Chinese Government Influence on International Chinese Companies

China’s leader Xi Jinping, has asked Chinese people for total and utter loyalty to the Chinese Communist Party, the CCP above all else. He has pushed this philosophy in all aspects of Chinese life.

Government, the military, society and schools, north, south, east and west – the Party leads them all 党政军民学,东西南北中,党是领导一切的 2017 Oct source

The implications of this philosophy on all and including international companies is that the CCP is part of the board and an integral part of the company. A Chinese company that does not follow the lead of the CCP cannot continue to do business and will eventually fail due to government policies or an outright bad on business.Therefore when it comes to resisting CCP pressures, companies really have no choice in the matter.

Western companies have no counterpart to this setup. There have been cases where foreign countries have begun to question the motives of international Chinese companies, specifically tech companies that make chips and other components for computers. There is a recent scandal where Chinese companies have added microchips to network cards that allow China to listen in on all communications going through the card.

On this subject I do agree. Allowing China unfettered production of critical boards and chips will result in CCP influence.

The fact remains that China’s trade agenda is part of a broader campaign to buy political influence and secure intelligence. Every large Chinese firm is implicated in this mission in one way or another.

Setting aside the question of whether Canada wants to abet China’s geopolitical rise, there are real risks for countries that open themselves to close economic integration with Beijing. National security is one…

We need to think very carefully about what we are manufacturing in China, due to security concerns. Chinese companies cannot risk the wrath of the CCP by being unbiased in their manufacturing. If there is an opportunity for the CCP, it is the duty of the Chinese company to put the CCP’s issues first and foremost before the company itself, and before the consumer of their goods. This is the scary part.

I do not worry that the South Korean or Japanese governments wish to have access to my personal data, and therefore have no issues with products from these countries. China, on the other hand, has the CCP always on its shoulders, looking and using Chinese companies to do their bidding. We need to be careful with these companies. As Chinese international tech companies wish to expand heir business, countries are increasingly wary, and for good reason. Huawei not only has CCP ties, but the chairman is not only a CCP party member but also ex-Chinese military.

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