China Electronics Technology Group Corporation Explained

China Electronics Technology Group Corporation
Type:State-owned enterprise
Industry:Defence, Electronics, Telecommunications, IT
Hq Location City:Haidian District, Beijing
Hq Location Country:China
Area Served:Worldwide
Key People:Xiong Qunli (Chairman and President)[1]
Products:Radars, Unmanned aerial vehicles, Electronic equipment, Telecommunications equipments, Software, Internetworking
Operating Income: CN¥ 188 billion[2]
Income Year:2016
Net Income: CN¥ 18.31 billion
Net Income Year:2016
Assets:$51.672 million [3]
Owner:Chinese Central Government (via State Council) (100%)
Num Employees:150,000[4]
Subsid:CET HIK Group (100%)
China Electronics Technology Group Corporation
S:中国电子科技集团公司
T:中國電子科技集團公司
P:Zhōngguó Diànzǐ KējÌ Jítuán Gōngsī
Order:st
Also Known As:CETC
S2:中国电科
T2:中國電科
P2:Zhōngguó Diàn Kē
L2:China Electronics Technology

China Electronics Technology Group Corporation (CETC; Chinese: s=中国电子科技集团公司|p=zhongguo dianzi keji jituan gongsi| labels=no[5]) is a Chinese state-owned company established in 2002. Its fields include communications equipment, computers, electronic equipment, IT infrastructure, networks, software development, research services, investment and asset management for civilian and military applications.[6] It was founded with the stated goal of leveraging civilian electronics for the benefit of the People's Liberation Army.

In 2021, CETC became the third largest electronics and IT company in China after absorbing Potevio, with a combined revenue of $53 billion in 2019, behind only Huawei and Lenovo.[7]

The company also handles electronic parts and systems for radars, missiles, key components for satellites in the BeiDou network, semiconductors, antennas for wireless infrastructure as well as equipment for autonomous-driving technology.[7]

History

China Electronics Technology Group Corporation was founded in March 2002 by the Minister of Information Industry.[8] The company is located in Beijing, Shanghai, Tianjin, Guangdong, Sichuan, Shaanxi and 18 other provinces. CETC has been the intended recipient of several prosecuted acts of industrial espionage in the U.S.

In 2012, CETC celebrated their tenth anniversary and had 80,000 employees at the time.

In March 2016, the government tasked the company with developing software to identify potential terrorists; using data on jobs, hobbies, consumption habits, and other behaviors.[9]

From 2016 to 2019, CETC built radar platforms for the People's Liberation Army in the northern part of the South China Sea between the Paracel Islands and Hainan.[10]

In June 2017, CETC successfully launched the world's largest fixed-wing drone swarm to date. The drones in the swarm were a commercial fixed-wing model produced by Skywalker Technology, a Wuhan-based company.[11]

In December 2017, CETC was reported to be soliciting government contracts to deploy facial recognition systems in Hotan Prefecture.[12]

In September 2020, a CETC subsidiary named Zhenhua Data was implicated in a leak of intelligence gathering information on individuals worldwide.[13] [14]

In 2021, it was reported that Potevio had been absorbed into China Electronics Technology Group (CETC).[15]

CETC partners with Siemens and is the most important shareholder of Hikvision.[16]

U.S. sanctions

In August 2020, the Bureau of Industry and Security placed four CETC subsidiaries on its Entity List for their work to militarize artificial islands in the South China Sea.[17] [18] [19] In November 2020, Donald Trump issued an executive order prohibiting any American company or individual from owning shares in companies that the United States Department of Defense has listed as having links to the People's Liberation Army, which included CETC.[20] [21] In August 2022, CETC's 43 and 58 Research Institutes were added to the United States Department of Commerce's Entity List.[22] [23] In December 2022, CETC's 28 Research Institute and other CETC subsidiaries were added to the Entity List.[24] [25]

Following the 2023 Chinese balloon incident, the U.S. Commerce Department added CETC's 48 Research Institute to the Entity List for supporting "China's military modernization efforts, specifically the People's Liberation Army's (PLA) aerospace programs including airships and balloons."[26] [27] In May 2024, the U.S. Commerce Department added further units of CETC to the Entity List.[28]

