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China gets into blockchain race with US

Published

5 years ago

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by Sébastien RICCI

China has launched an ambitious effort to challenge the US dominance in blockchain technology, which it could use for everything from issuing digital money, to streamlining a raft of government services and tracking Communist Party loyalty.
The technology received a crucial endorsement from President Xi Jinping last week, a signal that the government sees blockchain as an integral part of the country’s plan to become a high-tech superpower.
Beijing is the latest in a handful of countries to have adopted a law strictly governing the encryption of data — particularly blockchain technology, which allows the storage and direct exchange of data without going through an intermediary.
Reputedly unfalsifiable, blockchain is a database shared across a network of computers. Once a record has been added to the chain it is almost impossible to change.
It is perhaps best known for underpinning the operation of cryptocurrencies such as bitcoin — which Beijing may seek to replicate as it pushes ahead with its plans for a world-leading government-run digital currency.
Although the new law for blockchain “is still rather vague”, the country is clearly one of the most active in terms of regulation, Stanislas Pogorzelski, editor of specialist site Cryptonaute.fr, told AFP.
“China has understood very well that to stay a superpower, you have to be at the forefront of new technologies,” said Pogorzelski.
Blockchain is set to play a key role in many sectors in the future, including digital finance, internet of things, artificial intelligence and 5G.

Less human intervention

It could also serve to make China’s vast bureaucratic system more efficient.
The official Xinhua news agency said a blockchain-based system had been used for the first time to automatically generate and file an enforcement case in Chinese court against a party who failed to pay damages in a mediation agreement.
With less human intervention, such systems could make judicial enforcement in China “more intelligent and transparent,” the agency said.
Chinese shares jumped this week as investors piled into stocks linked to blockchain, after Xi said China should step up research and development of the technology.
“Blockchain should play a bigger role in strengthening Chinese power in cyberspace, developing the digital economy and promoting socio-economic development,” Xi said.
“The general sentiment of Xi’s comments was simple,” said Anthony Pompliano, who writes a daily cryptocurrency newsletter.
“Blockchain technology is really important for the future and China plans to be the global leader,” Pompliano added.

Loyalty test

According to analyst Kai von Carnap of the Mercator Institute for Chinese Studies, blockchain-backed tools have potential applications that go well beyond improving administrative efficiency in China.
“More interesting will be those targeting party discipline, internal stability and ideological loyalty,” Von Carnap told AFP.
One example is a newly launched app by the Communist Party that asks members to explain why they joined and what party loyalty means to them.
Blockchain technology is then used to store their responses on a permanent, widely distributed ledger — recording their thoughts in cyberspace forever.

‘Not a fan’

As China trumpets its push for more blockchain technology, it is hoping to outpace trade-war rival the United States, whose President Donald Trump tweeted his disdain for cryptocurrencies in July.
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” he wrote.
The contrast between the world’s two biggest economies is “striking”, according to Pompliano, who says “bitcoin, blockchain technology, and digital assets are not a priority for America”.
Facebook chief executive Mark Zuckerberg had to defend his plans to launch a digital coin called Libra to the US Congress in October, after it faced a torrent of criticism from all sides — including governments who see it as a threat to their monetary sovereignty.
“I don’t think Libra will succeed,” Huang Qifan, vice director of the CCIEE, an economic think-tank that advises Beijing, said this week in remarks widely reported by state media.
“It is better… to have sovereign digital currencies issued by a government or a central bank,” he said.
Last year China released a damning report on existing digital currencies, saying they were “increasingly used as a tool in criminal activities.”
But while Beijing banned cryptocurrencies two years ago, it is fast-tracking preparations for its own state-run virtual currency, which is supposed to facilitate transactions and reduce costs.
The anonymity of cryptocurrencies allows users to buy and sell freely without leaving a digital trail — but China’s mooted e-cash system will be tightly regulated, experts say, and run by the People’s Bank of China.
– AFP

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International

Netanyahu faces mounting protests amid hostage deaths and ceasefire dispute

Israeli Prime Minister Benjamin Netanyahu faces intense protests after six hostages were killed by Hamas, with critics accusing him of prioritizing personal interests. As calls grow for a ceasefire, Netanyahu’s refusal to withdraw troops from Gaza’s border fuels further outrage at home and abroad.

