TikTok under scrutiny; two Canadian details on “Spamouflage”; Intimidation campaign
Plus, what the Taiwanese government says about FIPA with Ottawa.
Dear China watcher, welcome to another issue of The Middlepowers.
Growing up in China, the term 中國特色社會主義, Socialism with Chinese characteristics was a concept drilled into me during school as a little girl. It was a recurring theme that was included in every year’s curriculum for 6 years during which you are guaranteed to be tested on in any exam that matters. And I have always thought of it as a play on words to disguise what the Chinese social structure really is. But the more I learn about China from the outside, the more I realize that characterization by Beijing itself is probably the most fitting description of the regime because what China has, truly is one of a kind. It hosts a blend of extremely advanced technology yet is one of the least free societies in the world; it is a prime market for investors from the West, but the Communist Party, the only political party with actual power in China, permeates the private sector. Understanding China is like understanding a puzzle in a smoky room, it requires concentration and wit. It is extremely ambitious when one attempts to understand Beijing’s reach via its various channels, including technology and policy, along with other entities. In general, the key to tackling a China-related issue is to manifest what sets China apart on that particular topic. These are things that came to my mind when I watched Canadian MPs on the commons ethnic committee probing into TikTok’s data privacy practice along with other social media platforms.
This is another lighter issue from me on China-Canada relations. Thank you for staying with me as always. Starting next week, you can expect more comprehensive briefings on China. Stay tuned.
First, we brief you on some breaking news on foreign interference in Canada and the new Canada-specific details that were not found in the Meta report. Then, I will take you through two of the three parliament committees that look into China-related issues. We will also look into what the Taiwanese government tells us about its soon-to-be-signed trade agreement with Canada, which Ottawa has yet to disclose. Finally, we will touch on how a U.S. auto analyst was talking up Chinese car makers.
But before that, take a look at Michael Korvig’s take on the death of Li Keqiang (RIP) on X.
Foreign interference
The week started with some breaking China-Canada news: The Department of Global Affairs published a statement claiming Canadian MPs, including Prime Minister Justin Trudeau and Opposition Leader Pierre Poilievre, faced a Chinese government disinformation campaign known as "Spamouflage" in August and September.
What is Spam(cam)ouflage? The word might ring a bell for my fellow China watchers. In Meta's Q2 Adversarial Threat Report, the tech giant disclosed its takedown of an extensive Chinese disinformation campaign, referred to as Spamouflage. Linked to Chinese law enforcement, the operation includes positive commentary on China and Xinjiang as well as criticisms of Western foreign policies, and Chinese government critics. The report states the China-based network is estimated to be the largest cross-platform operation the company has ever disrupted, targeting regions worldwide, including Taiwan, the U.S., Australia, the U.K., Japan, and global Chinese-speaking audiences.
Two details: The Canadian government carefully worded its statements regarding the operation's potential Chinese connection, drawing from tech companies and threat intelligence reports. Still, two details that weren’t in Meta’s report caught my eye: according to the government’s report, a prominent critic of the Chinese Communist Party in Canada was used in the spam comments, falsely accusing MPs of ethical and criminal misconduct. Additionally, deep fake videos were also used in spreading disinformation during the campaign.
Committee Notes
After about a year of deliberation, the House of Commons Ethics Committee has finally released its report on foreign interference, with a particular focus on Russia and China. Amid the intense public debate over foreign influence started two years ago, the committee called for a press conference to present the report.
However, Conservative MP John Brassard, the committee's chair, was notably absent due to an emergency. In his place, Liberal MP Mona Fortier and Bloc MP René Villemure took the opportunity to push forward their respective party's positions aside from briefing the media on the report itself. Villemure highlighted the Bloc's bill for a foreign agents registry, while Fortier voiced concerns about potential xenophobia if Canada implements such a measure.
The creation of a foreign registry lies at the heart of the ongoing debate on foreign interference in Canada, and the Liberal Party's hesitancy in advancing the proposal has also captured international attention. As you may recall from a previous issue, Prime Minister Justin Trudeau was grilled by Bloomberg journalist Erik Schatzker about the delay in creating such a registry in an exclusive interview in Singapore. In his response, Trudeau alluded to the same concerns about racism which was of course echoed by Liberal MP Fortier on Tuesday.
