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Vital viral protection
Vital viral protection
Anna Akage

It's part trade war, part cyber defense — and the rumblings of conflict grow louder as countries (and companies alike) maneuver to protect their high-tech assets. Prime Minister Shinzo Abe recently announced that Japan would tighten export controls for advanced technologies in response to new U.S. trade restrictions aimed at China, writes the Yomiuri Shimbun daily. Both business interests and geopolitics are setting off such chain reactions; for while most Western economists tend to side with the free market, politicians increasingly see the issue as a reason to protect national interests — and put virtual firewalls.

One of the most closely watched cases to spark national security concerns in the U.S., and afterward in several countries in the EU, was the case of Huawei. In 2012, a U.S. congressional committee warned that Chinese telecom giant, together with ZTE, another leading Chinese company, could pose a security threat as the hardware and mobile infrastructure equipment can be used for spying for the Chinese government. The companies denied all allegations, but in 2018 the U.S. passed a bill restricting government bodies from doing business with Huawei, ZTE and several Chinese companies due to security concerns.

U.S. government officials have said that China could order its manufacturers to create backdoors for spying inside their devices. The evolving showdown has also included the high-profile arrest in Canada of Meng Wanzhou, Huawei's Chief Financial Officer and daughter of the company's founder. But the bigger questions go beyond any single case, as nations ask how (and how far to go) to protect sensitive technology beyond its own borders. Here's how the issue looks in five countries around the world:

CHINA

The stakes: In just a generation, China's economy has gone from being driven by gluing sneakers to competing for the most advanced technological innovations. Jeanine Daou, a tax specialist at PwC, put it this way, in an interview with Nikkei Asian Review: "China ... appears to be implementing a longer-term strategy that recognizes its competitive advantage in manufacturing, while building towards competing for control over the real value in the modern supply chain — intellectual property."

Photo: Rishi Deep

Current security measures:

  • The export of military items is exclusively allowed for state-authorized trading companies, and dual-use items can only be exported by companies in possession of an export control license.
  • According to the new protocols, a foreign-manufactured item can be subject to Chinese export control if the content of that item is of controlled Chinese origin. Yet, the same protocols already run in the U.S. and China seems to be following a good example.

Takeaway: The country is now set to introduce a new Export Control Law, following the first draft released in 2017. The new law will block the transfer of controlled items from China to a foreign country or region, which includes Hong Kong, Macao and Taiwan. The analysis of the draft suggests that the new law will strengthen the government's authority to regulate the export of military, nuclear, biological, chemical and dual-use items.

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Geopolitics

NATO Entry For Sweden And Finland? Erdogan May Not Be Bluffing

When the two Nordic countries confirmed their intention to join NATO this week, Turkish President Recep Tayyip Erdogan repeated his plans to block the application. Accusing Sweden and Finland of' "harboring" some of his worst enemies may not allow room for him to climb down.

Turkish President Recep Tayyip Erdogan declared opposition to Finland and Sweden entering NATO

Meike Eijsberg

-Analysis-

LONDON — When Turkish President Recep Tayyip Erdogan declared his opposition to Finland and Sweden entering NATO, it took most of the West's top diplomatic experts by surprise — with the focus squarely on how Russia would react to having two new NATO members in the neighborhood. (So far, that's been a surprise too)

But now Western oversight on Turkey's stance has morphed into a belief in some quarters that Erdogan is just bluffing, trying to get concessions from the negotiations over such a key geopolitical issue.

Stay up-to-date with the latest on the Russia-Ukraine war, with our exclusive international coverage.

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To be clear, any prospective NATO member requires the consent of all 30 member states and their parliaments. So Erdogan does indeed have a card to play, which is amplified by the sense of urgency: NATO, Sweden and Finland are keen to complete the accession process with the war in Ukraine raging and the prospect of strengthening the military alliance's position around the Baltic Sea.

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