Foreign tech firms pose threat on Internet; World's largest Internet hacker

Companies asked by Washington to use online services to spy on customers

Foreign technology services providers such as Google and Apple can become cybersecurity threats to Chinese users, security analysts said, one week after China announced that it will put in place a security review on imported technology equipment.

Other major tech companies, such as Yahoo, Cisco, Microsoft and Facebook, were required by the US National Security Agency to transfer their users' information, according to Wan Tao, founder of Intelligence Defense Friends Laboratory, an independent institution focusing on cybersecurity in China.

Wan said that online services have become a major way for the US to steal information globally.

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Ning Jiajun, a senior researcher at the Advisory Committee for State Informatization, said, "Previously, the US asked companies to install wiretapping software on their technological products, but if users found and shut down related functions, its 'plan' would fail," he said.

For instance, information on a Chinese organization can be stolen when it places an order on an international shopping website, he said.

With technologies such as cloud computing and big data getting popular, information can be collected and analyzed immediately, which means the damage can be much greater and more difficult to prevent, analysts said.

"It can be said that those who master online services can get more information in cyberspace," said Du Yuejin, director at the National Engineering Laboratory for Cyber Security Emergency Response Technology.

Last month, China's Internet Media Research Center issued a report saying the NSA makes use of large technology companies for its wiretapping plans, including Prism, which was unmasked by former NSA intelligence leaker Edward Snowden, asking them to collect information on their users and urging them to hand in the data regularly.

The report also said that the NSA has taken iOS and Android, two leading mobile operating systems applied to iPhone and Samsung, as the "gold mine" of data.

The NSA grabbed users' information and stored most of it for analysis by invading database and communication networks of Yahoo and Google, while it has also controlled applications on smartphones with Britain, said the report released at the end of May.

"The US, in fact, could get these users' information or conduct the wiretapping by attacking the network instead of 'cooperating' with the enterprises, but it might take more time and money," said Wan.

The actions of the NSA have put huge pressure on US technology companies, as customers from Paris to Sao Paulo and from Beijing to Berlin worry about their privacy being invaded.

US President Barack Obama held two discussions with CEOs of major US technology companies in the past six months about the NSA snooping, which led to a "reform" of the NSA to focus on protecting US citizens' privacy, but with little improvement on foreign organizations and citizens.

In May, John Chambers, chairman and CEO of Cisco Systems, wrote a letter to Obama urging Washington to stop using the company for surveillance of its customers, according to an Al Jazeera report.

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- Contributed By CAO YIN (China Daily)

World's largest Internet hacker

The spying actions of the US have underscored the urgency of formulating common rules for activities in cyberspace

Last month, the United States Attorney-General Eric Holder announced the indictments of five Chinese military personnel on cyber espionage charges, accusing them of hacking into US companies in the nuclear power, metals and solar products industries. This has seriously compromised relations with China and sabotaged the bilateral cybersecurity cooperation that had been put back onto a normal track after overcoming setbacks.

With the indictments, the US has tried to present itself as the largest victim of cyberattacks, when in fact it is the Cold War mentality and troublemaking of the US that have precipitated the instability and insecurity in cyberspace. If the US doesn't change its behavior, all peoples in the world may become victims of Internet insecurity.

In June 2013, Edward Snowden, a former US National Security Bureau contractor, revealed US intelligence agencies were conducting large-scale network spy programs, such as PRISM, Xkeyscore and others, across the world. His disclosures indicated the omnipotence of the US' Internet surveillance and cyberattacks, which range from spying on communication metadata and backbone networks to the monitoring of short message services, instant messaging and video chats; from spying on ordinary people to spying on enterprises, universities, military units and even heads of state, not to mention the revelations about the US' cyber warfare capabilities.

Aside from its cyber command that has been rapidly growing, the US' marine, land and air forces have also set up their own cyber headquarters. Cyber combat capabilities are already regarded as part of the weaponry of the US' fighting forces. A series of US cyber combat programs have been revealed, from Stuxnet to Fslame and X-Plan, all of which indicate that the US has mastered more complicated means and more threatening abilities than other countries in terms of cyberattacks.

The latest indictments against the five Chinese military personnel have also reminded people of a series of previous cyber espionage claims against China by the US. In February 2013, Mandiant, a US cybersecurity firm, released a report accusing China's military of plotting hacker attacks against US enterprises. After that, many in the US, including the president and senior government officials, expressed a tough stance toward China and threatened economic sanctions against it. Some even suggested that US enterprises "hacked" by China should make cyber counterattacks in retaliation. Such groundless accusations of Chinese cyberattacks have drastically tainted the US' domestic political environment toward China and also frozen cybersecurity cooperation between the two countries.

The Chinese government has consistently advocated a new type of major-power relations with the US, and it has refrained from overreacting to Washington's "threatening signals". Even after the Snowden revelations, the Chinese government still adhered to the principles of no-conflict, no-confrontation, mutual respect and mutually beneficial cooperation, and it is actively pushing for cooperation with the US in cybersecurity and working for the establishment of a cybersecurity work panel under the Sino-US Strategic and Economic Dialogue framework.

