Affichage des articles dont le libellé est Mark Warner. Afficher tous les articles
Affichage des articles dont le libellé est Mark Warner. Afficher tous les articles

vendredi 14 février 2020

China's Organized Crime Syndicate

Huawei Charged With Racketeering, Stealing Trade Secrets
U.S. Prosecutors Hit Huawei With New Federal Charges
By MERRIT KENNEDY
Image result for Huawei rebel pepper
The Chinese technology firm Huawei is facing a raft of U.S. federal charges, including racketeering conspiracy.

Federal prosecutors have added new charges against Chinese telecom giant Huawei, its U.S. subsidiaries and its chief financial officer, including accusing it of racketeering and conspiracy to steal trade secrets from U.S.-based companies.
The company already faced a long list of criminal accusations in the case, which was first filed in August 2018, including bank fraud, wire fraud and conspiracy to defraud the United States. Prosecutors filed the expanded indictment in federal court in Brooklyn on Thursday.
"The Trump administration has repeatedly made clear it has national security concerns about Huawei, including economic espionage," NPR's Ryan Lucas reported. 
Recently, President Trump tried to convince the U.K. not to contract with Huawei to provide equipment to build a 5G network, but British leaders did so anyway.
Sens. Richard Burr, R-N.C., and Mark Warner, D-Va., said in a joint statement that the indictment "paints a damning portrait of an illegitimate organization that lacks any regard for the law."
Huawei is also accused of doing business in countries subject to U.S. sanctions such as North Korea and Iran. 
Prosecutors accuse Huawei of helping Iran's government "by installing surveillance equipment, including surveillance equipment used to monitor, identify and detain protesters during the anti-government demonstrations of 2009 in Tehran, Iran."
They say that for decades, Huawei has worked to "misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei's business."

Huawei pushed its employees to bring in confidential information from competitors, even offering bonuses for the "most valuable stolen information," according to the indictment.
The 56-page indictment is rife with examples of Huawei scheming to obtain trade secrets from U.S. companies. 
They also attempted to recruit employees from rival companies or would use proxies such as professors working at research institutions to access intellectual property.
For example, starting in 2000 the defendants took source code and user manuals for Internet routers from an unnamed northern California-based tech company, and incorporated it into its own routers. 
They then marketed those routers as a lower-cost version of the tech company's devices. 
During a 2003 lawsuit, Huawei claimed that it had removed the source code from the routers and recalled them, but also erased the memories of the recalled devices and sent them to China so they could not be used as evidence.
In an incident that drew headlines last year, a Huawei employee in 2012 and 2013 repeatedly tried to steal technical information about a robot from an unnamed wireless network operator, eventually going as far as making off with the robot's arm. 
The details match those in a separate federal lawsuit in Seattle where the company is accused of targeting T-Mobile.
A subsidiary of the firm also entered into a partnership in 2009 with a New York and California-based company working to improve cellular telephone reception. 
Despite a nondisclosure agreement, Huawei employees stole technology. 
The subsidiary eventually filed a patent that relied on the other company's intellectual property.

vendredi 2 août 2019

No Country for Chinese Men

FBI Urges Universities To Monitor Chinese Students And Scholars In The U.S.
By EMILY FENG




University administrators say the FBI, whose headquarters are shown above, has urged them to monitor Chinese students and scholars.

U.S. intelligence agencies are encouraging American research universities to develop protocols for monitoring students and visiting scholars from Chinese state-affiliated research institutions, as U.S. suspicion toward China spreads to academia.
Since last year, FBI officials have visited at least 10 members of the Association of American Universities, a group of 62 research universities, with an unclassified list of Chinese research institutions and companies.
Universities have been advised to monitor students and scholars associated with those entities on American campuses, according to three administrators briefed at separate institutions. 
FBI officials have also urged universities to review ongoing research involving Chinese individuals that could have defense applications, the administrators say.
"We are being asked what processes are in place to know what labs they are working at or what information they are being exposed to," Fred Cate, vice president of research at Indiana University, tells NPR. 
In a statement responding to NPR's questions, the FBI said it "regularly engages with the communities we serve. As part of this continual outreach, we meet with a wide variety of groups, organizations, businesses, and academic institutions. The FBI has met with top officials from academia as part of our ongoing engagement on national security matters."
While law enforcement agents have discussed university monitoring of other nationalities as well, these FBI briefings addressed visitors from China in particular who are involved in science, technology, engineering and math.
Administrators say the universities briefed by the FBI have not yet implemented additional monitoring protocols
Separately, intelligence officers have also briefed hundreds of American CEOs, investors and think tank experts on Chinese cybersecurity and espionage threats. 
"What we provide them is the classified information that we get from the collection priorities of China specifically: What they're trying to collect on, what they're interested in our campuses," William Evanina, director of the National Counterintelligence and Security Center, told NPR.
This March, U.S. intelligence officials briefed about 70 college administrators of the American Council on Education, according to university participants. 
The officials said the presidents should increase oversight of Chinese researchers and avoid research funding from Chinese firms like Huawei.
The nation's primary biomedical research agency, the National Institutes of Health, is now investigating grant recipients for not disclosing collaboration or funding from China and for sharing peer-review grant material with Chinese researchers. 
"Chinese entities have mounted systematic programs to influence NIH researchers and peer reviewers," warned NIH Director Francis Collins in a memo sent to more than 10,000 research institutions last August.
In May, the Commerce Department put Huawei on a trade blacklist, which prevents U.S. companies from selling products to the Chinese telecom firm without federal authorization. 
But the pressure to divest from research collaborations with Huawei and ZTE, another telecom company, began early last year, said three university administrators.
"For months up until [May], government officials were saying, 'We really don't think you should be doing business with Huawei,' " says Cate. 
"We said, 'Why don't you put them on a list and then we won't do business?' And they're like, 'Oh, the list process is way too slow.' "
The FBI visits have caused uncertainty among U.S. academics about whether to accept federal grants for research that may involve Chinese scholars. 
"We don't say you can't, because we don't have any legal authority to say they can't," Cate says. 
"But we say you should be aware there may be some sensitivity about this."
Several university presidents have issued statements this year reaffirming their commitment to Chinese researchers and students.
Last month, pro-China Yale University's president, Peter Salovey, said he was "working with my presidential colleagues in the Association of American Universities (AAU) to urge federal agencies to clarify concerns they have about international academic exchanges. The AAU has encouraged agencies to use the tools already in place, such as export controls, while affirming the principle of open academic exchange for basic research."
Salovey's office declined to comment further when contacted by NPR.
Universities and companies use software that automatically reviews international research collaborations, commercial transactions and other exchanges and then matches them up with existing blacklists to ensure they do not violate export control laws.
Numerous universities, including the Massachusetts Institute of Technology, Stanford University and the University of Illinois, have already cut off research collaborations with Huawei.
Besides Huawei, no other Chinese entities singled out to universities by the FBI are currently on a trade blacklist, according to the three university administrators.
That means any monitoring of specific Chinese individuals at the university level would have to be done manually, when admitting or employing them, possibly leaving a wide margin of error during evaluation.
"You're really looking at compliance systems that have to be rolled out on a department-by-department basis and person-by-person level to see if you're sticking research data in an envelope and mailing it to China," Cate says.
The Trump administration has long accused China of stealing American technology, a key factor behind the trade war between the two countries.






FBI Director Christopher Wray addresses the Council on Foreign Relations on April 26 in Washington, D.C. Wray spoke about "the FBI's role in protecting the United States from today's global threats."

