Talk mawkish, act hawkish
When TikTok CEO Shou Zi Chew was grilled for 5 hours by the US House of Representatives Energy & Commerce Committee witnesses marvelled his endurance. His ability to withstand head seemed to defy the laws of physics. But Chew’s pacing was not a detail left to chance, according to analyst John Strand, pictured above, MD of Strand Consult. Chews had developed an impenetrably thick skin, thanks to dark arts of one of a new breed of specialised witness preparation consultants that law firms use to improve outcomes for their clients. We’d never heard of them either but they’ll soon be in every court room drama on any self-respecting TV show that wants appear authentic and believable.
People like authenticity and if you any big technology company can learn how to fake it, they become bullet proof to the regulators. The tactic is beginning to be copied here and we will watch in despair as Big Telco and Even Bigger Tech CEOs run rings around market regulators at the next hearing. How do these CEOs stonewall the likes of Ofcom? Telecoms analyst John Strand and South Korean legislator Lee Kyung-min have spoken out about this trend. As Tik Tok’s US, Chew can hire the best that money can buy in every field, from political spin doctors to acting coaches. These constitute the A-Team in crisis communications.
Strand Consult’s report Follow the money – Net Neutrality Activism Around the Globe details the transnational strategies deployed to create the appearance of grassroots efforts in service of corporations. This technique was most recently exposed by South Korean lawmaker, Lee Kyung-min, in a piece for the Korean Times, that accuses Google and its surrogates of evading tax disclosure and stoking fake outrage.
Chew knew how to pull the heartstrings of the US inquisitors. TikTok acknowledged Congress’ concerns and proposed measures to ensure safety, privacy, and security, amounting to a “firewall around American data on American soil overseen by American personnel.” Huawei attempted similar tactics according to another report Fact Check: 10 Myths That Drive Huawei’s Media Narrative.
Chew pleaded this these measures amounted to more than any company has ever attempted to placate Congress. However, this comes off as authentic as a fake Louis Vuitton bag in Thailand’s Patpong Road, Strand says in his newsletter. Counterfeits have a striking resemblance to the real thing, but they are not the real thing. In the same way, for all its attempts to be Made in Texas, TikTok is still Made in China.
The central issues, and one that Chex must distract people from, is the Chinese government’s ownership of networking hardware. This means that even without ownership of data that travels on it, any information, anywhere, that isproduced on Chinese software or hardware is available to the Chinese government at any time for any reason, says Strand Consult’s study of the OpenRAN Alliance.
An expert witness knows how to manage questions and answers. Watch the grilling of an executive for a while and soon a pattern emerges. When answers have been rehearsed they’re issued immediately, repeated in slightly different terms and summarised in alliterative terms. This is a subject who has memorised the script. When it’s a hard question, they begin by thanking the inquisitor for the opportunity to answer their question. Meanwhile, they are frantically backpedalling. This buys enough time for the coach to shout instructions into a hidden piece in their ear. The sort of touchline coaching should be banned. “The witness can also delay with a promise for a substantive written answer at a later date or decline to answer for legal, ethical or personal reasons,” said Strand.
During Huawei’s testimony to a Select Committee in the Houses of Parliament it declined to answer questions about China. While Huawei employees claimed to have freedom of speech although UK Huawei employees Dr Yao Wenbing, VP of Business Development and Partnerships and Victor Zhang, Vice President and Huawei’s Chief Representative in the UK, told a different story (See the Parliament Live 9 minutes and 36 seconds in).
The Chinese government has celebrated its loyalists. Huawei´s CFO Meng Wanzhou received a hero’s welcome after returning from Canada following a court settlement. It is standard procedure for Chinese companies outside the People’s Republic to state that they have no relationship with the Chinese government.
Meanwhile, Strand Consult reports that some countries have increased their use of Huawei and deployed their cloud infrastructure. US companies get significant workarounds on Huawei restrictions from the Department of Commerce. Strand Consult said it is not aware of any foreign company that can receives similar due process in China. No foreign person presents in front of the legislature in a live, broadcasted and recorded hearing nor can provide hearing remarks which are made available for public view. Strand Consult’s report You’re Not Welcome: An Analysis of Thousands Foreign Technology Companies Blocked by China Since 1996 describes the many double standards with China and the trillions of dollars foreign companies have lost not having access to China’ market, to say nothing of competition, fairness and freedom.
The US Congress needs another hearing to uncover all that things which CEO Chou Zi Chew declined to answer directly. It was very clear that there was a long list of critical questions which he could not answer and which he would rather answer in writing once the cameras were off and the public focus had cooled down. The tactics of corporate activism, which big companies pay ‘influencers’ to pretend to be in favour of centralised power and oligarchies, will be one of Britain’s most lucrative growth markets.