And build illegal military bases in the South China Sea

It takes technology.

And American satellite companies are helping.

This is China Uncensored,

I'm Chris Chappell.

Boy, was I depressed a few weeks ago

when I found out Microsoft

has been working with Chinese military universities

to create artificial intelligence technology

that the Chinese regime may be using to repress its citizens.

Then I found out Google was doing pretty much the same thing.

And I was like, okay,

now I'm really depressed.

And then the episode I made about that

was demonetized by YouTube,

which is owned by Google.

And that was when I hit rock bottom.

At least that's what I thought.

But it turns out,

I had discovered a rock bottomless pit.

Because guess what?

It gets so much worse.

Have you ever taken the time to think about

how Chinese authorities communicate

with their military and police about things like,

who to repress next?

Let's be honest,

you're not thinking about

how Chinese authorities communicate.

You're probably spending more time wondering about

if you should get fries on the side with that burger.

Let me help you,

the answer is: Get a side of pizza.

Then get fries on top of *that.*

But to operate a system of mass surveillance,

with AI facial recognition and real time GPS mapping,

that requires transmitting a lot of data.

And the best way to transmit data

to and from remote locations is a satellite.

But when it comes to satellite technology,

Chinese satellites are way behind.

See, the China Academy of Space Technology satellite

can only achieve speeds of 20 gigabytes per second.

But an American-made SSL satellite

can transmit 220 gigabytes a second.

And a Boeing satellite can reach 260 gigabytes a second.

USA number one!

And China's complex surveillance systems

just need those faster speeds!

And the solution is simple.

They just use the Americans satellites.

But, you say, is that even legal?

Well, it's *not* legal for US companies

to sell satellites to China.

But here's the thing: American satellite companies

like Boeing and SSL love money.

And China has a lot of money.

And when lots of money is involved,

there's always a loophole.

And this Wall Street Journal report uncovered it.

It shows the horrifying way China exploits US satellites

to strengthen its police and military power.

You know those fake islands China

built in the South China Sea?

The ones that now have military bases

and missile launchers on them?

They're getting internet thanks to

a fleet of US made satellites.

The mass surveillance driving a brutal crackdown

of ethnic Uighurs Muslims in China's Xinjiang?

Thanks to more US satellites.

Even the broadcast of state-run media propaganda

is being carried on US made satellites.

In fact, a new satellite being built by Boeing

could even help the Chinese regime

replace the US made GPS system.

And it could also improve the People's Liberation Army's

missile guidance systems.

Now again,

that seems like it should be totally against the law

for US companies to sell satellites to China

for all that stuff, right?

And again, it is.

But that's where the loophole comes in.

Once the satellite is in space,

there are no regulations on how

the bandwidth of that satellite is used.

And that “has allowed China to essentially

rent the capacity of U.S.-built satellites

it wouldn't be allowed to buy.”

Why own, when you can rent?

Especially when owning is illegal.

Don't worry, because all of the companies

mentioned in the Wall Street Journal Article—

Boeing, SSL, and the Carlyle Group—

said they absolutely comply with all US laws.

And they do.

Technically.

See China doesn't own the satellites.

They just own a big share in the company

that owns the satellites.

And then China rents bandwidth from those satellites.

Here's how it works.

There's a company called Asia Satellite Telecommunications Co.,

aka AsiaSat.

It's based in Hong Kong.

And Hong Kong isn't China.

Well it is,

but apparently not the part of China

that's affected by US export controls.

That was clever!

So the Hong Kong company, AsiaSat,

buys satellites from a US company,

like Boeing or SSL.

Now that order has to be approved by the US government

to make sure no one's violating US laws on satellite export.

And to help the US government understand

how everything is totally legit,

the Carlyle Group,

one of the US's biggest private equity firms,

that owns a big chunk of AsiaSat—

they send a compliance report to the US government.

And the US government reads that report and says,

“oh, AsiaSat is a *Hong Kong* company.

That's ok!”

And they approve the deal.

But here's the twist.

Another big chunk of AsiaSat is owned by the CITIC Group.

Which is owned by the Chinese government.

Is that a problem?

Well, I'm sure if it was,

the managing director of the Carlyle Group,

who also happens to be the Chairman of AsiaSat,

would have said something to the US government

to blow up that incredibly lucrative deal.

So Chinese state-owned CITIC

then goes on to sell bandwidth

from those American made satellites to Chinese entities.

For example, state-run propaganda broadcasters,

soldiers in the South China Sea, or police in Xinjiang.

Now obviously, Boeing or SSL,

even AsiaSat claim they never specifically intended

for their technology to be used by China's

Ministry of Public Security and the police.

Which I believe.

Even though China's Ministry of Public Security

has specifically said that's how they were using it.

I mean, how could these poor US companies

and AsiaSat executives know that a major owner of AsiaSat

was a conglomerate owned by the Chinese government,

that had specifically bragged about how

“AsiaSat's satellites helped ensure communications for authorities

as they quelled anti government protests and riots

in Tibet and in Xinjiang.”?

And how could they know that their data feeds,

which provide internet coverage to the South China Sea,

would be used to provide internet coverage to...

the South China Sea?

Where China is building all those military bases.

Look, that stuff's complicated.

It's not like rocket science.

A spokesperson for the Carlyle Group

told the Wall Street Journal that

“AsiaSat, because of privacy issues,

doesn't monitor or regulate the content that flows through it,”

so obviously there's no way anyone at AsiaSat

could have known what the Chinese military was up to.

Of course AsiaSat does draw the line somewhere.

For instance,

all that stuff I mentioned about the Chinese military and police—

that's okay.

But AsiaSat did drop Radio Free Asia and Voice of America.

I mean, those are funded by the US government

and broadcast sensitive news into China

that the Chinese Communist Party would much rather

Chinese people don't know