The officials from China’s tech hub of Hangzhou will mainly work in the firms’ tech and manufacturing divisions. Though the original statement included few details, a report from a state-run media outlet said the companies’ will would be respected, and that the move is part of a one-year pilot program. (Wall Street Journal)
Talking point: The move gives the Chinese government more oversight of some of the country’s key enterprises. Alibaba, one of the companies involved, said it sees it as Beijing building a “bridge to the private sector,” and that the project wouldn’t interfere with its operations. But it’s likely to strengthen the western view that Chinese firms act as extensions of their government, which has led to security concerns in Washington about Alibaba, Tencent and especially Huawei. The U.S. has banned American companies from selling tech to the Chinese telecom and is trying to convince other countries to do the same, arguing that if Beijing ordered Huawei to spy on customers, it would have to comply. Huawei has said it would deny those requests; Chinese officials have said that though Chinese firms would need to help with “national intelligence work,” it would be done lawfully, in “a way that respects and protects human rights.”