As the mood in Washington, D.C., becomes more aggressive toward China, intelligence agencies have been visiting not just universities but also American tech companies to dissuade them from collaborations with Chinese entities.
"We have to wake this country up to what China is doing," Sen. Mark Warner, Va.-D, said at the Brookings Institution last month. 
"For this reason, I have been convening meetings between the intelligence community and outside stakeholders in business and academia to ensure they have the full threat picture and, hopefully, make different decisions about Chinese partnerships."

China's 340,000 potential or actual spies
Chinese students have come under particular suspicion. 
More than 340,000 were studying in the U.S. last year, according to the Department of Homeland Security. 
Since last July, Chinese students studying, in particular, science and technology fields must undergo additional screening, resulting in delayed visas for hundreds of students.
In May, Republicans introduced legislation in the House and Senate that would deny visas to Chinese researchers affiliated with Chinese military institutions.
"The Chinese intelligence services strategically use every tool at their disposal — including state-owned businesses, students, researchers and ostensibly private companies — to systematically steal information and intellectual property," FBI Director Christopher Wray said at the Council on Foreign Relations in April.
Former FBI agents say the bureau's recent visits to universities are merely an extension of long-running efforts to collaborate with the private sector and academia on national security issues.
"What the FBI has been doing is really more of an outreach and education program," says Todd K. Hulsey, a former counterintelligence official who retired from the FBI in 2014. 
Hulsey explained that such meetings began as early as two decades ago over concerns that Chinese student associations were fronts for Chinese intelligence recruiting: "It's to let these universities know that there is an existing threat to our economy."
National security concerns at universities increased after the 1991 collapse of the Soviet Union, which sent a wave of former Soviet bloc researchers to the U.S., says Edward Shaw, a former FBI special agent who retired in 2014.
Even back then, however, government agencies contacted universities with specific individuals of concern rather than presenting a broad list of institutions.
"It's casting a wide net," says Shaw. 
"When you're getting information from various government agencies and other trusted sources that a specific person is in the country and you are more targeted, you're using your resources better."

jeudi 16 mai 2019

National Emergency vs. Huawei

President Trump Takes Aim At Huawei, Paves Way For Ban Of Chinese Telecom Equipment
By RICHARD GONZALES

President Trump signed an executive order Wednesday designed to bar U.S. telecommunications networks from using equipment from foreign suppliers, a move apparently targeting Chinese telecom giant Huawei.
The order declares a "national emergency" and says that "foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services" and committing economic and industrial espionage against the U.S.
Trump's order directs Commerce Secretary Wilbur Ross to draft rules to restrict the purchase of information and communications technology from companies "owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary."
A senior administration official says the order is not directed at any particular country or company, but the order appears to be aimed at Chinese telecom manufacturer Huawei.
Separately, the Commerce Department said Wednesday it was adding Huawei to its "Entity List," preventing it from buying components from American companies without U.S. government approval.
The administration says Huawei's technology could become a conduit for snooping or sabotage by the government in Beijing. 
The U.S. federal government itself is already barred from doing business with Huawei and another Chinese telecom firm, ZTE
The administration has also been discouraging allies from using Huawei equipment as they build out 5G networks.
The executive order gives the Commerce Department 150 days to write regulations implementing it.
The Trump administration "will do what it takes to keep America safe and prosperous, and to protect America from foreign adversaries" targeting vulnerabilities in American communications infrastructure, White House press secretary Sarah Sanders said in a statement.
The president's action was described by a senior administration official as "company and country agnostic." 
Even so, it was greeted with bipartisan endorsements on Capitol Hill as strong action against China amid American fears of technological vulnerability.
"This is a needed step, and reflects the reality that Huawei and ZTE represent a threat to the security of U.S. and allied communications networks," said Virginia Sen. Mark Warner, the top Democrat on the Senate Intelligence Committee, in a statement. 
"Under current Chinese security laws, these and other companies based in China are required to provide assistance to the Chinese state."
Republican Sen. Ben Sasse of Nebraska, also a member of the Senate Intelligence Committee, said in a statement, "Let's cut to the chase: China's main export is espionage, and the distinction between the Chinese Communist Party and Chinese 'private-sector' businesses like Huawei is imaginary. The Trump Administration is right to recognize this reality and issue this order."
The president's executive order comes as the U.S. and China are locked in a trade war, with both nations imposing tariffs on products from the other.

mercredi 30 janvier 2019

US Needs Assist from Allies to Curb China’s Theft of Advanced Technology

By Nike Ching and Hongshen Zhao
Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., shake hands with FBI Director Christopher Wray as CIA Director Gina Haspel looks on before the Senate Intelligence Committee hearing on Capitol Hill in Washington, Jan. 29, 2019.

Senior U.S. officials and experts say the United States needs to rally allies to pressure China stealing advanced technology through cyber espionage.
At the same time, key American lawmakers are questioning the readiness and capacity of the U.S. to counter such threats.
The renewed push comes after U.S. federal prosecutors pressed criminal charges against the world's largest telecommunications company — China's Huawei Technologies — its chief financial officer and several subsidiaries for financial fraud and theft of U.S. intellectual property.
The Trump administration said Washington is deeply concerned about the potential of Beijing using Chinese technology firms to spy on the U.S. and its allies.
Director of National Intelligence Dan Coats testifies to the Senate Intelligence Committee hearing about worldwide threats on Capitol Hill in Washington, U.S., Jan. 29, 2019.

"China's pursuit of intellectual property, sensitive research and development plans, and the U.S. person data remains a significant threat to the United States government and the private sector," Director of National Intelligence Dan Coats told lawmakers at a Senate Select Committee on Intelligence hearing on Tuesday.
Other officials, including Assistant Secretary of State for International Security and Non-proliferation Christopher Ford, advocate for a global coalition against Chinese technology-transfer threats.
At another hearing, experts said threats that Huawei poses to supply chains and critical infrastructure are absolutely real.
"We need defensive measures and we need to invest in our own technologies as well, and we need to be cooperating with allies and partners," said Ely Ratner, who was deputy national security advisor to former Vice President Joe Biden.
"We know that the Huawei leadership has members of the Communist Party within it, and the company has a long and deep relationship with both PLA and the Ministry of State Security in China. And of course is subject to Chinese law and their new National Intelligence law which gives the government the right to use the networks and data as they wish," added Ratner at a Senate Armed Service Committee hearing.
Former Deputy Assistant Secretary of Defense Elbridge Colby warned that China may gain "economic, informational, and blackmail" leverage over other countries through data collected by companies such as Huawei.
"This dissolves or corrodes the resolve in these countries potentially to stand up to Chinese potential coercion," Colby told senators.
"We need to be able to form a network that is sufficient and cohesive to stand up to these Chinese threats," he added.
Bipartisan senators have been pushing for the creation of a White House office to fight China's state-sponsored technology theft and defend critical supply chains.
Senator Marco Rubio questions witnesses before the Senate Intelligence Committee hearing about "worldwide threats" on Capitol Hill in Washington, Jan. 29, 2019.

"China is currently attempting to achieve technological and economic superiority over the United States through the aggressive use of state-directed or state-supported technology transfers," said Senator Mark Warner (D-VA) and Senator Marco Rubio (R-FL) who introduced a bill to fight China's technology threats earlier this month.
"A national response to combat these threats and ensure our national security has, to date, been hampered by insufficient coordination at the federal level," added Warner and Rubio in a statement.
Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., speaks during the Senate Intelligence Committee hearing on Capitol Hill in Washington, Jan. 29, 2019.

