn University’s political sciences faculty said this took place under the Chuan Leekpai government in the 1990s as he ordered a cap on the armed forces at 80,000 and that the number of generals be limited to 1,000 in the wake of the economic recession at that time. The order was later cancelled by former prime minister Chavalit Yongchaiyudh, he said.
Asked about hazing and abuse of conscripts, and violence in military camps, he suggested the army hire outsource companies with security clearance to perform domestic services for officers instead of conscripts.
The army may consider hiring housekeepers for military residences to prevent conscripts being pressed into service, he said. In addition, the army should tighten discipline to prevent violence in camps, which can affect the army’s reputation, he said.
Wanwichit: Challenges ahead
Wanwichit Boonprong, a political scientist at Rangsit University, said the army should prepare itself for challenges ahead.
The army has initiated a voluntary military system over the past two years. The feedback gets better each year due to improvements in pay and welfare.
“Most people have no clue what the army has been doing these days due to its limited public relations. I believe the army is aware of the debate over compulsory military service but it is difficult to scrap the conscription system entirely,” said Mr Wanwichit.
“The number of those conscripted may gradually decline as it will lower costs, and those savings can be used to fund development of military technology.”
The army, he said, should provide special training for conscripts to tackle various security problems such as disaster relief, wildfire suppression and evacuation operations.
“Procuring equipment to help mitigate a disaster will also help boost the army’s credibility rather than just procuring weapons,” he said.
Mr Wanwichit said the army has intensified camp inspections to prevent corruption and improve the quality of the food. The army had also improved its welfare system and camp amenties.
Pornpen: Out of date?
Cross Cultural Foundation director and human rights activist Pornpen Khongkachonkiet said compulsory enlistment is now considered old-fashioned. She said the system should be scrapped as the country fights no wars and has no need to recruit men to fight its enemies.
Forcing people to serve the county is expensive. In her view, the Enlistment Act should be amended to turn the conscription system into a voluntary enterprise to recruit those who have the proper qualifications and genuine interest in joining the army.
Ms Pornpen also addressed exploitation of labour among conscripts, regarded by some as servant soldiers. She agreed the army should hire people from outside the barracks to perform domestic labour for officers.
“Thai men are conscripted and must sacrifice their early careers or the opportunity to spend time with their families to serve the nation,” said Ms Pornpen.
Regarding violence against conscripts, she said: “It is hard to proceed with civil and criminal cases against offenders as they tend to seek reconciliation and provide compensation to the victim’s family,” she said.
She hopes the Prevention and Suppression of Torture and Enforced Disappearances Act will help encourage witnesses to file complaints.
Supensri: Popular demand
Meanwhile, Supensri Phengkoksoong, director of Social Equality Promotion Foundation, said party promises to scrap compulsory military conscription may be a reflection of popular demand.
Ms Supensri also urged the military to treat transsexual women fairly when they arrive at the screening unit for conscription. They should not force them to take off their shirts in front of others as they have a “woman’s heart”.
The demand for reform in the army is not just about money, but also concerns transparency and credibility, she said.
45% of respondents experienced breaches costing over US$1mil in past year
No single org or entity can solve problem alone, vital role for govts to play
Image source: 2023 Fortinet-IDC Asia Pacific SASE Survey
A recent Asia-Pacific SASE survey commissioned by Fortinet from IDC revealed that 45% of Malaysian respondents experienced breaches costing over US$1 million in…Continue Reading
SINGAPORE: There are around 50 public service positions that may fulfil the public sector service requirement to run in Singapore’s next presidential election, said Minister-in-charge of the Public Service Chan Chun Sing on Wednesday (May 10). For potential presidential candidates looking to qualify under the private sector service requirement, there are moreContinue Reading
Beijing is positioning itself to increase its global power at the end of the Ukraine war. But the question right now for China’s President Xi Jinping is which scenario is most likely to happen, what role China can play, and what each outcome will mean for China.
As the war continues, the strength of the Sino-Russian alignment will be tested as never before. Whether Russia wins or loses, or whether the war remains unresolved resulting in a frozen conflict, all pose a dilemma for China, which has been deliberately raising its profile as a peacemaker during the conflict.