Subsidiaries

See also

External links

Notes and References

  1. Web site: Group Leader - CETC. China Electronics Technology Group Corporation. 2016-09-10. https://web.archive.org/web/20160915052447/http://en.cetc.com.cn/enzgdzkj/about_us/group_leader/index.html. 2016-09-15. live.
  2. http://www.cetc.com.cn/zgdzkj/_300931/_301922/463036/index.html 中国电科描绘2017年发展新蓝图
  3. Web site: China Electronics Technology Group. Fortune. 2020-06-02. https://web.archive.org/web/20200218023158/https://fortune.com/global500/2019/china-electronics-technology-group/. 2020-02-18. live.
  4. Web site: Introduction - CETC. China Electronics Technology Group Corporation. 2016-09-10. https://web.archive.org/web/20160915075940/http://en.cetc.com.cn/enzgdzkj/about_us/introduction29/index.html. 2016-09-15. live.
  5. News: Luce. Matthew. February 21, 2012. A Model Company: CETC Celebrates 10 Years of Civil-Military Integration. live. https://web.archive.org/web/20191013092321/https://jamestown.org/program/a-model-company-cetc-celebrates-10-years-of-civil-military-integration/. October 13, 2019. Jamestown Foundation.
  6. News: Allen-Ebrahimian . Bethany . June 24, 2020 . Defense Department produces list of Chinese military-linked companies . live . https://web.archive.org/web/20200625220923/https://www.axios.com/defense-department-chinese-military-linked-companies-856b9315-48d2-4aec-b932-97b8f29a4d40.html . June 25, 2020 . June 24, 2020 . Axios.
  7. News: China to create 'IT aircraft carrier' through tech megamerger . live . https://web.archive.org/web/20220314205449/https://asia.nikkei.com/Business/Business-deals/China-to-create-IT-aircraft-carrier-through-tech-megamerger . 2022-03-14 . 2022-03-30 . . en-GB.
  8. Godsey. Matthew. Lincy. Valerie. 2019. Gradual Signs of Change: Proliferation to and from China over Four Decades. Strategic Trade Review. 5. 2020-10-11. 2020-10-11. https://web.archive.org/web/20201011035056/https://strategictraderesearch.org/wp-content/uploads/2019/04/Gradual-Signs-of-Change-Proliferation-to-and-from-China-over-Four-Decades.pdf. live.
  9. News: 3 March 2016 . China Tries Its Hand at Pre-Crime . live . https://web.archive.org/web/20160305032239/http://www.bloomberg.com/news/articles/2016-03-03/china-tries-its-hand-at-pre-crime . 5 March 2016 . 5 March 2016 . .
  10. Web site: Hille . Kathrin . Sevastopulo . Demetri . 2024-05-19 . The battlegrounds that could decide a US-China war over Taiwan . 2024-05-20 . . en-gb . Between 2016 and 2019, state-owned defence contractor China Electronics Technology Group Corporation (CETC) built a smattering of fixed and floating platforms studded with sensors and transmission devices in the northern part of the South China Sea, between the Paracel Islands and Hainan, where its main submarine base is located. . 2024-05-20 . https://web.archive.org/web/20240520071248/https://ig.ft.com/taiwan-battlegrounds/ . live .
  11. Web site: Laskai . Lorand . 29 January 2018 . Civil-Military Fusion: The Missing Link Between China's Technological and Military Rise . live . https://web.archive.org/web/20200718153255/https://www.cfr.org/blog/civil-military-fusion-missing-link-between-chinas-technological-and-military-rise . 18 July 2020 . 22 July 2020 . .
  12. News: Shih . Gerry . December 18, 2017 . Digital police state shackles Chinese minority . live . https://web.archive.org/web/20171219013807/https://apnews.com/1ec5143fe4764a1d8ea73ce4a3e2c570 . December 19, 2017 . December 19, 2017 . . The facial scanner is made by China Electronics Technology Group (CETC), a state-owned defense contractor that has spearheaded China’s fast-growing field of predictive policing with Xinjiang as its test bed. The AP found 27 CETC bids for Xinjiang government contracts, including one soliciting a facial recognition system for facilities and centers in Hotan Prefecture..
  13. News: Probyn. Andrew. Doran. Matthew. September 14, 2020. China's 'hybrid war': Beijing's mass surveillance of Australia and the world for secrets and scandal. Australian Broadcasting Corporation. live. September 15, 2020. https://web.archive.org/web/20200915003435/https://www.abc.net.au/news/2020-09-14/chinese-data-leak-linked-to-military-names-australians/12656668. September 15, 2020.