All the evidence indicates that it is the US that is the world's largest Internet hacker and that the global cyber arms race triggered by the US' actions poses the largest threat to global cybersecurity. The US has so far cited "for the sake of national security" as the only excuse for its pervasive Internet espionage. The US should know that a country cannot put its national security above the interests and national security of other countries and the basic norms of international relations. The double standards the US has embraced in cybersecurity have damaged its credibility and compromised its image as a responsible power.

To enjoy the dividends of the booming Internet sector and communication technologies, cyberspace must be peaceful, safe, open and cooperative. Cyberspace should not be a field for either a cold or hot war, and the latest developments have once again underscored the importance and urgency for formulating common rules for cyber activities.

The US indictments of the Chinese military personnel are not conducive to global efforts to maintain the stability and security of cyberspace. The US, by taking advantage of its technological and military dominance, has established a cyber hegemony. It is hoped the US can lead the global Internet sector to develop in a healthy direction, as it once spearheaded the progress of Internet technologies for human progress.

- Contributed By Tang Lan (China Daily) The author is deputy director of the Institute of Information and Social Development Studies, China Institutes of Contemporary International Relations.

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Shangri-La Dialogue proves unfairly dominated by Washington, regional harsh accusations

The Shangri-La Dialogue (SLD), held annually in Singapore, is a security forum where Western, especially US discourse power has the upper hand. It's not, as the West claimed, timed to deal with security anxieties ratcheted up in the Asia-Pacific region, but a platform to sell US security doctrines that are positively portrayed as "contributing to regional stability."

Throughout these years, three terms have been used over and over to describe China's defense policy at the dialogue, among which "uncertain" is the lightest one. In recent times, China has been increasingly accused of being "aggressive" or "bullying" others. The SLD, which is actually led by the US, offers a platform to communicate with Beijing while pressuring it.

Another purpose of the SLD is to coordinate relations among US allies. At the SLD over last weekend, US Defense Secretary Chuck Hagel rallied defense ministers from Japan and South Korea to hold a trilateral meeting despite strained relationship between Seoul and Tokyo.

Tempers frayed unprecedentedly at this year's SLD, as Japan and the US ganged up to antagonize China. The keynote address delivered by Japanese Prime Minister Shinzo Abe was a barrage against China and its recent behavior in the East China Sea and South China Sea disputes.

Abe emphasized the importance of international law to resolve or at least manage disputes. He also pledged Japan would play an "even greater and more proactive role" with stronger defense ties to Southeast Asia, including an offer to provide patrol boats to the Philippines and Vietnam.

In a subsequent address next morning, US Defense Secretary Chuck Hagel endorsed Abe's speech and unleashed a rhetorical fusillade on China.

The rhetoric from Tokyo and Washington only reinforced both countries' anxieties over China's growing might.

It's not difficult to pick out logical loopholes from Abe's elaborate speech. He clamored for respect for international law, but the prime minister's ambition to enshrine collective self-defense is a violation of Japan's pacifist constitution. How can we expect a man who disregards domestic law to respect international law?

Japan promised to enhance its security role in Southeast Asia. But how can its Self-Defense Forces still be called this if they stretch into Southeast Asia?

The clumsy attacks against China didn't score much resonance from the Southeast Asian contingent, the most important audience at Shangri-La.

Vietnam and the Philippines acted rather constrainedly in Singapore. And after Hagel's speech, a professor from Indonesia asked the defense secretary whether the US is contradicting itself by opposing one single country, implicitly China, dominating East Asia while the US itself pursues a dominant role. But Hagel evaded giving a direct answer.

The tone of this SLD was set during Abe's keynote speech. The Chinese delegation were duly incensed and forced to return fire.

Wang Guanzhong, deputy chief of the General Staff of the PLA, accused Abe and Hagel of sticking to each other targeting China, departing from the speech he had prepared for the dialogue. The Chinese side went toe-to-toe with Washington and Tokyo.

In its move from being a reluctant participant in the SLD, China now engages actively in the security forum.

This year, the sizeable contingent from China includes military representatives, scholars, media persons and a diplomatic delegation led by Fu Ying, chairperson of the Foreign Affairs Committee of China's National People's Congress.

The primary goal of the Chinese delegation was to advocate and elaborate a new security concept for Asia. Nonetheless, we were kidnapped by the crude Western accusations and forced into a defensive battle.

In recent years, there are soaring attacks against China at the SLD, a West-dominated platform.

China should prepare itself for provocations and respond in a more wise and humorous way. There is no need to be led by the nose by the Western countries.

More importantly, we should cultivate and expand the clout of multilateral platforms where China can have a bigger say, such as the Conference on Interaction and Confidence Building Measures in Asia and the World Peace Forum.

Sources: The article was compiled by Global Times reporter Yu Jincui with Jin Canrong, associate dean of the School of International Studies, Renmin University of China. yujincui@globaltimes.com.cn

Regional harsh accusations overshadow Shangri-La talks

Perhaps the number "13" is unlucky after all. For, over this weekend, the 13th Shangri-La Dialogue (SLD), the premier Asia-Pacific security forum held annually in Singapore, was unfortunately shrouded in a thicket of almost tangible tension.