Under the bill, the Office of Critical Technologies & Security would coordinate with federal and state regulators, the private sector, experts and U.S. allies to ensure that every available tool is being utilized to safeguard the supply chain and protect emerging dual-use technologies.

jeudi 20 décembre 2018

US lawmakers urge Canada to snub China’s Huawei from 5G network out of grave concerns over US security

Huawei equipment in Canada’s 5G networks would pose dangers for US networks
Reuters

Senator Marco Rubio

Two leading US lawmakers urged Canadian Prime Minister Justin Trudeau on Friday to consider dropping China’s Huawei Technologies from helping to build next-generation 5G telecommunications networks.
Senators Mark Warner, a Virginia Democrat, and Marco Rubio, a Florida Republican, said they had grave concerns about the prospects of Huawei equipment in Canada’s 5G networks on the grounds that it would pose dangers for US networks.
“While Canada has strong telecommunications security safeguards in place, we have serious concerns that such safeguards are inadequate given what the United States and other allies know about Huawei,” the lawmakers wrote in the letter to Trudeau. 
Warner and Rubio are on the Senate Select Committee on Intelligence.

Senator Mark Warner

A spokesman for Huawei did not immediately respond to an email request for comment.
Huawei’s chips and equipment have faced scepticism in a number of developed countries, with Australia saying in August that it would ban Huawei technology from its 5G network.

lundi 10 décembre 2018

Countering China’s cell-phone espionage offensive

By Eli Lake

When I heard the news of the arrest in Canada of Wanzhou Meng, Huawei’s chief financial officer, my thoughts turned to Al Capone.
Capone was targeted for running Chicago’s underworld but was ultimately brought down for tax evasion.
Canadian authorities detained Meng on what appears to be Huawei’s evasion of US sanctions against Iran.
These are serious allegations, but US intelligence agencies have an even greater concern: that China’s largest telecom company will allow the Chinese state to monitor the electronic communications of anyone using Huawei technology.
This is why leaders of US spy agencies in February urged Americans not to use Huawei or ZTE phones. 
This is why Australia effectively banned Huawei from helping build its 5G wireless network this year.
Concern about Huawei spying is also why, in October, Sens. Marco Rubio of Florida and Mark Warner of Virginia warned Canada’s prime minister that Canada’s participation in joint intelligence activities with the US, the UK, Australia and New Zealand may be curtailed if Canada allows Huawei to help build or maintain the country’s 5G wireless network.
In some ways these concerns about Huawei are old news.
In 2012, the House Intelligence Committee released a comprehensive report on Huawei and ZTE that concluded these companies give China’s military and intelligence agencies access to the US telecommunication network.
“Inserting malicious hardware or software implants into Chinese-manufactured telecommunications components and systems headed for US customers could allow Beijing to shut down or degrade critical national security systems in a time of crisis or war,” it said.
Until recently, though, it was difficult to say definitively that Huawei acts as an agent of the Chinese government.
Yes, the company’s founder (and Meng’s father), Ren Zhengfei, was a technician for the People’s Liberation Army before founding Huawei in 1987.
And the Chinese government has invested tens of billions of dollars in Huawei, giving it a competitive advantage in the global marketplace.
Not until China passed its National Intelligence Law and a related cybersecurity law in 2017, however, did it become clear that Chinese companies like Huawei are now obliged to assist the Chinese state when it comes to espionage.
Many nations have statutes that require a company’s cooperation with law enforcement on national-security grounds.
But the new Chinese laws would also compel corporations to assist in offensive intelligence operations.
Cooperation, says an analysis in Lawfare, would mean handing over access to “key business and personal data (which must be stored in China), proprietary codes, and other intellectual property.”
In some ways the Chinese are following the US lead.
As documents disclosed by former contractor Edward Snowden revealed, the National Security Agency had a program to pay US telecom companies for access to their customers’ data.
The NSA has a long history of cooperation with the first generation of American telecom companies, such as AT&T, which gave the US and its English-speaking allies a huge technical intelligence advantage over the Soviet Union.
There are also important differences here.
The American government’s own surveillance apparatus isn’t used to steal technology for the benefit of US corporations. 
Nor is the US government building a domestic spying network to evaluate the social behavior of its citizens.
All of this brings us back to Huawei.
It’s good to see the US finally taking more concrete action against the telecom giant that American spies have been warning about for nearly a decade.
But prosecuting the company’s executives for violating sanctions doesn’t address the bigger threat Huawei poses.
For that, America and its allies must make sure Huawei is kept far away from their cell phone towers.

mercredi 12 septembre 2018

The Manchurian Company

Google Is Handing the Future of the Internet to China
The company has been quietly collaborating with the Chinese government on a new, censored search engine—and abandoning its own ideals in the process.

