Foreign tech firms pose threat on Internet; World's largest Internet hacker

Companies asked by Washington to use online services to spy on customers

Foreign technology services providers such as Google and Apple can become cybersecurity threats to Chinese users, security analysts said, one week after China announced that it will put in place a security review on imported technology equipment.

Other major tech companies, such as Yahoo, Cisco, Microsoft and Facebook, were required by the US National Security Agency to transfer their users' information, according to Wan Tao, founder of Intelligence Defense Friends Laboratory, an independent institution focusing on cybersecurity in China.

Wan said that online services have become a major way for the US to steal information globally.

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Ning Jiajun, a senior researcher at the Advisory Committee for State Informatization, said, "Previously, the US asked companies to install wiretapping software on their technological products, but if users found and shut down related functions, its 'plan' would fail," he said.

For instance, information on a Chinese organization can be stolen when it places an order on an international shopping website, he said.

With technologies such as cloud computing and big data getting popular, information can be collected and analyzed immediately, which means the damage can be much greater and more difficult to prevent, analysts said.

"It can be said that those who master online services can get more information in cyberspace," said Du Yuejin, director at the National Engineering Laboratory for Cyber Security Emergency Response Technology.

Last month, China's Internet Media Research Center issued a report saying the NSA makes use of large technology companies for its wiretapping plans, including Prism, which was unmasked by former NSA intelligence leaker Edward Snowden, asking them to collect information on their users and urging them to hand in the data regularly.

The report also said that the NSA has taken iOS and Android, two leading mobile operating systems applied to iPhone and Samsung, as the "gold mine" of data.

The NSA grabbed users' information and stored most of it for analysis by invading database and communication networks of Yahoo and Google, while it has also controlled applications on smartphones with Britain, said the report released at the end of May.

"The US, in fact, could get these users' information or conduct the wiretapping by attacking the network instead of 'cooperating' with the enterprises, but it might take more time and money," said Wan.

The actions of the NSA have put huge pressure on US technology companies, as customers from Paris to Sao Paulo and from Beijing to Berlin worry about their privacy being invaded.

US President Barack Obama held two discussions with CEOs of major US technology companies in the past six months about the NSA snooping, which led to a "reform" of the NSA to focus on protecting US citizens' privacy, but with little improvement on foreign organizations and citizens.

In May, John Chambers, chairman and CEO of Cisco Systems, wrote a letter to Obama urging Washington to stop using the company for surveillance of its customers, according to an Al Jazeera report.

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- Contributed By CAO YIN (China Daily)

World's largest Internet hacker

The spying actions of the US have underscored the urgency of formulating common rules for activities in cyberspace

Last month, the United States Attorney-General Eric Holder announced the indictments of five Chinese military personnel on cyber espionage charges, accusing them of hacking into US companies in the nuclear power, metals and solar products industries. This has seriously compromised relations with China and sabotaged the bilateral cybersecurity cooperation that had been put back onto a normal track after overcoming setbacks.

With the indictments, the US has tried to present itself as the largest victim of cyberattacks, when in fact it is the Cold War mentality and troublemaking of the US that have precipitated the instability and insecurity in cyberspace. If the US doesn't change its behavior, all peoples in the world may become victims of Internet insecurity.

In June 2013, Edward Snowden, a former US National Security Bureau contractor, revealed US intelligence agencies were conducting large-scale network spy programs, such as PRISM, Xkeyscore and others, across the world. His disclosures indicated the omnipotence of the US' Internet surveillance and cyberattacks, which range from spying on communication metadata and backbone networks to the monitoring of short message services, instant messaging and video chats; from spying on ordinary people to spying on enterprises, universities, military units and even heads of state, not to mention the revelations about the US' cyber warfare capabilities.

Aside from its cyber command that has been rapidly growing, the US' marine, land and air forces have also set up their own cyber headquarters. Cyber combat capabilities are already regarded as part of the weaponry of the US' fighting forces. A series of US cyber combat programs have been revealed, from Stuxnet to Fslame and X-Plan, all of which indicate that the US has mastered more complicated means and more threatening abilities than other countries in terms of cyberattacks.