The first salvo was launched by none other than the increasingly controversial Japanese Prime Minister Shinzo Abe. During his keynote speech at SLD opening dinner, Abe made a thinly veiled accusation that China upset the status quo in the East China Sea by threat of force.

Abe talked about the need to change the country's legal basis, a reference to the amendment of Japan's pacifist constitution, to enable it to take part in "collective self-defense." But amiss in Abe's extensive description of the "new Japanese" concept was any mention of Japan's militaristic past which still casts a dark pall over many of its victimized neighbors.

The next morning, as if in sync, US secretary of defense Chuck Hagel wasted no time in his keynote speech to directly confront China by accusing the latter of unilaterally altering the status quo in the South China Sea.

Hagel followed up by officially stating the US disapproval of China's setting up of an Air Defense Identification Zone in the East China Sea. Echoing Abe, Hagel agreed with the need to amend the Japanese constitution, and even mooted the reassessment of their joint defense treaty.

The unusually blunt and strident US posture during this year's SLD startled many observers. But a careful examination of the recent chain of events both regionally and worldwide may provide some clues as to Hagel's tough tone.

A rapidly emergent China, with its attendant rising confidence in tackling foreign and regional matters, almost inevitably gave rise to the perception among some US policymakers that the hitherto more or less unchallenged regional leadership of the US in the Asia-Pacific region was being increasingly sapped.

This resulted in the US urgency to reassert its preeminent role in at least the security matters of the region. Hence the notions of "pivoting" and "rebalancing" rang aloud in US rhetoric versus this region. This sense of acute leadership reinstatement is further exacerbated by recent US foreign policy fiascos around the world.

The Edward Snowden-revealed US blatant spying on foes and allies alike continued to gnaw at global US credibility and moral standing. US President Barack Obama's own threat of use of force to resolve the Syrian civil war was essentially upstaged by a last-minute Russian brokered deal to avert imminent attack.

Yet the Chinese responded to these seemingly joint attacks with a two-pronged approach. The more genteel response was delivered by its former vice foreign minister Fu Ying, who reassured the region of China's peaceful intension and long-standing contribution to regional security.

The more head-on response came in the form of off-the-cuff remarks Wang Guanzhong, deputy chief of the General Staff of the PLA, who characterized both Abe and Hagel's speeches as being provocative to China.

Nevertheless, it should be mentioned that the general mood among many of the SLD participants from regional neighbors was such that while potential Japanese remilitarization and the return of US hegemony in the region were certainly not welcome, a certain perception of increasing Chinese assertiveness in the region, rightly or otherwise, was also taking root. China needs to redouble its efforts in assuring its neighbors of its purported peaceful rise.

But despite their confrontational postures, both Wang and Hagel made ample mentions of various ongoing and perspective security cooperation mechanisms between the US and China, giving the impression that their "new type of major power relationship" could still hold up despite stark differences.

In addition, Abe, Hagel and Wang variously gave high praises for the important roles in regional security played by East Asian Summit, ASEAN Regional Forum as well as ASEAN Defense Ministers' Meeting-Plus.

It is in this sense that despite the dense and serious mood permeating this year's SLD, a glimmer of hope can still be gleaned.

Contributed by Ei Sun Oh Source:Global Times Published: 2014-6-3 19:38:01
The author is a senior fellow with the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore. opinion@globaltimes.com.cn

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SINGAPORE, June 2 (Xinhua) -- Island or maritime demarcation disputes should be solved through coordination and negotiations between directly involved parties on the basis of respecting historical facts and international law, a Chinese general said on Sunday.

China's sovereignty, sovereign rights and jurisdiction in the South China Sea were established through the long process of historical development, said Wang Guanzhong, deputy chief of general staff of the People's Liberation Army (PLA), at the 13th Shangri-La Dialogue..

It can be traced back to over 2,000 years ago, or the Han Dynasty, when China started discovering and gradually maturing its administration over the South China Sea, especially the Nansha Islands and related sea area, Wang said..

The Xisha Islands and the Nansha Islands, both in the South China Sea, were occupied by Japan during World War II, and returned to China in 1946 under the Cairo Declaration and the Potsdam Proclamation..

After the return of these islands to China, the Chinese government in 1948 mapped out the nine-dash line, which is clearly marked in historical documents and world maps drawn by different countries, the general said..

China's neighboring countries never raised doubts about China's sovereignty, sovereign rights and jurisdiction over the Nasha Islands, the Xisha Islands and the related sea area until the 1970s when rich oil resources were discovered in the South China Sea, he said..

China, as a signatory country to the United Nations Convention on the Law of the Sea (UNCLOS), respects the convention which took effect in 1994. However, Wang said, China's sovereignty, sovereign rights and jurisdiction over the South China Sea islands and islets as well as related sea waters came into being over the past 2,000 years..

The UNCLOS, which took effect in 1994, cannot re-demarcate sovereignty, sovereign rights and jurisdiction that came into being over such a prolonged period of time in history, while recognizing countries' historical rights over seas and islands and islets, Wang said..