BY SUZANNE NOSSEL

In May, Google quietly removed “Don’t be evil” from the text of its corporate code of conduct, deleting a catchphrase that had been associated with the company since 2000. 
Amid startling revelations of how social media and internet platforms can enable political interference and new forms of stealthy cyberwarfare, avoiding evil in Silicon Valley has turned out to be harder than it looks. 
In a world where Twitter’s terrorist may be Facebook’s freedom fighter, decisions over what content to algorithmically uplift or suppress can involve agonizing questions of interpretation, intent, and cultural context.
But amid all the moral ambiguity and uncharted terrain of running an internet platform that controls vast swaths of global discourse and reaps commensurate revenues, some dilemmas are more straightforward than others. 
That’s why word of Google’s plans to substantially expand its currently minimal role in the Chinese market—through the potential launch of a censored search engine code-named Dragonfly—has provoked such uproar.
The plans were revealed through documents leaked to the Intercept, which reported that prototypes and negotiations with the Chinese government were far along, laying the groundwork for the service to launch as soon as early 2019. 
In late August, a group of free expression and human rights organizations published a joint letter proclaiming that the launch of a Chinese search application would represent “an alarming capitulation by Google on human rights.” 
Six U.S. senators, led by Marco Rubio and Mark Warner, sent a letter to Google CEO Sundar Pichai demanding answers to a series of queries about the company’s intentions. 
Last week, PEN America sent a detailed letter to Google executives spelling out specific human rights issues and subjects that, per Chinese censorship rules, would be treated repressively and deceptively by any information platform operating in the country. 
Google’s own employees are also up in arms: More than 1,400 signed a letter to management saying the floated China project “raise[s] urgent moral and ethical issues” and demanding greater transparency before any plans are implemented.
In demonstrating that a company as mighty as Google was unable to resist the allure of the Chinese market, despite the terms of entry, Beijing will advance its campaign to remake global internet governance on its own terms. 
The utopian notion of an internet that unifies people across borders, fosters the unfettered flow of information, and allows truth and reason to triumph is already under attack on multiple fronts. 
The trade-off, to date, has been that countries insistent on controlling the internet have had to forfeit access to the world’s most powerful and innovative online services in favor of local providers.
If Google is willing to play along with China, governments in Russia, Turkey, Iran, Egypt, and elsewhere will have little reason not to fortify their own measures to control content and opinion. 
At a time when even the U.S. president is attacking Google and other platforms as biased and rigged, for the company to signal a new willingness to bow before an overreaching government would represent a grave setback for the rights of citizens to harness digital technology as a tool of empowerment.
Google is no stranger to the Chinese market or to the moral dilemmas it poses. 
Google first began offering a Chinese-language version of its search engine back in 2000. 
Periodic blocking and slowdowns caused by filtering through China’s Great Firewall made the service clunky and unreliable on the mainland. 
In 2006, Google launched a Google.cn service based in China, agreeing to block certain websites in return for being licensed to operate in the country. 
The company promised to tell mainland users when results were being withheld and to avoid offering services that would require housing confidential user data on Chinese servers. 
At the same time, native Chinese internet services such as Baidu and Tencent began to gain steam. Chinese authorities were brazen in utilizing Western online services to surveil and track down dissenters. 
In a notorious 2007 incident, it was revealed that Yahoo had turned over private information about two journalists at the request of Chinese authorities, resulting in 10-year prison sentences for the men and a global uproar at the spectacle of a U.S. company betraying its users to an authoritarian regime. The company settled a lawsuit with the families of the two men, established a $17 million fund to support Chinese dissidents, and faced a congressional investigation in which Rep. Tom Lantos infamously chided, “While technologically and financially you are giants, morally you are pygmies.”
It’s not just Yahoo. 
In 2008, the Chinese human rights scholar and activist Guo Quan threatened to sue Yahoo and Google for omitting his name from search results inside China. 
He wrote in an open letter: “To make money, Google has become a servile Pekinese dog wagging its tail at the heels of the Chinese Communists.” 
He has been serving a 10-year prison sentence since 2009. 
That same year, the Chinese government punished Google, purportedly for failing to adequately screen out pornography, by limiting its reach and advantaging its leading local search competitor, Baidu.
In January 2010, Google issued a detailed statement declaring that it would stop censoring Chinese search results and was prepared to pull out of the market. 
It announced that the service had been targeted by attacks aimed at hacking the Gmail accounts of Chinese human rights defenders and their supporters around the world. 
The corporate release reflected on Google’s aspirations and trajectory in China, saying it had entered the country “in the belief that the benefits of increased access to information for people in China and a more open Internet outweighed our discomfort in agreeing to censor some results.” 
The statement went on to say that four years later, in the face of continued attacks and surveillance, “combined with the attempts over the past year to further limit free speech on the web … we are no longer willing to continue censoring our results on Google.cn. … We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.” 
After failed attempts to negotiate a way to remain in China by redirecting local traffic to Google’s Hong Kong site, the company effectively pulled out of the market later that year, maintaining only a token presence and small staff.
It is not hard to understand why Google’s corporate bosses have grown wistful about the Chinese market. 
According to a September 2017 report by the Boston Consulting Group, with more than 700 million users (nearly as many as the next two biggest markets—India and the United States—combined) and close to $100 billion in revenue, China has become the world’s largest internet market by several measures, behind only the United States in terms of online spending. 
The future upside seems nearly boundless. 
With its vast and upwardly mobile rural population, growth rates in Chinese internet use far outpace any other market, with internet penetration rates still lagging well behind those of other G-20 countries. 
Right behind the U.S. tech giants Google, Amazon, and Facebook, five of the world’s 10 largest internet companies are Chinese, including Tencent, Alibaba, and Baidu. 
China is also home to 29 to 40 percent of the world’s “unicorns,” defined as privately held start-ups valued at more than $1 billion. 
For a leading global player to be shut out of an increasingly critical and dynamic market could pose long-term risks for Google’s business.
Given those metrics, it is no surprise that Google’s management has continued to explore ways to re-enter the country. 
For a long time, Western CEOs and politicians expounded the view that deepening commercial and cultural ties between China and the rest of the world would inevitably crack open Beijing’s tight stranglehold on political freedom and freedom of speech. 
This theory conveniently dictated that even if, in the near term, companies such as Google were forced to jettison corporate values in order to take part in the market, that sacrifice could be justified over time since their very presence in China would steadily foster a loosening of constraints. 
In 2005, then-British Prime Minister Tony Blair gushed at the end of a visit to China that “in a country that is developing very fast, where 100 million people now use the internet, and which is going to be the second-largest economy in the world … there is an unstoppable momentum toward greater political freedom.”
Blair was dead wrong. 
Whatever fleeting momentum might once have existed ground to a halt in 2013 with the ascent of Xi Jinping, who ushered in a period of tightening, consolidating repression of free expression, press freedom, political dissent, protest rights, and other civil liberties. 
The premise of short-term trade-offs by Western companies in order to contribute to an inevitable long-range trend toward liberalization might been plausible when Google and others first entered China in the early 2000s. 
But it isn’t now. 
As documented in a March report by PEN America, titled “Forbidden Feeds: Government Controls on Social Media in China,” the mushrooming Chinese internet sector has walled itself off from outside influence. 
Beijing has created a set of rules and operating paradigms that are deeply entrenched, robustly enforced, almost universally adhered to, and scarcely challenged. 
The Chinese are constantly implementing new technological methods of surveillance and tracking, as well as enacting new laws that zip shut channels of dissent and methods of circumvention. 
The PEN America report states: “Those who dare to test the limits of China’s online censorship can face intimidation, job loss, years-long prison sentences, or find themselves forced into exile. … [T]he vague and broad nature of China’s censorship rules means that the ‘red lines’ of posting or conversing on social media are continually drawn and re-drawn, and socially-engaged authors and bloggers who wish to make their voices heard online are faced with difficult choices: take one’s chances in speaking freely, self-censor, withdraw from the conversation, or leave the country.”
For media companies, there is no wiggling free from government dictates. 
“China’s legal system conscripts domestic social media companies to be active participants in the monitoring and censorship of their own users. Chinese companies have no choice but to operate in accordance with the government’s demands. … Within the existing censorship framework, there is simply no way for foreign social media companies to operate in China without becoming active partners in the government’s efforts to silence dissent through censorship, mass surveillance, and the use of criminal charges,” the report adds.
China’s approach is underpinned by a sweeping philosophical conception of the internet, premised on the notion of cybersovereignty, a vision that “rejects the universalism of the internet in favor of the idea that each country has the right to shape and control the internet within its own borders.” 
China is working actively to export this concept for adoption by other authoritarian countries and in United Nations forums
