China ICT (Info Communications Technology) Industry, Infra, Commerce, Exports: News & Discussions

[JSCh]

SAVA structure​

There are three layers in SAVA structure, at the moment, the IETF are working on a proposed standard on the entry level "first hop source address validation". This proposed standard is called SAVI (Source Address Validation Improvement) RFC6620, and is proposed by authors from Cisco and UC3M. Tsinghua Univ promote and contribute to SAVI. SAVI is also implemented in China IPv6 network.
IETF - Source Address Validation Improvements (savi) - Charter

RFC 6620 - FCFS SAVI: First-Come, First-Served Source Address Validation Improvement for Locally Assigned IPv6 Addresses

Abstract

This memo describes First-Come, First-Served Source Address
Validation Improvement (FCFS SAVI), a mechanism that provides source
address validation for IPv6 networks using the FCFS principle. The
proposed mechanism is intended to complement ingress filtering
techniques to help detect and prevent source address spoofing.

IP address spoofing - Wikipedia, the free encyclopedia

In computer networking, the term IP address spoofing or IP spoofing refers to the creation of Internet Protocol (IP) packets with a forged source IP address, called spoofing, with the purpose of concealing the identity of the sender or impersonating another computing system.[1]

 

[JSCh]

SAVA structure​

There are three layers in SAVA structure, at the moment, the IETF are working on a proposed standard on the entry level "first hop source address validation". This proposed standard is called SAVI (Source Address Validation Improvement) RFC6620, and is proposed by authors from Cisco and UC3M. Tsinghua Univ promote and contribute to SAVI. SAVI is also implemented in China IPv6 network.
IETF - Source Address Validation Improvements (savi) - Charter

RFC 6620 - FCFS SAVI: First-Come, First-Served Source Address Validation Improvement for Locally Assigned IPv6 Addresses


IP address spoofing - Wikipedia, the free encyclopedia

Once again, there is an IETF accepted standard proposed by Cisco and UC3M called SAVI currently work in progress. Tshinghua Univ. promoted, contributed and implemented SAVI in China.

From RFC 6620 - FCFS SAVI: First-Come, First-Served Source Address Validation Improvement for Locally Assigned IPv6 Addresses

4.3. Privacy Considerations

Personally identifying information MUST NOT be included in the FCFS
SAVI DB with the MAC address as the canonical example, except when
there is an attack attempt involved. Moreover, compliant
implementations MUST NOT log binding anchor information except where
there is an identified reason why that information is likely to be
involved in detection, prevention, or tracing of actual source
address spoofing. Information that is not logged MUST be deleted as
soon as possible (i.e., as soon as the state for a given address is
back to NO_BIND). Information about the majority of hosts that never
spoof SHOULD NOT be logged.

The internet standard is a collaborated effort, and it does has a tradition. Privacy consideration is built into the protocol, governments can regulate/control the use of the protocol according to their local laws.

 

[JSCh]

Originally it wasn't the Chinese that went about trumpeting any achievement, they are just sharing what they learned by publishing a paper in
Philosophical Transactions of The Royal Society - Recent progress in the study of the next generation Internet in China

It was the popular science publication "New Scientist" that said,

China's next-generation internet is a world-beater

Updated 13:08 11 March 2013 by Hal Hodson
Magazine issue 2907. Subscribe and save

The net's new tiger, China, is creating a faster, more secure system that is way ahead of the West

THE net is getting creaky and old: it is rapidly running out of space and remains fundamentally insecure. And it turns out China is streets ahead of the West in doing anything about it.

A report published in the Philosophical Transactions of the Royal Society last week details China's advances in creating a next-generation internet that is on a national level and on a larger scale than anything in the West.

Why would a western publication published in english for western audience do that? because,

"If you are thinking about the future of the internet, anyone that explores that territory and maps it out first has a definite competitive advantage," Riley says, "especially with the resources available to China."

It doesn't matter whether SAVA is the best or not or the west is going or not going to adapt it.

The fact of the matter is, China has a national pure native IPv6 backbone network up and running that is more secure than anything in the west.

But it looks like it is falling on deaf ear.

