The Dangers of Us Investment in Chinese Surveillance Technology

Home , Shohrat Zakir, Wilbur Ross

s the world becomes more technologically A advanced, some governments are LESSONS FROM harnessing developments such as facial recognition software, GPS tracking, and other XINGIANG: THE innovative software applications in city-wide surveillance systems to evaluate traffic, collect DANGERS OF U.S. data, and in some cases, monitor citizens. INVESTMENT Although this new technology can increase public safety by better tracking and identifying IN CHINESE criminal activity, it also can erode civil liberties by targeting vulnerable populations and SURVEILLANCE systematically implementing mass surveillance TECHNOLOGY and control. Actions by the Chinese government in China’s Xinjiang region are an example of the dark side of surveillance. BY KAYDEN MCKENZIE Located in northwest China, the Xinjiang Ui- ghur Autonomous Region (XUAR) is home to several ethnic minority groups, the largest of which is the Muslim Uyghurs. The region has been subject to tension in recent years because the Chinese government blames Islamist militants and separatists for conflicts in Xinjiang, whereas rights groups claim that the government represses religious freedom and en- forces unfair ethnic policies.1 In March 2017, China passed a law banning a wide range of activities deemed “manifestations” of extremism, as part of the government’s campaign against what it considers the rising threat of terrorism and sep- aratism in Xinjiang.2 Mass surveillance and security made possible by advanced technology has helped enable this campaign. In 2017, security and surveillance spending in XUAR almost doubled, and Xinjiang’s security costs have increased 10-fold in the past decade, outpacing the rest of the country.3 New York Times correspondents recently visited Kashgar, a city in XUAR, where they documented surveillance cameras and security checkpoints at every corner, including inside mosques, and noted the confiscation of cell phones by Chinese authorities to ensure that people have downloaded compulsory software that monitors calls and text messages.4 This level of surveillance has empowered the Chinese government to under- take much darker repression tactics in XUAR. In March 2019, an independent researcher estimated that up to 1.5 million Uyghurs and other Muslims have been held in so-called reeducation centers in Xinjiang, calling the detentions an “attempt to eradicate independent and free expressions of the distinct ethnic and religious identities in Xinjiang.”5 The Chinese government first denied the existence of the centers before officials started referring to them as “vocational 47 education and training programs” in October 2018 and then officially named them “vocational training centers” in March 2019.6 Shohrat Zakir, chairman of the Xinjiang government, dismissed reports that the centers were concentra- tion camps or reeducation camps, instead claiming that they were like boarding schools where students live and eat for free.7 This account differs from those of UN officials, human rights organizations, and independent journalists, who report that Chinese authorities have extralegally sent people to detention facilities, where they are subjected to forced political indoctrination, renunciation of their faith, mistreatment, and in some cases, torture.8 In a video that Chinese state television posted showing a class of Uyghurs in the Xinjiang facilities, journalists and human rights activists pointed out surveillance cameras and mi- crophones, demonstrating the technology used to monitor people in cities also permeates the reeducation centers.9 The reports of activities in Xinjiang also have prompted attention from U.S. lawmakers. On March 4, 2019, members of Congress wrote a letter to Secretary of State Mike Pompeo urging the Trump administration to take strong measures in response to the Chinese government’s human rights abuses, stating that “of particular concern are reports of U.S. companies that may be contributing to Beijing’s persecution of Uyghurs through their support or commercial ties to Hikvision and Dahua—two Chinese tech giants that have profited from the surge of security spending in Xinjiang.”10 Since 2016, Hikvision and Dahua have won $1.2 billion in surveillance project contracts with Xinjiang, and two of Hikvision’s projects were advanced camera systems for detention camps and mosques.11 These contracts reveal how inter- twined Chinese tech companies are with China’s surveillance state, as these lesson companies are providing the technology that makes it possible for the govern-

from ment to repress its people. This February, greater attention was brought to these

xinjiang partnerships when a data leak revealed that SenseNets, a Chinese facial-recognition technology company, collected approximately 6.7 million GPS coordinates : the linked to names, ID card numbers, and birth dates, and tagged with descriptions dangers such as “mosque,” “hotel,” “internet cafe,” and other locations where surveillance cameras were likely to be placed.12 of u . s Still, despite warnings, U.S. companies continue to hold investments in Hikvi- . investment sion, as many investors seem to be ignoring Xinjiang’s detention camps due to the profitability of the surveillance industry in China.13 Although customers of in