The latest indictments against the five Chinese military personnel have also reminded people of a series of previous cyber espionage claims against China by the US. In February 2013, Mandiant, a US cybersecurity firm, released a report accusing China's military of plotting hacker attacks against US enterprises. After that, many in the US, including the president and senior government officials, expressed a tough stance toward China and threatened economic sanctions against it. Some even suggested that US enterprises "hacked" by China should make cyber counterattacks in retaliation. Such groundless accusations of Chinese cyberattacks have drastically tainted the US' domestic political environment toward China and also frozen cybersecurity cooperation between the two countries.

The Chinese government has consistently advocated a new type of major-power relations with the US, and it has refrained from overreacting to Washington's "threatening signals". Even after the Snowden revelations, the Chinese government still adhered to the principles of no-conflict, no-confrontation, mutual respect and mutually beneficial cooperation, and it is actively pushing for cooperation with the US in cybersecurity and working for the establishment of a cybersecurity work panel under the Sino-US Strategic and Economic Dialogue framework.

All the evidence indicates that it is the US that is the world's largest Internet hacker and that the global cyber arms race triggered by the US' actions poses the largest threat to global cybersecurity. The US has so far cited "for the sake of national security" as the only excuse for its pervasive Internet espionage. The US should know that a country cannot put its national security above the interests and national security of other countries and the basic norms of international relations. The double standards the US has embraced in cybersecurity have damaged its credibility and compromised its image as a responsible power.

To enjoy the dividends of the booming Internet sector and communication technologies, cyberspace must be peaceful, safe, open and cooperative. Cyberspace should not be a field for either a cold or hot war, and the latest developments have once again underscored the importance and urgency for formulating common rules for cyber activities.

The US indictments of the Chinese military personnel are not conducive to global efforts to maintain the stability and security of cyberspace. The US, by taking advantage of its technological and military dominance, has established a cyber hegemony. It is hoped the US can lead the global Internet sector to develop in a healthy direction, as it once spearheaded the progress of Internet technologies for human progress.

- Contributed By Tang Lan (China Daily) The author is deputy director of the Institute of Information and Social Development Studies, China Institutes of Contemporary International Relations.

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The United States has accused some Chinese of hacking into American companies’ computers but the US itself has been engaging in massive spying of foreign companies and trade officials.

Reports of US spying have sparked anger in many countries

WE live in a world where “spying” by electronic means is now pervasive and practically no one or institution that uses telephones, smart phones, emails and the internet is protected from intelligence gathering.

This much we know, from the media revelations emerging from files leaked by Edward Snowden, a former contractor with the US National Security Agency.

They showed that the US has been tapping the telephones and emails of Americans and others around the world in a sweeping and systematic way.

It was revealed that even the top political leaders of Germany, Indonesia and Brazil had their mobile phones tapped, leading their countries to protest against such a bold intrusion of privacy and national security.

Last week, the intelligence issue was highlighted again when the US Justice Department indicted five individuals who are members of the Chinese People’s Liberation Army.

They were accused of hacking into the computers of American companies in the nuclear power, steel, aluminium and solar power industries to obtain trade secrets for the benefit of Chinese state owned enterprises.

A Chinese foreign ministry spokesman denounced the allegations as baseless and said China “never engages in the activity of stealing commercial secrets through the internet”, and accused the US of hypocrisy.

It is common knowledge that intelligence agencies use all kinds of devices to gather information and spy on foreigners as well as their own citizens.

The US has the most sophisticated system with the broadest coverage, as the Snowden files revealed.

By charging China of spying on specific American companies for the commercial benefit of Chinese enterprises, the US was trying to draw a very fine line.

It would have been clearly double standards to accuse other countries of spying on government personalities or agencies or on civilians, as the US itself has been shown to be more systematically doing this than any other country.

In announcing the indictment on the five Chinese, the US Attorney General said the hacking was conducted to advantage Chinese enterprises, a tactic that the US denounces.

“We do not collect intelligence to provide a competitive advantage to US companies, or US commercial sectors.”

But in fact the US does spy on companies and trade policy makers and negotiators of other countries, presumably in order to obtain a commercial advantage.

Two articles by David Sanger in the New York Times last week commented on the “fine line” the US attempts to draw between spying for the benefit of specific companies, and for overall commercial advantage.

He gave examples of revelations of US agencies targeting foreign companies.

These include Huawei, a major Chinese internet and communications company.

According to his article, the Snowden documents showed that one purpose of this spying was to “get inside Huawei’s systems and use them to spy on countries that buy the company’s equipment.