There are various scenarios that are the most likely ways the war could proceed, or end.
Russia’s loss in Ukraine would send a powerful signal confirming both the West’s resilience and weakness of authoritarian aggressors. Such a development would explicitly undermine one of the key narratives shared within the Chinese Communist party, at least since the 2008/09 global economic crisis, that the West is in decline and its rivals, China in particular, are in the ascendancy.
The victory of Ukraine supported by the west would put Xi in a particularly uncomfortable position, challenging his favourite phrases of the “east wind prevailing” and “changes unseen in a century.”
However, wars tend to end messily. Were Russia to be defeated, much would hinge on the nature of the defeat. If defeat implied the departure of not only Russia’s president, Vladimir Putin, but also his inner circle, a new Russian government might deprioritize relations with China and reprioritize good relations with the West, which would be a blow to Beijing.
Russia’s victory amid crumbling support for Ukraine in the West would empower China. Beijing might be tempted to move to much more risky behavior, especially in its neighborhood.
Under such circumstances, Taiwan would probably face massive pressure from Chinese armed forces, forcing the US, which has pledged to support Taiwan, to decide whether to respond militarily.
Moreover, China’s position towards Europe would be much stronger, allowing Beijing to successfully discourage European states from siding with the US both globally and in East Asia.
It could also be argued that a weakened or defeated Russia could be an opportunity for China. For example, it could take a more active role in Central Asia, or force Moscow to accept further dependence on China in economic and financial sectors.
It is entirely plausible that the war will continue in a state of stalemate for some time. In some ways, this might suit China as it can continue to benefit from cheap Russian commodities.
Russian dependence on China which has been growing since 2014, will be even greater – making Russia permanently reliant on China for raw materials. This was always the stuff of nightmares for Russian policymakers in the 1990s. But under this scenario it could turn into a reality.
The frozen conflict scenario allows Beijing to continue its policy of alleged neutrality while promoting its peacemaker role, without having to make any difficult choices.
China has already attempted to position itself as a peacemaker. Its “peace plan” announced in February was less a plan and more a reaffirmation of existing positions. However point 12 spoke of “offering assistance” with post-conflict reconstruction, a reminder that in 2019 China was Ukraine’s top trade partner.
Despite China’s robust partnership with Russia, it is attempting to position itself as peacemaker in the event that Russia loses, in order to be in prime position to reap the rewards of economic reconstruction of Ukraine. Xi’s recent call with Ukraine’s President Volodymyr Zelensky would seem to point to this.
While the peace plan was lacking in detail, it symbolizes China’s increasingly active stance in global affairs. Note its high levels of contributions among the permanent UN security council members to UN peacekeeping, in terms of both troops and financial contributions,and its involvement in Africa as well as in the Middle East.
This all forms part of Xi’s global security initiative which seeks to broaden the scope of China’s diplomacy, upholding multilateralism and the role of the UN, while pushing back against Western ideas of a liberal international order, based around Washington.
The challenges for Xi consist of how to square China’s support for Russia’s reading of the global order with Chinese principles of territorial integrity and sovereignty. Strategically, China’s tangible support for Russia may bring the US and European nations closer together and strengthen transatlantic unity, a result Beijing has been trying to avoid for the past two decades.
In the shorter term, Beijing is exploiting a sanctioned Russia by benefiting from cheap Russian commodities. Chinese companies have seized emerging opportunities in the Russian market. But the continuation of the war means the disruption of global supply chains, including deliveries of grain and fertilizer on which China is heavily reliant.
The impact of war on China’s policies in East Asia remains ambiguous. Russia’s invasion has diverted US resources away from the Asia-Pacific. But Beijing’s threat to Taiwan has become more acute in the light of developments in Ukraine.
The US responded by mobilizing its Asian alliance network and accelerating the importance of security cooperation groups of nations such as the Quad (Australia, India, Japan and the US) or AUKUS (Australia, the UK and US). The Taiwanese government has also intensified its efforts to reinforce the island’s defenses.