Hikvision may feel that they are purchasing products from a private business, a chinese controlling share of the company is owned by the Chinese government, which surveillance should raise serious human rights and national security concerns.14 These concerns are further heightened as ties between U.S. companies and the Chinese surveillance state go beyond financial investment in Hikvision. Firms in the technology United States are lending expertise, reputational credibility, and technology to Chinese surveillance companies, and the exact details of these collaborations are not often transparent.15 48 On March 13, 2019, Secretary Pompeo spoke FIRMS IN THE UNITED STATES upon the release of the State Department’s 2018 country reports on human rights, men- ARE LENDING EXPERTISE, tioning that Uyghurs are “interned in reedu- REPUTATIONAL CREDIBILITY, cation camps designed to erase their religious AND TECHNOLOGY TO CHINESE and ethnic identities.”16 Although the Trump administration calling out China for its human SURVEILLANCE COMPANIES, rights abuses is a necessary start, there is still AND THE EXACT DETAILS OF the failure to mention the problem of U.S. companies potentially contributing to these THESE COLLABORATIONS ARE human rights abuses. NOT OFTEN TRANSPARENT. This April, members of Congress sent a letter to Secretary Pompeo, Secretary of Commerce Wilbur Ross, and Secretary of Treasury Steven Mnuchin arguing that words were not enough and urged the Commerce Depart- ment to expand its “Entity List” to include entities that have provided technology, training, or equipment to Xinjiang officials in mass detentions and surveillance to ensure that U.S. companies are not assisting in the policing systems used in the Xinjiang region.17 The Entity List comprises certain foreign persons who are subject to license requirements for the export of specified items because they have engaged in activities contrary to U.S. national security and/or foreign policy interests.18 Lawmakers also argue that the United States should establish strengthened disclosure requirements to alert American investors about Chinese enterprises that are complicit in human rights abuses.19 Although the Trump administration calling out lesson ALTHOUGH THE TRUMP China for its human rights abuses is a neces-

from sary start, there is still the failure to mention

ADMINISTRATION CALLING

xinjiang the problem of U.S. companies potentially OUT CHINA FOR ITS HUMAN contributing to these human rights abuses. : the Despite some members of Congress and the dangers RIGHTS ABUSES IS A NECESSARY START, THERE State Department bringing the issue to light,

of the Trump administration is still paying too u . s little attention to the danger of ties between

. IS STILL THE FAILURE TO investment MENTION THE PROBLEM OF U.S. firms and the Chinese surveillance state. If the United States continues to ignore the in

U.S. COMPANIES POTENTIALLY contributions of U.S. funds and expertise to chinese CONTRIBUTING TO THESE China’s surveillance apparatus, then it bears surveillance some responsibility for the abuses occurring HUMAN RIGHTS ABUSES. in XUAR. This administration needs to step up and prioritize Xinjiang in U.S.-China relations technology and foreign policy.

Kayden McKenzie is a former intern with the Office of External Relations at CSIS.

49 ENDNOTES

1. Nectar Gan, “Ban on beards and veils – China’s Xinjiang passes law to curb ‘religious extremism,’” South China Morning Post, March 30, 2017, https://www.scmp.com/news/china/ policies-politics/article/2083479/ban-beards-and-veils-chinas-xinjiang-passes-regulation.

2. Ibid.

3. Emily Feng, “Security spending ramped up in China’s restive Xinjiang region,” Financial Times, March 12, 2018, https://www.ft.com/content/aa4465aa-2349-11e8-ae48- 60d3531b7d11.

4. Chris Buckley, Paul Mozur, and Austin Ramzy, “How China Turned a City Into a Prison,” New York Times, April 4, 2019, https://www.nytimes.com/interactive/2019/04/04/world/asia/ xinjiang-china-surveillance-prison.html.

5. Stephanie Nebehay, “1.5 million Muslims could be detained in China's Xinjiang: academic,” Reuters, March 13, 2019, https://www.reuters.com/article/us-china-xinjiang-rights/1-5- million-muslims-could-be-detained-in-chinas-xinjiang-academic-idUSKCN1QU2MQ.

