Country Reports on Terrorism 2017 - China (Hong Kong and Macau)

Overview: Referring to "terrorism, separatism, and extremism" as "three evil forces" that threaten domestic stability, China continued enhancing domestic counterterrorism efforts and called for greater regional cooperation to combat terrorism. During March-April, China initiated a major security campaign in the Xinjiang Uighur Autonomous Region (XUAR) that targeted Uighur and other Muslim ethnic groups and was reportedly aimed at rooting out what officials describe as "separatist, extremist, and terrorist activity." The campaign included detentions widely reported to number in the thousands, along with intensified use of traditional policing measures, the deployment of high-tech surveillance and monitoring systems, the involuntary collection of DNA and other biometric data, and the closure of mosques.

China's primary counterterrorism focus remained on ethnic Uighur extremists Beijing ascribes to the East Turkistan Islamic Movement (ETIM). China maintains that ETIM is responsible for much of the violence in the XUAR, despite a lack of independent information that ETIM is active in China. China's response to the threat of terrorism remained difficult to distinguish from its suppression of activities its leadership deems separatist in nature or politically subversive to the Chinese Community Party. In response to alleged separatist or subversive concerns, China intensified its security and surveillance in the XUAR, including the implementation of stricter security controls, restrictions on travel, and curbs on religious practice.

There were signs that ISIS posed a threat to China and its interests abroad, and the Chinese government reported that some Chinese citizens have joined ISIS and other terrorist organizations in the Middle East. China also issued public statements warning of growing threats to Chinese nationals abroad. In March, ISIS released a half-hour video in which it pledged to attack unspecified Chinese targets.

2017 Terrorist Incidents: The Chinese government claimed its escalated security and surveillance policies reduced the number of what it considered terrorist-related incidents in the XUAR. Details about alleged terrorism-related incidents inside China were difficult to verify due to a lack of transparency and information from the Chinese authorities. China also impeded third party efforts to independently verify state media accounts, which are often the only source of reporting on incidents on Chinese territory. In addition, requests by U.S. law enforcement officials for information on terrorist incidents from Chinese officials went largely unanswered.

Incidents described by the government as terrorism-related included:

• In February, three attackers alleged to be Uighurs detonated a homemade explosive device and killed five residents outside a government compound near Pishan County in the XUAR.

• In June, Islamic State's Khorasan Province executed two Chinese nationals who had been kidnapped in May in southwestern Pakistan.

Legislation, Law Enforcement, and Border Security: China continued to enhance surveillance and security throughout the country, sometimes citing the Counterterrorism, National Security, Counter-Espionage, and Cyber-Security laws. The 2017 Supreme People's Court report departed from past practice by not reporting the number of individuals convicted in 2016 on terrorism-related charges. Nevertheless, publicly available verdicts related to terrorism prosecutions in 2016 indicate that efforts to implement the Counterterrorism Law have focused on punishing the possession or distribution of materials that authorities deemed "fake terrorism information" or "terrorist" or "extremist" in nature. Specifically, the individuals in these cases were convicted of possessing, accessing, and distributing terrorism-related video or audio material. The implementation of the Counterterrorism Law has also focused on punishing hotels and courier services for failing to comply with "real name registration" requirements.

Lawmakers in XUAR passed a regional Anti-Religious Extremism Law in March. The law prohibits advocating or propagating what it considers "extremist" thoughts and publishing, downloading, sharing, or reading articles and audio-video material containing "extremist" content. The law also criminalizes the wearing of long beards and other practices. There were also reports that authorities compelled Uighurs and other minorities to return to the locality listed on their identification documents and that authorities confiscated the passports of members of ethnic minorities and restricted them from leaving the country. Citing terrorism concerns, authorities required some vehicles in the XUAR to install mandatory satellite tracking and required all residents there to install a surveillance "app" that automatically detects "terrorist and illegal" religious videos, images, e-books, and electronic documents on smart phones. The app reportedly has the capability to remotely delete this content. The government's broad definitions of "terrorism" and "extremism" and its unclear definition of "fake terrorism information" continued to raise human rights concerns. We refer you to the State Department's Country Reports on Human Rights Practices for further information.

Beyond China's borders, China pursued security and counterterrorism cooperation with countries that drew a similarly broad definition of "extremism" and raised human rights concerns. For example, Egyptian authorities arrested and deported at least 34 Chinese-nationality Uighurs in July, reportedly following a Chinese government order that Uighur students in Egypt return to China. Those Uighurs who returned were reportedly sent to re-education camps, where at least two have died. Also, Chinese authorities confirmed in December they were monitoring some international Twitter accounts allegedly linked to ETIM. In another incident, Italian authorities detained a Uighur activist with German citizenship, preventing him from delivering a scheduled speech about human rights in the XUAR. This detention was allegedly responding to an INTERPOL Red Notice.

Countering the Financing of Terrorism: China is a member of the Financial Action Task Force, the Asia/Pacific Group on Money Laundering, and the Eurasian Group on Combating Money Laundering and Terrorist Financing. Based on current law enforcement investigations, the United States is concerned that China does not adequately control terrorist financing.

Chinese law enforcement claims to have limited ability to freeze funds and investigate banking transactions. Additional concerns include a lack of guidance for designated non-financial businesses and professions, underdeveloped procedures for individuals and groups who seek to be delisted from domestic sanctions, and inadequate regulations defining the rights of bona fide third parties in seizure and confiscation actions.

