Abstract

In this episode, Dr Zhou Zhanggui discusses about the Chinese private security sector in highly complex environments.

This podcast series is presented by Dr Alessandro Arduino, Principal Research Fellow at the Middle East Institute, National University of Singapore.

Listen to the full podcast here:

Full Transcript:

[Alessandro Arduino]:  Welcome to the 24th episode of the National University of Singapore’s Middle East Institute podcast series Boots Off the Ground: Security in Transition from the Middle East and Beyond.  In this series, we look at the future of warfare which will see uniformed soldiers, or boots on the ground, being replaced by private military companies, autonomous weapon systems and cyber weapons.

My name is Alessandro Arduino and we are very glad to have with us today, Professor Zhou Zhanggui, Director of OSS International Collaboration Mechanism (Center), Research Fellow of Overseas Safety and Security Programmes, NTS-PD, Zhejiang University and Observer and CSO member of the International Code of Conduct Association (ICoCA).

Thank you for joining us today, Zhanggui.

To start off, can you give our listeners a quick overview of Chinese private security companies (PSCs)? Since 2015, President Xi Jinping called for an improvement in the protection of overseas Chinese. What are the main trends and drivers that motivate the Chinese PSC to go out defending the Belt and Road Initiative (BRI)?

[Zhou Zhanggui]: Since the promulgation of the security service industry regulations and the norms of the ministry of public security in 2010, the main direction of domestic regulation and guidance is “market-oriented” operation and “auxiliary force” of social security services. With this positioning, the characteristics of China’s private security service industry are as follows:

1) huge personnel (at present, there are 5.5 million private security service personnel in China and nearly 10,000 security service enterprises)

2) the service price is not high. It is labour-intensive and is a service with low profit margin but its advantage is the huge demand for domestic employment. It is an important social employment solution sector.

3) there is a demand for security service for BRI projects and personnel, including private marine security for Gulf of Aden, Sulu Sea and land security service overseas, which were launched after 2015.

From the perspective of enterprise registration legal behaviour, it is mainly private enterprises and market-oriented behaviour for going overseas. These enterprises are generally different from mercenaries or private military companies in Western context.

Over the past decade, more than 30 Chinese private security service enterprises have “gone global” and gradually played a role in safeguarding China’s overseas interests. In the current Covid-19 climate, the PSCs teams in various areas have taken the advantage of front-line manpower to undertake the tasks of security inspection and pandemic prevention. Overseas security companies are also actively involved in the prevention and control of pandemic situation in the project resident and overseas Chinese and are exploring channels for domestic anti-pandemic materials procurement, logistics escort, civil assistance, which can further play a key role to the host countries in future similar events. The diversified relationship between public security departments, communities and commercial institutions provides professional security services for China’s overseas interests.

Characteristics of private security service industry in the Chinese context:

1. The Chinese and Western context of “private” is different. In China, it refers to the social market-oriented security service industry. Actors in the field of market-oriented security services are still divided into “state-owned” and “private”;
2. Private security companies mainly undertake the auxiliary social service function of public security departments;
3. Due to the above factors, the business characteristics of Chinese private security companies are as follows: first, the main market is the domestic market inside China; second, the main business is not a high-risk business (high-risk tasks inside China are still provided by public security forces such as the police; third, for private security companies that went  overseas, in general, most Chinese PSCs do not have enough capacity of performing business in overseas high-risk or complex areas at the current stage;  fourth, Chinese PSCs’ service is currently about performing service for BRI projects and personnel, mainly guarding the camp, being the internal guard of the Chinese Industrial Park and project construction camp. This is different from the international private security industry, from the Western perspective.

[Alessandro Arduino]: It is interesting that you closely relate the growth of the Chinese private security industry with the Chinese commercial expansion through the BRI. A few months back, we had a representative from HXZA on our podcast, as well as Niva Yau, talking about maritime security and Chinese PSCs in Central Asia.

How do you think that a better co-ordination mechanism between central government, the PLA – or even the United Nations peacekeeping mission – is going to support the evolution of the Chinese PSCs, especially in unstable environments such as Central and West Africa?

How do you think that the Chinese academia perceive the evolution and professionalisation of the Chinese PSCs and at the same time, how international researchers are looking at the Chinese private security sectors?

[Zhou Zhanggui]: If we look at the views of Chinese academic circles and international scholars on the professional development of private security industry in China,I published some articles and also upon consulting with some domestic scholars, we have stated that at present, there are some problems in specialisation.  In the future, it is mainly in laws and policies, international standards, talent training and co-operation methods (overseas direct operation, direct investment or M & A). At present, the development of domestic specialisation is gradually promoted according to market demand. Different market demands and different fees will be charged to gradually improve professional ability. The overseas service is gradually to be strengthened, mainly from the aspects of co-operation mode, talent training and international standards.