China sees Russia’s invasion of Ukraine as a proxy war – a war against the West (and specifically against US power) – just as Russia does. A victory or a defeat for Russia in the war is not simply an issue for Russia, but rather could represent either the victory or the defeat of the liberal international order.
The bottom line for Beijing is, however, to avoid Russia’s complete failure in Ukraine. The role of peacemaker is one way to prevent such a development. Should this not succeed, Beijing may decide to step up its support for Moscow, ranging from financial assistance to arms deliveries.
Natasha Kuhrt, Senior Lecturer in International Peace & Security, King’s College London and Marcin Kaczmarski, Lecturer in Security Studies, University of Glasgow
This article is republished from The Conversation under a Creative Commons license. Read the original article.
China’s launch of a nationwide “anti-spy crackdown” on consulting firms will be a major concern for global investors who were just starting to consider increasing their exposure in the world’s second-largest economy, and is likely to deter many.
On orders from the central government, officials carried out synchronized operations in cities including the financial hubs of Beijing, Shanghai, Shenzhen and Suzhou on Monday, according to a state broadcaster.
The media described the move as “intensifying” law enforcement aimed at protecting national security, and a broadening of legislation that criminalizes the transfer of information and data.
Security authorities in Suzhou raided the local offices of Capvision, a consulting firm with headquarters in New York and Shanghai. Employees were grilled, say reports, and some items were seized, according to the report, which didn’t identify whether other firms were also targeted.
Capvision said in a statement posted to its WeChat account on Monday evening that it will stick to national-security policies and take the lead to guide the sensible development of the consulting industry.
This latest government crackdown has echoes of previous ones – which also served as a deterrent to many foreign investors.
The most infamous one was targeted on China’s biggest tech companies, which began in 2020, with new regulations on financial technology, which forced Jack Ma’s Ant Group to suspend its US$37 billion initial public offering (IPO) days before its launch.
Regulators then targeted the online financial service units of 13 other tech giants, including Tencent, Baidu, JD.com, Bytedance, Meituan and Didi.
“These tech regulations were part of a broader government campaign to curb the country’s private enterprise, which had become too powerful in the eyes of the ruling Communist Party,” says CNN.
In addition, Beijing in effect issued a shock ban on the country’s $100 billion private tutoring sector in July 2021.
However, this year, things appeared to have changed somewhat. Indeed, I wrote in Asia Times in January that “after a series of radical and controversial regulatory crackdowns in recent years, which has impeded growth, the CEWC has stated that science and technology policy must ‘focus on self-reliance and self-improvement.’ This indicates that overreaching regulatory scrutiny may be less intense moving forward.”
And I championed that Beijing appeared to be encouraging foreign investment and trade by expanding market access and giving equal treatment to overseas firms, increasing the protection of intellectual property and other rights, and promoting existing and in-the-pipeline foreign-owned projects.
I suggested that China’s plans would pique global investors’ interest in 2023.
But now I am not so certain. The latest crackdown will, for sure, unnerve investors from overseas.
The crackdowns “send a worrying signal and heighten the uncertainty felt by foreign companies operating in China,” the European Union’s Chamber of Commerce in China said in a statement.
“The developments are not conducive to restoring business confidence and attracting foreign investment.”
Unfortunately, this seems likely.
All eyes from investors around the world will be watching carefully to see how this plays out. Should Beijing rein in its crackdown frenzy, I would still expect that investors will position themselves to seek out opportunities to create and build wealth by increasing exposure in their portfolios to the People’s Republic and its $17 trillion economy.
If Beijing doesn’t do this, the reverse will be true.
Nigel Green is founder and CEO of deVere Group. Follow him on Twitter @nigeljgreen.
Included Malaysian Youth Fintech Association as its official youth vertical
Extended the tenure of its Exco and Committee members to a two year term
The Fintech Association of Malaysia (FAOM) held its Annual General Meeting recently and elected a new committee for its 2023/2025 term of office, reporting a growth of 40 new…Continue Reading
After a slow start, India is beginning to realize its potential as a promising market for industrial robots and as a developer of robot technology.
