Feral Jundi

Sunday, January 8, 2012

Executive Protection: China’s New Status Symbol–A Bodyguard

Filed under: Africa,China,Executive Protection — Tags: , , , — Matt @ 11:08 PM

This is really not news if we remember my prior posts about the rise of private security in China. But what I like about stories like this is that they identify the up and coming players in the PSC market there. Or a PSC that could easily transition into more of a PMC role for ventures in places like Africa.

Yun Hai Elite Security was mentioned in this article and they have done some big name work for celebrities visiting China. They also give their guys a ton of training and they seem to attract some high end soldiers and police. These are the companies I like to watch, just because it is not that big of a step for them to cross into the realm of doing what they do in other countries and regions. China also allows these companies to exist for a reason, and these companies are really not private per se.

The other thing I have been watching lately is China’s intense focus on Africa. Businessmen from China are canvassing that continent and doing all they can to establish roots. With the amount of projects and money they bring, there is also the security required to bring peace and stability to those endeavors. That security will either come from Chinese security companies, local police or military they have agreements with, or regional private security companies–or folks that specialize in providing security on the African continent.

In other words, I expect that the Chinese will be really hitting up South African companies and individuals for all types of work. Either protecting projects or making security assessments. I could also see the Chinese contracting with companies to help professionalize the local police and military that the Chinese would make agreements with, or to help advise Chinese security companies. The Chinese are not at all afraid to set up shop in the crappiest places of Africa to get what they need. In order to make that a success, they need the right people that know how to solve problems there.

What I am interested in though is what will the Chinese do in some of these places when the local rebels or whatever group, begin to attack and give problems to these projects. Would they contract a PMC to take care of problems? Would they soup up a local military with weapons and training to go on the offensive? How far will the Chinese go in to order to restore commerce and protect their business ventures in Africa?  Who knows and it will be something to watch as these new ‘East India Companies‘ of the modern era do their thing. –Matt

Edit: 07/05/15– I found a great video by Vice about female bodyguards in China that I had to share here on this post. It also has extensive footage of Yun Hai Elite Security and how they train folks. Check it out.

 

 

China’s new status symbol: a bodyguard
Hannah Gardner
Jan 8, 2012
In a badly lit housing complex on the edge of Beijing, one building burns bright late into the night.
This hall, once a community centre for workers at Beijing’s airport, is now home to Yun Hai Elite Security – one of hundreds of companies that have sprung up across China in recent years to provide bodyguards for the country’s newly minted rich.
Here until 10 every evening, six days a week, former soldiers and athletes learn the skills required to protect people who are increasing resented in this nominally communist county.
“I don’t lack clients,” says Xin Yang, one of Yun Hai’s founders and a former member of the special services in the People’s Liberation Army (PLA).
“I have a waiting list for my bodyguards. Our trainees have a 100 per cent employment rate.”
Just over a decade ago there was little call for a business like Mr Xin’s. Politicians were more respected, international stars rarely visited and the county didn’t have a single billionaire.
Now, China is home to at least 243 individuals with assets worth more than US$1 billion (Dh3.67bn) and last year the socialist state produced its millionth millionaire.

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Monday, December 26, 2011

Industry Talk: Comparing Today’s State-Owned Firms To The East India Company

Filed under: History,India,Industry Talk — Tags: , , , , , , — Matt @ 10:19 PM

The parallels between the East India Company and today’s state-owned firms are not exact, to be sure. The East India Company controlled a standing army of some 200,000 men, more than most European states. None of today’s state-owned companies has yet gone this far, though the China National Offshore Oil Corporation (CNOOC) has employed former People’s Liberation Army troops to protect oil wells in Sudan. The British government did not own shares in the Company (though prominent courtiers and politicians certainly did). Today’s state-capitalist governments hold huge blocks of shares in their favorite companies.

I really liked this article because of it’s comparisons to today’s state-owned companies. Especially Chinese state-owned companies and their use of armed security. Now the big question is, will we see a day in which a modern state-owned company would have a standing army as large as the East India Company army? Who knows, but that is something I do like to track on this blog.

The Russians have also expanded the lethality of one of it’s state-owned companies. Back in 2007, Russia signed into law allowing Gazprom and Transneft to arm their security force for the protection of pipelines and facilities. Gazprom is a huge company and they are the largest natural gas extractor in the world, and the largest company in Russia.

Now what I always pondered with this stuff is the clash between state-owned companies and private-owned companies. Or state -owned companies and their private security or private military, clashing with other military forces or PMC’s. Especially on the high seas.