“Huawei officials said they failed to understand how that differed meaningfully from what the United States has accused the Chinese of doing.

The US agency also hacked into the computers of Petrobras, Brazil’s national oil company, which has data on Brazil’s offshore oil reserves and perhaps its plans for allocating licences for exploration to foreign companies. State owned oil companies in Saudi Arabia, Mexico, Africa are also intelligence targets.

The NSA also went into the computers of China Telecom, one of the largest providers of mobile phone and Internet services in Chinese cities, and Pacnet, the Hong Kong-based operator of undersea fibre optic cables.

“Once inside those companies’ proprietary technology, the NSA would have access to millions of daily conversations and emails that never touch American shores,” said Sanger.

The NSA spied on Joaquín Almunia, the antitrust commissioner of the European Commission, who had brought charges against several US companies.

In each of these cases, American officials insist the US was never acting on behalf of specific American companies, but the government does not deny it routinely spies to advance American economic advantage as part of national security, said the Sanger article.

This includes spying on European or Asian trade negotiators, using the results to help American trade officials and thus the American industries and workers they are trying to bolster.

According to Sanger, the United States spies regularly for economic advantage when the goal is to support trade talks. When the US was negotiating in the 1990s to reach an accord with Japan, it bugged the Japanese negotiator’s limousine and the main beneficiaries would have been US auto companies and parts suppliers.

The US is also “widely believed to be using intelligence in support of trade negotiations underway with European and Asian trading partners. But in the view of a succession of Democratic and Republican administrations, that is fair game.”

An earlier New York Times article, citing Snowden documents, also revealed that the US and Australian agencies gathered intelligence on Indonesia and a law firm acting for it during US-Indonesia trade negotiations.

This line the US is attempting to draw between what is illegitimate (spying to benefit particular companies) and legitimate (spying to broadly benefit companies and the economy) is not appreciated nor accepted by other countries.

The views expressed are entirely the writer's own.

Contributed by Global Trends Martin Khor
Martin Khor is the Executive Director of the South Centre since 1 March 2009. He replaced Dr. Yash Tandon who was the Executive Director of the South Centre from 2005-2009
 
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• Chinese president urges countries to cooperate to promote security

  

  Chinese President Xi Jinping says the 4th Conference on Interaction and Confidence-Building Measures...

The fourth summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA), under the theme of "enhancing dialogue, confidence and coordination, and on jointly constructing a new Asia with peace, stability and cooperation," was held in Shanghai Wednesday. Chinese President Xi Jinping delivered a keynote speech calling for a proactive outlook on Asian security and a new security cooperation framework. The intertwined key words have sketched the contours of this summit.

When it comes to Asia, scholars from all around the world will focus on two phenomena: economic growth and security dilemma. The economic development of Asia has promoted the interdependence and integration of interests among nations in this region, which constitute the resources of Asian security at the present stage. Meanwhile, many Asian countries feel insecure, which has little to do with a country's size and strength. Though it is a large and powerful Asian state, China doesn't have a better sense of security than smaller countries.

With a myriad of leftover conundrums, Asian countries have become interest-conscious as quickly as economic growth. Nonetheless, Asia is in dire need of an efficient security mechanism as well as common consensus to achieve it.

Asia has long been affected by external forces and in particular the US to a large degree. Washington has forged military alliances with several Asian countries and sometimes targeted a third party, making it all the more difficult for Asia to entirely cast off the specter of the Cold War. The US "rebalancing to Asia" policy conforms to its global strategy, inevitably increasing the cost of achieving Asian security.

Across the fairly intricate tapestry of Asian security, there is no difference between small and big powers in terms of security guarantee. Various messages further fuel contradictions and disorders in the region and add to strategic uncertainty.

Asian countries need to distinguish between realities and wishes and learn to compromise. It is unrealistic for some countries to quit counting on Washington in the short term but all Asian nations should recognize Uncle Sam cannot tide them over the security dilemma. Therefore, they should divert more attention to coordinating security concerns among themselves.

Security in Asia will eventually be realized through increasing mutual trust and cooperation in this region. We welcome external powers to play a constructive role in this process but object to their biased interference that will only increase the possibility of regional conflicts.