6. Lindsay Maizland, “China’s Crackdown on Uighurs in Xinjiang,” Council on Foreign Relations, April 11, 2019, https://www.cfr.org/backgrounder/chinas-crackdown-uighurs- xinjiang.

7. Chris Buckley and Amy Qin, “Muslim Detention Camps Are Like ‘Boarding Schools,’ Chinese Official Says,”New York Times, March 12, 2019, https://www.nytimes.com/2019/03/12/world/ asia/china-xinjiang.html.

8. Freedom House, “Joint Statement calling for Xinjiang Resolution at the United Nations Human Rights Council,” Freedom House, February 13, 2019, https://freedomhouse.org/ article/joint-statement-calling-xinjiang-resolution-united-nations-human-rights-council.

9. Editorial Board, “China must dismantle its grotesque network of brainwashing factories,” Washington Post, October 20, 2018, https://www.washingtonpost.com/opinions/china-must- dismantle-its-grotesque-network-of-brainwashing-factories/2018/10/20/5268be54-d3c4- 11e8-8c22-fa2ef74bd6d6_story.html?utm_term=.90a1fd7bffc8.

10. U.S. House of Representatives Committee on Foreign Affairs,Letter to Secretary of State

lesson Mike Pompeo requesting the Administration to take strong measures in response to egregious human rights abuses perpetrated by the Chinese Government in China’s Zinjiang Uyghur Autonomous

from Region, 116th Cong., (March 4, 2019), https://foreignaffairs.house.gov/_cache/files/6/ c/6cca8876-8cfc-433b-b376-a27087e9e94b/79CE0F22F58E7364130CFEF767C8F9AD.02-28-

xinjiang 19-engel-letter-to-pompeo-regarding-a-follow-up-to-take-strong-measures-in-response-to- egregious-human-rights-abuses-by-the-chinese-government.pdf. : the

11. Charles Rollet, “Dahua and Hikvision Win Over $1 Billion In Government-Backed Projects dangers In Xinjiang,” IPVM, April 23, 2018, https://ipvm.com/reports/xinjiang-dahua-hikvision.

of 12. Cate Cadell and Philip Wen, “China surveillance firm tracking millions in Xinjiang:

u .

s researcher,” Reuters, February 17, 2019, https://www.reuters.com/article/us-china-xinjiang- . investment cyber/china-surveillance-firm-tracking-millions-in-xinjiang-researcher-idUSKCN1Q60CG.

13. James Kynge and Demetri Sevastopulo, “US pressure building on investors in China

in surveillance group,” Financial Times, March 29, 2019, https://www.ft.com/content/36b4cb42-

chinese 50f3-11e9-b401-8d9ef1626294.

surveillance 14. Xiaoxu Sean Lin, “Huawei, Hikvision, and the Surveillance State,” Epoch Times, February 26, 2019, https://www.theepochtimes.com/huawei-hikvision-and-the-surveillance- state_2810718.html.

technology 15. Lindsay Gorman and Matt Schrader, “U.S. Firms Are Helping Build China’s Orwellian State,” Foreign Policy, March 19, 2019, https://foreignpolicy.com/2019/03/19/962492-orwell- china-socialcredit-surveillance/.

50 16. Michael R. Pompeo, “Remarks on the Release of the 2018 Country Reports on Human Rights Practices” (speech, Washington, D.C., March 13, 2019), https://www.state.gov/ secretary/remarks/2019/03/290320.htm.

17. Congress of the United States, Letter to Secretary of State Mike Pompeo, Secretary of Treasury Steven Mnuchin, and Secretary of Commerce Wilbur Ross regarding the mass internment and surveillance of ethnic Uyghurs and other Turkic Muslims in the Xinjiang Uyghur Autonomous Region, (April 3, 2019), https://www.rubio.senate.gov/public/_cache/files/2b3625fe-9ed5-4af6-90dd- 52ce62ffa397/6B4DE40CA3F0C2D2D65648983C1DD1D5.20190403-letter-to-administration- re-uyghur-muslims-in-xuar.pdf.

18. U.S. Bureau of Industry and Security, “Entity List,” 2016, U.S. Department of Commerce, https://www.bis.doc.gov/index.php/policy-guidance/lists-of-parties-of-concern/entity-list.

19. Congress of the United States, Letter to Secretary of State Mike Pompeo, Secretary of Treasury Steven Mnuchin, and Secretary of Commerce Wilbur Ross. lesson

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