This paradigm stands in direct opposition to the conception of an open internet that digital rights activists, human rights organizations, tech leaders, and even the United Nations have long espoused. Yet Western CEOs hungry to enter the Chinese market have begun to moderate their public statements, tacitly eliding the essential distinctions between an internet that is open and one that is government-controlled.
***
Against this backdrop, the leaked plans for Google’s aspiring re-entry into China are troubling. 
The Intercept reported that all websites blocked in China—including the BBC and Wikipedia—will be unavailable via Google search, replaced by an anodyne disclaimer revealing only that “some results may have been removed due to statutory requirements.” 
So-called “sensitive queries” will be placed on a “blacklist,” meaning that people, topics, and photographs banned by the government will be expunged from any appearance via Google. 
Lest anyone argue that, given the dominance of local players, Google’s role in the market may not be significant, the leaked documents make clear that the company is setting out to go head to head with China’s dominant search engine, Baidu. 
While Microsoft’s Bing search engine has operated in China for years without attracting significant criticism, it accounts for a smaller share of the Chinese market—just 1.27 percent—than does Google itself, eight years after effectively closing up shop on the mainland. 
Google is not a bit player anywhere, and doesn’t intend to be one in China.
The ethical dilemmas raised by Google’s plans are sweeping. 
For Chinese individuals who somehow cross the government, the prospect of being erased from existence on Google is a new and dehumanizing digital version of being declared stateless, persona non grata, or otherwise unworthy of the right to simply exist in the country in which you live. 
For ordinary users who take advantage of Google’s services, the government’s right to access personal data—such as search histories—housed on corporate servers would be absolute. 
An appendix to the PEN America report documents the cases of 80 Chinese citizens who have been targeted, detained, or prosecuted for online postings. 
The list includes people such as the writer Wu Yangwei, who was detained and strip-searched after broadcasting a press freedom protest online; the women’s rights activist Su Changlan, who was convicted of “subversion” for posting articles and comments supportive of Hong Kong’s Umbrella protests; and the blogger Duan Xiaowen, who has been imprisoned and tortured for blogging about government corruption. 
Another prominent example of an online dissident was 2010 Nobel Peace Prize winner Liu Xiaobo, who died of liver cancer last year while serving an 11-year prison sentence in part for his role in drafting the online “Charter 08” petition on freedom and democracy. 
The prospect of Google helping to build cases against such courageous advocates is dire.
While disclaimers and usage agreements may technically put Google users on alert that their searches (and, potentially, emails, texts, and documents depending on the scope of services Google ultimately offers) are all within easy reach of the government, Google’s business model relies on free-flowing exploration and discovery that run counter to the extreme caution that would be required to avoid triggering official scrutiny. 
When users are arrested and prosecuted for promulgating dissenting ideas in personal communications on Google, the company may play a role as a mandated purveyor of essential evidence to enable conviction.
Google’s compliance with Chinese censorship directives will also have an unavoidable, distorting impact on online discourse in the world’s most populous country, obscuring the truth, reifying government-sanctioned orthodoxies, denying history, and furthering the repression of persecuted groups. 
Chinese government organs are estimated to issue thousands of separate censorship directives annually, charging all companies with compliance under threat of severe sanction or shutdown. Discussion of the Tiananmen Square protests, Taiwan’s independence, and the rights of Tibetans is forbidden, and those who violate the strictures face harsh punishment. 
Beyond those three top taboo topics, Google may be required to deny its users vital information about health and safety threats when such information casts a negative light on the state, including vaccinations, pollution, and disease controls. 
Those who use Google to search for information on human rights violations—including the pervasive, forced detainment of hundreds of thousands of ethnic minority residents of China’s East Turkestan colony—will find only whitewashed accounts that provide cover for the government’s abusive campaigns. 
Articles or posts questioning China’s frequent use of forced confessions will be banned, helping to shield this brutal practice from scrutiny. 
Other topics certain to be off-limits include the rights of other ethnic minorities; the mistreatment and premature deaths of Chinese political prisoners; politically motivated charges and show trials of activists, human rights lawyers, and independent scholars; and extrajudicial renderings of Chinese and foreign citizens throughout Asia. 
Whereas Google has positioned itself as a champion of the #MeToo movement, it will be required to censor that and related hashtags in China, denying survivors of sexual assault and abuse a desperately needed voice.
Google executives make the point that all digital platforms must adhere to local law in the countries in which they operate, and that doing so often includes imposing some forms of censorship. 
In Germany, Holocaust denial and other forms of hateful speech are prohibited, for example, with strict penalties for platforms that neglect to remove offending content. 
Internet platforms are profit-making entities, not human rights organizations. 
Like all businesses, they weigh competing considerations and confront circumstances in which professed corporate values bump up against business considerations. 
But after making a principled, high-profile retreat from China years ago to protest the country’s intrusive and coercive policies, Google’s choice to re-enter now will deal a huge victory to Beijing and its campaign to entrench cybersovereignty in the global order. 
As it is, for Chinese internet users imbibing music, celebrity content, recipes, or videos, the fact that the system keeps certain content strictly off-limits is easy to forget—or scarcely noticed in the first place. 
Hundreds of millions of Chinese internet users are inured to a universe where dissent, conflict, and uncomfortable facts don’t exist. 
At least, as of today, they recognize that the systems they utilize are Chinese and are aware that beyond their borders other versions of the internet exist. 
With Google becoming newly available in China under the same terms as existing local services, even the notion that a wider, more open internet may be out there somewhere will fade.
***
The signal sent by the world’s largest internet company acquiescing to Chinese dictates it once eschewed will ratify and legitimize Beijing’s repressive rules. 
Moreover, even if Google officials were somehow to get comfortable with the strictures imposed as the conditions of the company’s initial re-entry into China, the terms of its presence will be forever subject to Chinese government whim. 
Google described its decision to leave China eight years ago as “incredibly hard.” 
With the market having mushroomed since, and having weathered the furor accompanying its possible re-emergence, a second such retreat would be even more painful. 
Those disincentives for exit will afford the Chinese government near boundless leverage: What if it chooses to censor all critical coverage of Chinese policies or those of its allies? 
Or to ban all favorable descriptions of the United States? 
Having crossed what it once described as “red lines,” it may be impossible for Google to set any new ones.
Moreover, once it has re-established its leverage over Google, Beijing is unlikely to confine its demands within its borders. 
This year, China demanded that global airlines begin to list Taiwan as part of China, not just within the mainland, but on all websites, fare listings, and promotions globally. 
Almost all carriers complied immediately. 
With the growth of China’s film market, Hollywood studios now factor in Chinese censors in the production of action movies in order to ensure that the final cuts—slated for global release—pass muster with the country’s minders. 
The result is that major blockbusters are written and filmed to avoid irking Beijing. 
The growing influence of Chinese government-funded Confucius Institutes at U.S. universities has resulted in a shadowy hand of censorship being felt at academic conferences and on campuses
Once Google’s new Chinese business is up and running, there will be nothing to stop Beijing from seeking to dictate how references to Taiwan are addressed not just in China but throughout the site globally. 
China will demand to shape how protests in Taiwan, Hong Kong, or the mainland are addressed or what happens when people search for dissidents such as Liu Xiaobo or topics such as human rights. 
While Google executives may believe that their company would never accede to such requests outside of China’s borders, there are no guarantees
If China gains the leverage to shape how Google presents what Beijing considers to be sensitive topics throughout the rest of the world, it will deal a mortal blow to international principles of freedom of expression and thought.
When facing dubious employees at an internal meeting in mid-August, Google’s Pichai maintained that the company’s plans for China were far from finalized, insisting that many options remained on the table. 
Google is not wrong to keep its eye on China and weigh every angle in analyzing whether the company can enter the market without doing more harm than good. 
But the company’s vast size, visibility, and influence make it impossible to downplay the ill consequences that would result if it turned its back not only on independent thinkers in China but also on the value system that has underpinned an open internet and the rise of Google itself. 
The efficacy of China’s authoritarianism may cause some to privately wonder whether resistance to Beijing’s repression is futile. 
It is tempting to put aside thoughts of beleaguered, isolated Chinese dissidents in the drive to serve millions of ambitious, striving young Chinese, who have every incentive to avoid touching political third rails.
In his speech to Google staff last month, Pichai said: “Stepping back, I genuinely do believe we have a positive impact when we engage around the world, and I don’t see any reason why that would be different in China.” 
But in the rest of the world, Google has brought people newly potent tools for search and information discovery. 
In China, such tools already exist, operating within stringent government constraint. 
All Google can offer to China that is truly new would be the imprimatur of one of the world’s most powerful brands on an unparalleled system of internet censorship and control—a system that is tightening, expanding, and presenting a formidable counterweight to the values and principles that allowed Google to rise and thrive in the first place.

