China: Weaponizing Smart-City Technology
By N. MacDonnell Ulsch, Contributing Author / October 23, 2024
Mr. Ulsch is the Founder and Chief Analyst of Gray Zone Research & Intelligence—China Series, focusing on China’s technology-driven strategy for global economic supremacy. He advises the US Senate Committee on Foreign Relations on China’s cyber and technology transfer threats and has led incident investigations in 70 countries as a former Senior Managing Director at PwC’s cybercrime practice.
His research includes the impact of technology transfer on China’s economic strategy, US corporate regulatory risk, China’s supply chain penetration, and Military-Civil Fusion as a cyber threat. His LinkedIn China Polls have over 200,000 views and 25,000 followers.
Mr. Ulsch advises an East African presidential cabinet-in-exile on countering China’s Belt & Road Initiative. Previously, he served as a cyber threat advisor to the CIA, focusing on US cyber adversaries and attacks on the commercial sector and Defense Industrial Base. He also served on the US Secrecy Commission and advised a US presidential campaign on cybersecurity.
He is a Guest Lecturer on Cyber Warfare at West Point and a Research Fellow in the Master’s in Cybersecurity program at Boston College, which he helped establish.
Mr. Ulsch has authored two books: Cyber Threat: How to Manage the Growing Risk of Cyber Attacks and Threat! Managing Risk in a Hostile World. He is a Distinguished Fellow of the Ponemon Institute and serves as an Independent Director of a financial services company, focusing on cybersecurity and privacy issues.
Introduction
Last year, I discussed China’s belief that we are at war, highlighting satellite-based electronic commerce and energy from space-based solar collector fields—key components of China’s Belt and Road Initiative. These ambitious programs aim to provide China with significant influence over participating nations. This year, I turn your attention to Smart-Cities and their role in China’s strategy, as assessed by the United States-China Economic and Security Review Commission.
Smart-Cities: A New Form of Control
China’s Smart-Cities represent another form of command and control over targeted municipalities. These comments are my own and do not necessarily reflect those of the Commission or any other government entity. Smart-Cities are integral to the future, but they come with high-stakes risks, especially those cooperating with the Chinese Communist Party. China aims to win the global race toward building an intelligent, data-driven society and reap the benefits of digital dominance. This strategic geopolitical and economic war has complex military implications that the United States and its allies cannot afford to lose.
The Threat of China’s Smart-City Dominance
While we cannot definitively say that China is winning the Smart-City development war, it is making significant strides. The threat of a China-dominated Smart-City global program is substantial. We are engaged in a complex international development initiative against a uniquely powerful adversary whose mission is to dominate not only Smart-City development but also the global economy and extend its terrestrial and space militarization efforts. This jeopardizes the freedoms enjoyed by the United States and its allies and imperils the nations cooperating with China and their citizens.
What Are Smart-Cities?
Smart-Cities are clusters of advanced technologies that help municipalities operate more efficiently through the integration of Internet of Things (IoT) technology, 5G networks, Artificial Intelligence (AI), and other advanced devices. These include cameras, sensors, location devices, big data processing, data centers, and mobile networks. Smart-Cities’ operations encompass:
Energy use, consumption, and management
Autonomous vehicle management
Comparative data on alternative energy resources
Criminal activity monitoring
Climate change tracking
Air and water pollution control
Drinking water and wastewater management
Leak detection
Trash and waste management
Fleet management systems and services
Public safety
Emergency preparedness and warning systems
Monitoring structural integrity of buildings and bridges
Urban farming efficiencies
Space management
Crime management
E-Commerce
Geopolitical and Military Implications
Smart-Cities are critical to dominating future economic activities, with significant geopolitical and military implications. They will also accelerate China’s e-commerce model, contributing to its economic performance. Three types of Smart-Cities dominate the global map:
Authoritarian Smart-Cities, led by China
Values-led Smart-Cities, led by the United States
Smart-Cities employing technologies from both the United States and China
Global Smart-City Development
The Smart-City movement is growing rapidly. The United States has around 35 Smart-Cities in various stages of development, including New York, Los Angeles, Boston, San Francisco, Houston, Chicago, Seattle, Atlanta, Miami, Washington, D.C., and Philadelphia. Internationally, Smart-Cities are emerging in London, Paris, Singapore, Berlin, Stockholm, Dubai, Toronto, Munich, Vienna, Sydney, Montreal, Barcelona, Milan, Rome, Copenhagen, Dublin, Brussels, Saudi Arabia, and elsewhere. More than a hundred Smart-Cities are currently under development. China, however, leads with approximately 800 to 900 Smart-Cities and pilot programs domestically.
The Dark Side of Authoritarian Smart-Cities
Authoritarian-led Smart-Cities, such as those championed by China, pose significant concerns, particularly regarding mass surveillance and human rights violations.
Mass Surveillance of Domestic Dissidents
Earlier this year, I met with a European diplomatic executive attorney engaged in human rights. I briefed him on China’s Ministry of Public Security’s extensive mass surveillance of its Uyghur population, part of its repressive domestic tranquility program. This program is critical to China’s outbound Belt and Road initiatives. The success of China’s domestic programs paves the way for selling China solutions to other countries, showcasing a smoothly operating society.
China’s Department of Public Security uses predictive policing—corrupted AI algorithms to “predict” crimes against the state, leading to the arrest and detention of dissident groups. Over 1.3 million Uyghurs have been placed in so-called reeducation camps, facing crimes against humanity, including rape, murder, assault, torture, and cultural erasure. This is not just a domestic issue; China is exporting these services to Smart-City developments worldwide.
Criminal Management Systems as a Service (CMSaaS)
China uses the same mass surveillance systems to repress and detain its dissident population groups under the guise of law enforcement and predictive policing. Exporting these capabilities and technologies is termed Criminal Management Systems as a Service (CMSaaS). These systems feed China’s voracious appetite for information collection and analysis globally.
Weaponizing Smart-Cities: The Facts
In 2020, industry analysts reported 398 instances of 34 different Chinese firms exporting Smart-City technologies across 106 countries.
As part of China’s Belt and Road initiative, Smart-City development is a strategic opportunity for Chinese firms to expand abroad.
Implementing technologies in foreign Smart-Cities reports massive amounts of sensitive data back to China via devices from Huawei, ZTE Corporation, and other Chinese firms. Many of these companies are banned in the United States and some European countries.
Designing and conducting mass surveillance and predictive policing programs with corrupt AI programs to “predict” future crimes against the state. This has already been done against China’s Uyghur population.
Conclusion
China’s weaponization of Smart-City technology poses a significant threat to global security and human rights. The United States and its allies must remain vigilant and proactive in countering this growing influence to protect the freedoms and rights of people worldwide.