I suspected this would suit the Chinese just fine, because of the teaching of the ancient Chinese proverb
骄兵必败

The equivalent in english, from the Bible, Book of Proverbs,
Pride goeth before destruction, and an haughty spirit before a fall

 

[Sanchez]

Sometimes ago US had money and tech
Now we have the money (in relative terms) and some tech
Can Viets and Indians guess what would be the next?

 

[xhw1986]

Chinese internet population: 618 million
28 February 2014

Media back President Xi Jinping's pledge to make China a strong internet power amid concerns over persistent cyber attacks.

During an official meeting on security, Mr Xi called for a "master strategy... and innovative development" while stressing the strategic importance of "internet security and informatisation" as it concerned the security and development of a nation, the People's Daily reports.

The term informatisation refers to the extent of information a society gets.

China is the world's largest internet market with about 618 million internet users and cyber-security has become a matter of prime concern after the country was hit by a large-scale attack in January.

A commentary in the Beijing Times says "having a huge number of internet users does not mean we are strong". China is "still far from becoming a cyber power".

"China is now the main victim of cyber attacks... we should speed up on strategising to ensure cyber-security and gain advantage in the international competition," it adds.

Echoing similar sentiments, a commentary in the Global Times Chinese edition urges China to "build a cyber defence mechanism in the shortest time".

"Cyber competition between China and the US will be the main focus of cyber strategy in the next 10 years. Currently, the US has an obvious advantage in the overall strength, industrial competitiveness and in its soft power... all these could not be attained overnight," the commentary adds.

"Becoming a strong cyber power is an important part of the China dream," exclaims another commentary on the China Central Television website.

"The whole country should speed up on the development. Only by doing so, we will then be able to catch up [with other countries] and bring about a great rejuvenation of the Chinese nation by spurring on the China dreams," it adds.

Economic zones

Meanwhile, media are also analysing Mr Xi's speech on building a "capital economic circle" in northern China by integrating development of the Beijing and Tianjin regions along with Hebei Province.

Mr Xi explained that the development should focus on optimising "regional industrial divisions and distributions", improving resource allocation, as well as making joint efforts to control air pollution, the People's Daily reports.

Describing Mr Xi's vision as an "important strategy of nation's development", the Liberation Daily adds that the three regions have a total area of 216,000 square kilometre (83,398 square miles) and are home to over 100 million people.

Wen Kui, former president of Capital University of Economics and Business, says there are difficulties in the development of this "circle" as compared with the economic zones of Yangtze River Delta and Pearl River Delta, which are now the most developed areas in China.

He tells the Beijing Times that the two economic zones "have strong market forces" but for the three areas in northern China "each has a strong administrative role, which might hinder market integration, as all of them are focusing on doing their own work".

And finally, police have busted four massive baby trafficking rings, disguised as adoption centres, that were operating on internet chat-rooms.

A total of 1,094 suspects were arrested and 382 infants rescued during the crackdown, which involved police from 27 provincial areas, according to the China Police Daily.

BBC News - China media: Cyber power

 

[cirr]

PUBLISHED : Wednesday, 02 April, 2014, 4:26pm

UPDATED : Wednesday, 02 April, 2014, 4:27pm

The five drivers of China’s Internet deal frenzy

Jonathan Woetzel and Jeffrey Towson

BIO
Jeffrey Towson is Managing Partner of Towson Capital, advisory private equity firm. Jonathan Woetzel is a Director in McKinsey & Company’s Shanghai office, and the Director of the McKinsey Global Institute in Asia. They are Professors at Peking University’s Guanghua School of Management, and are the authors of The One Hour China Book, now available on amazon.com.



Martin Lau Chi-ping, President; and Pony Ma Huateng, Chairman and CEO, Tencent Holdings Limited, announce the company's 2013 fourth quarter and annual results. Photo: SCMP


You can’t go a week without hearing of a new acquisition by Baidu, Alibaba or Tencent. While China’s Internet giants have been doing acquisitions for years, the last three months can best be described as a frenzy.

Tencent’s recent announcements have been impressive – including:

• They are buying 15% of Leju, an online property agency, for $180 million.
• They are buying 15% of e-commerce website JD.com for $215 million.
• They are buying 28% South Korean mobile game developer CJ Games for $500 million.
• They have paid $448 million for 36% of search engine Sogou.
• They have bought about 20% of review website Dianping.

