This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2014/05/28/business/international/china-pulls-cisco-into-dispute-on-cyberspying.html

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
China Pulls Cisco Into Dispute on Cyberspying China Pulls Cisco Into Dispute on Cyberspying
(about 2 hours later)
TAIPEI — Amid heightening tension between Washington and Beijing over online espionage, a Chinese state media outlet has sharply criticized the American information hardware company Cisco Systems, saying it is complicit with United States cyberspying. TAIPEI, Taiwan — Amid heightening tension between Washington and Beijing over online espionage, a Chinese state media outlet has sharply criticized the American network equipment maker Cisco Systems, saying it is complicit with United States cyberspying. Cisco denied the accusations.
Cisco “carries on intimately with the U.S. government and military, exploiting its market advantage in the Chinese information networks, playing a disgraceful role and becoming an important weapon in the U.S. exploiting its power over the Internet,” said the article, which was published on the website of China Youth Daily, a state-run newspaper. The article was widely reposted on Chinese news sites Tuesday.Cisco “carries on intimately with the U.S. government and military, exploiting its market advantage in the Chinese information networks, playing a disgraceful role and becoming an important weapon in the U.S. exploiting its power over the Internet,” said the article, which was published on the website of China Youth Daily, a state-run newspaper. The article was widely reposted on Chinese news sites Tuesday.
Cisco, based in San Jose, Calif., said it did not provide any sort of electronic back doors in its products.Cisco, based in San Jose, Calif., said it did not provide any sort of electronic back doors in its products.
“Cisco does not work with any government to weaken our products for exploitation,” John Earnhardt, a Cisco spokesman, said in an emailed statement. “Additionally, Cisco does not monitor communications of private citizens or government organizations in China or anywhere in the world.” “Cisco does not work with any government to weaken our products for exploitation,” John Earnhardt, a Cisco spokesman, said in a statement. “Additionally, Cisco does not monitor communications of private citizens or government organizations in China or anywhere in the world.”
Last week the United States announced the indictments of five Chinese military personnel on charges that they hacked the computer networks of several major companies and a trade union. That move touched off recriminations from China and concern that rising tensions between the two countries would have repercussions for foreign technology firms pursuing business in China. Last week, the United States announced the indictments of five members of the Chinese military, saying that they had hacked the computer networks of several major American companies and a trade union. That move touched off recriminations from China and concern that rising tensions between the two countries would have repercussions for foreign technology companies pursuing business in China.
Beijing denounced the indictments and accused Washington of hypocrisy in light of the revelations from the former National Security Agency contractor Edward J. Snowden about widespread surveillance by the United States. Beijing denounced the indictments and accused Washington of hypocrisy in light of the revelations from the former National Security Agency contractor Edward J. Snowden about widespread surveillance by the United States. Fresh accusations came in a new report on Monday from the China’s Internet Media Research Center. Although the report relied heavily on foreign news accounts of Mr. Snowden’s revelations, it said that Beijing’s official inquiries had borne out his assertions that Chinese leaders and companies had been targeted.
China’s State Internet Information Office said last week that the government would begin requiring security examinations of equipment from foreign suppliers before it can be sold in the domestic market, a move analysts described as retaliation for the indictments. The People’s Daily, the mouthpiece of China’s ruling Communist Party, said in an opinion piece posted on its website Monday that the United States raised the issue of cyberspying because it wanted to thwart China’s development, cover up its own actions and blunt the pressure of domestic public opinion.
China’s State Internet Information Office said last week that the government would begin requiring security examinations of equipment from foreign suppliers before it could be sold in the domestic market, a move analysts described as retaliation for the indictments.
That pattern of escalation will probably continue, said Mark Natkin, managing director of Marbridge Consulting, a Beijing-based information technology consulting firm.That pattern of escalation will probably continue, said Mark Natkin, managing director of Marbridge Consulting, a Beijing-based information technology consulting firm.
“I think it is certainly difficult for policy makers and other authorities here to simply sit back and be subject to these sorts of allegations and say nothing,” he said. “I do think we’ll see some more escalation and hopefully, it will not be permanent. Hopefully, it will not last too long. Right now it’s hard to imagine it all clearing away.” “I think it is certainly difficult for policy makers and other authorities here to simply sit back and be subject to these sorts of allegations and say nothing,” he said. “I do think we’ll see some more escalation, and hopefully, it will not be permanent. Hopefully, it will not last too long. Right now it’s hard to imagine it all clearing away.”
Just before the indictments were announced, China said it was banning Microsoft’s Windows 8 on government computers, citing security concerns after the retirement of the 12-year-old Windows XP operating system in April. Just before the indictments were announced, China said it was banning Microsoft’s Windows 8 operating system on government computers. The state media said the move was prompted by security concerns after the retirement of the 12-year-old Windows XP system in April.
Chinese government agencies are also examining whether the use of I.B.M. servers by the country’s banks poses a risk to financial security, Bloomberg News reported Tuesday, citing unnamed sources familiar with the review. Representatives for I.B.M. did not immediately respond to requests for comment. About 15 percent of Cisco’s revenue of $34.8 billion for the nine-month period ended in April came from Asia, including China, the company said this month. In that time, overall sales in Asia dropped 9 percent, and sales in China dropped 7 percent. The company noted that it was experiencing pressure from “price-focused competitors from Asia, especially from China” — most likely a reference to Huawei and ZTE, the leading Chinese telecommunications equipment makers.
This month Cisco said its overall sales in Asia had dropped 9 percent, over a nine-month period ending in April. In China, sales dropped 7 percent in that period. About 15 percent of the company’s revenue of $34.8 billion for that period came from Asia, including China.
The company noted it was experiencing pressure from “price-focused competitors from Asia, especially from China” — likely a reference to Huawei and ZTE, the leading Chinese telecommunications equipment makers.
United States officials have warned that Huawei posed a threat to national security and sought to restrict its ability to develop networks in the United States and for American allies. In 2012 a congressional panel cited documents from former Huawei employees that said the company had provided services to China’s military.United States officials have warned that Huawei posed a threat to national security and sought to restrict its ability to develop networks in the United States and for American allies. In 2012 a congressional panel cited documents from former Huawei employees that said the company had provided services to China’s military.
Legislation signed by President Obama last year prevents the federal government from purchasing equipment made by Huawei or other Chinese telecommunications equipment makers without a security review. Huawei has denied that it has close ties to China’s military or that its products present security vulnerabilities.Legislation signed by President Obama last year prevents the federal government from purchasing equipment made by Huawei or other Chinese telecommunications equipment makers without a security review. Huawei has denied that it has close ties to China’s military or that its products present security vulnerabilities.
The People’s Daily, the mouthpiece of China’s ruling Communist Party, said in an opinion piece posted on its website Monday that the United States raised the issue of cyberspying because it wanted to thwart China’s development, cover up its own actions and blunt the pressure of domestic public opinion. The Chinese state media have voiced concerns about Cisco’s role in the nation’s digital infrastructure before. Last year, the state-run China Daily newspaper cited an unidentified analyst who said, “There is a terrible security threat in China from U.S.-based technology companies including Cisco, Apple and Microsoft.”
Chinese state media have voiced concerns about Cisco’s role in the nation’s digital infrastructure before. Last year the state-run China Daily newspaper cited an unnamed analyst who said, “There is a terrible security threat in China from U.S.-based technology companies including Cisco, Apple and Microsoft.”