China needs to get U.S and other countries (IP) Intellectual Property and secrets to keep its economic engine going. China has 3 options 1-Hack your way in. 2-Buy your way in. 3-Buy a politician. Just like our bridges and railway infrastructure, the U.S cyber infrastructure may be getting sold down the tubes to China with support from our politicians.
What is cyber warfare? Simple when someone is in your network without your permission, you’re at war. If someone try’s to take your website down with DDoS, your at war. When someone steals your identity and steals your secrets and your money, you’re at war. The fact is we are at war in cyberspace with China. China hacking cyberspace to gain IP and secrets this year hopefully opened our eyes to the current cyber warfare in the 5th battlefield cyberspace.
China and other companies will try anything to be able to monitor it’s own people as well as other Nations anyway it can. If hacking doesn’t work, China is planning to (use big Money) buy a big share of Facebook (by the way – Facebook is illegal in China- you do the math-) Just add 450 million Chinese users to Facebook and watch the stock market action (make big $$). Now China may be buying our politics.
Rick Perry as well as Mitt Romney have both made money with ties to Chinese corporations in China. The washingtonpost.com did a great piece about “Perry welcomed Chinese firm despite security concern”.
Let’s talk about Huawei. This Chinese company is a major telecom company though out the world that nobody has ever heard of the quite, shy company type. They provide backbone infrastructure equipment for the Internet and Cell technology industry. But they have a few problems with the U.S.
- Their head guy who created the company is: Ren Zhengfei — Huawei’s chief executive, Ren, according to a news release. The Chinese executive is a former leader in the (PLA) People’s Liberation Army who helped oversee the Chinese military’s telecom intelligence in the 1980s, according to a Rand report.
- Three times since 2008, a U.S. government security panel has blocked Huawei from acquiring or partnering with U.S. companies because of concerns that secrets could be leaked to China’s government or military.
- In 2005, a Rand report questioned Huawei’s “ deep ties with the Chinese military, which serves a multi-faceted role as an important customer, as well as Huawei’s political patron and research and development partner.”
- In late 2009, The Post reported, the NSA- National Security Agency privately urged senior executives of AT&T not to purchase Huawei equipment for a planned phone network.
- Michael Wessel, a former Democratic aide who is a member of a bipartisan congressional advisory panel that unanimously agreed that Huawei posed a cyber-security risk to the United States
- Huawei spokesman William Plummer said the company helps sustain thousands of U.S. jobs, and purchased $6.1 billion in U.S. goods in 2010. In an open letter to the U.S. government, Huawei called the claims of ongoing military ties “falsehoods.”
- Eight Republican senators, including Jon Kyl of Arizona and Richard Shelby of Alabama, urged the Obama administration to investigate Huawei’s effort to sell equipment to upgrade Sprint Nextel’s mobile network. They argued that Huawei’s involvement “could create substantial risk for U.S. companies and possibly undermine U.S. national security.” The Committee on Foreign Investment rejected Huawei’s partnership with Sprint later that year.
- In 2008, the Committee on Foreign Investment in the United States, a multi-agency government panel, blocked Huawei’s plan to buy 3Com.
A DHS spokesman testified to congress that we might have electronic devices with hardwired backdoor to allow spying on our digital infrastructure by foreign Nation. He did not say China, but it was implied. Now lets take a look at the last 2 bullets points. China wanted Sprint and 3Com. These two (2) are the biggest in the telecomm space in America. If these tainted components were to get installed China would be able to see everything on the Internet, and they didn’t even have to hack a website to do it.
The current GOP front-runner Gov. Rick Perry at a ribbon-cutting ceremony launching Huawei corporate headquarters. Promising hundreds of new jobs, and validating what he calls his “Texas miracle” of growth. While Perry focused on Huawei’s ability to create jobs in a sluggish economy, national security experts in both the George W. Bush and Obama administrations had concluded that the global telecom giant poses a potential cyber-security risk to the U.S. military and businesses.
- As governor, Perry has made international recruiting a centerpiece of his economic policy, and more than two dozen Chinese companies now have a Texas presence.
- China is the state’s third-largest export-import partner. So this is how Rick Perry got all those jobs in Texas there made in China, not made in America.
Then we have another front-runner Mitt Romney has vowed to “get tough” on trade with China and called the superpower one of the “worst offenders” of global trade rules, suggesting in an interview that the United States must clamp down on China’s use of pirated technologies.
BUT on the other hand.
Mitt Romney’s former investment company, Bain Capital, worked on behalf of at least two Chinese companies trying to acquire U.S. technology firms. One case involved Huawei, which Bain joined in its failed bid to buy the software firm 3Com. Romney left Bain Capital in 1999, and aides say he had no role in those deals, so I have to give him the benefit of the doubt.
This is were security professionals need to communicate that up the chain of command so people will become aware of the problem. Security people see the problems but as my friend Reza told me “he pointed out to the company all these Chinese computers needed to be replaced”. When you turn these computers on , all of a sudden all kinds of connection are started by these computers all by themselves. The bad news is that these computers are cheap, and maybe some sub-government contractor won’t use it next time they visit our government complex or private company. If they have hardware with backdoor not amount of anti-virus software will stop it.
We cannot allow China or any other country to buy us with money or jobs or politics. That’s what America used to do to help 3rd world nations, give jobs to the people and money to the politicians. Then that country will be favorable to our needs – their oil, their minerals, their IP Intellectual property and secrets. If we had the manufacturing jobs here in America, we could build our own electronic components. We are dependent on foreign oil and foreign technology.
The Saturn V rocket: the only rocket to take (Americans) humans to another world (the moon). America has no replacement and we have lost the manufacturing capabilities and the job specialization that’s needed to ever create another one again. We stopped building rocket that will take us to another world, so the technology dies with it.
I hope America will one day build another Saturn V rocket and I hope America bring back technology manufacturing jobs and the talent that goes with it back home to America. This is the only way we can be sure that someone is not planting a backdoor in my cell phone or I-pad that can take down the power grid of another country while I talk to my daughter about “my grandson new poop painting all over the wall”.
Politics, cyber security and national interest goes hand in hand. It’s our job to educate our politicians about the Chinese cyber threat, this way we can keep them in line.
My 2© cents – gatoMalo_at_uscyberlabs_dot_com