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Patriotic Chinese Hacking Group Reboots

Chown Group Lin Yong, wearing long sleeves, accepted an award from a hacker group in September. A Chinese hacking group that launched patriotic cyberattacks on websites in the U.S. and other countries is reorganizing after years of inactivity. And its founder says he can’t guarantee members won’t launch attacks again, even though the group’s new focus will be on defensive research. The re-emergence of the Honker Union of China highlights a continued nationalistic streak among certain influential Chinese hackers—something that could be a liability for China’s government if it sparks independent cyberattacks, but that could also serve its goals if it inspires talented hackers to seek work with the government or the military. Lin Yong, also known by the online name Lion, ran the group’s website from 2000 to 2004, when members attacked many foreign websites for political causes–mainly by defacing them, or altering their appearance and leaving messages. Mr. Lin himself attacked websites in the U.S., Japan and Taiwan, he said in a recent phone interview. The group took part, for instance, in a website defacement battle between Chinese and U.S. hackers in 2001, when the midair collision of a Chinese fighter jet and a U.S. Navy plane caused a diplomatic firestorm. The Honker Union at the time had up to 60,000 users of its online forums and over 20,000 on its electronic-mailing list, Mr. Lin said. According to a Dow Jones Newswires report at the time, among the group’s targets was a Philadelphia City government website, which was altered to show a waving Chinese flag and the words: “Beat down Imperialism of American!” The Honker Union has never had ties to China’s government or military, Mr. Lin said. “Honker” transliterates the key term in the group’s Chinese name: “hong ke,” or “red hacker.” The group’s new incarnation will be different, Mr. Lin said. Mr. Lin himself, who is 31 years old and lives in the southern Chinese city of Guangzhou, says he hasn’t been involved in the Chinese computer-security community since 2006 and now trades stocks and foreign currency for a living. He has also become a Buddhist, one “large reason” he decided to reorganize the Honker Union, he said in a message on the group’s new website. The reorganized Honker Union will hold network-security training sessions at colleges and encourage Chinese hackers and security students to use their skills to seek legitimate jobs, rather than turning to cybercrime to make money, Lin said. The group will also develop an online platform meant to help users turn security-related research into legitimate business plans, including by helping them find investment, Mr. Lin said. “Mainly now [we want] to get them to put energy into researching technology, and to help protect the networks of Chinese companies, government ministries and research institutions,” he said. When asked if the group would continue to launch attacks, Mr. Lin said: “We won’t, we probably won’t. If there’s some special incident, I can’t guarantee that other group members won’t have their own ideas. At least, right now there aren’t signs of that.” Lin also said attacks now would be “unnecessary,” given China’s rise on the international stage and an increase in Chinese regulations governing hacking. “You have to go according to the international situation. China’s international status is already not bad,” he said. Foreign officials and security experts for years have pointed to China as the source of many politically motivated attacks on foreign companies and governments. China’s government has repeatedly denied sponsoring hacking activity and said it is a major victim of hacking attacks. Authorities have also discouraged cyberattacks by private citizens, including in direct communication with hackers like Mr. Lin, who said a provincial police official in 2001 discouraged him from attacking the U.S. websites. (Mr. Lin says his group went ahead with attacks anyway and wasn’t punished.) The group’s reboot comes after two other prominent Chinese hackers last month led a public call for their peers to steer clear of cybercrime. A larger circle of hackers, including Mr. Lin, reviewed a document containing the appeal and put it online. That document, called the “Chinese Hackers’ Self-Discipline Convention,” asks that hackers pledge to avoid acts that could harm the public, such as stealing from regular Internet users. But it doesn’t condemn all forms of cyberattacks, leaving unclear whether it would allow activist attacks on foreign targets. For instance, the document says denial-of-service attacks–in which a target website can be knocked offline—aren’t legitimate if they are done for profit or are “not in the public interest.” It doesn’t elaborate. At a Shanghai conference last month held by the organizers of the appeal against cybercrime, Mr. Lin received an award recognizing his “social influence,” underlining the strong association his group had with the surge in patriotic cyberattacks from China a decade ago. Mr. Lin also first announced his plan to revive the Honker Union in a speech at the event. Mr. Lin has since put a new manifesto for the Honker Union on its website. Posted on Oct. 1, the “National Day” holiday that commemorates the 1949 founding of Communist China, it highlights a need to help prepare the country to defend itself in any “information war.” “There are currently companies and governments in certain countries with specialized teams actively preparing for information war, and in this area we are obviously behind,” part of the manifesto says. “As security technicians, we must cultivate future technical talent and enter companies and institutions, taking up the work of defense and construction in information security. This is our job and our social responsibility.” “Honker is a kind of spirit, a kind of patriotic spirit,” it says. –Owen Fletcher