Shifting our attention to the report itself, two recommendations should pique the interest of China watchers. First, the committee suggests that the Government facilitate regular information sharing by the Canadian intelligence agency with the public. It also proposes an update to Canada's national security policy, enabling the agency to directly alert MPs about threats by a foreign entity. Lack of intelligence sharing with politicians and the public is a key weakness in Canada's approach to foreign interference, setting Canada apart from its allies.
Lawmakers on the ethnic committee had the popular social media platform TikTok on their minds in two separate studies on Wednesday.
The two witnesses for the separate, back-to-back sessions, Philippe Dufresne, Privacy Commissioner of Canada and Michael Maguire, Director, of Personal Information Protection and Electronic Documents Act, Compliance Directorate are part of the joint investigation into TikTok. (more details on this joint investigation here) Dufresne and Maguire commented on a host of questions by Canadian MPs regarding the government analysis of the much-scrutinized social media platform.
Back in February, the committee voted to investigate data harvesting by social media platforms and their links to foreign entities. The initial intent was to zero in on TikTok and its parent company ByteDance, yet in true Canadian fashion, the members decided to broaden their focus to all social media platforms and not single out China.
Nonetheless, the study began this month and had already held two meetings by the time this newsletter was published. The first one, reported by many Canadian media outlets, had TikTok's head of privacy public policy David Lieber as a witness, who insisted that Beijing cannot access user data–the same message that was given to U.S. lawmakers by the company’s CEO Shou Zi Chew in 2021. We know that U.S. politicians of both stripes were left unconvinced by Chew. As for the Canadian side, it's too early to say whether Canadian MPs on the committee will reach a similarly united or more polarized assessment driven by partisan lines.
As usual, here are a few things we can glean at this point: the witnesses revealed that the company has been cooperative with the Canadian government’s probe, which does look into its parent company ByteDance as well; and regardless of where the Canadian user data is stored, the Canadian government has jurisdiction over how the data of Canadian users is harvested and used; the investigation team comprised of both federal and provincial governments does have power to interview people under oath and verify technical testimonies from the company.
The second parliamentary committee that looks into China is the commons procedure and house affairs committee. This week the committee studied Beijing’s intimidation campaign against Conservative MP Micheal Chong–A study that was unanimously agreed upon in May —if anything, the revelation of a coercive campaign targeting a fellow Canadian MP undoubtedly united politicians from all parties.
The committee invited two important witnesses: Defense Minister Bill Blair and former opposition leader Erin O’Toole. Unfortunately, Blair's session didn't live up to our hopes. It turned into a messy hour-long exchange with occasional cross-talk, finger-pointing, and a lot of buck-passing. All of this exposed nothing but a lack of breakdown of accountability in terms of fighting foreign interference between government agencies.
The session with O’Toole, on the other hand, was quite fruitful. In his two-hour testimony, the former Canadian politician revealed that he was told by the Canadian spy agency that he would likely remain a target of Beijing despite his retirement from politics. He also called for more non-partisan actions from the Canadian government to tackle foreign interference.
Business
After eight months of negotiations, Canada and Taiwan jointly announced the conclusion of talks on the Foreign Investment Promotion and Protection Agreement on Tuesday. While the specific terms of the agreement have not been disclosed by the Canadian government, a statement from Taiwan's Executive Yuan in Chinese revealed that the accord has approximately 70 articles, taking into consideration the interests of small and medium-sized enterprises, women, and indigenous peoples.
At a press conference, John Deng, Minister to the Executive Yuan, said the agreement with Ottawa aligns with high-standard trade regulations and could pave the way for Taiwan's application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with Canada set to chair the CPTPP commission next year. Much to the dismay of China, joining the CPTPP has been a primary policy objective of President Tsai Ing-wen's government.
At the Automotive News Canada's Retail Forum in Toronto, Joe McCabe, the CEO of the U.S.-based AutoForecast Solutions, made a pitch for Canadian dealers to get on board with Chinese automakers who are gearing up to set up shop in North America. He also mentioned that, despite some initial challenges faced in the European market, these Chinese car companies are in it for the long haul and have some industry trends working in their favour. According to McCabe's analysis, Chinese automakers are likely to focus on establishing themselves in either Mexico, California, or Canada as their first steps in this expansion.