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China’s Smart Cities Development Katherine Atha, Jason Callahan, John Chen, Jessica Drun, Ed Francis, Kieran Green, Dr. Brian Lafferty, Joe McReynolds, Dr. James Mulvenon, Benjamin Rosen, and Emily Walz Research Report Prepared on Behalf of the U.S.-China Economic and Security Review Commission January 2020 Disclaimer: This research report was prepared at the request of the U.S.-China Economic and Security Review Commission to support its deliberations. Posting of the report to the Commission's website is intended to promote greater public understanding of the issues addressed by the Commission in its ongoing assessment of U.S.-China economic relations and their implications for U.S. security, as mandated by Public Law 106-398 and Public Law 113-291. However, it does not necessarily imply an endorsement by the Commission or any individual Commissioner of the views or conclusions expressed in this commissioned research report About SOSi SOS International LLC (SOSi) is a leading provider of intelligence, technology, and project management solutions to large government and private sector organizations around the world. We deliver a wide range of services that support the national security interests of the U.S., the security and stability of its allies, and the interests of large, multinational corporations in the defense, oil, gas, mining, construction and manufacturing sectors. This project was conducted within SOSi’s Intelligence Solutions Group, a premier open source and intelligence exploitation cell for the U.S. intelligence community, Department of Defense, and Federal law enforcement. Staffed by an experienced team of cleared analysts with advanced language skills, SOSi’s mission is to provide cutting-edge, open source intelligence support to the collection, analytical, and operational activities of the U.S. Government, with the goal of achieving national strategic objectives. SOSi accomplishes its mission through the conduct of objective, independent, and relevant research and analysis, under strict quality guidelines. Comments may be sent to Dr. James Mulvenon. Dr. James Mulvenon Special Programs Division SOS International 2650 Park Tower Drive, Suite 300 Vienna, VA 22180 TEL: 571-421-8359 Email: [email protected] i Acronyms Acronym Full Name 3GPP 3rd Generation Partnership Project ADB Asian Development Bank AI artificial intelligence AMI advanced metering infrastructure ARIA Asia Reassurance Initiative Act ASEAN Association of Southeast Asian Nations BUILD Better Utilization of Investments Leading to Development BRI Belt and Road Initiative CAC Cybersecurity Administration of China CAICT China Academy of Information and Communications Technology CASC China Aerospace Science and Technology Corporation Limited CASIC China Aerospace Science and Industry Corporation CCID China Electronic Information Industry Development CCP Chinese Communist Party CCTV closed-circuit television CEC China Electronics Corporation CEIEC China National Electronics Import & Export Corporation CETC China Electronics Technology Group Co., Ltd. CIP Division for International Communications and Information Policy, U.S. Department of State CISA Cybersecurity and Infrastructure Security Agency, U.S. Department of Homeland Security CNNVD Chinese National Vulnerability Database CRBC China Road and Bridge Corporation CRRC China Railway Rolling Stock Corporation CVE Common Vulnerabilities and Exposures DFC U.S. International Development Finance Corporation DHS U.S. Department of Homeland Security DOD U.S. Department of Defense DVR digital video recorder EU European Union FCC Federal Communications Commission FDI foreign direct investment FYP Five Year Plan GB/T voluntary national standard GCTC Global City Teams Challenge GIS Geographic Information Systems GPS Global Positioning Systems HCSEC Huawei Cyber Security Evaluation Centre ICS industrial control systems ICT information and communications technology IEC International Electrotechnical Commission IEEE Institute of Electrical and Electronics Engineers IGF Internet Governance Forum IoT Internet of Things IP internet protocol ISO International Organization for Standardization IT information technology ITA U.S. International Trade Administration ITAN Infrastructure Transaction and Assistance Network ITS intelligent transportation systems ITU International Telecommunication Union ii JTC Joint Technical Commission LTE long-term evolution MIIT China’s Ministry of Industry and Information Technology MIT Massachusetts Institute of Technology MOHURD Ministry of Housing and Urban-Rural Development MOST China’s Ministry of Science and Technology MOT China’s Ministry of Transportation MoU Memorandum of Understanding MPS China’s Ministry of Public Security MSS China’s Ministry of State Security NB-IoT Narrowband Internet of Things NDRC China’s National Development and Reform Commission NIST U.S. National Institute of Standards and Technology NSF National Science Foundation NUP National New-type Urbanization Plan 2014-2020 NVR network video recorder OBD on-board diagnostics OPIC U.S. Overseas Private Investment Corporation PCAST President’s Council of Advisors on Science and Technology PLA People’s Liberation Army PPP public-private partnership PRC People’s Republic of China R&D research and development RFID radio frequency identification RMB renminbi RS remote sensing SAC Standardization Administration of China SEZ special economic zone TTP tactics, techniques, and procedures UK United Kingdom UN United Nations iii Table of Contents About SOSi .................................................................................................................................. i Acronyms .................................................................................................................................... ii Table of Contents ....................................................................................................................... iv Executive Summary and Key Findings ...................................................................................... 1 Key Findings ............................................................................................................................... 2 Chinese Smart Cities Policies ................................................................................................. 2 Chinese Smart Cities Development Trends ............................................................................ 2 Chinese Surveillance ............................................................................................................... 2 Chinese Promotion of Smart Cities Technologies Abroad ..................................................... 3 Smart Cities in the Context of U.S.-China Relations .............................................................. 4 Recommendations ....................................................................................................................... 4 Introduction ................................................................................................................................. 7 I | Chinese Smart Cities Policies: History and Current Practice ................................................... 12 Key Findings ......................................................................................................................... 12 Smart Cities Initiatives in Historical and Procedural Context .............................................. 12 The Path to New Smart Cities ............................................................................................... 14 Xi’s Increasing Smart Cities Emphasis ................................................................................. 16 Xi’s Focus on the Xiong’an New Area ................................................................................. 17 Current Smart Cities Policy and the Chinese Regulatory State ............................................ 18 II | Chinese Smart Cities Development Trends ............................................................................. 24 Key Findings ......................................................................................................................... 24 Government-led Smart Cities Development ......................................................................... 25 The Geography of Smart City Pilots ..................................................................................... 26 Smart Cities Goals: Public Services, Management Efficiency, and Economic Development ............................................................................................................................................... 27 Growth in Key Technologies: The IoT, Big Data, and the Cloud ........................................ 32 Coordinating Governance and Management: Leading Small Groups and Big Data Management Administrations, and National and International Connections ....................... 35 Commercial Enterprise Involvement .................................................................................... 37 Successes to Date, Challenges Ahead ................................................................................... 39 III | “The Masses Have Sharp Eyes:” Technology and Mass Surveillance in Chinese Smart Cities ....................................................................................................................................................... 43 Key Findings ........................................................................................................................
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