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Chown Group
Lin Yong, wearing long sleeves, accepted an award from a hacker group in September.

A Chinese hacking group that launched patriotic cyberattacks on websites in the U.S. and other countries is reorganizing after years of inactivity. And its founder says he can’t guarantee members won’t launch attacks again, even though the group’s new focus will be on defensive research.

The re-emergence of the Honker Union of China highlights a continued nationalistic streak among certain influential Chinese hackers—something that could be a liability for China’s government if it sparks independent cyberattacks, but that could also serve its goals if it inspires talented hackers to seek work with the government or the military.

Lin Yong, also known by the online name Lion, ran the group’s website from 2000 to 2004, when members attacked many foreign websites for political causes–mainly by defacing them, or altering their appearance and leaving messages. Mr. Lin himself attacked websites in the U.S., Japan and Taiwan, he said in a recent phone interview.

The group took part, for instance, in a website defacement battle between Chinese and U.S. hackers in 2001, when the midair collision of a Chinese fighter jet and a U.S. Navy plane caused a diplomatic firestorm. The Honker Union at the time had up to 60,000 users of its online forums and over 20,000 on its electronic-mailing list, Mr. Lin said. According to a Dow Jones Newswires report at the time, among the group’s targets was a Philadelphia City government website, which was altered to show a waving Chinese flag and the words: “Beat down Imperialism of American!”

The Honker Union has never had ties to China’s government or military, Mr. Lin said. “Honker” transliterates the key term in the group’s Chinese name: “hong ke,” or “red hacker.”

The group’s new incarnation will be different, Mr. Lin said. Mr. Lin himself, who is 31 years old and lives in the southern Chinese city of Guangzhou, says he hasn’t been involved in the Chinese computer-security community since 2006 and now trades stocks and foreign currency for a living. He has also become a Buddhist, one “large reason” he decided to reorganize the Honker Union, he said in a message on the group’s new website.

The reorganized Honker Union will hold network-security training sessions at colleges and encourage Chinese hackers and security students to use their skills to seek legitimate jobs, rather than turning to cybercrime to make money, Lin said. The group will also develop an online platform meant to help users turn security-related research into legitimate business plans, including by helping them find investment, Mr. Lin said.

“Mainly now [we want] to get them to put energy into researching technology, and to help protect the networks of Chinese companies, government ministries and research institutions,” he said.

When asked if the group would continue to launch attacks, Mr. Lin said: “We won’t, we probably won’t. If there’s some special incident, I can’t guarantee that other group members won’t have their own ideas. At least, right now there aren’t signs of that.”

Lin also said attacks now would be “unnecessary,” given China’s rise on the international stage and an increase in Chinese regulations governing hacking. “You have to go according to the international situation. China’s international status is already not bad,” he said.

Foreign officials and security experts for years have pointed to China as the source of many politically motivated attacks on foreign companies and governments. China’s government has repeatedly denied sponsoring hacking activity and said it is a major victim of hacking attacks.