The UNCLOS is inapplicable to the adjustment of ownership of sea islands and islets, he said. The law governing the sea is an enormous and comprehensive law system, not merely a single UNCLOS..

Meanwhile, the adjustment is also not merely subject to a single international law of sea -- there is an enormous international law system which includes the international law of sea, he said. Thus, only using the UNCLOS to argue is not workable, he said..

China has signed the UNCLOS and respects it, but the United States has not signed the convention because it feels many provisions of the convention are against it, he said..

Wang noted China's stance in this regard is coherent and clear, that is, China advocates solving the disputes over islands and maritime demarcation through direct consultations and talks with the directly-involved parties..

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China was completely justified in rejecting remarks made by US Defense Secretary Chuck Hagel at the 13th Asia Security Summit, or Shangri-La Dialogue, in Singapore on Saturday.

The US defense chief did everything he could to point an accusing finger. He not only charged China with taking "destabilizing, unilateral actions" in the South China Sea but also criticized the demarcation of an Air Defense Identification Zone (ADIZ) over the East China Sea and the so-called cyber spying against the United States.

The US accusations are nothing but groundless and unreasonable. It is inappropriate for the defense chief to fire anti-China remarks from the podium of a regional security forum where the US stance is by no means constructive to regional peace and stability.

Wang Guanzhong, deputy chief of general staff of the Chinese People's Liberation Army who led the Chinese delegation, rightfully pointed out that Hagel's speech bore every sign of US hegemony as it was filled with full of incitement, instigation, threat and intimidation.

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Wang's comment provides an accurate lens for people to see through Washington's real intentions in the region. Hagel has criticized China for taking so-called destabilizing and unilateral actions in the South China Sea. In fact, it is the US's unilateral move in the region that has encouraged some countries in the region to covet islands and islets to which they are not entitled.

Until 2009 no country had challenged China's de facto control over the "nine-dash line" that outlines its territory in the South China Sea. The area of jurisdiction is explicitly defined, and China holds indisputable proof of its sovereignty over the waters. The United Nations Convention on the Law of the Sea, to which some claimant countries have frequently referred, also respects historical sovereignty.

Since 2009, when the Obama administration set out to implement its "rebalancing to Asia" policy, Washington has strengthened its military ties with its regional allies and shipped advanced military equipment to the region. It is no secret that Washington has assumed the role of a wirepuller behind a number of maritime territorial disputes in the region.

As for the US objection to China's establishment of an ADIZ over the East China Sea, it is obvious that Washington has raised the tone of its criticism out of fear that China's increasing activities in the region may impair its vested interests.

Since China announced the establishment of the ADIZ on Nov 23, the US has been leading a chorus denouncing the move. Their criticism is hardly worth refuting as China's ADIZ conforms to international law and international practice – more than 20 countries have set up ADIZs, and the US was the first to do so 60 years ago.

During Saturday's speech, Hagel tried to depict the US as country that dutifully defends the international order in the Asia Pacific. Washington never hides its intention to play a leading role in regional affairs but with such an unconstructive attitude as displayed in Hagel's remarks, even countries welcoming a bigger role for Uncle Sam in the region, could not help but wonder about the US's real intentions. More and more people in this region have begun to realize that the US only wants to fish in troubled waters.

"The United States will not look the other way when fundamental principles to the international order are being challenged," Hagel said. Again this is hypocritical as well as self-deceiving.

The US has thrown its weight behind Japan, its regional ally, since September 2012 when the Japanese government unilaterally announced its decision to "nationalize" China's Diaoyu Islands in the East China Sea. Washington should be reminded that Japan's attempt to change the status quo in the East China Sea and its increasingly rightist behavior are posing the greatest threat to the norms governing international order.

As such, by lodging unwarranted accusations against China, Hagel has sent a wrong signal in Singapore. His arguments do a disservice to regional efforts in quelling maritime disputes as well as sowing more seeds of discord in the region.

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Provocative remarks from U.S., Japan not helpful for regional security: Chinese general

Wang Guanzhong, deputy chief of the General Staff of the Chinese People's Liberation Army, speaks during the fourth plenary session of the 13th Shangri-La Dialogue in Singapore June 1, 2014, the final day of the multilateral forum focusing on security issues in Asia. (Xinhua/Then Chih Wey)

SINGAPORE, June 1 (Xinhua) -- The provocative harsh remarks against China by United States Defense Secretary Chuck Hagel and Japanese Prime Minister Shinzo Abe at a regional security forum are not helpful for regional peace and stability, an army general heading the Chinese delegation said on Sunday.

Delivering a speech on the third day of the Shangri-La Dialogue in Singapore, Wang Guanzhong said he has planned to use the opportunity to elaborate on China's newly proposed approach and framework of common security and cooperative security in Asia but had to move away from the prepared text to respond.

"My feeling is that Mr. Abe and Mr. Hagel were singing notes in chorus. They were corroborating and colluding and using the opportunities to speak first at the Shangri-La Dialogue to take the initiative to provoke and challenge China," he told military generals, defense chiefs and scholars.

Hagel criticized China as being the one taking unilateral actions on the South China Sea and said that the United States will maintain its leadership in the Asia Pacific and defend the interests of its allies. He also repeated the U.S. pretext of concerns for the freedom of navigation and respect for international law in the South China Sea.