There was a recent threat warning where the Iranian navy might target merchant vessels in the Straits of Hormuz. In this situation, if there was an armed private force on a merchant vessel that was contracted by a ‘state-owned’ company, then that could be a situation where private force would combat a government force to protect company assets and personnel. The potential is there.

I guess my point is that back in the day, the East India Company had to protect it’s vessels from attacks by states and non-state actors all the time. They also raised an army on land to protect company assets as well, and this article identified the trend of these state owned companies and their private military or security as only getting bigger and more lethal in order to deal with expansion and control. A 200,000 man standing army, all under the control of a company is pretty impressive if you ask me.

The other thing I was interested in with this article was the mention of the bond as a means of dealing with the principal agent problem. Here is the quote:

The Company’s success in preserving its animal spirits owed more to necessity than to cunning. In a world in which letters could take two years to travel to and fro and in which the minions knew infinitely more about what was going on than did their masters, efforts at micromanagement were largely futile.
The Company improvised a version of what Tom Peters, a management guru, has dubbed “tight-loose management”. It forced its employees to post a large bond in case they went off the rails, and bombarded them with detailed instructions about things like the precise stiffness of packaging. But it also leavened control with freedom. Employees were allowed not only to choose how to fulfil their orders, but also to trade on their own account. This ensured that the Company was not one but two organisations: a hierarchy with its centre of gravity in London and a franchise of independent entrepreneurs with innumerable centres of gravity scattered across the east. Many Company men did extremely well out of this “tight-loose” arrangement, turning themselves into nabobs, as the new rich of the era were called, and scattering McMansions across rural England.

In modern times, we have the luxury of phones, cameras, the internet, jet aircraft, cars, overnight shipping, you name it. We have all of these tools at our disposal for the war effort, and yet we continue to have problems where a subcontractor on continent A, screws up something, and the head shed on continent B hasn’t a clue on what is going on. Or head quarters believes that things are getting taken care of, just because of emails and video conferencing–but they aren’t.

One of the solutions the East India Company came up with in their world that lacked the technologies of connectedness that we take for granted today, is the simple bond. That, and this ‘tight loose management’ concept that gave their company men ‘rules and guidelines’, but also the freedom necessary to make things happen throughout the world. And a man’s word was backed up by a bond, in which if they violated, they would literally pay for their mistake or violations.

It is such a simple little thing, and yet I am still perplexed as to why it is not used more in today’s contingency contracting? The East India Company depended on it, Renaissance period mercenaries and the towns that hired them in Italy depended upon it, and our Continental Congress and early Privateers all used the bond as a means of keeping everyone honest and on task. Perhaps problems with today’s contracting could have been minimized if we implemented a license and bonded concept for those contracts?

Cool article and check it out. –Matt

 

An armed East Indiaman vessel.

 

The East India Company
The Company that ruled the waves
As state-backed firms once again become forces in global business, we ask what they can learn from the greatest of them all
Dec 17th 2011
A POPULAR parlour game among historians is debating when the modern world began. Was it when Johannes Gutenberg invented the printing press, in 1440? Or when Christopher Columbus discovered America, in 1492? Or when Martin Luther published his 95 theses, in 1517? All popular choices. But there is a strong case to be made for a less conventional answer: the modern world began on a freezing New Year’s Eve, in 1600, when Elizabeth I granted a company of 218 merchants a monopoly of trade to the east of the Cape of Good Hope.
The East India Company foreshadowed the modern world in all sorts of striking ways. It was one of the first companies to offer limited liability to its shareholders. It laid the foundations of the British empire. It spawned Company Man. And—particularly relevant at the moment—it was the first state-backed company to make its mark on the world.

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Thursday, September 1, 2011

Weapons: Chinese Weapons In Al Shabab Hands– The QLZ 87 35mm Automatic Grenade Launcher

Filed under: Al Qaeda,China,Somalia,Weapons — Tags: , , , , , , , — Matt @ 11:36 AM

In general, the price of Chinese weapons is still about one-third lower than comparable Russian weapons. More importantly, what China wants from Africa is resources, especially crude oil, and it has already exported substantial numbers of weapons in exchange for oil. In dealing with oil-producing countries China has an advantage over Russia, which as a major world oil producer has no need to trade weapons for oil.