There is an urgent need to improve the overseas regulatory co-operation mechanism.
In order to promote the effective supervision of overseas Chinese private security service enterprises, avoid violating international law and the laws and policies of the host country and having a negative impact on the rights and interests and human rights of local communities, strengthening international co-operation in overseas supervision of Chinese PSCs is the premise. We should promote the transformation of the supervision mode of China’s overseas PSCs, effectively connect with the international “multi governance” supervision mode and carry out active dialogue with the United Nations, the International Committee of Red Cross, the ICoCA and other institutions.

It is suggested to participate in the regulation and standard improvement mechanism of the ICoCA for global complex environment security services, take part in the dialogue mechanism for the relevant international regulatory governance processes and standard setting of military and security companies – such as the United Nations Working Group on the use of mercenaries, the Montreux document forum and the ICoCA – so as to solve the practical dilemma that a single country cannot give full play to its overseas regulatory effectiveness and participate in global security governance through international regulatory co-operation.

[Alessandro Arduino]: Albeit the fact that FSG – the joint venture that Erik Prince made in HK – is still operating and just acquired Dewei, the co-operation with the West and in particular, the US private security sector, seems getting off the table each passing day. Is China aiming to develop a private security sector with ‘Chinese characteristics’ (without any support or best practices from the West) or is there temptation to lean towards the Russian model? The ubiquitous Wagner Group from the Middle East to the African continent seems to have stolen the spotlight from Erik Prince. Is China going to look to increase the co-operation with the Russian PMCs?

[Zhou Zhanggui]: On whether private security companies will learn from the Russian model and the Western model or follow the “Chinese characteristics”, according to my judgment, China will not follow the model of Russian security companies or American security companies subjectively and objectively. On the whole, China is willing to participate in international affairs under the multilateral framework of the United Nations and abide by universally recognised international regulations. China is one of the 17 countries that first initiated and signed the Montreux document and has always not supported all forms of mercenary behaviours. In recent years, the “Blackwater” model of the US and the “Wagner Group” model of Russia have been criticised by many parties on many platforms, such as the United Nations mercenary working group and the United Nations Human Rights Council. I don’t think mercenaries are among the security service options considered by China. In a word, China will not follow the” Blackwater “or “Wagner” model.

At present, in the short term – even if it is about 30 years – the main service objects of China’s overseas security services are the safety and security of overseas Chinese personnel and Chinese-funded projects. There still are many capacity reduction problems in China’s overseas security services. At present, it is in its infancy. In my opinion, at this stage, the first thing is to understand and find out the proper business form and essence of overseas security and strengthen overseas security service capacity: 1) understand and respect international rules and standards; 2) understand and respect the laws, policies, customs and cultural attributes of the host country and its territory; 3) understand and participate in the entire supply chain of overseas private security industry and business; 4) professional ability of security services (language, technology, early warning capacity, risk assessment, emergency disposal, firearms regulation, etc.)

If you look at China’s overseas security services from the whole supply chain, the PSCs is only one chain of the downstream to provide professional services and its needs and business entrustment depend on the upstream entrusting party or clients. Most of China’s overseas security clients are overseas projects and stationed personnel of state-owned enterprises. There is no question of what the Chinese government wants private security to do, which is entirely market-oriented behaviour. Market behaviour must comply with international regulations and the laws of the host country. The fundamental principle of China’s foreign policy is independence. Hold high the banner of peaceful development and co-operation, adhere to an independent foreign policy, oppose hegemonism, power politics and terrorism. China will make efforts to correctly handle the diplomatic relations among major powers, neighbouring countries and developing countries, actively participate in multilateral diplomatic activities and actively play a role in the United Nations and other important international organisations. In China’s diplomatic thinking, it will not interfere in the internal affairs of other countries. Of course, China’s private security companies are also allowed and encouraged to provide high-quality market-oriented security services in accordance with the rules of market operation, complying with international and host country laws and regulations.

[Alessandro Arduino]: As asked to our previous guests, I would like to continue this discussion about comparing Chinese PSC to Western ones. We are currently seeing many Western PSCs moving away from being a blunt instrument of force and instead, develop niches in more precise and high-tech security sectors. Do you see Chinese PSCs also going the same route by really leaning heavily on emerging technologies in the field of cybersecurity, surveillance and drones?

