Feral Jundi

Tuesday, April 12, 2011

Industry Talk: China Establishes The Ministry Of Public Security–First ‘Legit’ PSC Formed

Filed under: China,Industry Talk — Tags: , , , , — Matt @ 9:32 AM

“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. (more…)

Wednesday, December 22, 2010

Iraq: Oil News–Local Security Firms Running A ‘Mafia’ To Artificially Inflate Prices

Filed under: China,Industry Talk,Iraq — Tags: , , , , , , , — Matt @ 10:56 AM

     This is a great little article that gives a snap shot of the current oil security business in Iraq. It also mentions the Chinese security teams operating there and some of the issues they have faced. For a quick primer on this, I posted some stuff about China’s plans in Iraq.

     Basra is also really bad for this kind of thing. It is to be expected that these Iraqi companies would try to inflate prices and jerk around the oil companies.  Haliburton and others should not be surprised that these local companies would be like this. –Matt

WikiLeaks cables: Iraq security firms operate ‘mafia’ to inflate prices

Halliburton executive’s comments reveal tensions between security firms, oil companies and the Baghdad government

By Rajeev Syal

Tuesday 21 December 2010

Halliburton’s senior executive in Iraq accused private security companies of operating a “mafia” to artifically inflate their “outrageous prices”, according to a US cable.

Written by a senior diplomat in the US’s Basra office, the confidential document discloses the tensions between private security firms, oil companies and the Iraqi government as coalition forces withdraw from protecting foreign business interests.

John Naland, head of the provincial reconstruction team in Basra, wrote in January this year that several oil company representatives complained of “unwarranted high prices” given an improving security situation since 2008.

“Halliburton Iraq country manager decried a ‘mafia’ of these companies and their ‘outrageous’ prices, and said that they also exaggerate the security threat.

“Apart from the high costs for routine trips, he claimed that Halliburton often receives what he says are ‘questionable’ reports of vulnerability of employees to kidnapping and ransom. He said that he recently saw an internal memo from their security company which tasked its employees to emphasize the persistent danger faced by IOCs [international oil companies].” Naland wrote.

(more…)

Monday, November 29, 2010

Technology: China Used Cyber Privateers In Attack Against Google

Filed under: China,Letter Of Marque,Technology — Tags: , , , , , , , , — Matt @ 10:34 AM

     The hack was part of a computer sabotage campaign carried out by government operatives, private security experts and Internet outlaws recruited by the Chinese government. This has been going on since at least 2002, the cable said.

     I read this and the first thing that popped out at me was that China was contracting with private industry to attack an enemy in cyber space (the commons).  In this case, that enemy was Google.

     Also, just look at the list of folks they contracted with, and you wonder how is this not cyber privateering?  Perhaps the Chinese understand the concept of ‘creating an industry out of destroying your enemies’, much better than the west. It is also the Chinese who are doing this, and not some poor third world country.

     So this is the next thought that came to mind.  If China is doing this, then why couldn’t the US use the same tool of cyber warfare against the Chinese, or even against a group like Wikileaks?  Hell, we can even be open about it and issue Letters of Marque and Reprisal to individuals and companies in order to make this happen. Just a thought, and hey, China is doing it. lol –Matt

Chinese Government Ordered Hack on Google Servers: Wikileaks

By Clint Boulton2010-11-29

Wikileaks gave the New York Times a diplomatic cable that shows the Chinese government was responsible for the hack on Google’s Gmail system.

China’s government was indeed behind the hack on Google’s Gmail system earlier this year according to a cable captured by the controversial Wikileaks organization.

Wikileaks, which butters its bread collecting secret documents and seeding them in media outlets, snagged 250,000 American diplomatic cables dating back three years and released some of them to the New York Times and other media outlets.

The Times cited one of the cables as proof that “China’s Politburo directed the intrusion into Google’s computer systems in that country, a Chinese contact told the American Embassy in Beijing in January.”

The hack was part of a computer sabotage campaign carried out by government operatives, private security experts and Internet outlaws recruited by the Chinese government. This has been going on since at least 2002, the cable said.

A Google spokesperson told eWEEK: “We aren’t going to be able to comment. As you know, since we revealed this incident in January, we haven’t been speculating as to the parties responsible.”

(more…)

Wednesday, September 22, 2010

Executive Protection: The Explosive Growth Of The Close Protection Industry In China

Filed under: China,Executive Protection,Industry Talk — Tags: , , , , , , , , , — Matt @ 1:13 AM

When Zhe, a national-level kung fu coach and former government security agent, started his company eight years ago, aiming to serve a high-end, wealthy clientele, he recalls there were few if any competitors in the game. By the end of last year, according to the Ministry of Public Security, the private security business had grown into a $1.2 billion industry with about 2,767 companies employing more than two million security guards. 