Wang said he did not expect the languages of hegemonism and words of intimidation in the speech of Hagel.

"He made a speech to stoke instability and encourage fight picking in the Asia Pacific. The attitude there is not constructive," the Chinese general said.

No disputes or incidents have been initiated by China over a long period of time on sovereign and maritime issues and China has always had to respond, he said.

Abe delivered a keynote speech on Friday evening full of thinly- veiled comments aimed at China. He talked about how he intends to revise and push beyond the limit of Japan's pacifist constitution that was put in place after the World War II and how he intends to go for a larger role for Japan in Asia in security by promoting the idea of "proactive peace" and giving patrol ships to the Philippines and Vietnam to support their maritime claims.

Wang said everybody can see the remarks of Abe, full of innuendoes, are aimed at China.

"Hagel was being quite frank. He just bluntly and openly criticized China, albeit baseless. But I rather like his way of talking. If you want to say something, it's better to just say it directly," he said.

"As a prime minister, Abe was invited to the Shangri-La Dialogue by the organizers to give a speech. He could have upheld the goal of dialogue facilitation set for the forum to advance peace and security in the Asia Pacific. He could have contributed constructive suggestions but, opposite to the spirit of the dialogue meeting, he initiated incidents and stoke disputes," Wang said.

"I think this is not acceptable, and this is not in line with the spirit of the dialogue meeting," he added.

Wang said that China never took the initiative at the Shangri- La Dialogue to incite disputes.

"If you also look at what the United States and Japan did, it was not difficult to see who took the initiative to pick fights and incite disputes and conflicts. From the speeches of Abe and Hagel, we can see who on earth are aggressive. It is the United States and Japan corroborating with each other, and not China," he said.

Despite the harsh words from the United States and Japan, Wang called for cooperation and coordination to work for regional peace and stability.

Both China and the United States have common interests in a world of increasingly interdependent countries, and Chinese President Xi Jinping has recently proposed the approach of common security and sustainable security for Asia, which calls for cooperative security and mutually beneficial development to lead efforts for peace and stability in the region.

China has said that the approach of dividing Asian countries into allies and non-allies by the United States will not lead to security for all and that the 21st century is the time to drop the mentality of alliance to achieve security at the expense of other countries.

The approach outlined by China calls for efforts from all the countries in the region to contribute to regional peace and stability through the pursuit of cooperation and development. Scholars said the approach is much more inclusive and that other countries are also welcome to play a constructive role.

Russian Deputy Foreign Minister Anatoly Antonov voiced concerns for the detrimental impact on regional peace and stability from the wave of color revolutions with democracy as a pretext.

He said that Russia is opposed to the deployment of missile defense systems in the Asia Pacific which breaks the strategic balance in the region.

Antonov also questioned the idea of the United States must be a leader.

"We are opposed to any division of the Asia Pacific nations into 'primary' and 'secondary' ones, leaders and supporters. We are all equal. We have equal rights and obligations. At the same time every nation is unique in terms of its history, cultural heritage and traditions," he said.

The Shangri-La Dialogue, officially the Asian Security Summit organized by the International Institute of Strategic Studies, a London-based think thank, gathers defense and military representatives and scholars from 27 countries in the Asia Pacific region and beyond. -xinhua

China advocates, implements security concept for Asia

Wang Guanzhong, deputy chief of the general staff of People's Liberation Army (PLA) of China, speaks during a plenary session at the 13th International Institute for Strategic Studies (IISS) Asia Security Summit: The Shangri-La Dialogue, in Singapore June 1, 2014. [Photo/Agencies]

SINGAPORE -- China advocates and implements a security concept for Asia in real earnest, and stands ready to work with other countries to pursue Asian security that is established, shared by and win-win to all, said Wang Guanzhong, deputy chief of the general staff of People's Liberation Army (PLA) of China.

Experts blast Hagel over 'destabilizing' accusations

"The security of China is closely linked to that of Asia. China is a constructive, proactive and positive force for Asia's peace and security," Wang said in a speech at the 13th Shangri-La Dialogue.

The event is a multilateral forum organized by the London-based think tank International Institute for Strategic Studies.

Chinese President Xi Jinping has recently put forth the security concept for Asia featuring common, comprehensive, cooperative and sustainable security at the fourth Summit of the Conference on Interaction and Confidence Building Measures in Asia.

"This concept has been widely acclaimed by the Asian countries, " the senior military officer said.

Wang said China is a constructive, proactive and positive force for Asia's peace and security because China pursues the path of peaceful development.

He also stressed that China will never contend for or seek hegemony and foreign expansion.
China believes that all countries should have the equal rights to independently choose their own social systems and development paths, said the officer.

"We need to strengthen coordination on the basis of mutual respect, and oppose the attempt by any country to dominate regional security affairs," he said.

The senior military officer highlighted in his speech that China advocates dialogue and cooperation, and stands for coordinated progress of security and development. "China pursues a neighborhood diplomacy that aims at bringing harmony, security and prosperity to its neighbors," Wang said.

