“Not only have many foreign countries legitimized private security guard services, but they have also made use of them for their national interests,” Wu told the Global Times on Monday.
“As the quality of its services is just as good as that provided by government organs and costs much less, many government agencies tend to hire security guards from private companies in order to spend less taxpayer money,” he added.
This is the quote I focused in on. China has had explosive growth in recent years and the security market has really taken off there. China is also very active in Africa or places like Iraq and Afghanistan. They are not afraid to go into the difficult areas of the world, and establish an economic foothold. Private security is a key component of that economic foothold-both in China, and abroad.
What is interesting though, is that these guards at home are not armed from what I have read. I could be wrong there, and China is just not my expertise. If true, inevitably some enterprising criminals who happened to be armed will be taking advantage of this weakness in the system and rob this ‘new rich’ of China. Or just kidnap and ransom would be profitable in such a world. I know the Chinese are one of the top kidnapped folks in the world because of their expansion abroad. Having men at arms to defend against criminals or terrorists that are armed, is a necessary service to have in my view.
But what I wanted to focus in on was the licensing aspect of this, and the quote up top. Of course China is looking at how the US and others use private security, and especially in war zones. It would make total sense that they would have their own versions of Blackwater, or similar ‘blended workforce’ company. I say blended, because when it comes to Chinese interest, I doubt they would allow private industry to do whatever it wants overseas without some kind of infusion of government/military.
They probably are running into the same problems as the west when it comes to regulating a rapidly expanding security industry like this. Creating a government agency to manage that makes sense and is a natural progression of this type of thing. Interesting stuff, and I am always on the lookout for any news about the security industry throughout the world, and China is one of the big ones to watch. –Matt
First legit bodyguard company established
April 12 2011
By Li Mao
The country’s first legal security services company was established Sunday in Henan Province after the Ministry of Public Security (MPS) legitimized the business last year.
Huangjia Security Service Company, based in the provincial capital Zhengzhou, will train nearly 200 private bodyguards for over three months, said Lü Wenqi, the company’s founder. The company received the country’s first license to offer private security guard services last year.
Lü told the Global Times on Monday that the bodyguards, whose numbers include retired policemen and graduates of the Shaolin School of Martial Arts, will be trained in a number of fields such as hand-to-hand fighting, law and business etiquette.
The cost of hiring a 24-hour bodyguard is 300,000 yuan ($45,900) per year, Lü said.
Security service companies were allowed to provide private security guard services after the MPS issued a regulation on February 3, 2010.
The regulation stated that the ministry decided to legitimize the business in order to better supervise it after market demand for the services grew.
Although the MPS banned the practice in 2000 in an effort to sever police connections with the business, one report said that China had over 3,000 companies offering private security guard services that employed thousands of people.
According to the regulation, one of the requirements for setting up a security service company is that the founder needs to have at least five years’ experience in the police, army, justice departments or security guard service management.
Wu Dong, a lawyer with Shanghai M & A Law Firm, said private security guard services are a product of the market economy and filled shortcomings in the current social public security management system.
“Not only have many foreign countries legitimized private security guard services, but they have also made use of them for their national interests,” Wu told the Global Times on Monday.
“As the quality of its services is just as good as that provided by government organs and costs much less, many government agencies tend to hire security guards from private companies in order to spend less taxpayer money,” he added.
Story here.