  14. News: September 15, 2020. NZ academic's info in huge leak of data from firm linked to Chinese intelligence. Radio New Zealand. live. September 26, 2020. https://web.archive.org/web/20200925204621/https://www.rnz.co.nz/news/national/426118/nz-academic-s-info-in-huge-leak-of-data-from-firm-linked-to-chinese-intelligence. September 25, 2020.
  15. News: CETC starts integrating Potevio . 2022-03-30 . Janes.com . en . 2022-03-31 . https://web.archive.org/web/20220331170834/https://www.janes.com/defence-news/news-detail/cetc-starts-integrating-potevio_18884 . live .
  16. News: tagesschau.de . 2020-11-23 . China Cables - Unterdrückung ohne Konsequenzen . 2021-04-13 . tagesschau.de . de . 2021-04-13 . https://web.archive.org/web/20210413214124/https://www.tagesschau.de/investigativ/ndr-wdr/uiguren-china-menschenrechte-101.html . live .
  17. News: Long. Drake. August 26, 2020. US Sanctions Chinese Companies Over South China Sea Island-Building. Radio Free Asia. live. August 26, 2020. August 28, 2020. https://web.archive.org/web/20200828010845/https://www.rfa.org/english/news/china/sanctions-08262020115604.html.
  18. News: O’Keeffe . Kate . 2020-08-26 . U.S. Sanctions Chinese Firms and Executives Active in Contested South China Sea . subscription . live . https://web.archive.org/web/20200826134752/https://www.wsj.com/articles/u-s-imposes-visa-export-restrictions-on-chinese-firms-and-executives-active-in-contested-south-china-sea-11598446551 . 2020-08-26 . 2020-08-26 . . en-US . 0099-9660.
  19. Web site: 2020-08-26 . Commerce Department Adds 24 Chinese Companies to the Entity List for Helping Build Military Islands in the South China Sea . live . https://web.archive.org/web/20200826213019/https://www.commerce.gov/news/press-releases/2020/08/commerce-department-adds-24-chinese-companies-entity-list-helping-build . 2020-08-26 . 2020-08-26 . . en.
  20. News: Pamuk. Humeyra, Alexandra Alper, Idrees. Alper. Alexandra. Ali. Idrees. 2020-11-13. Trump bans U.S. investments in companies linked to Chinese military. en. Reuters. live. 2020-12-15. https://web.archive.org/web/20201211160118/https://www.reuters.com/article/usa-china-securities-idUSKBN27T1MD. 2020-12-11.
  21. Web site: August 28, 2020 . DOD Releases List of Additional Companies, in Accordance with Section 1237 of FY99 NDAA . live . https://web.archive.org/web/20201218035158/https://media.defense.gov/2020/Aug/28/2002486659/-1/-1/1/LINK_2_1237_TRANCHE_1_QUALIFIYING_ENTITIES.PDF . 2020-12-18 . 2020-12-18 . . en-US.
  22. News: Edwards . Jane . 2022-08-24 . Commerce Announces Addition of 7 Chinese Tech Institutions to Entity List . en-US . executivegov.com . 2022-08-26 . 2022-08-25 . https://web.archive.org/web/20220825150532/https://executivegov.com/2022/08/commerce-announces-addition-of-7-chinese-tech-institutions-to-entity-list/ . live .
  23. News: 2022-08-23 . U.S. adds seven China-related entities to export control list . en . . 2022-08-26 . 2022-08-25 . https://web.archive.org/web/20220825211614/https://www.reuters.com/markets/us/us-adds-seven-china-related-entities-export-control-list-2022-08-23/ . live .
  24. News: Alper . Alexandra . 2022-12-15 . Biden blacklists China's YMTC, crackdowns on AI chip sector . en . . 2022-12-15 . 2023-08-06 . https://web.archive.org/web/20230806215540/https://www.reuters.com/technology/biden-blacklist-chinas-ymtc-crackdown-ai-chip-sector-2022-12-15/ . live .
  25. News: 2022-12-15 . Factbox: Chinese companies added to U.S. entity list . en . . 2022-12-15 . 2022-12-15 . https://web.archive.org/web/20221215231611/https://www.reuters.com/business/chinese-companies-added-us-entity-list-2022-12-15/ . live .
  26. News: Alper . Alexandra . Freifeld . Karen . 2023-02-10 . U.S. adds 6 Chinese entities tied to balloon program to export blacklist . en . . 2023-02-11 . 2023-02-11 . https://web.archive.org/web/20230211090734/https://www.reuters.com/world/us/us-add-chinese-entities-tied-balloon-program-export-blacklist-source-2023-02-10/ . live .
  27. News: Swanson . Ana . 2023-02-10 . U.S. Blacklists 6 Chinese Entities Involved in Spy Balloon Programs . en-US . . 2023-02-11 . 0362-4331 . 2023-02-11 . https://web.archive.org/web/20230211000122/https://www.nytimes.com/2023/02/10/business/economy/china-spy-balloon-sanctions.html . live .
  28. News: Alper . Alexandra . Freifeld . Karen . May 9, 2024 . Chinese companies hit with US trade restrictions over spy balloon incident . May 9, 2024 . Reuters.

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