China cites US for “unscrupulous” spying, wants IBM out of banks

[Wilikon]

The report appears to reflect the reasoning behind the latest in a number of policy moves by the Chinese government to push US information technology companies' products and services out in favor of Chinese alternatives. Bloomberg News reports that the People’s Bank of China and the Chinese Ministry of Finance have begun asking banks to replace IBM servers with Chinese-built hardware.

The hardware swap is part of a trial program that is ostensibly part of an overall review of the nation’s financial systems security. But it is also seen as retribution for the US Department of Justice’s indictment of five Chinese military officers for alleged commercial cyber-espionage—and as a reaction to the evidence of spying on Chinese networks by the National Security Agency provided by documents leaked by former NSA contractor Edward Snowden.

This is the latest in a series of moves by the Chinese government to reduce the dependence on US companies’ information technology products. China’s State Internet Information Office announced last week that it would institute a security review program to screen all information technology products for potential backdoors and other threats.

Previously, the Chinese government’s procurement center blocked the installation of Microsoft’s Windows 8 operating system as part of a bulk purchase of “energy-efficient” computers, citing security and energy consumption. And on May 25, the Financial Times reported that the government ordered state-owned businesses to stop doing business with US consulting companies over concerns that consultants could be spying for the US government.

Duncan Clark, the chairman of the Beijing-based financial analyst firm BDA China, told Bloomberg, “Security trumps everything. China doesn’t need the US companies in the way it did for the last few decades.”

IBM has already been facing declining sales in China. Last October, it reported a 22 percent decline in sales in China—and a 40 percent drop in hardware. At the time, IBM cited a new Chinese economic development plan and the slowdown of the Chinese economy. Cisco also saw drops in China.

But there was also speculation that the drops were in part a reaction to the releases last summer of NSA documents that revealed NSA cyber-espionage efforts in China. In December 2013, The Louisiana Sheriffs' Pension and Relief Fund filed a shareholder lawsuit in Manhattan's US District Court, citing IBM's alleged cooperation with the NSA's Prism as the cause for a more than $12 billion decline in the company's market value.

http://arstechnica.com/tech-policy/2014/05/china-cites-us-for-unscrupulous-spying-wants-ibm-out-of-banks/

[1715493326]

1715493326

[1715493326]

1715493326

[1715493326]

1715493326

[umair127]

Its funny I thought dell and copaqs were in banks, as I had worked in the corporate environment, usually IBM Thinkpads were used for top executives as a portable way to take there work home, oh well I guess they wont trust anything that is American branded, Thanks US gov for putting the trust back in the world

[kuroman]

Well it's about time really, I think every country should follow this step, sadly not many has the capacity to make their own hardware at a reasonable cost.

This is also a response to the latest accusations made by the US against China spying. While industrial espionage is nothing new and without a doubt that Chinese companies are doing it, there is no way China or any country in the world can match the US of A in this category heck, it's not only industrial but whole population and especially political espionage as we saw thanks to Snowden. Which makes it funny when the US complains about espionage

[umair127]

Well it's about time really, I think every country should follow this step, sadly not many has the capacity to make their own hardware at a reasonable cost.

This is also a response to the latest accusations made by the US against China spying. While industrial espionage is nothing new and without a doubt that Chinese companies are doing it, there is no way China or any country in the world can match the US of A in this category heck, it's not only industrial but whole population and especially political espionage as we saw thanks to Snowden. Which makes it funny when the US complains about espionage

well yeah they are number 1 manufacture  of any computer related, alot of mining rigs are made out in china

[Ron~Popeil]

Both countries have been spying on each other for decades. Our moronic government just gave them the moral high ground with how far we took it. Both countries need a revolution.

[dadugan]

Both countries have been spying on each other for decades. Our moronic government just gave them the moral high ground with how far we took it. Both countries need a revolution.

Yes.

But people also over estimate the usefulness of cyber spying. Misinformation can be introduced into the already overloaded information and it can take years to make sense on most of it.

Resources are better spend fixing the issue at hand than worrying about your opponent.

[wenben]

Both countries have been spying on each other for decades. Our moronic government just gave them the moral high ground with how far we took it. Both countries need a revolution.

Yes.

But people also over estimate the usefulness of cyber spying. Misinformation can be introduced into the already overloaded information and it can take years to make sense on most of it.

Resources are better spend fixing the issue at hand than worrying about your opponent.

Well said.

[bryant.coleman]

Both countries have been spying on each other for decades. Our moronic government just gave them the moral high ground with how far we took it. Both countries need a revolution.

Actually that is a good thing. The Americans are spying all around the world, and they are even tapping the telephonic conversations of various heads of states. The Chinese acts as a small counter to them.

[madken7777]

Didn't they buy out the pc division of IBM and callled the new company Lenovo?

[Snail2]

So the ice cream licked back . Ironic to see when the Chinese government accusing someone for industrial spying .

[validium]

I think they just want to boost their local tech companies after all they do have the capability why continue using foreign companies. Plus it also make things cheaper for their government.

[bryant.coleman]

I think they just want to boost their local tech companies after all they do have the capability why continue using foreign companies. Plus it also make things cheaper for their government.

The Chinese have always done that. They make it extremely difficult for foreign companies to operate in China (I am not just talking about the social media sites), at the same time making sure that the Chinese companies are able to operate anywhere in the world without any hindrance. Getting the Chinese work visa is also a very complicated process for the foreigners.

[umair127]

Both countries have been spying on each other for decades. Our moronic government just gave them the moral high ground with how far we took it. Both countries need a revolution.

Actually that is a good thing. The Americans are spying all around the world, and they are even tapping the telephonic conversations of various heads of states. The Chinese acts as a small counter to them.

well lets go back using radio wave frequency or what is it morse code. Im surprised we didnt get far with morse cold technology alot can be done with that, im sure there is reason why it was kept off keyed in technology.

[monbux]

Well the funny thing is that China actually hacked and was spying into Google databases a while before. Google withdraw their services from China.
I believe the Chinese government are just trying to open up opportunity for their own businesses.
-T

[Trading]

Power will be power and, of course, hypocrite.

The Chinese Government would do the same, including and especially against their own citizens that are much more danger than the others, if they had all the technology.

[Ron~Popeil]

Both countries have been spying on each other for decades. Our moronic government just gave them the moral high ground with how far we took it. Both countries need a revolution.

Yes.

But people also over estimate the usefulness of cyber spying. Misinformation can be introduced into the already overloaded information and it can take years to make sense on most of it.

Resources are better spend fixing the issue at hand than worrying about your opponent.

I agree completely. I would like to see the US spying on its enemies instead of its friends and citizens. Our government has become an embarrassment.