And in the last few days, Chinese media has been reporting that Tencent is buying 20% of online video site Youku Tudou for approximately $300 million.

Alibaba’s recent moves have arguably been even more ambitious.

• They invested $215 million in mobile messaging app-maker Tango, a competitor to WeChat.
• They have announced plans to take control of China’s leading mobile mapping service, AutoNavi.
• They are investing $804 million for a controlling stake in ChinaVision Media, which has a library of movies, TV shows and sports broadcasts including some Chinese rights for the English Premier League soccer.
• They have moved into Internet finance in a large way with Yu’e Bao.
• They have launched an entertainment investment fund called Yu Le Bao which lets people invest small amounts of money in TV and movie productions.
• They are investing $360M in a logistics joint venture with the Haier Group, China’s largest maker of appliances.
• And they have an agreement with Midea Group to sell the first intelligent air conditioners on Tmall.com.

Baidu has also made recent announcements:

• They are buying Chinese app distributor 91 Wireless for $1.9 billion.
• They are buying majority ownership of group buying platform Nuomi.com for $160 million.

Overall, the recent deal frenzy is pretty impressive in its speed and scale. And there are lots of explanations floating around for what is going on. That this is because Internet use is moving from PCs to smartphones. That this is mostly about competition between Tencent and Alibaba. That this is mostly about all the cash sloshing around. And so on.

In fact, such surges in M&A are fairly common. And this surge of mostly-strategic deals is quite similar to the one that took place in the US in the 1990’s when the Internet first emerged. It is actually also quite similar to a strategic merger wave that occurred around 1900 as America’s industrial economy first emerged.

In all three situations (there are others), large existing businesses were confronted with a fundamental shift in the business environment. At the start of the industrial age. At the start of the Internet age. And now at the start of a new, but not yet named, age in China.

Then, like now, the leading companies are scrambling to find a new business model for a still changing landscape. And strategic mergers and acquisitions are how big companies evolve quickly when they need to. It is also how entrepreneurs, venture capitalists and investment bankers take advantage of the situation.
Per American M&A guru Bruce Wasserstein, such deal waves are typically driven by one or more of five drivers. In China today, it looks like all five are happening at once. They are:

1. Technological change
2. The need for scale
3. Fluctuations in the financial markets
4. Regulatory change
5. The role of leadership

Technological change (#1) is the biggest driver here.

There is an acute awareness that mobile phones and e-commerce are technological changes that are fundamentally changing the Chinese economic landscape. And not just in online business. It is also changing significant sections of China’s offline economy. Financial services, entertainment, retail, logistics, transportation and many other sectors are being changed. The Internet economy is both driving productivity and creating new markets.

Against this technological change, the Internet giants are attempting to protect their current businesses from new threats – but are also rushing after the new opportunities. A lot of these deals are a “land grab” for the best new opportunities.

The need for scale (#2) is the second big driver.

Alibaba’s activity is driving Tencent to act and vice versa. If your competitor becomes twice your size in a service, you are likely at risk and growing organically will not be enough. So you need acquisitions. The race for size often leads to a competitive panic – and all this leads to deals.

Fluctuations in the financial markets (#3) also frequently lead to deal sprees (both financial and strategic). The emergence of junk bonds in the 1980’s and securitization of mortgages in the 2000’s gave rise to the LBO and mortgage deal frenzies of the same periods. Similarly, the new wealth of China’s Internet giants is enabling them to be big buyers. Cash rich Internet companies and the efficiency with which capital is deployed in China’s Internet sector are important parts of the current phenomenon.

Regulatory change (#4) also creates deal opportunities. For example, the creation and later ending of the Glass-Steagall Act started waves of divestiture and later consolidation.

In this case, there is an interesting contrast between the lack of regulation in China’s online businesses and the tight regulations of many offline industries. This has created a tempting situation where the Internet companies can operate with a regulatory advantage in many situations. It appears to be prompting entrances into more regulated industries, such as Alibaba’s move into Internet finance.

Finally there is the role of leadership (#5). This is the most interesting factor.

Deals are ultimately done by individuals. And some business leaders are more aggressive than others. Some people are empire-builders. Some are visionaries. Some are speculators. And the leaders of China’s Internet companies are a highly aggressive and highly competitive group. They are seasoned entrepreneurs and risk-takers in their primes.