jeudi 21 juin 2018

Tech Quisling

U.S. lawmakers want Google to reconsider links to China's Huawei
Reuters

WASHINGTON -- Republican and Democratic U.S. lawmakers asked Alphabet Inc’s Google on Wednesday to reconsider its work with Chinese telecommunications firm Huawei Technologies Co Ltd, which they described as a security threat.
In a letter to Google Chief Executive Sundar Pichai, the lawmakers said Google recently decided not to renew “Project Maven,” an artificial intelligence research partnership with the U.S. Department of Defense.
“While we regret that Google did not want to continue a long and fruitful tradition of collaboration between the military and technology companies, we are even more disappointed that Google apparently is more willing to support the Chinese Communist Party than the U.S. military,” they wrote.
The letter was signed by Republican Senators Tom Cotton and Marco Rubio, Republican Representatives Michael Conaway and Liz Cheney, and Democratic Representative Dutch Ruppersberger.
Google spokeswoman Andrea Faville said the company looked forward to responding.
The letter was the latest in a series of efforts by members of the U.S. Congress to target Huawei, and ZTE Corp, another major Chinese telecommunications equipment company.
They have written bills that would bar government agencies from using the companies’ products and try to overturn Donald Trump’s agreement to end a ban on ZTE.
Earlier this month another senator, Democrat Mark Warner, wrote to Alphabet and other technology companies asking about any data-sharing agreements with Chinese vendors.

mardi 12 juin 2018

Tech Quisling

Mark Zuckerberg’s Long March to Serve China
Rogue Chinese company Huawei is among Facebook’s partners in a data-sharing program.
By ALEXIS C. MADRIGAL

Another shoe dropped in the New York Times investigation of Facebook’s deals with phone makers across the world: A Chinese connection emerged, touching the data scandal to the politically electric topic of the United States’ biggest economic rival.
Beginning in 2007, Facebook cut deals with 60 phone manufacturers to put versions of the service onto their devices, and among those companies were four Chinese manufacturers, including Huawei, which U.S. intelligence services have repeatedly linked to the Chinese government
Earlier this year, the heads of the NSA, FBI, and CIA warned against using Huawei phones.
Also in 2007, Bain Capital, the U.S. networking company 3com, and Huawei proposed a multibillion-dollar deal, only to be scuppered by U.S. officials over security concerns. 
That is to say, this was a concern Facebook knew or should have known even back in the era when these deals were negotiated.
Facebook maintains that Huawei stored Facebook data locally on devices, and did not send it to the company’s own servers, where presumably it would have been more open to collection by Chinese authorities.
Senators Marco Rubio and Mark Warner both voiced their displeasure over the revelation. 
Even before the new Times story came out, Warner, who has been tussling with Facebook for the past year, had already pointed out that Chinese companies were probably among the 60 device manufacturers that Facebook cut deals with to develop versions of their service for those phones. 
“It’s a serious danger,” he said
“I’ve been disappointed we’ve not gotten a straight answer.” 
Warner tweeted that he wanted “the whole story, now, not six months from now.”
At the same time, the Trump administration is close to cutting a deal with another Chinese phone maker, ZTE, to return to the U.S. market, after the United States says it violated trade embargoes with North Korea and Iran.
Given the tensions between the United States and China, the dominance of the two countries’ technology firms, and the size of their markets, it’s no surprise that their governments are fighting for power in this realm.
While some American technology companies have taken more or less principled stands on the Chinese market because of the ethical dilemmas the government poses, American technology companies still made more than $100 billion there last year. 
Chinese factories assemble the most valuable American companies’ products, with Apple the most notable among them.
Certainly, it looks bad for Facebook to have made and kept these agreements with Huawei. 
It calls to mind the memo that the senior executive Andrew Bosworth wrote (and later disavowed) about the company’s growth, in which he pondered what the company might have to do to break into the Chinese market.
“We connect people. Period. That’s why all the work we do in growth is justified. All the questionable contact-importing practices,” he wrote. 
“All the subtle language that helps people stay searchable by friends. All of the work we do to bring more communication in. The work we will likely have to do in China some day. All of it.”
At the same time, it’s worth thinking through who would likely have been affected by any data flow that resulted from the deal that Facebook cut. 
“This could be a very big problem,” tweeted Marco Rubio, for example. 
“If @Facebook granted Huawei special access to social data of Americans this might as well have given it directly to the government of #China.”
But how many Americans might we be talking about?
Huawei is roughly tied with Apple as the second-largest smartphone maker in the world with around 10 percent of global market share. 
Its largest business remains selling networking equipment, which positions the company slightly differently from any U.S. company. 
Huawei is built like a combination of Qualcomm (wireless networking equipment), Cisco (networking infrastructure), and Apple (consumer devices).
Most of the company’s sales come from China. 
The company has basically no market share in the United States, but as a 2017 Forbes article noted, the company’s phones are now popular in many European countries including Finland, Italy, Poland, Spain, Germany, and France. 
Right now, it’s unclear if the company’s new smartphones operate with the technical tools and under the agreements referenced in the Times reporting. 
Given the heat that Facebook has faced in Europe, the latest revelations probably won’t make things any easier for the company in Brussels.
From the Times reporting, we know that the devices were able to pull Facebook data on friends and friends of friends, which could lead one device to capturing data on hundreds of thousands of people
Huawei’s market share was much, much lower in the days when these agreements were cut, so we don’t know how many phones currently in use would be affected by any possible data flow. 
But given that there are Americans who have long been connected to people in China and Europe and other markets with Huawei phones, it’s probable that the Huawei devices could have accessed American data at some point. 
No one can yet say how many Americans could even hypothetically be in the widest possible ring of affected people.
It’s worth asking how significant that data might be, too. 
At the friends level, devices could work through a Facebook account to pull a lot of information about someone’s connections. 
At the friends of friends level, the devices were pulling only the existence of the friends and those users’ Facebook IDs.
Given all this, and given that it almost certainly was going to come out after Sunday’s Times report, it’s surprising to me that Facebook did not just admit that the Chinese companies, particularly Huawei, were among the manufacturers that it had cut deals with. 
If nothing else, their reticence adds to the sense expressed by Congressional leaders (and just about everyone else) that Facebook is not always completely forthcoming about its problems.

vendredi 8 juin 2018

Lawmakers Take Aim at Chinese Tech Firms

Bipartisan groups introduce amendment to scuttle Trump’s deal with ZTE, scrutinize Huawei’s ties to Google
By Siobhan Hughes, Kate O’Keeffe and John D. McKinnon

The deal that the Trump administration announced Thursday with China’s ZTE Corp. was immediately opposed by a bipartisan group of U.S. lawmakers as a threat to national security. 