Published

3 days ago

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5 September 2024

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Israeli Prime Minister Benjamin Netanyahu is facing increasing public pressure from families of hostages, political critics, and Middle Eastern leaders following the deaths of six hostages held by Hamas.

On Wednesday, protests erupted across Israel, including outside the Likud headquarters and at the homes of key lawmakers, as frustrations mounted over Netanyahu’s handling of the hostage crisis and the ongoing war in Gaza.

The protests intensified after Netanyahu publicly rejected calls to withdraw Israeli forces from the Gaza-Egypt border, a key demand in ongoing ceasefire negotiations.

The prime minister has insisted that maintaining a military presence in the so-called Philadelphi corridor is crucial to prevent Hamas from using the area for arms smuggling. His stance has been widely criticized both domestically and internationally, with many seeing it as a significant obstacle to progress in negotiations.

Families of the slain hostages have expressed their outrage after the release of a video by Hamas, showing one of the hostages, Eden Yerushalmi, accusing the Israeli government of abandoning her and other captives.

Yerushalmi, 24, who was abducted from the Nova music festival on 7 October, appeared gaunt and emotionally distressed in the two-minute video, which was posted by Hamas’ Al-Qassam Brigades on Monday. In the video, she pointedly blamed Netanyahu for failing to secure their release, further fueling anger among the families of hostages and the public.

The video’s release coincided with the funerals of the six hostages whose bodies were recovered from a tunnel near the Gaza-Egypt border.

Among the dead were Hersh Goldberg-Polin, Alex Lobanov, Ori Danino, Carmel Gat, and Almog Sarusi. Yerushalmi’s family authorized the release of a short clip from the video, which has since been widely circulated as a grim reminder of the failed negotiations. The Hostage Families Forum condemned the video as “shocking psychological terror” aimed at inflicting further pain on the families.

Hamas also released a separate video of Lobanov and Gat, who, like Yerushalmi, criticized the Israeli government for its failure to negotiate their release. Lobanov accused Netanyahu of neglecting the hostages, referencing the Shalit deal in which Israel released over a thousand Palestinian prisoners in exchange for one Israeli soldier.

“You failed and neglected us on October 7, and now you continue to fail in every attempt to release us alive,” he said, highlighting the dire conditions under which they were held and the bombing by Israeli forces.

Similarly, Gat, who had been in captivity for nearly 11 months, pleaded with the government to stop the bombing and prioritize their release.

Both hostages called on Israeli citizens to take to the streets and protest, urging the government to act. The release of these videos has intensified public anger and fueled ongoing protests demanding action from Netanyahu’s administration.

Meanwhile, Netanyahu’s refusal to withdraw from the Philadelphi corridor has drawn sharp criticism from his former war cabinet colleague, Benny Gantz, and international condemnation from Egypt and Saudi Arabia.

While Gantz acknowledged the importance of the corridor for Israel’s security, he stressed that the return of hostages must be prioritized over territorial control.

Critics have also pointed out that Netanyahu’s personal interests may be at play in prolonging the conflict.

Facing charges of fraud, bribery, and breach of trust in three cases filed in 2019, Netanyahu’s continued tenure as prime minister is seen by many as a strategic move to avoid legal repercussions.

If convicted, Netanyahu could face up to 10 years in prison, and some argue that staying in power shields him from potential imprisonment.

His critics claim that Netanyahu is willing to risk regional stability and global peace to remain in office, as losing his political position could leave him vulnerable to prosecution, potentially leading to a life behind bars.

As tensions escalate, Netanyahu faces a critical test in navigating the hostage crisis and the broader conflict, with both domestic and international pressure mounting.

Many are questioning whether his decisions are driven by national security or personal survival, adding to the growing discontent within Israel and beyond.