"We work to promote the sound interaction between regional economic cooperation and security cooperation, and to maintain both traditional and non-traditional security in a coordinated way. "

He said, in 2013, China contributed "nearly 30 percent of the world's economic growth" and "over 50 percent of the growth in Asia".

Wang said China will continue to promote sustainable security through sustainable development, and work together with other countries for "lasting peace and prosperity in the region".

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Healthy wealth management

THE term “wealth management” came about in the 1990s to describe a complex series of services similar to financial planning. The phrase has also been adopted by accountants, estate planners, lawyers and some finance specialists. These experts cater mostly to high-net-worth clients.

Rather than just perceiving wealth as product of a toil-and-reap process, money can be considered a tool with which you can gain profit

Instead of just spending your money, invest it wisely to get returns.

Unlike professions such as accountancy, taxation or auditing, which involve specialised fields of study where professionals are provided official certifications by governing bodies who supervise the field, wealth managers are yet to require official certifications.

However, the Investment Management Consultants Association (IMCA), the governing body that awards the CIMA certification (Certified Investment Management Analyst), began offering a certification for wealth management in 2007 known as the Certified Private Wealth Advisor (CPWA).

The certification recognises individuals who specialise in the life cycle of wealth – accumulation, preservation and protection and distribution.

They identify and analyse challenges faced by high-networth clients and how to develop specific strategies to minimise taxes, monetise and protect assets, maximise growth and transfer wealth.

What is wealth management?

Wealth management is a system that involves the effort of both experts and clients to design and adopt ideas to manage and grow the clients’ wealth.

Wealth comes in many different forms – hard cash, properties, shares, luxury items, businesses, lands and others.

Managing it, however, involves collective consultative processes that build a specific portfolio for owners. It is a slow and painstaking process that requires the clients’ trust and the consultants’ patience.

Deciding to involve a wealth manager in planning your finances is an important step.

It requires you to entrust the management of your wealth to someone else.

However, leaving your wealth to stagnate or deplete would be less desirable but this is most likely the case for most people.

What wealth managers do is enhance wealth while providing a valued experience for clients. In addition to learning about the many financial areas, those undergoing the CPWA certification study family dynamics.

This includes the study of anthropology and building relationships based on shared experience.

This is particularly important if the wealth involves a few generations of a family.

The difference between wealth managers and financial advisors is that wealth managers are a niche group of people.

They have cultivated specific tools and skills over the years and have a relatively small number of clients.

They can also apply distinctive designs and have a better skill set compared to other more common models.

Wealth as a tool

A common mistake that people make is to see income as a figure to make purchases with.

Having wealth does not necessarily translate into profitability.

Rather than just perceiving wealth as a product of a toiland-reap process, money can be considered a tool with which you can gain profit.

In this circumstance, having professional help will evolve this tool into a working design that will snowball into a self-sustaining model. The process often involves a lifestyle change for clients as well.

Even those who do not fall within the high-net-worth bracket should consider getting consultancy aid since the nature of wealth management allows it to be adaptable as a tool to manage one’s situation even when in deficit.

Behavioural issues

Humans are generally protective of their finances, therefore a new concept such as wealth management may not be easily accepted as it is still largely unexplored and remains unknown to many people.

As a result, finances are normally made stagnant or spent, not giving much return to its owners if not put in a bank or invested with little or no returns.

K. Gunesegaran, financial planner and money coach from Wealth Street Sdn Bhd, was recently a guest on BFM (a Malaysian radio station) and spoke about how to keep emotions in check when dealing with money.

He suggested that adhering to a certain behavioural portfolio regardless of the market’s response and adopting a shared behavioural framework that clients and investors can agree on and adopt in any finance management context offer a good solution to the behavioural issue surrounding wealth management.

Towards a bright future

As Malaysia readies itself for the increase urbanisation of its cultures and communities, the growth of wealth will mean more opportunities for the wealth management field to develop.

By substantiating certification and licensing as well as educating the changing demographics about wealth management, the field will gain more recognition within the finance industry.

Creating a niche market of professionals is also a better option than generalising the industry’s talent.<

For example, a wealth manager who specialises in real estate or the ICT industry would prove to be better than a general wealth manager in certain contexts.

Scouting for a niche specialist wealth manager, especially if the wealth involved is derived from or being invested into a certain industry, would then be a better approach to handling wealth.

However, as a client, the first step is to better understand how you would like to use and invest your money before seeking professional help.

The role of a wealth management consultant

Deciding to involve a wealth manager in planning your finances is an important step. It requires you to entrust the management of your wealth to someone else. However, leaving your wealth to stagnate or deplete would be less desirable but this is most likely the case for most people.

Most banks offer wealth management services catered to highnet-worth individuals. There are also private, stand-alone wealth management firms that not only act as advisors but as executors of clients’ instructions pertaining to their finances.

The biggest challenge for a wealth manager is to understand the financial needs of the clients.

It is important for clients to understand the role of wealth advisors to ensure their credibility and market value.

Experts need to convince middle-income and low-income earners of their skills, as these earners have the potential to become higherincome earners.

This creates business opportunities and expands networks, which is the perception of wealth management that the industry is aiming for.

