[Congressional Record (Bound Edition), Volume 157 (2011), Part 7]
[Extensions of Remarks]
[Pages 9522-9523]
[From the U.S. Government Publishing Office, www.gpo.gov]




           CHINESE SPYING DEVICES INSTALLED ON HONG KONG CARS

                                 ______
                                 

                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                        Thursday, June 16, 2011

  Mr. WOLF. Mr. Speaker, I submit the following article regarding the 
scope of Chinese espionage. The degree to which China spies on both its 
own people and foreigners is a reminder of the illegitimate security 
and economic practices of Beijing.

           Chinese Spying Devices Installed on Hong Kong Cars

                 (By Albert Ding and Matthew Robertson)

       For years now Chinese authorities have been installing 
     spying devices on all dual-plate Chinese-Hong Kong vehicles, 
     enabling a vast network of eavesdropping across the 
     archipelago, according to a Hong Kong newspaper.
       The report in Apple Daily states that the recording devices 
     began being installed as ``inspection and quarantine cards'' 
     in July 2007. They were installed without charge by the 
     Shenzhen Inspection and Quarantine Bureau on thousands of 
     vehicles.
       Smugglers were the first to note something strange about 
     the devices. A source told Apple Daily that after the cards 
     were installed mainland authorities had no trouble picking 
     off the cars carrying illicit goods.
       ``For every ten cars we ran we only had [smuggled goods] in 
     three or four to reduce the risk, but the border agents 
     caught all of them. The accuracy was unreal!'' Apple Daily 
     quoted the smuggler saying.
       The device, no larger than a PDA, is taped onto the 
     vehicle's front window. Protective tape covers the screws, 
     presumably to prevent tampering--though it didn't stop Apple 
     Daily from removing the devices, taking them to experts for 
     inspection, and presenting pictures of them splayed open on 
     their website, with neat graphics indicating the various 
     internal components.
       Apple Daily says they took the device to a university 
     professor and a private investigator, both of whom attested 
     to the espionage potential of the units.
       Zhang Dawei, identified as ``a private investigator of over 
     30 years,'' took a look at the device's internal structure 
     and told the Daily that the card could certainly be used for 
     eavesdropping.
       An Associate Professor of Electrical Engineering at City 
     University of Hong Kong, Zheng Liming, took apart one of the 
     devices and confirmed that it can listen in on conversations.
       And the range is extensive, he said. ``The signal receiving 
     range is up to 20km, which means if the device installer 
     wants to, they can listen even when the vehicles are in Hong 
     Kong,'' he said.
       Two of the regions in Hong Kong where the device can 
     transmit data back to China are Sha tin and Tuen mun.
       Much cheaper chips can be used to check inspection status 
     for simple border crossings, Zhang said, ``But this device 
     uses chips commonly found in Bluetooth and voice recording 
     devices, designed for receiving voice transmission.''
       He thus thought it ``very likely'' that they were being 
     used for surveillance.
       The Daily interviewed several Hong Kong drivers to gauge 
     their reactions; predictably, they were often irate.
       Ms. Deng, who operates a real estate business, said: ``Even 
     if we hired a maid, we are not allowed to install a 
     surveillance camera in her room due to privacy issues! You 
     can't just do whatever you want.''
       A senior manager in an unidentified company noted that 
     those who qualify for the dual license plate usually have 
     some financial clout. If their business conversations in the 
     car were recorded and the information shared, he said, it may 
     be enough to send people bankrupt.
       HKBusiness.net, an online news site, says that businesses 
     that invested more than $1 million in mainland China and paid 
     more than 30,000 yuan in tax over the past year qualify for a 
     dual license plate.

[[Page 9523]]

       Apple Daily quotes a source saying there are at least 
     20,000 cars with dual license plates, and tens of thousands 
     of trucks and buses.
       A reporter from the newspaper went to the Shenzhen 
     Inspection and Quarantine Bureau and confronted them with the 
     accusations. Staff on duty flatly denied the idea, Apple 
     Daily said. Speaking Cantonese, they assured him that ``It's 
     not that high tech.''

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