China is a rarely patient country in the world and spares no efforts to promote peace, which is a starting point and pillar for permanent peace in Asia. Resolution to safeguard peace may constitute the invisible bottom line despite numerous potential flashpoints in Asian security. - Global Times

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 Spy charges expose U.S. cyber hegemony mentality

The United States has indulged in its cyber hegemony mentality again as it filed ungrounded commercial cyber espionage charges against five Chinese military officers.

Chinese envoy accuses US of hypocrisy on indicting Chinese for Internet espionage

Chinese Ambassador Cui Tiankai on May 20 accused the United States of hypocrisy for charging five Chinese nationals of alleged commercial espionage, citing Edward Snowden's revelations of US spying operations worldwide.

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As the most notorious surveillance country, the U.S. indictment of Chinese military officers seems almost insolent in a world still reeling at the scope of the U.S. spy network.

The Chinese military has never engaged in cyber theft of trade secrets, nonetheless, Washington has charged five members of the People's Liberation Army with hacking U.S. companies.

Everyone knows that the U.S. itself is the biggest cyber bully, conducting sweeping surveillance around the world. Documents leaked by former Central Intelligence Agency contractor Edward Snowden detailed the National Security Agency's (NSA) surveillance activities around the globe, from foreign leaders to ordinary citizens.

Intelligence from Snowden showed that about 70 million French phone calls were collected by the NSA from December 2012 to January 2013. More than 120 world leaders have been under U.S. surveillance since 2009.

China is one of Big Brother's victims. The U.S. routinely attacks, infiltrates and taps Chinese networks belonging to governments, institutions, enterprises, universities and major telecom backbone networks.

Latest data from the National Computer Network Emergency Response Technical Team Coordination Center of China showed that 135 host computers in the U.S. carried 563 phishing pages targeting Chinese websites that led to 14,000 phishing operations from March 19 to May 18.

The center found 2,016 IP addresses in the U.S. had implanted backdoors in 1,754 Chinese websites, involving 57,000 backdoor attacks in the same period.

The indictment is based on fabricated facts, grossly violates the basic norms governing international relations and has harmed China-U.S. ties.

In 2013 China sought talks with the U.S. on policing cyber space through a bilateral working group, despite the shadow cast over relations by Snowden's disclosures of U.S. electronic surveillance in China.

The U.S. intentionally jeopardized the trust between the world's two biggest economies and China on Monday announced the suspension of the China-U.S. Cyber Working Group which was scheduled to met in July in Beijing.

The U.S. should clean its own house before pointing fingers at others.- Xinhua

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Commentary: Cyber-spying charges against Chinese officers an indictment of U.S. hypocrisy
BEIJING, May 20 (Xinhua) -- The United States on Monday plunged itself into blatant hypocrisy as it slapped some fabricated cyber-espionage charges against five Chinese military officers.
The baseless accusation against the Chinese personnel of hacking into U.S. companies to steal trade secrets for Chinese state-owned firms is a telling indictment of Washington's double standard on cyber-security. Full Story


Washington plays victim of espionage

The US Justice Department on Monday filed criminal charges against five Chinese army officers, claiming that they helped Chinese firms steal business information on US companies and that all of them came from Unit 61398 of the Chinese People's Liberation Army. Since February last year, the US government has been accusing the same unit of theft of US trade secrets.

The Department of Justice issued "wanted" posters for the officers with their photos. The Wall Street Journal stated in an article "the indictment may act instead as a public effort to name and shame the suspects."

The 48-page indictment providing details of the officers looks "real." Nevertheless, the specific country that made the allegations is the one that spies both home and abroad with the PRISM program of the National Security Agency (NSA), revealed by Edward Snowden, former NSA contractor. Washington was condemned by international public opinion and therefore its pretentious accusation against Chinese army officers is ridiculous.

The US government's claims that Chinese army officers have gathered US business intelligence in an organized way are beyond our imagination. It's fresh to us that Chinese military and civil companies have such a close relationship.

Perhaps all countries believe the US is the No.1 intelligence power. It has been taking bold steps in cyber espionage, as was shown by Snowden. Washington has also helped the rest of the world comprehend the meaning of "intelligence superpower" by not only collecting overseas information but also playing the victim role.

The materials disclosed by Snowden showed that the US hacked into China's backbone networks, universities, government departments and other organs. And the White House still owes an apology to Beijing. Interpol should have ordered the arrest of designers and implementers of the PRISM program but they did not. Therefore the US is acting so shameless by posting photos of the five Chinese army officers.

