Wednesday, March 26, 2014

Trade and (cyber) War

"The irony is that exactly what they are doing to us is what they have always charged that the Chinese are doing through us."
"If such espionage has been truly conducted, then it is known that the company is independent and has no unusual ties to any government, and that knowledge should be relayed publicly to put an end to an era of mis- and disinformation."
William Plummer, senior Huawei executive, United States branch

"Many of our targets communicate over Huawei-produced products. We want to make sure that we know how to exploit these products, to gain access to networks of interest [around the world]."
National Security Agency, Washington

Intelligence authorities in the United States have long suspected the Chinese telecommunications giant, Huawei Technologies Co. Ltd., of representing a security threat. Responding by blocking it from business deals in the United States, fearing the company would create "back doors" through its equipment, permitting the Chinese military or Beijing-backed hackers to steal corporate and government secrets.

All the while the United States was making very loud and public charges of cyber-espionage against China, warning of the dangers inherent in contracting services and equipment from Huawei, the National Security Agency was diligently involved in creating its own back doors into Huawei's networks. Needless to say, the NSA did not proudly proclaim this as a fact; it was revealed by purloined NSA documents, courtesy of Edward Snowden.

Information about the giant routers and complex digital switches Huawei is responsible for connecting one-third of the world's population with is of vital interest; the NSA made its way into the servers in Huawei's sealed headquarters in Shenzhen, the industrial heartland of China, to monitor communications of the company's top executives. The purpose was ostensibly mostly aimed at discovering whether links existed between Huawei and the People's Liberation Army.

And there was another, perhaps far more sinister purpose; to exploit Huawei's own technology. When the company sold equipment to other countries; allies and nations that prefer not to purchase American products, the NSA could make itself comfortable through computer and telephone networks in the conduction of surveillance activities to its heart's content. And should orders from above stir it to undertake offensive cyber-operations, it could then proceed to do so.

The digital cold war with Beijing was disclosed by The New York Times and Der Spiegel. Interviews with intelligence officials offered insights into that cyber war between the two telecommunication giant-nations. This, at a time when President Barack Obama and President Xi Jinping are beginning to talk seriously about limiting that cyber conflict.

The NSA is actively tracking over 20 Chinese hacking groups, over half of which are Chinese army and navy units breaking into the networks of the American government, U.S. companies including Google, and drone and nuclear-weapon part makers. The pace of the cyber-conflict between the two countries is, if anything, intensifying. It was revealed last year that some of the most aggravating Chinese hacking originated at a People's Liberation Army facility in Shanghai.

An official U.S. response to the above revelations? "We do not give intelligence we collect to U.S. companies to enhance their international competitiveness or increase their bottom line. Many countries cannot say the same", commented White House spokeswoman Caitlin Hayden. So then, that's A-OK; the NSA operates strictly for legitimate national security purposes.,,,

Still undetermined, evidently, is whether Huawei is an independent company or in reality a front for the People's Liberation Army. Charged, but not proven. The House intelligence committee delivered a report that cited no evidence confirming suspicions of Chinese government ties, but affirmed nonetheless that Huawei and ZTE (another Chinese telecommunications company) be blocked from "acquisitions, takeover or mergers", for they "cannot be trusted to be free of foreign state influence."

Leading Huawei to more or less surrender aspirations of entering the American market, complaining itself to be a victim of protectionism, shielded by trumped-up national security concerns. Let's hear it for free trade. When, in fact, protection of "made in the U.S." most certainly is the primary motivating factor, always has been, always will be, and that's the way it is.

All's fair in trade and war.

Labels: , , , ,

Follow @rheytah Tweet