Authorities have also discouraged cyberattacks by private citizens, including in direct communication with hackers like Mr. Lin, who said a provincial police official in 2001 discouraged him from attacking the U.S. websites. (Mr. Lin says his group went ahead with attacks anyway and wasn’t punished.)

The group’s reboot comes after two other prominent Chinese hackers last month led a public call for their peers to steer clear of cybercrime. A larger circle of hackers, including Mr. Lin, reviewed a document containing the appeal and put it online.

That document, called the “Chinese Hackers’ Self-Discipline Convention,” asks that hackers pledge to avoid acts that could harm the public, such as stealing from regular Internet users. But it doesn’t condemn all forms of cyberattacks, leaving unclear whether it would allow activist attacks on foreign targets. For instance, the document says denial-of-service attacks–in which a target website can be knocked offline—aren’t legitimate if they are done for profit or are “not in the public interest.” It doesn’t elaborate.

At a Shanghai conference last month held by the organizers of the appeal against cybercrime, Mr. Lin received an award recognizing his “social influence,” underlining the strong association his group had with the surge in patriotic cyberattacks from China a decade ago. Mr. Lin also first announced his plan to revive the Honker Union in a speech at the event.

Mr. Lin has since put a new manifesto for the Honker Union on its website. Posted on Oct. 1, the “National Day” holiday that commemorates the 1949 founding of Communist China, it highlights a need to help prepare the country to defend itself in any “information war.”

“There are currently companies and governments in certain countries with specialized teams actively preparing for information war, and in this area we are obviously behind,” part of the manifesto says. “As security technicians, we must cultivate future technical talent and enter companies and institutions, taking up the work of defense and construction in information security. This is our job and our social responsibility.”

“Honker is a kind of spirit, a kind of patriotic spirit,” it says.

–Owen Fletcher

In recent years, China has re-invigorated its support for leading state-owned enterprises in sectors it considers important to “economic security,” explicitly looking to foster globally competitive national champions.

China continues to lose arable land because of erosion and economic development.

The People’s Republic of China is the world’s second largest economy after the United States by both nominal GDP ($5 trillion in 2009) and by purchasing power parity ($8.77 trillion in 2009).

Nevertheless, key bottlenecks continue to constrain growth.

The disparities between the two sectors have combined to form an economic-cultural-social gap between the rural and urban areas, which is a major division in Chinese society.

The technological level and quality standards of its industry as a whole are still fairly low, notwithstanding a marked change since 2000, spurred in part by foreign investment.

Over the years, large subsidies were built into the price structure, and these subsidies grew substantially in the late 1970s and 1980s.

Globally, foreign investment decreased by almost 40 percent last year amid the financial downturn and is expected to show only marginal growth this year.

From January to June, the ODI in financial sectors was up by 44 percent to $17.9 billion, and in July alone, the ODI recorded $8.91 billion, the highest this year.

It also aims to sell more than 15 million of the most fuel-efficient vehicles in the world each year by then.

China’s challenge in the early 21st century will be to balance its highly centralized political system with an increasingly decentralized economic system.

Despite initial gains in farmers’ incomes in the early 1980s, taxes and fees have increasingly made farming an unprofitable occupation, and because the state owns all land farmers have at times been easily evicted when croplands are sought by developers.

China is the world’s largest producer of rice and wheat and a major producer of sweet potatoes, sorghum, millet, barley, peanuts, corn, soybeans, and potatoes.

China ranks first in world production of red meat (including beef, veal, mutton, lamb, and pork).

There are also extensive iron-ore deposits; the largest mines are at Anshan and Benxi, in Liaoning province.

China’s leading export minerals are tungsten, antimony, tin, magnesium, molybdenum, mercury, manganese, barite, and salt.

In the 1990s a program of share-holding and greater market orientation went into effect; however, state enterprises continue to dominate many key industries in China’s socialist market economy.

Brick, tile, cement, and food-processing plants are found in almost every province.

