CHINA-US: WALL STREET JOURNAL REVEALS U.S. TECH CORPORATIONS THAT HAVE LINKS WITH CHINESE ENTITIES

An article in the Wall Street Journal (February 2) cited a report by the Victims of Communism Memorial Foundation and the consulting firm Horizon Advisory, which implicates U.S. and multinational corporations in the Communist Party’s human-rights abuses, the surveillance of Chinese people, and Beijing’s military build-up. It said despite the advisory from the U.S. State, Treasury and several other departments warning that “given the severity and extent of these abuses, businesses and individuals that do not exit supply chains, ventures, and/or investments connected to Xinjiang could run a high risk of violating U.S. law”, the report finds that Dell has an office in Urumqi and had recently advertised a retail account manager job opening in Urumqi. Dell spokeswoman Carly Tatum replied in an emailed statement that “the office is in the process of being closed due to low utilization,” and “we are constantly reviewing and adjusting our global footprint.” The article also referred to Dell’s China-based subsidiary's co-authored 2018 report on digital industrialization with the State Council. That report, it said, explicitly mentioned the development of “emerging technologies such as cloud computing, big data and artificial intelligence”—all areas that have military applications in addition to civilian ones, and quoted Huang Chenhong, President of Dell Technologies Greater China, as having said the company “is committed to becoming the most trusted partner of the Chinese government and enterprises in the process of digital transformation.” It revealed that General Electric has a joint venture, HDGE, with China Huadian, a state-owned enterprise and that China Huadian had signed a strategic cooperation agreement last year with the Xinjiang government, according to the Chinese-language Polaris Solar Photovoltaic Network News.GE declined to comment about China Huadian’s business dealings. Microsoft also appears to have ties to China’s police and surveillance state. Haiyi Software—a company that provides surveillance-related products such as a “social face and vehicle verification platform” to public-security bureaus across China—lists Microsoft as a “partner” on its website. So does Beijing Zhongke Fuxing Information Technology, which lists among its “success cases” work with several detention centers, including in Xinjiang. Microsoft did not comment in response to inquiries about its ties to either company. The Wall Street Journal said that in 2018, Microsoft announced a strategic partnership with Shenzhen-based Dajiang Innovations (better known as DJI) “to bring advanced AI and machine learning capabilities to DJI drones.” The news release noted that DJI had chosen Microsoft Azure as “its preferred cloud-computing partner” and would use its “AI and machine learning capabilities to help turn vast quantities of aerial imagery and video data into actionable insights for thousands of businesses across the globe.” It noted that the Pentagon had said last summer that “systems produced by” DJI “pose potential threats to national security” and said Microsoft did not provide comment on its business dealings with DJI or whether the relationship is ongoing. Microsoft has also entered into partnerships with Huawei.





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