WASHINGTON—Lawmakers in Congress lost a battle over ZTE Corp. when the Trump administration announced a deal Thursday to resuscitate the Chinese telecommunications giant, but they made it clear their war against Chinese technology companies is far from over.
Hours after the Commerce Department announced a deal that would prevent ZTE’s collapse by allowing it to resume buying components from U.S. suppliers, a bipartisan group of lawmakers introduced an amendment to a must-pass bill in an effort to undo the deal.
Members of Congress have also begun scrutinizing Google’s relationship with China’s Huawei Technologies Co
A group of lawmakers that includes some of the biggest critics of Huawei—Sens. Tom Cotton (R., Ark.) and Marco Rubio (R., Fla.) and Reps. Mike Conaway (R., Texas) and Robert Pittenger (R., N.C.)—is looking at Google’s operating-system partnership with Huawei.
Sen. Mark Warner (D.,Va.) issued his own open letter early Thursday to Google parent Alphabet Inc. and Twitter Inc., asking for information about any data-sharing agreements between the two companies and Chinese vendors. 
He also asked for information from Alphabet about separate partnerships with Chinese phone maker Xiaomi Corp. and Chinese tech giant Tencent Holdings Ltd.
The effort to reverse the ZTE deal marks the second time this week that the Republican-led Senate has threatened direct confrontation with Donald Trump over a signature policy issue.
A group of senators is also seeking to undo tariffs that Trump recently imposed on aluminum and steel imports from Canada, the European and Mexico. 
They have taken a dispute that was a war of words into the more serious realm of legislation that could handcuff the president.
Trump has made trade, and particularly fixing what he views as an unfair global trading system, a centerpiece of his agenda. 
That has entailed confronting both China and close allies, and threatening tariffs on a range of goods. When Trump last month said he was planning to reverse the penalties on ZTE, as the administration was pushing Beijing to commit to buy more U.S. exports, lawmakers from both parties accused him of conflating trade and national-security issues. 
The administration denies that.
While some Republicans have shied away from confronting Trump over his trade agenda, they appeared more prepared on Thursday to challenge the deal with ZTE, where national- security issues are more clear-cut. 
U.S. officials have warned for years that the telecom firm’s equipment, along with equipment made by rival Huawei, could be used to spy on Americans.
In mid-April, the U.S. banned exports to ZTE as punishment for the Chinese company breaking the terms of a settlement to resolve its sanctions-busting sales to North Korea and Iran. 
The penalty, which the Commerce Department said Thursday it would now lift as part of a new deal, amounted to a death knell for ZTE.
Backers of the ZTE amendment introduced Thursday, led by Mr. Cotton along with Senate Minority Leader Chuck Schumer (D., N.Y.) and Sen. Chris Van Hollen (D., Md.), are hoping to attach it to the National Defense Authorization Act, which could get a vote as soon as next week. 
Senate Majority Leader Mitch McConnell (R., Ky.) hasn’t said whether he expects the amendment to go to a vote, or whether it could make it into the package by other means.
Sen. Lindsey Graham (R., S.C.), who urged his colleagues to back off their effort to void Trump’s aluminum and steel tariffs after meeting with the president this week, said he wasn’t yet comfortable with the ZTE deal.
“I don’t know,” Mr. Graham said. 
“I want to give the president as much latitude as we can to negotiate with China and get a good deal with North Korea. Our intelligence community is very concerned. I want to know from them: do these changes alleviate their concerns?” he said.
The Commerce Department agreement announced Thursday requires ZTE to pay a $1 billion fine and allow U.S. enforcement officers inside the Chinese company to monitor its actions. 
In exchange, it allows ZTE to resume buying components from U.S. suppliers that it needs to make smartphones and build telecoms networks.
“I’m not comfortable yet,” said Sen. Roy Blunt (R., Mo.), a member of the Senate Intelligence Committee who has declined to back an effort to subject Trump’s metals tariffs to congressional approval. 
“I want to know more about the U.S. presence inside the company and why we should believe that that creates a level of assurance that we need to have about their capacity to do things that we wouldn’t want to have them do.”
The amendment introduced by lawmakers on Thursday would also prohibit U.S. government agencies from purchasing or leasing telecom equipment or services from ZTE or Huawei, and ban the U.S. from subsidizing those firms with grants or loans.
A ZTE spokeswoman didn’t immediately respond to a request for comment.
The fight over ZTE between Trump administration officials and China hawks in Congress began last month. 
Just weeks after the Commerce Department had banned U.S. companies from selling to ZTE, Trump suggested he was considering reversing the penalty. 
He tweeted May 13 that he and Chinese dictator Xi Jinping were “working together to give massive Chinese phone company, ZTE, a way to get back into business, fast.” 
He added: “Too many jobs in China lost. Commerce Department has been instructed to get it done!”
The tweet incensed many members of Congress, as well as intelligence and military officials, who moved swiftly to denounce any prospect of a reprieve through a series of legislative actions and an aggressive publicity campaign.
The debate over ZTE in Congress likely will have ramifications for the fall elections, as well as for trade policy. 
Polling has suggested that voters remain wary of China, a fear that Trump is tapping with his get-tough rhetoric.
The Wall Street Journal/NBC poll in April found that most U.S. voters view China as an adversary rather than an ally. 
Fear of China is especially intense among Trump supporters. 
But it is also substantial among older voters, whites and Republicans in general.
In private meetings with GOP senators this week, Trump argued in favor of reaching a deal with ZTE, which his administration struck after the president personally negotiated with Xi. 
The White House has also argued that if ZTE goes out of business, it will simply be absorbed by Huawei, lawmakers said, leaving the U.S. without protections included in the deal, such as the installation of Chinese-speaking American enforcement officers inside the company to monitor its actions.
That carried little weight with Mr. Rubio, who co-sponsored Thursday’s amendment and who has been among the most vocal members of Congress on the issue. 
If Huawei is an even bigger problem than ZTE, we shouldn’t be selling them semiconductors either,” he said.
Lawmakers said the administration’s handling of the ZTE issue was evidence of dysfunctional trade policies. 
In a speech on the Senate floor Thursday, Mr. Schumer said: “Trump has directed far too much of the administration’s energies on trade toward punishing our allies, like Canada and Europe, instead of focusing on the real menace, the No. 1 menace: China.” 
Mr. Schumer was referencing Trump’s decision last week to impose tariffs on America’s closest allies.
While the ZTE drama unfolded Thursday, lawmakers’ ramped-up scrutiny of Google’s deal with Huawei represented another front in the offensive against Chinese tech companies: data sharing. 
Trump administration officials and lawmakers had earlier largely limited their actions to trying to reduce ZTE’s and Huawei’s U.S. footprints. 
Now, members of Congress appear more willing to examine partnerships between U.S. firms and the two companies that have nothing to do with U.S. sales.
A representative for Huawei wasn’t immediately available to comment.
A Google spokesman said in a statement the company looks forward to answering lawmakers’ questions, adding: “We do not provide special access to Google user data as part of these agreements, and our agreements include privacy and security protections for user data.”
Derek Scissors, a China scholar at American Enterprise Institute, said the ZTE deal makes little sense if U.S. policy goals are to both keep Chinese firms out of the U.S. telecom network and keep them from getting access to Americans’ personal data.
“If we don’t trust Chinese telecommunications firms, why are we helping them become more capable?” he said.