So the current Internet deal spree has a lot to do with the individual personalities of Jack Ma, Martin Lau and Robin Li.

We are seeing all five drivers at once right now. It’s impressive. But it is also people are only logical to a point. Sometimes people just do deals to do deals – and frenzies can take on a life of their own.

Our take is that most Chinese companies today, Internet-based or not, have little idea how the new landscape will look in a few years. They mostly do not know what will be the winning business model. And they do not yet know what they need to be in order to survive and / or thrive.

What has happened in previous episodes of transformation (and frenzied deal-making) is that one or two companies figured it out first. They are later called the “Steve Jobs” of the situation for their prescience.

But most of the companies are just doing deals and trying to figure it out as they go. Everyone is running but only a few have a clear picture of the destination. It will be interesting to see in a few years who was actually pursuing the winning strategy and who is the Steve Jobs of this transformation.

The five drivers of China’s Internet deal frenzy | South China Morning Post

 

[cirr]

Alibaba invests $692 mln in Chinese department store operator

Mon Mar 31, 2014 9:41am IST


* Alibaba to buy $214 mln of Intime Retail shares, $478 mln in convertible bonds

* Purchase adds to more than $2.7 bln of deals from Alibaba in recent months

* Alibaba, Intime Retail to launch online-to-offline venture (Adds details of Alibaba investment, IPO plans, recent m&a activity)

By Elzio Barreto

HONG KONG, March 31 (Reuters) - China's Alibaba Group Holding Ltd agreed to invest $692 million in a Chinese department store operator as the e-commerce giant looks to bring the benefits and convenience of online shopping to customers who visit real bricks-and-mortar stores.

Alibaba, whose businesses will come under investor scrutiny ahead of the group's planned mega IPO in the United States this year, said it will buy $214 million worth of shares in Hong Kong-listed Intime Retail (Group) Co Ltd.

It also agreed to acquire $478 million of convertible bonds, which would give Alibaba a 26.1 percent stake in the department store operator once the bonds are converted into shares in three years.

In recent months Alibaba has gone on a shopping spree, spending more than $2.7 billion to expand into media, chat services and mapping technology.

The expansion has encroached on the turf of social networking giant Tencent Holdings Ltd, which has in turn made inroads into Alibaba's territory with its partnership with China's No.2 online retailer JD.com.

The purchases come as Alibaba starts its preparations for an initial public offering set to be the biggest-ever technology listing, surpassing Facebook Inc's $16 billion listing in 2012.

Intime will issue 220.54 million shares at HK$7.5335 each and HK$3.71 billion worth of convertible bonds to a unit of Alibaba, the department store operator said in a filing to the Hong Kong stock exchange on Monday.

As part of the investment, Alibaba and Intime will form a joint venture to develop online-to-offline, or O2O, business in shopping malls, department stores and supermarkets in China. Alibaba will own about 80 percent of the venture, with Intime controlling the rest.

O2O businesses seek to benefit from the meteoric rise of smartphone use in China and can help turn a search into a shopping trip or meal based on the user's location.

Shares in Intime surged as much as 17 percent shortly after the market open on Monday, following a trend of Hong Kong-listed companies whose shares gained sharply after receiving investments from Alibaba.

The gains were short-lived, with Intime reversing course and losing as much as 11.4 percent by mid-morning as investors digested details of the purchase, in which Alibaba offered to buy the stock at a 13.7 percent discount to its last traded price on March 26.

Appliance maker Haier Electronics Group Ltd soared 20 percent in December after Alibaba unveiled plans to invest $361 million.

ChinaVision Media Group more than tripled earlier in March after Alibaba agreed to buy a controlling stake for $804 million to gain access to TV and movie content. ($1 = 7.7573 Hong Kong Dollars) (Additional reporting by Donny Kwok and Paul Carsten in Beijing; Editing by Christopher Cushing and Ryan Woo)

UPDATE 1-Alibaba invests $692 mln in Chinese department store operator| Reuters

 

[cirr]

China Voice: More Internet companies should go abroad

(Xinhua) 18:42, July 21, 2014

BEIJING, July 21 -- During his trip to Brazil last week, Chinese President Xi Jinping, together with his Brazilian counterpart Dilma Rousseff, witnessed the launch of the Portuguese version of China's Baidu search engine.

