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| China Pulls Cisco Into Dispute on Cyberspying | China Pulls Cisco Into Dispute on Cyberspying |
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| 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. | 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 a 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 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. | 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. 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. | 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. |
| 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 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. | 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 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. | 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. |
| On Tuesday, Bloomberg News reported that Chinese government agencies were examining whether the use of IBM servers by the country’s banks posed a risk to financial security, citing unidentified sources. | |
| IBM responded with a statement, saying: “IBM is not aware of any Chinese government policy recommending against the use of IBM servers within the country’s banking industry. In fact, news reports now state that China’s National Development and Reform Commission has not heard of any alleged directive to that effect. IBM is a trusted partner in China and has been for more than 30 years.” | |
| 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. | 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. |
| 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 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.” | 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.” |