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Patriotic Chinese Hacking Group Reboots

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China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News

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The 2024 China Golden Rooster Hundred Flowers Film Festival opens

The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.


2024 China Golden Rooster and Hundred Flowers Film Festival Opens

The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.

The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.

On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.

Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News

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China

Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications

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Italy ratified an upgraded Double Tax Agreement (DTA) with China, effective in 2025, to reduce tax burdens, prevent evasion, and enhance investment. The DTA introduces modern provisions aligned with international standards, targeting tax avoidance and improving dispute resolution for Italian businesses.


Italy recently ratified the upgraded Double Tax Agreement (DTA), which will finally take effect in 2025. This agreement was signed in 2019 and was designed to reduce tax burdens, prevent tax evasion, and promote Italian investment in China.

On November 5, 2024, Italy’s Chamber of Deputies gave final approval to the ratification of the 2019 Double Tax Agreement (DTA) between Italy and China (hereinafter, referred to as the “new DTA”).

Set to take effect in 2025, the new DTA is aimed at eliminating double taxation on income, preventing tax evasion, and creating a more favorable environment for Italian businesses operating in China.

The ratification bill for the new DTA consists of four articles, with Article 3 detailing the financial provisions. Starting in 2025, the implementation costs of the agreement are estimated at €10.86 million (US$11.49 million) annually. These costs will be covered by a reduction in the special current expenditure fund allocated in the Italian Ministry of Economy’s 2024 budget, partially drawing from the reserve for the Italian Ministry of Foreign Affairs.

During the parliamentary debate, Deputy Foreign Minister Edmondo Cirielli emphasized the new DTA’s strategic importance, noting that the agreement redefines Italy’s economic and financial framework with China. Cirielli highlighted that the DTA not only strengthens relations with the Chinese government but also supports Italian businesses, which face increasing competition as other European countries have already established double taxation agreements with China. This ratification, therefore, is part of a broader series of diplomatic and economic engagements, leading up to a forthcoming visit by the President of the Italian Republic to China, underscoring Italy’s commitment to fostering bilateral relations and supporting its businesses in China’s complex market landscape.

The newly signed DTA between Italy and China, introduces several modernized provisions aligned with international tax frameworks. Replacing the 1986 DTA, the agreement adopts measures from the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project and the OECD Multilateral Instrument (MLI), targeting tax avoidance and improving dispute resolution.

The Principal Purpose Test (PPT) clause, inspired by BEPS, is one of the central updates in the new DTA, working to prevent treaty abuse. This clause allows tax benefits to be denied if one of the primary purposes of a transaction or arrangement was to gain a tax advantage, a move to counter tax evasion through treaty-shopping.


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures

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China’s new home prices fell for the 17th month in October, declining 0.5% from September, but slowing, indicating potential market stabilization amid supportive measures. Second-hand home prices showed mixed trends.


Decline in China’s Home Prices Stabilizes

China’s new home prices continued to decline in October for the 17th consecutive month, although the drop showed signs of slowing. Recent support measures from Beijing appear to be inching the market toward stabilization, as evidenced by a lighter decline compared to earlier months.

Monthly and Yearly Comparisons

According to the latest data from the National Bureau of Statistics, new home prices across 70 mainland cities fell by 0.5% from September, marking the smallest decrease in seven months. Year-on-year, prices dropped by 6.2%, slightly worse than the September decline of 6.1%. In tier-1 cities like Beijing and Shanghai, prices decreased by 0.2%, a smaller fall than 0.5% in the previous month.

Second-Hand Home Market Trends

Second-hand home prices in tier-1 cities experienced a 0.4% increase in October, reversing a 13-month downward trend. Conversely, tier-2 cities observed a 0.4% drop in second-hand prices, while tier-3 cities faced a similar 0.5% decline. Overall, recent trends indicate a potential stabilization in China’s property market.

Source : China’s new home prices slow 17-month decline after support measures kick in

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