This is a quick heads up. I was watching a video the other day on the latest news about Al Shabab in Somalia and a particular weapon of theirs caught my eye in the footage.(.16 in the footage) This thing is a Chinese made 35 mm automatic grenade launcher called the QLZ 87 or Type 87.

My question is who is providing Al Shabab with Chinese made automatic grenade launchers?  Or perhaps they captured this weapon in one of their raids? Or with their connections with Al Qaeda, and the chaos going on throughout the middle east, AQ is able to funnel these types of weapons to them?  Who knows…? The other weapons in the video were interesting as well, and if anyone can identify those weapons, please say so in the comments. Especially the rocket launchers. I would also be curious if those are Chinese versions of Russian equipment, or in fact they are Russian weapons.

Now imagine a QLZ 87 in the hands of a pirate? A launcher equipped with a 6 or 15 round drum, slinging 35mm grenades that have a better blast radius than our 40mm, and at a distance of between 600 to 1750 meters.

And if ‘the price of Chinese weapons is still about one-third lower than comparable Russian weapons’ on the African market, then logic would say we will see stuff like this out there. Especially if the quality has increased and the Chinese have made this stuff available. (that’s what the article below mentioned) Interesting stuff. –Matt

Edit: 09/02/2011- I believe the launchers in the video are Carl Gustav 84 mm Recoilless rifles.

 

The QLZ 87 in Al Shabab video, August 31 2011.

QLZ87 35mm Automatic Grenade Launcher

The QLZ87 (also known as Type 87) is the 35mm automatic grenade launcher developed by NORINCO in the late 1980s. Designed to provide direct fire support for infantry troops, the Type 87 is the first grenade launcher that has entered service with the PLA as a standard weapon equipment. The weapon was described as “mini infantry artillery” and has been serving with the PLA infantry (including airborne forces and the Marine Corps) at platoon and company level since the mid-1990s.
Programme
The PLA began to study the use of grenade launcher in its infantry units in the 1970s. Reverse-engineering of the U.S. M-79 40mm grenade launcher and the Soviet AGS-17 35mm automatic grenade launcher was carried out in the late 1970s, but these weapons did not enter service. In the mid-1980s, NORINCO introduced the W87 35mm automatic grenade launcher for export market, and the weapon was widely seen as an indication of success in the Chinese indigenous grenade launcher programme. By the late 1980s, NORINCO introduced new improved version of the W87 for the use of the PLA. The weapon entered service with the PLA in the mid-1990s under the designation QLZ87.
The QLZ87 is available in two variants: the standard variant and the tripod-mounted heavy variant. The standard variant with a combat weight of 12kg can be carried and fired by a single soldier and is mainly for the engaging targets within 600m distance. The heavy variant with a combat weight of 20kg is carried by a crew of three and has a longer range (>1,750m). The weapon delivers 25kg HE or HEAT grenades in either single or burst mode, with a sustained rate of fire of 45rds/min.
Compared to the U.S. MK19-3 40mm automatic grenade launcher, the QLZ87 is inferior in range,  muzzle velocity, and rate of fire. However, the Chinese 35mm grenade, though lighter than the MK19-3’s 40mm grenade, has better performance in blasting radius (MK19-3: 7m; Type 87: 11m) and armour penetration (MK19-3: 51mm; Type 87: 80mm). Unlike the MK19-3, which can only be fired on tripod, the Type 87 can be carried and fired by a single soldier.
Design
The QLZ87 is a man portable, gas-operated, air-cooled, fully automatic weapon. It fires 35mm HE and HEAT grenades in either single or burst mode. The grenades are fed to the weapon using 6-round (standard variant) or 15-round (heavy variant) cartridge drum. The weapon is equipped with an optical aiming sight. The standard and heavy variants are almost identical in basic designs. The standard variant has a fold-able bipod for shooting, while the heavy variant is mounted on a tripod. If necessary, the weapon can also be mounted on vehicles or helicopters. As well as engaging ground targets, the weapon is claimed to be also capable of attacking low-flying airborne targets.
Specifications
Calibre: 35mm

Muzzle velocity: 200m/s

Firing mode: Single, burst

Max range: (standard) 600m; (heavy) 1,750m

Weight: (standard, with scope) 12kg; (heavy, with scope) 20kg

Elevation: (heavy, mounted on tripod) -10~70 degrees

Traverse: 360 degrees

Rate of fire: (sustained) 45 rds/min

Grenade weight: 250g

Ammunition: HE, HEAT
Link to weapon description here.
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Russian, Chinese weapons compete in Africa
By Andrei Chang
December 19, 2008
Hong Kong, China — China is increasingly challenging Russia in the African arms trade, offering lower prices on weapons that, ironically, are often made in China with Russian technologies. Chinese products are less expensive than Russian and Western systems, similar to the Russian systems that many African countries are familiar with, easy to maintain and easy to use in training.
Many countries are therefore switching allegiance to China for their weapons purchases. A typical example is Sudan. At a 2007 military parade, the Khartoum regime showcased its China-made T96 main battle tanks and T92 wheeled armoured vehicles.