For further information on money laundering and financial crimes, see the 2018 International Narcotics Control Strategy Report (INCSR), Volume II, Money Laundering and Financial Crimes

Countering Violent Extremism (CVE): China continued to implement broad campaigns in the XUAR under the rubric of countering what the Chinese government considered "extremism." The XUAR government also mandated "re-education" programs for members of ethnic minority communities and students who study overseas. The government implemented a number of other programs aimed at "stability maintenance," many of which promote cultural assimilation in the XUAR and place restrictions on the practice of Islam. For further information, please see the Department of State's Report on International Religious Freedom for 2017.

Regional and International Cooperation: China continued to promote the United Nations as the primary international fora for counterterrorism while increasing its engagement in other multilateral, regional, and bilateral fora. In June, China and other members of the Shanghai Cooperation Organization (SCO) signed the SCO Convention on Combating Extremism. In August, China participated in the 2nd High-level Military Leaders' Meeting on Quadrilateral Cooperation and Coordination Mechanism in Counterterrorism with Afghanistan, Pakistan, and Tajikistan in Dushanbe, and the four parties signed agreements to coordinate counterterrorism efforts. More than 80 countries sent representatives to attend China's Forum on International Cooperation in Countering the Use of Cyberspace for Criminal and Terrorist Purposes in December.

Beijing pursued the return of ethnic Uighurs and others in Malaysia and other countries to China in the name of counterterrorism cooperation, although evidence of these individuals' connection to terrorism was not made public.

Hong Kong

Hong Kong continued its effective security and law enforcement partnership with the United States through the Hong Kong Customs and Excise Department's joint implementation of the Container Security Initiative and participation in U.S.-sponsored training in port and border security.

Counterterrorism remained an operational priority for the Hong Kong Police Force. The Police Security Wing coordinates potential terrorist threat information with relevant counterterrorism units. The Police Counterterrorism Response Unit provides a strong deterrent presence. It assists police districts with counterterrorism strategy implementation and complements the tactical and professional support of existing police specialist units, such as the Explosive Ordnance Disposal Bureau, the Special Duties Unit, the Airport Security Unit, and the VIP Protection Unit.

Hong Kong is a member of the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering, a FATF-style regional body. Hong Kong's Joint Financial Intelligence Unit is a member of the Egmont Group. Terrorist financing is a criminal offense in Hong Kong, and financial institutions are required to search continuously for terrorist financing networks.

They must also screen accounts using designations lists provided by the United States under relevant authorities, as well as the UNSC ISIL (Da'esh) and al-Qa'ida and 1988 (Afghanistan/Taliban) Sanctions Committees' lists. In June, the Legislative Council passed a bill on the cross-border transportation of large quantities of currency and bearer negotiable instruments to combat terrorist financing. At year's end, the Secretary for Security had not yet designated the date when the bill would go into force.

In June, Hong Kong introduced the United Nations (Anti-Terrorism Measures) (Amendment) Bill 2017 to update the ordinance to adequately comply with UNSC resolution 2178 (2014) on Foreign Terrorist Fighters. Filing suspicious transactions reports irrespective of transaction amounts is obligatory, but because the bill passed in June 2017 and had not gone into force, Hong Kong did not require mandatory reporting requirements for cross-border currency movements in 2017. In advance of its 2018 FATF Mutual Evaluation, the Hong Kong government in June 2017 introduced in Legislative Committee two bills to bring its regulatory regime fully in line with FATF recommendations.

For further information on money laundering and financial crimes, see the 2018 International Narcotics Control Strategy Report (INCSR), Volume II, Money Laundering and Financial Crimes.

Hong Kong law enforcement officers attended U.S. government-sponsored capacity-building training at the International Law Enforcement Academy on personnel and facility security, law enforcement techniques to counter terrorism, and financial investigations.

Macau

Macau's counterterrorism cooperation with the United States included information sharing. The Police Intervention Tactical Unit (UTIP), which falls under the Macau Public Security Police Force, is responsible for protecting important installations and dignitaries and conducting high-risk missions, such as improvised explosive device deactivation. UTIP's Special Operations Group's mission is counterterrorism operations. Macau cooperated internationally on counterterrorism efforts through INTERPOL and other security-focused organizations. Macau law enforcement officers attended U.S. government-sponsored capacity-building training at the International Law Enforcement Academy on personnel and facility security, financial and crime scene investigations, computer investigations, and evidence protection.

Macau is a member of the Asia/Pacific Group on Money Laundering, a FATF-style regional body. Macau's Financial Intelligence Office is a member of the Egmont Group. In response to FATF recommendations, the Macau government enacted a new law on the cross-boundary transportation of large quantities of currency and bearer negotiable instruments in June. The law went into effective in November. Two amended laws on anti-money laundering and counterterrorist financing, which widen the scope of identifiable criminal offences and strengthen customer due diligence measures, became effective in May.

Terrorist financing is a criminal offense in Macau. Banks and other financial institutions are required to search continuously for terrorist financing networks and screen accounts using designations lists provided by the United States under relevant authorities and UNSC ISIL (Da'esh) and al-Qa'ida and 1988 (Afghanistan/Taliban) Sanctions Committees' lists. Filing suspicious transactions reports irrespective of transaction amounts is obligatory.

For further information on money laundering and financial crimes, see the 2018 International Narcotics Control Strategy Report (INCSR), Volume II, Money Laundering and Financial Crimes