According to International Federation of Robotics (IFR) data, industrial robot installations in India increased by 54% in 2021 to 4,945 units. This put India in 10th place worldwide, behind Mexico but ahead of Canada, Thailand, Singapore and Spain. Data for 2022 is not yet available.
The auto industry is the largest buyer of industrial robots in India, accounting for 31% of total installations in 2021. Other large user industries include metals and machinery, plastics and chemicals, electrical and electronic equipment, and pharmaceuticals and food.
In a May 3 statement, IFR President Marina Bill noted that “India is one of the world’s fastest-growing industrial economies. Within five years, the operational stock of industrial robots has more than doubled to reach 33,220 units in 2021. This corresponds to an average annual growth rate of 16% since 2016.”
Since the “Make in India” program was launched by Prime Minister Modi in 2014, the operational stock of industrial robots in India has tripled. But it is still a drop in the bucket compared with the 1.2 million units installed in China and nearly 400,000 units in Japan.
China, long known as the “world’s factory” as Western economies shipped manufacturing off-shore, is so far ahead of other countries in the deployment of industrial robots that comparisons are almost meaningless. In 2021, more industrial robots were installed in China (268,000) than in the rest of the world combined (249,000).
Japan ranked second (47,000), followed by the US in third (35,000), South Korea (31,000), Germany (24,000) and Italy (14,000). Realistically speaking, India should be able to triple its annual installations and catch up with Italy and then Germany in the near-term future.
China also ranks high in industrial robot density as measured by the number of robots per 10,000 employees in manufacturing. In 2021, mainland China ranked fifth after South Korea, Singapore, Japan and Germany. Hong Kong and Taiwan ranked seventh and eighth Sweden was sixth. The US ranked ninth, down from seventh the previous year.
The robot density in India’s auto industry was 148 robots per 10,000 employees in 2021. The figure for China’s auto industry was 772, compared with 332 for all Chinese manufacturing. The scope of the challenge and the opportunity for India are both evident.
South Korea set a record high of 1,000 robots per 10,000 manufacturing employees in 2021. This was a function of the country’s large and technologically advanced electronics and auto industries.
The figure for Singapore, which has a concentration of advanced industries, was 670. The figures for Japan and Germany, which have much broader industrial bases, were 399 and 397. In the US, the figure was 274.
As is the case in China, the largest industrial robot vendors in India today are the world leaders: Fanuc, Yaskawa and other Japanese companies as well as Universal Robots, ABB and Kuka. Universal Robots is a Danish company owned by Teradyne of the US. ABB is headquartered in Switzerland. Kuka is a German company owned by China’s Midea Group.
But there are numerous Indian robot companies – so many with outstanding characteristics that the top ten and other leading company lists published by various market research companies overlap but are not the same. Among those that appear on these lists and that illustrate the range of Indian robot manufacturing and technologies are:
Tracxn Technologies Limited, a global start-up data platform headquartered in Bengaluru that works with venture capital and other finance companies worldwide, has identified 47 industrial robotics start-ups in India. Given the country’s high educational standard, industrial momentum and entrepreneurial bent, there are bound to be a lot more in the future.
The All India Council for Robotics & Automation (AICRA) is a not-for-profit organization dedicated to making India a leader in robotics, the internet of things (IoT), and artificial intelligence (AI). It provides technical and other assistance to its more than 3,500 member organizations and professionals. AICRA’s mission statement is:
AICRA has established Technology Governance Steering Committees (TGSCs) for defense, healthcare, agriculture, startup, education and aerospace. It has also signed an MoU with the Chandigarh Group of Colleges (CGC) in Punjab to establish an Industry 4.0 Center of Excellence to provide students with ideas, learning materials, training and hands-on experience in robotic process automation, robot operating system (ROS) open-source software and other technology.
The All India Robotics Association (AIRA) is a not-for-profit organization established to develop and support robotics ventures in areas including regulatory approvals, funding, imports of electronic components, production technologies and skill development.
AIRA aims to create the ecosystem required to make India a global hub for robotic production and technology.
That is a project for the next two decades years, one that is likely to change India and the world economy beyond recognition.
Follow this writer on Twitter: @ScottFo83517667