(more…)

Thursday, July 14, 2011

Maritime Security: China Shipping Giant To Spend 12 Million On Armed Guards And Security Measures

Filed under: China,Maritime Security — Tags: , , , , , — Matt @ 3:13 PM

He said the measure was necessary for its ships when they were unable to avoid high-risk areas off Somalia, adding that the firm was keen on hiring British security companies which use former Special Air Service troops or Royal Marines.

Good on Cosco and hopefully other shipping companies will start looking hard at increasing their security investments. No idea what security companies they will use, but it does look like they are more interested in British companies at this time. Congrats to whatever company that is, and good job to the British maritime security sector for gaining such a reputation.

Which also coincides with my recent survey.  Most of the companies that guys wanted to work for, were British companies. So perhaps EOS Risk, MAST, or PVI could be in that pool of companies that Cosco is looking at?  If anyone has any inside scoop, let me know with an email or in the comments below. Although it also begs the question–what would be your status as a citizen, if you worked for a Chinese company? Can you work for them as an armed security guard, and do guys really want to work for them? I mean it is not unheard of to work on a boat that is owned and operated by multiple nationalities. But would guys have an issue working for a Chinese company like this? –Matt

China shipping giant to hire armed guards: report
Jul 14, 2011
Chinese shipping giant Cosco Shipping will spend $12 million on armed guards and other measures to protect its ships, a report said Thursday, after the UN warned of a growing threat from pirates.
The firm, China’s largest shipping company, said it would spend the money this year on bullet-proof vests and on-board equipment to deter attacks and protect its ships and crews in the Gulf of Aden and the Indian Ocean.
“We don’t want to injure people… but we have to protect ourselves,” Cosco Shipping’s chief operating officer Guo Jin told the South China Morning Post, describing the use of armed guards as a “difficult issue”.

(more…)

Monday, June 13, 2011

Afghanistan: Government Is Building A 7,000-man Security Force For Hajigak Mining Contracts

Filed under: Afghanistan,China,India,Industry Talk — Tags: , , , , , , , — Matt @ 2:00 PM

“The companies (at Hajigak) need to be secure and the Afghan government is making all arrangements. Security at the work camps, the steel plant, movement of men and materials, everything will be taken care of by the government of Afghanistan. We will permanently locate 1,500 persons of the Afghan National Police at Hajigak.”
In case the contractor wants to bring in their own security, like for an “inner ring” as the Chinese have done, Shahrani says Kabul will be “flexible”.

Now this is interesting. So I am wondering how the Afghan government plans to fight the insurgency, and build a security force for these mines?  I thought we were training the police to actually ‘police’ in Afghanistan, and not be security guards for these mines? –Matt

Foreign companies fund private army: The Afghan Government is building up a 7,000-man privately funded militia to protect the country’s mining industry as it struggles to attract foreign investment while battling against a bloody insurgency. The Mining Protection Force will be funded entirely by foreign companies through licences they buy to develop iron, gold and copper mining projects.
Story here.

—————————————————————-
New Afghanistan mining projects create opportunity for India
By Ajai Shukla
June 07, 2011
The new Great Game for the rights to mine Afghanistan’s enormous mineral wealth is gathering momentum. With the global mining industry, and especially Indian mining majors, already focused on the unfolding competition for the massive Hajigak iron-ore mine, Afghanistan has announced five potentially lucrative mines.
Speaking exclusively to Business Standard in Kabul, Afghanistan’s Minister for Mines Wahidullah Shahrani revealed, “After Hajigak, in July this year, I will put five major projects on tender: three copper and two gold deposits and, in February 2012, I will put a huge oil basin in the northern city of Mazar-e-Sharif on tender.”
Immediate attention, though, is focused on the tender for Hajigak, a two-billion-tonne deposit of high-grade iron ore in the central province of Bamiyan, for which bids are required to be submitted by August 3. Shahrani said the winner of the Hajigak contract would be finalised by October.

(more…)

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