mercredi 6 juin 2018

Tech Quisling

Facebook Gave Data Access to Huawei, Rogue Chinese Firm Flagged by U.S. Intelligence
By Michael LaForgia and Gabriel J.X. Dance
Facebook’s logo at an internet conference in Beijing in April. The social network has struck data-sharing partnerships with at least four companies in China.
Facebook has data-sharing partnerships with at least four Chinese electronics companies, including a manufacturing giant that has a close relationship with China’s government, the social media company said on Tuesday.
The agreements, which date to at least 2010, gave private access to user data to Huawei, a telecommunications equipment company that has been flagged by American intelligence officials as a national security threat, as well as to Lenovo, Oppo and TCL.
The four partnerships remain in effect, but Facebook officials said in an interview that the company would wind down the Huawei deal by the end of the week.
Facebook gave access to the Chinese device makers along with other manufacturers — including Amazon, Apple, BlackBerry and Samsung — whose agreements were disclosed by The New York Times on Sunday.
The deals were part of an effort to push more mobile users onto the social network starting in 2007, before stand-alone Facebook apps worked well on phones. 
The agreements allowed device makers to offer some Facebook features, such as address books, “like” buttons and status updates.
Facebook officials said the agreements with the Chinese companies allowed them access similar to what was offered to BlackBerry, which could retrieve detailed information on both device users and all of their friends — including religious and political leanings, work and education history and relationship status.
Huawei used its private access to feed a “social phone” app that let users view messages and social media accounts in one place, according to the officials.
Facebook representatives said the data shared with Huawei stayed on its phones, not the company’s servers.
Senator John Thune, the South Dakota Republican who leads the Commerce Committee, has demanded that Facebook provide Congress with details about its data partnerships
“Facebook is learning hard lessons that meaningful transparency is a high standard to meet,” Mr. Thune said.
His committee also oversees the Federal Trade Commission, which is investigating Facebook to determine whether the company’s data policies violate a 2011 consent decree with the commission.
Senator Mark Warner of Virginia pointed out that concerns about Huawei were not new, citing a 2012 congressional report on the “close relationships between the Chinese Communist Party and equipment makers like Huawei.”
“I look forward to learning more about how Facebook ensured that information about their users was not sent to Chinese servers,” said Mr. Warner, the top Democrat on the Intelligence Committee.
“All Facebook’s integrations with Huawei, Lenovo, Oppo and TCL were controlled from the get-go — and Facebook approved everything that was built,” said Francisco Varela, a Facebook vice president. 
“Given the interest from Congress, we wanted to make clear that all the information from these integrations with Huawei was stored on the device, not on Huawei’s servers.”
Banned in China since 2009, Facebook in recent years has quietly sought to re-establish itself there. The company’s chief executive, Mark Zuckerberg, has tried to cultivate a relationship with Chinese dictator Xi Jinping, and put in an appearance at one of the country’s top universities.
Last year, Facebook released a photo-sharing app in China that was a near replica of its Moments app, but did not put its name on it. 
And the company has worked on a tool that allowed targeted censorship, prompting some employees to quit over the project.
Still, Facebook has struggled to gain momentum, and in January an executive in charge of courting China’s government left after spending three years on a charm campaign to get the social media service back in the country.
None of the Chinese device makers who have partnerships with Facebook responded to requests for comment on Tuesday.
Huawei, one of the largest smartphone manufacturers in the world, is a point of national pride for China and is at the vanguard of the country’s efforts to expand its influence abroad. 
The company was the recipient of billions of dollars in lines of credit from China’s state-owned policy banks, helping to fuel its overseas expansion in Africa, Europe and Latin America. 
Its founder, Ren Zhengfei, is a former engineer in the People’s Liberation Army.
The United States government has long regarded the company with suspicion, and lawmakers have recommended that American carriers avoid buying the network gear it makes. 
In January, AT&T walked away from a deal to sell a new Huawei smartphone, the Mate 10.
United States officials are investigating whether Huawei broke American trade controls by dealing with Cuba, Iran, Sudan and Syria. 
The Trump administration has taken aim at Huawei and its rival ZTE in recent weeks, and in April the Federal Communications Commission advanced a plan to bar federally subsidized telecom companies from using suppliers that are considered national security threats.
Facebook has not entered into a data-sharing agreement with ZTE, officials at the social network said.
TCL, a consumer electronics firm, has accused the Trump administration of bias against Chinese companies and last June dropped a bid to buy a San Diego-based company that makes routers and other hardware.
Lenovo, a maker of computers and other devices, recently shelved ambitions to acquire BlackBerry after the Canadian government signaled that such a deal could compromise national security.

jeudi 3 mai 2018

U.S. Weighs Curbs on Chinese Telecom Firms Over National-Security Concerns

Huawei, ZTE caught in growing tech feud between Washington and Beijing
By John D. McKinnon

The U.S. worry about Chinese telecommunications companies is driven largely by longstanding concerns that the Chinese government uses the companies’ network equipment to spy on or disrupt U.S. networks. 

WASHINGTON—The Trump administration is considering executive action that would restrict some Chinese companies’ ability to sell telecommunications equipment in the U.S., based on national-security concerns, said several people familiar with the matter.
The move, if it happens, would represent a significant escalation of a growing feud between the U.S. and China over tech and telecommunications. 
The affected firms likely would include Huawei Technologies Co. and ZTE Corp.
They have found themselves increasingly in an international crossfire.
Pentagon officials said this week that they are moving to halt the sale of phones made by the two companies on U.S. military bases around the world. 
U.S. officials are concerned that Beijing could order manufacturers to hack into products they make to spy or disable communications. 
The latest action could come in the form of a White House executive order, possibly in the next few weeks, people familiar with the matter said. 
One possibility under consideration has been curbing the ability of companies doing business with the U.S. government from using network equipment made by companies that could pose a national-security risk.
Significant complexities remain, however, including the exact scope of the possible order, and no final decisions have been made. 
A spokesman for the White House National Security Council said officials “have no comment on the matter at this time.”
ZTE didn’t immediately respond to request for comment. 
Huawei declined to comment specifically on the potential executive order but said that security and privacy were key priorities for the company.
The effort is being driven largely by longstanding concerns that the Chinese government could use the companies’ network equipment to spy on or disrupt U.S. networks. 
The U.S. and several of its allies recently have stepped up scrutiny of how the Chinese firms’ equipment is used in networks.
The issue has played into broader friction over trade between the two countries. 
Longer-term, U.S. officials also are concerned about whether China or Western democracies will win the race to develop next-generation networks.
Already this year, the Commerce Department has banned American companies from selling products to ZTE, over its violation of previous sanctions involving North Korea and Iran
Huawei is under investigation by the Justice Department over similar concerns.
The Federal Communications Commission also recently launched a rule-making process that is expected eventually to lead to curbs—mainly affecting smaller and rural telecommunications firms—on providers’ ability to use federal universal-service funds to buy Huawei and ZTE equipment.
The administration also is beginning to look more closely at finding ways to restrict more kinds of technology transfers from U.S. firms to China.
Chinese officials have warned that they will take steps to retaliate if the U.S. intensifies its efforts against firms such as Huawei.
San Diego-based Qualcomm Inc. has already been caught in the dispute, suffering a delay in its effort to acquire Dutch automotive chip maker NXP Semiconductors NV, a purchase the U.S. company needs to diversify its product line as the smartphone market plateaus. 
China, which has a say in the deal as one of several countries where the companies have substantial sales or assets, initiated the delay.
Some U.S. lawmakers of both parties are concerned about the possibilities for sophisticated electronic espionage.
Sen. Mark Warner (D., Va.), the vice chairman of the Senate Intelligence Committee, “does think we have to take seriously the risks potentially posed by Chinese telecom in our systems,” a spokeswoman said.
The U.S. and China also are locked in a duel over next-generation networks, with the U.S. aiming to block China’s ambition of developing the technology to build and run them around the world.
Still, the potential U.S. move also raises thorny questions, such as whether it should be limited to core network equipment, or extend to handsets, some industry officials said.
“Addressing global supply chain security concerns has long been a priority for the tech industry,” said Pamela Walker, a vice president at the Information Technology Industry Council, an advocacy group. 
“Moving forward, we urge policy makers to share information with suppliers and contractors so we can increase the level of security and assurance within the supply chain.”
Officials have considered whether security tests could be used to screen some suspect equipment—a move that could simplify the effort at one level, but also create new complications.
Huawei is the world’s biggest supplier of wireless equipment and No. 3 vendor of smartphones. 
The Shenzhen-based company has been all but shut out of the U.S. telecom market since a 2012 congressional report said its equipment could be used for spying.
ZTE recently has been the fourth-largest seller of smartphones in the U.S.