It appears that Washington has mistaken its domestic law for a law applicable to the international community by directly indicting active-duty Chinese army officers. It has severely infringed their human rights. Despite the relatively weak awareness and ability of Chinese to safeguard their legal rights, the five officers should file a lawsuit against the US government for damaging their reputation. China should not tolerate the US' malignant accusation this time. In announcing the suspension of activities of the China-US Cyber Working Group, the Ministry of Foreign Affairs made the right move. But we should take further actions.

Beijing has published US computer attacks on China's networks, which, however, lack detailed information except figures. We should encourage organizations and individuals whose rights have been infringed to stand up and sue Washington. Regarding the issue of network security, the US is such a mincing rascal that we must stop developing any illusions about it. - Global Times


Cyberthief crying wolf

The US department of justice's decision to charge five People's Liberation Army officers for "business spying" is ill-advised, if not downright stupid.

The initial response from Beijing is that the charge is a pompous farce that will in no way advance American interests.

In addition to a flat denial of US accusations, which lack any credible evidence, Beijing has struck back, presenting proof that the US is "the present-day world's biggest cyberthief", and "the foremost state sponsor of cyberattacks on China".

The statistical information about US cyber intrusions the Chinese authorities produced makes it difficult for Washington to proclaim its own innocence.

The US indictment appears particularly awkward because Washington is simply rubbing salt into its bleeding wound from Edward Snowden's revelations. It is common knowledge that China, its military in particular, is the biggest online target of the omnipresent US National Security Agency and US Cyber Command.

It is thus a matter of course that Beijing should call the indictment a cock-and-bull story and a thief crying catch thief.

Nor can Washington expect any sympathy from Chinese Internet users. To them, the indictment is but an additional footnote to US hypocrisy.

The charges are said to underscore a longtime Obama administration goal to prosecute state-sponsored cyber threats. Yet the Snowden leaks seem to indicate that the NSA and US Cyber Command are the most formidable state-sponsored cyber threats in today's world. If they can be exonerated for what they have done and are still doing, blaming anyone else is shameless double standards.

US Attorney General Eric Holder should know very well that an indictment like this has little chance of being executed. Those charged are far away in their home country, where neither the government nor the people accept the legitimacy of the US charges. More important, the charge itself is flawed in both moral and jurisprudential terms.

It is yet to be seen if Beijing will make a tit-for-tat response by prosecuting specific Americans, which will be fully justifiable. But Beijing has already determined to suspend the work of a joint panel on Internet security, on the grounds that the Americans lack sincerity in the dialogue to establish a cooperative approach to cyber security.

The indictment will prove a sorrowful miscalculation, because Washington has nothing to win and a lot to lose.-  China Daily

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A spokesperson for China's State Internet Information Office on Monday published the latest data of U.S. cyber attack, s

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A spokesperson for China's State Internet Information Office on Monday published the latest data of U.S. cyber attack, saying that China is a solid defender of cyber security.

The U.S. is the biggest attacker of China's cyber space, the spokesperson said, adding that the U.S. charges of hacking against five Chinese military officers on Monday are "groundless".

Latest data from the National Computer Network Emergency Response Technical Team Coordination Center of China (NCNERTTCC) showed that from March 19 to May 18, a total of 2,077 Trojan horse networks or botnet servers in the U.S. directly controlled 1.18 million host computers in China.

The NCNERTTCC found 135 host computers in the U.S. carrying 563 phishing pages targeting Chinese websites that led to 14,000 phishing operations. In the same period, the center found 2,016 IP addresses in the U.S. had implanted backdoors in 1,754 Chinese websites, involving 57,000 backdoor attacks.

The U.S. attacks, infiltrates and taps Chinese networks belonging to governments, institutions, enterprises, universities and major communication backbone networks. Those activities target Chinese leaders, ordinary citizens and anyone with a mobile phone. In the meantime, the U.S. repeatedly accuses China of spying and hacking.

China has repeatedly asked the U.S. to stop, but it never makes any statement on its wiretaps, nor does it desist, not to mention make apology to the Chinese people.

After the Prism program leaked by Edward Snowden, the United States was accused by the whole world. However, it has never made retrospection, instead, it accuses others.

The spokesperson said the Chinese government opposes any kinds of cyber crimes, and any groundless accusations against the country.

If the United States goes its own way, China will take countermeasures, the spokesperson said.

Sources: Xinhua

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