This is important because their relationship with clients is not usually a short-term one and the advice and information given need to be accepted by clients with trust and understanding.

There is no one way to manage wealth because people’s lifestyles differ and different people require different aspects of their wealth to be managed, including tax management, risk assessments, retirement planning, portfolio management, estate planning, generational legacy, trust fund managements and specialised services for executives and small business owners.

Sources: Money & You, StarSpecial


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Virgin killer was adored

'Unloved' killer was adored

For someone who felt unloved and wanted revenge for that, Elliot Rodger was a much-loved child.

His Malaysian-born mother Ong Li Chin thought the world of her children, her good friend from Penang, Helen Yap said.

Yap, a well-known music producer and composer, knew Ong from their days together in Pulau Tikus on the island.

“Li Chin would always sign off her name as well as her children’s names in Christmas cards,” she said.

Foreign wire reports stated that Ong hurried to try to stop her son from carrying out his death wish. She searched frantically for her son after he posted a 140-page document “My Twisted World – The Story of Elliot Rodger” on Friday.

In it, he had lamented about how women did not like him and wanted to take revenge on them. The 22-year-old also expressed frustration at still being a virgin.

Elliot Rodger in a picture taken from his Facebook page.

He later went out and stabbed three people to death before gunning down three others.

“We were all devastated upon learning about the tragedy. It came as a shock,” Yap added.

Yap also said Rodger would have been a hit with the girls had he grown up in Malaysia.

Although Ong and other schoolmates grew apart over the years, Yap said they had always felt a special attachment towards each other.

She added that they only found out through the media that Elliot had been seeing a therapist from the age of eight.

Another of Ong’s schoolmates, who did not want to be named, said that like most children, Rodger wanted to do things his way.

Ong Li Chin with Elliot’s sister Georgia.

She recalled that the boy had refused to take his shoes off when he was entering a house in Penang.

Rodger, who was born in England and grew up in United States, was not accustomed to the Malaysian culture of being barefoot in the house.

“That is all I remember about him when his mother brought him to Penang for a holiday when he was about 10 or 11,” she said. (According to his own document, Rodger was 13 when he visted Penang).

Ong, now 53, had brought her son and daughter to visit Penang many years ago.

She then posted in a Penang website about her visit to Penang with her children, Elliot and Georgia.

“After being all around the world, having lived in the UK and now in Los Angeles, working alongside famous Hollywood figures – I can truly say you guys over there in Pulau Tikus still have ... my fondest memories,” she wrote.

Contributed by Sira Habibu The Star/Asia News network

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US-China cyber-battles intensify

The United States has accused some Chinese of hacking into American companies’ computers but the US itself has been engaging in massive spying of foreign companies and trade officials.

Reports of US spying have sparked anger in many countries

WE live in a world where “spying” by electronic means is now pervasive and practically no one or institution that uses telephones, smart phones, emails and the internet is protected from intelligence gathering.

This much we know, from the media revelations emerging from files leaked by Edward Snowden, a former contractor with the US National Security Agency.

They showed that the US has been tapping the telephones and emails of Americans and others around the world in a sweeping and systematic way.

It was revealed that even the top political leaders of Germany, Indonesia and Brazil had their mobile phones tapped, leading their countries to protest against such a bold intrusion of privacy and national security.

Last week, the intelligence issue was highlighted again when the US Justice Department indicted five individuals who are members of the Chinese People’s Liberation Army.

They were accused of hacking into the computers of American companies in the nuclear power, steel, aluminium and solar power industries to obtain trade secrets for the benefit of Chinese state owned enterprises.

A Chinese foreign ministry spokesman denounced the allegations as baseless and said China “never engages in the activity of stealing commercial secrets through the internet”, and accused the US of hypocrisy.

It is common knowledge that intelligence agencies use all kinds of devices to gather information and spy on foreigners as well as their own citizens.

The US has the most sophisticated system with the broadest coverage, as the Snowden files revealed.

By charging China of spying on specific American companies for the commercial benefit of Chinese enterprises, the US was trying to draw a very fine line.

It would have been clearly double standards to accuse other countries of spying on government personalities or agencies or on civilians, as the US itself has been shown to be more systematically doing this than any other country.

In announcing the indictment on the five Chinese, the US Attorney General said the hacking was conducted to advantage Chinese enterprises, a tactic that the US denounces.

“We do not collect intelligence to provide a competitive advantage to US companies, or US commercial sectors.”

But in fact the US does spy on companies and trade policy makers and negotiators of other countries, presumably in order to obtain a commercial advantage.

Two articles by David Sanger in the New York Times last week commented on the “fine line” the US attempts to draw between spying for the benefit of specific companies, and for overall commercial advantage.

He gave examples of revelations of US agencies targeting foreign companies.

These include Huawei, a major Chinese internet and communications company.

According to his article, the Snowden documents showed that one purpose of this spying was to “get inside Huawei’s systems and use them to spy on countries that buy the company’s equipment.

“Huawei officials said they failed to understand how that differed meaningfully from what the United States has accused the Chinese of doing.