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International

UK suspends arms export licences to Israel over humanitarian law concerns

The UK has suspended some arms export licences to Israel, citing a “clear risk” they may violate international humanitarian law in Gaza. The move, affecting components for military aircraft, helicopters, and drones, marks a break from US policy and raises concerns over UK-Israel relations.

Published

5 days ago

on

3 September 2024

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In a move that could strain relations with the Biden administration, the United Kingdom has announced the suspension of several arms export licences to Israel, citing a “clear risk” that these arms could be used to commit or facilitate serious violations of international humanitarian law. This decision marks a significant divergence from the tightly coordinated policy between the UK and the US regarding Israel.

The UK’s Foreign Office revealed that a two-month internal review raised concerns over Israel’s conduct in the ongoing Gaza conflict, particularly regarding the treatment of Palestinian detainees and the obstruction of aid to Gaza.

Although no definitive conclusion has been reached on whether UK-exported arms contributed to the destruction in Gaza, the scale of the devastation and civilian casualties has prompted the UK to take this precautionary measure.

The suspension affects components for military aircraft, helicopters, drones, and targeting equipment, covering 30 out of 350 existing arms licences.

Notably, components related to the F-35 fighter jet programme are largely exempt due to their integration into a global supply chain controlled by the US, a point seen as a significant loophole by pro-Palestinian groups.

UK Foreign Secretary David Lammy emphasized that this suspension is not a full arms embargo and does not match the level of previous suspensions, such as those imposed by Margaret Thatcher in 1982.

Lammy described the decision as one made “in sorrow rather than anger,” stressing that it does not amount to a judgment on Israel’s actions but is rather a forward-looking measure based on the potential risks involved.

Israeli officials reacted with dismay to the UK’s decision. Defence Minister Yoav Gallant expressed deep disappointment, emphasizing Israel’s need to defend itself against multiple threats, including those from Hamas, which recently executed six Israeli hostages.

Israeli Foreign Minister Israel Katz also criticized the UK’s move, stating it sends a problematic message to Hamas and its backers in Iran. The decision comes as Israeli Prime Minister Benjamin Netanyahu faces mounting political pressure following a general strike and public outrage over his handling of the Gaza ceasefire terms.

In his address to the House of Commons, Lammy explained that the decision was driven by evidence concerning Israel’s treatment of Palestinian prisoners and restrictions on humanitarian aid to Gaza.

The UK’s legal advice indicated that Israel could have taken more reasonable measures to facilitate humanitarian access and distribution, and it criticized Israel’s restrictive approach to dual-use items and the insufficiency of aid provided to Gaza.

The suspension is expected to complicate the UK’s relationship with the US, where the Biden administration and some Republicans close to Donald Trump have resisted similar measures, arguing there is no basis under international humanitarian law for suspending arms exports to Israel. Biden has faced pressure from the pro-Palestinian wing of the Democratic Party to leverage arms sales to force Israeli concessions in ceasefire negotiations.

In Europe, only Belgium and Spain have imposed arms embargoes on Israel, while Germany has refrained from doing so.

The UK’s decision is also likely to influence domestic legal challenges, including an upcoming case brought by Global Legal Action Network and the Palestinian human rights organization Al-Haq.

The Labour Party’s annual conference may see heated debates over the suspension, but Lammy’s careful calibration of the decision could help him navigate the potential backlash.

British arms exports to Israel amounted to £42 million in 2022, a relatively small portion of the UK’s overall arms trade, but the political implications of this suspension are likely to resonate far beyond the financial impact.

The UK’s suspension of arms export licences to Israel comes amid escalating violence in Gaza, where the death toll has surged to 40,786, according to Gaza-based health authorities.

In the past 24 hours alone, 48 people were killed and 70 wounded by Israeli military actions, bringing the total number of injured to 94,224 since the conflict erupted in early October 2023.

The Israeli military’s large-scale offensive against Hamas in the Gaza Strip is in retaliation for a Hamas-led rampage on 7 October 2023, which resulted in the deaths of approximately 1,169 people by Hamas militants and Israeli security forces under the Hannibal directive, and the taking of around 250 hostages.

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