*****

    Wow, I had no idea it was this big?  And what is really interesting about this, is how this will translate into China’s presence throughout the world?  If the rich in China are reaching out to the close protection industry, then I would imagine that some of this relationship would spill overseas into some of the places overseas.  Especially in the war zones or in countries that China’s executives and businessmen might have some concerns in.

    I have to think that out of those 2,767 companies providing over two million security guards, that there are a few who have interests in overseas work.  I wouldn’t be surprised that a few of them might even consider themselves a PMC and are seeking to enter into this area of contracting in order to support China’s policy goals throughout the world. That’s if they have been watching how the US uses companies.

    Finally, it looks like they are going through a period of regulation concerns over how their industry is monitored and kept in check.  Nothing new there, and this is a problem world wide.  Some countries do better than others. Still, there will always be issues and especially when governments are involved with the process. lol –Matt

As China’s wealthy grow in numbers, so do their protectors

Bodyguard services are big hit

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As China’s wealthy grow in numbers, so do their protectors

By Keith B. RichburgSunday, September 19, 2010

BEIJING – Perhaps the most visible sign of the explosion of private wealth in China tries hard not to be visible at all – the private bodyguard.

They work as drivers or nannies, or blend into a businessman’s coterie looking like a secretary, a briefcase carrier or a toady. Unlike bodyguards in the United States, they are generally not tall and imposing; in fact, many are women, on the theory that females in the retinue attract less attention.

And also unlike in the United States, they are never armed, since private citizens in China are largely prohibited from owning firearms. Rather, Chinese bodyguards are martial arts experts, trained to disarm or subdue an attacker with a few quick thrusts, jabs and hand chops.

“In China, we don’t need people who know guns,” said Michael Zhe, president of Beijing VSS Security Consulting Ltd, which started in 2002 and counts itself as the country’s oldest private security firm. “Bodyguards can use one or two blows to stop an attacker.”

(more…)

Thursday, September 2, 2010

Aviation: Iceland’s Keflavik Airbase To Become Privatized ‘Top Gun’ School

Filed under: Aviation,China,Iceland,Russia,Training — Tags: , , , , , , , , , , — Matt @ 1:49 AM

SU-27s are an important part of Russian and Chinese air power but Mr ten Cate insists that ECA is not aiming to imitate either. “Russian fighter jets have been sold around the world so they are widely used,” he says. “We’re a generic enemy.”

A recruitment drive is under way for up to 45 qualified fighter pilots, as well as maintenance technicians. An advertisement was placed in an aviation trade publication last month offering pilots a salary of €160,000 a year – more than all but the most senior commercial airline pilots.

*****

     Pretty cool, and check out the salary the pilots of these things will get? But what is really interesting is that this company will have a very unique capability.  By constantly wargaming and learning the limitations and capabilities of these aircraft, they will be able to learn the best way to use them.  That information will definitely be used in future planning and training, along with the incredible war gaming these folks will be able to offer.

     The other interesting angle is that the only articles that I have found about this, is the FT ones I posted below, and a Russian Times article that bashed the hell out of the idea.  Of course they called this company a ‘private army’ and mercenary and whatever ‘evil’ western name they could use to fire up any criticism of the deal. A little miffed maybe? lol No commentary from China yet.

     Interesting move, and the jobs it will produce locally will be great for Iceland. It will also help them strategically, by setting up a school that will help their air force, and friendly air forces throughout the world who wish to gain a jet fighting capability for defeating Chinese and Russian aircraft. Not a bad gig for ECA Program Ltd. –Matt

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Sukhoi Su-27 Fighter

ECA has agreed to buy up to 33 Sukhoi Su-27 fighters. 

Cold war base to be private ‘Top Gun’ school

By Andrew Ward in Stockholm

August 30 2010

Iceland’s Keflavik airbase, a bulwark of western security during the cold war, would be home to two squadrons of Russian-made fighter jets under plans being considered by Reykjavik.

The Icelandic government is in talks about renting the airbase to a private company that says it is buying up to €1.2bn ($1.5bn) of Sukhoi warplanes from Belarus for use as a mock enemy in military training exercises.

ECA Program says it has already signed up five air forces keen to test their pilots and jets against an aircraft most commonly flown by the Russian and Chinese militaries.

(more…)

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