It is not the first time that a Chinese Internet company has launched a non-Chinese search engine, but it is the first time that a Chinese state leader has helped promote its services.

More Chinese Internet companies should compete internationally, as they now have the ability and can make the world's cyber environment more balanced and just.

Thanks to over three decades of rapid industrialization, China has become one of the biggest exporters, and its exports have upgraded from primary goods and light industrial products to mechanical and electrical products, and now high-speed railway systems and nuclear power plants.

During Xi's visit, China and Argentina agreed to build a heavy water reactor power station in the South American country. And earlier in Brazil, the two countries agreed to cooperate in high-speed railway construction.

But this time, Internet services are on the Chinese leader's marketing list. From products to services, it shows China's industrial structure is changing.

Recent years have witnessed rapid development in China's Internet sector and other high-tech emerging industries, which has pushed the number of Internet and mobile Internet users to over 600 million, the biggest number of netizens of any country. Among the top 10 websites in 2012, only one website was based in China, but in 2013, four China-based websites entered the top-10 list.

Not only Baidu.com, but also qq.com, sina.com and other websites, have won abundant users in China and other countries that are home to Chinese speakers. Alibaba.com and taobao.com are among the world's top B2B and B2C/C2C platforms in terms of trading volume and number of clients.

Chinese Internet companies are starting to get their voices heard worldwide, as they now have the capacity to provide services outside the country.

In addition, Chinese Internet service companies going abroad has strategic significance,as search engines are highly monopolized by a few websites and the international community is rightly concerned over cyber security after Edward Snowden's leaks about intelligence project PRISM.

Breaking the information monopoly and building a fairer and safer cyberspace have become the need and consensus of many countries, bringing new opportunities for Chinese Internet service providers.

However, these companies face a long journey to really internaationalize. They must study the preferences, customs and interests of Internet users overseas, and they also have to face established Internet giants' advantages in brands, technology and customer groups.

A small step for Chinese Internet companies going abroad will probably have a big impact on the computerized world, and also provide an opportunity for cooperation between newly emerging markets.

China Voice: More Internet companies should go abroad - People's Daily Online

 

[TaiShang]

No more messing with China and acting as trojan horses while making big money out of the Chinese consumer. Days foreigners rain free and go unaccounted for is coming to an end.

China's Internet regulator warns foreign firms

A senior official with China's Internet regulator Wednesday warned that foreign firms should not harm the country's interests and security while making big money from this market.

The bottom line of the Chinese government concerning the management of Internet is national interest and the interests of Chinese consumers, said Lu Wei, director of the State Internet Information Office, at 2014 Summer Davos in the north Chinese city of Tianjin.

"We welcome all foreign companies to do business in China if they stick to this bottom line," Lu said at a sub-forum about the future of Internet business.

"What we can not allow is that you undermine the country's interests while doing business in this market and profiting from it."

When responding to a question about China's ongoing anti-trust probes, Lu said the probes do not target any specific company and China is always open to foreign firms.

"But we also would like all foreign companies to understand that they should abide by Chinese laws," he said.

Lu stressed that the fast development of Internet businesses in China proved that the country's industrial policy is open, and domestic IT firms are also open to cooperation with foreign counterparts.

The creativity of Chinese IT firms and high-quality regulation of the Internet also contributed to the development, he added.

China is conducting anti-monopoly investigations against Microsoft, Jaguar Land Rover, and Qualcomm. Paul E. Jacobs, executive chairman of Qualcomm Inc., attended the forum with Lu.

The National Development and Reform Commission confirmed in February that it is conducting an antitrust investigation into the U.S. mobile chip maker.

Jacobs refused to comment about the anti-trust probe but stressed that the company's cooperation with Chinese firms is important, mutually beneficial and has great potential.

 

[Beidou2020]

Time to bring the hammer down hard on these foreign criminals.

Excellent work by Xi and the new government.

 

[esolve]

China has 871 million mobile Internet users, which means about 470 million ppl are not using mobile Internet. And I think babies and children and old ppl usually don't user mobile Internet.