[Zhou Zhanggui]: The pandemic has accelerated the application of digital security technology in the field of security service, especially in relatively high-risk complex environments of overseas security – drones, face recognition, video surveillance, cyberattack and defence and other technologies have been rapidly applied to the security service, which poses new challenges to the international security industry. This has attracted the attention of major international regulators. In November 2019, at the 6th annual meeting of the International Code of Conduct for Private Security Service Providers in Geneva,  representatives from the United Nations Working Group on the use of mercenaries, the United Nations Human Rights Council, ICoCA, the International Committee of the Red Cross, The Geneva Center for security policy (GCSP) and other multilateral institutions and representatives of various countries jointly discussed the “future security trends”, held intense discussions on the “threat of artificial intelligence and scientific and technological development to the security field” and proposed that the international code of conduct needs to be adjusted to meet the needs of future scientific and technological development as well as deal with the application standards and ethical issues in the field of technology as soon as possible.

In December 2020, I was invited to participate in the special expert consultation of the United Nations Working Group on the use of mercenaries to discuss new security technologies and cyber security monitoring. The working group confirmed in its latest report on the forms, trends and manifestations of mercenaries and their related activities submitted to the United Nations General assembly (A / 75 / 259) – cyber mercenaries have the same combat capability as traditional ones. Therefore, private security enterprises can benefit from the development, maintenance and operation of new technologies used in hostilities such as drones, surveillance equipment and technical attacks and can develop new combat methods, including the use of cyberattack systems and high-tech weapons. The expert consultation meeting also discussed potential actors involved in cybersecurity actions and relevant domestic and international legislation in the field of cybersecurity.

An increasing number of international security companies will use new technology and network technology to carry out services. Since China’s expansion of the high-tech security tools in the domestic market, security companies have been providing more professional security services based on new technologies.

However, I believe that Chinese security enterprises will use technology cautiously in their “going out” services because they should comply with the host country’s specifications for the application of new technologies and data collection and disposal, as well as the requirements for personal data protection and privacy protection. Chinese technical products (including security robots, monitoring equipment, drones etc.) will be sold more to the international market but the buyers are the host government or international commercial institutions. The new trend may be to gradually drive overseas security supporting services through the market advantages of technical security products and become a comprehensive service provider of the whole product chain. At present, Chinese enterprises going global attach great importance to international compliance requirements, especially the requirements for new technology application and data privacy protection.

In the past two years, China has promulgated regulations such as cyber security and personal data protection laws which also require enterprises to comply with the corresponding legal provisions, whether operating at home or abroad. I have investigated the situation of Chinese security technology enterprises in Africa – they are mainly technology manufacturers and sellers in China or engineering contractors abroad. Of course, not only Chinese enterprises but also enterprises from all countries should abide by the international regulatory documents of the United Nations and others.

[Alessandro Arduino]: We will end with a question that is always posed to our guests: what will the future of security management in a complex environment look like in the coming 30 years, from the perspective of Chinese PSCs operating along the BRI?

[Zhou Zhanggui]: At present, Chinese PSCs mainly provide services to overseas projects invested by state-owned enterprises and personnel with routine security services such as camp guarding. There are very few PSCs that are competent enough for professional security services such as security warning, risk assessment, armed defence and emergency response. On the whole, the effective supply of overseas Chinese security enterprises is insufficient and there is a lack of service capacity.

Laws and policies are the primary barrier for Chinese PSCs to “go out”. There is a lack of connection between domestic laws and policies related to China’s private security services and international rules. On one hand, the formulation of laws and policies relating to overseas operation of security enterprises lags behind and on the other, there is insufficient awareness of international security service rules and practice. There is a need to learn and be trained in the process of international regulation on private military and security service companies, regulatory documents such as the Montreux document, ICoC, the United Nations guiding principles on business and human rights and the voluntary principles on security and human rights, ISO 18788 and ISO28007 standard documents and international rules on the management and use of weapons by security companies.

To promote the development of China’s overseas security industry, we need to first clarify the above international regulations, codes of conduct, norms and standards. Then plans and make steady progress in combining them with Chinese characteristics and the practical needs of the country’s overseas interests on the premise of clear rules and international trends of the industry.

In the past few years, I have participated in the translation, preparation and promotion of the Chinese version of relevant core documents issued by the ICoCA, participated in the preparation of the first national standard for private security service in China and the group standard of relevant industry associations, trained hundreds of security enterprises in many provinces for years and carried out hundreds of standard translation, capacity-building and training practice, which are urgent.

Therefore, Chinese PSCs providing service for BRI is a small share of the security service industry in China as a whole. I think the private security service is indispensable to China’s security industry, which is in line with international rules. What needs caution and concern is complying with the above-mentioned international norms and industry standards to provide responsible and high-quality security services.