The US agency also hacked into the computers of Petrobras, Brazil’s national oil company, which has data on Brazil’s offshore oil reserves and perhaps its plans for allocating licences for exploration to foreign companies. State owned oil companies in Saudi Arabia, Mexico, Africa are also intelligence targets.

The NSA also went into the computers of China Telecom, one of the largest providers of mobile phone and Internet services in Chinese cities, and Pacnet, the Hong Kong-based operator of undersea fibre optic cables.

“Once inside those companies’ proprietary technology, the NSA would have access to millions of daily conversations and emails that never touch American shores,” said Sanger.

The NSA spied on Joaquín Almunia, the antitrust commissioner of the European Commission, who had brought charges against several US companies.

In each of these cases, American officials insist the US was never acting on behalf of specific American companies, but the government does not deny it routinely spies to advance American economic advantage as part of national security, said the Sanger article.

This includes spying on European or Asian trade negotiators, using the results to help American trade officials and thus the American industries and workers they are trying to bolster.

According to Sanger, the United States spies regularly for economic advantage when the goal is to support trade talks. When the US was negotiating in the 1990s to reach an accord with Japan, it bugged the Japanese negotiator’s limousine and the main beneficiaries would have been US auto companies and parts suppliers.

The US is also “widely believed to be using intelligence in support of trade negotiations underway with European and Asian trading partners. But in the view of a succession of Democratic and Republican administrations, that is fair game.”

An earlier New York Times article, citing Snowden documents, also revealed that the US and Australian agencies gathered intelligence on Indonesia and a law firm acting for it during US-Indonesia trade negotiations.

This line the US is attempting to draw between what is illegitimate (spying to benefit particular companies) and legitimate (spying to broadly benefit companies and the economy) is not appreciated nor accepted by other countries.

The views expressed are entirely the writer's own.

Contributed by Global Trends Martin Khor
Martin Khor is the Executive Director of the South Centre since 1 March 2009. He replaced Dr. Yash Tandon who was the Executive Director of the South Centre from 2005-2009
 
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China Daily Asia Weekly joins ePaper

The China Daily Asia Weekly is the latest newspaper to be part of the CIMB-Asean ePaper collaboration just as Malaysia and China celebrate 40 years of bilateral relations.

The weekly newspaper will now be made free in digital for all The Star’s 80,000 ePaper subscribers, providing more accurate updates of the latest news in China and Asia Pacific.

The latest addition was launched by CIMB group chief executive officer Datuk Seri Nazir Tun Razak yesterday and witnessed by China’s Ambassador to Malaysia Huang Huikang. Star Publications (M) Bhd group managing director and CEO Datuk Seri Wong Chun Wai said the partnership was the first in the country’s history as well as coming at a historic moment.

“Malaysia and China are celebrating a special relationship of 40 years and today, we celebrate the friendship of two media groups. The combined readership from both China Daily Asia Weekly and The Star will make up a larger audience for the ePaper,” he said.

Wong said on Wednesday, Malaysians had welcomed the arrival of pandas, Feng Yi and Fu Wa.

“And today, we welcome the arrival of China Daily into the CIMB-Asean ePaper collaboration,” he added.

 Combined forces: (from left) Star chairman Datuk Fu Ah Kiow, Nazir, Huang, Wong and Zhang during the official partnership ceremony as China Daily Asia Weekly joins the CIMB-Asean ePaper fold at Menara Star.

Zhang Haizhou, China Daily Asia Weekly assistant to publisher, said the missing plane MH370 had seen netizens from both countries attacking each other and forgetting that both Malaysia and China were partners.

“We need a strong and reliable platform to bridge this gap of understanding among people and this is why we are having this bundle with The Star. We are now messengers between the two nations, telling better stories and enhancing mutual understanding,” he said.

Last month, Nazir had launched the CIMB-Asean ePaper collaboration comprising newspapers from four South-East Asian countries – The Star, Thailand’s The Nation, Indonesia’s The Jakarta Post and the Philippines’ Daily Inquirer – the first of its kind in the Asean region.

Nazir said the initiative was fabulous and had exceeded his expectations with 80,000 subscribers.

“Malaysia is the first South-East Asian nation to connect with China and we are very happy to support this initiative, helping people to see the world in all perspectives,” he said.

Agreeing, Huang said the media was the bridge for a better understanding between two nations.

“The Internet is an important channel for exchanging information and the collaboration of The Star and China Daily Asia Weekly is like a combination of giants,” he said.

Also present were China Daily Asia Weekly editor K.S Chan, Malaysia-China Friendship Association president Datuk Abdul Majid Ahmad Khan, Federation of Chinese Associations Malaysia deputy secretary-general Datuk Dr Chin Yew Sin, Malaysia-China Chamber of Commerce president Datuk Bong Hon Liong and Associated Chinese Chamber of Commerce and Indust­ries Youth chief Datuk Ng Yih Pyng.

Top businessmen who joined in the celebration included Eco World Development Group director Tan Sri Liew Kee Sin, i-Berhad executive chairman Tan Sri Lim Kim Hong and Mah Sing Group group managing director and chief executive Tan Sri Leong Hoy Kum.

Contributed by  by Christine Cheah The Star/Asia News Network

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