According to the so-called world bank economist estimation, there are around 400 million ppl earn under $2/day (maybe they are old ppl and children?)

so in China, ppl who earn above $2/day, like $2.5/day, use mobile Internet

---------------------------------------------------------------------------------------------------------------------------------------------------------------------

LG: Numbers are impressive in China. As we all know, China is set to surpass the US to become the world’s largest economy by the end of the year. Its middle-income population, now amounting to around half a billion people, is expected to grow steadily in the years to come. China is the leading market for a whole range of consumer categories. ICT is among the fastest growing fields and is considered as one of the strategic emerging sectors by China’s government. China’s Internet economy –as share of GDP– is already larger than that of US, France and Germany. Fixed broadband penetrates 55% of Chinese households, while mobile Internet users amount to 871 million people, making China the country with the highest number of Internet users. The market for mobile phone users is almost saturated, with close to 100% penetration rate. Such an incredible scale gives Chinese companies a huge competitive advantage. To give some examples, China Mobile has 800 million subscribers; China Telecom is the largest broadband operator in the world, serving 118 million households. The so-called BATs –Baidu, Alibaba and Tencent– are uncontested leaders in their respective field. Tencent’s Weixin (known outside China as Wechat), a social network product for smartphones, controls an active user base of 438 million people. The 16-year-old Internet giant is today the world’s 5th largest Internet company with a market cap of USD 152 billion, followed by Baidu, China’s most used search engine. Alibaba is now worth more than Facebook and Amazon at USD 278 billion, and has the ambition to serve more than half of the world’s countries by 2019. Europe is not far behind. Chinese phone makers Xiaomi and Huawei are competing fiercely to become the world’s third largest producer after Samsung and Apple. These companies have built their reputation in their home market, but are now intensively looking overseas for new opportunities.

A new platform between China and the EU will re-launch cooperation on Internet, Telecom and High Tech | Broadband4Europe

 

[kankan326]

I don't use my mobile phone very often. It still costs me $15/month.

 

[esolve]

why you taking those inferior complex indians fart so serious? Taobao's monthly revenue can dwarf that pathetic slum's whole year's domestic consumption

NO, I'm targeting at the IMF report, which says about 400 million Chinese make/live on below $2 per day

 

[Lure]

NO, I'm targeting at the IMF report, which says about 400 million Chinese make/live on below $2 per day

If you consider World Bank data published at 2011 you can see that 250 million Chinese people living under 2$(PPP)/day not 400 millions. And this is 2011 data. By the end of 2014 that percentage might have dropped down significantly. And don't forget the extremely messed up people as you've mentioned in my thread. Even in the richest countries there are people who live less then 1$/day.

 

[TaiShang]

Tencent ready to launch China’s 1st private internet bank, WeBank

Tencent today launched the website for what will likely be the first ever private internet bank in the People’s Republic of China. China began atrial program early this year that would allow five new private banks to be set up.

Web giants Alibaba and Tencent signed up, and the maker of WeChat looks to be first out of the gate. The new WeBank website reads (translation ours):

Are we a bank? Are we an internet company? We are an internet bank!

For now, the domain just holds a placeholder site with a QR code. Scanning that QR code on a mobile phone leads the user to a presentation explaining some general information about WeBank. Forcing curious visitors to scan the QR code to learn more gives some indication about Tencent’s plans for the online bank – it will primarily be a mobile experience.

Tencent owns 30 percent of WeBank, while investment firms Baiyeyuan Investment and Liye Group each own 20 percent. Seven other shareholders make up the remaining 30 percent, and the entity as a whole has a registered capital of RMB 3 billion (US$482 million). The bank was approved in July and obtained all of its necessary licenses and permits by October 22.

Several internet giants have already taken a step into the finance realm by launching high-interest savings funds. Baidu, Tencent, and Alibaba each have their own, usually in cooperation with an existing bank. Alibaba’s has grown to be one of the biggest mutual funds in the world. Additionally, Alibaba and rival ecommerce company JD have set up small loan programs and credit systems for their merchants and customers, respectively.

Setting up their own banks means these internet companies will administer their own customers’ assets rather than just being the fresh face of an existing bank. That includes greater flexibility to hand out loans and set interest rates.

WeBank’s scope covers personal banking, corporate banking, and international banking. No date was given for when operations officially begin.