News / Economy

Chinese Tech Firms Gain from Cyber Barbs, Snowden Revelations

FILE - U.S. cyber security company Mandiant says it has tracked recent hacker attacks on U.S. institutions to China.
FILE - U.S. cyber security company Mandiant says it has tracked recent hacker attacks on U.S. institutions to China.
Reuters
Chinese software companies such as Neusoft Corp and China National Software & Service Co Ltd (ChinaSoft) are picking up sales and expanding their marketing as China trades cyber spying accusations with the United States.
 
For Neusoft, one of China's biggest software solutions providers, that includes selling more networking products and information security software to government and state-owned clients, while introducing higher-value integrated hardware and software packages and consulting services.
 
“It's understandable for a country to strengthen its information security and cyber security while maintaining its independence and control,” Lu Zhaoxia, senior vice president of Neusoft told Reuters. “In the U.S. and Japan, core systems are all domestic.”
 
Based in the northeastern city of Shenyang, Neusoft's clients include some of China's biggest state-owned conglomerates such as State Grid Corp of China and the country's three big telecom operators   .
 
The latest dispute between Beijing and Washington has brightened the outlook for Chinese software firms, which have already seen improved sales and share prices since U.S. spying revelations a year ago by Edward Snowden, a former U.S. National Security Agency (NSA) contractor. Snowden also claimed the NSA hacked into critical network infrastructure at universities in China and Hong Kong.
 
Neusoft shares have risen 15 percent to 2-month highs since May 19 when the U.S. Justice Department charged five Chinese military officers, accusing them of hacking American companies to steal trade secrets.
 
While Lu emphasized Neusoft's commitment to innovation - the firm employs 20,000 workers and over the last 5 years has nearly doubled revenue to 7.5 billion yuan ($1.2 billion), even as profit margins narrowed sharply - the company's stock price has risen around 60 percent since Snowden's revelations last May.
 
Insigma Technology Co Ltd, Beijing Teamsun Technology Co Ltd and Inspur Software Co Ltd share prices have also spiked higher in the last week, while shares in Shenzhen Kingdom Technology Co Ltd , Yonyou Software Co Ltd and DHC Software Co Ltd have soared 200-300 percent in the past year.
 
“Relevant government policies are definitely positive for the development of our company,” said Gao Han, an investor relations official at DHC Software, which sells its software and services to big and mid-sized state firms, including PetroChina , Sinopec and State Grid.
 
Finger pointing

The U.S. government indictment has sparked outrage in China and added urgency to Beijing's efforts to promote the development of local information technology companies. Chinese media have called the U.S. “a high-level hooligan”, while officials have accused Washington of applying “double standards” on issues of cyber spying.
 
“The U.S. side is not qualified to finger point at others while its own notorious misbehavior stands uncorrected,” Foreign Ministry spokesman Qin Gang said on Thursday.
 
Beijing is emphasizing the importance of network security, particularly for its energy, transport and finance sectors. That effort intensified following Snowden's revelations, just as U.S. technology firms began reporting a drop in their China sales.
 
In August, the National Development and Reform Commission, China's top economic planning body, set out cyber security standards for financial institutions, cloud computing and big data, information system secrecy management and industrial controls. And last week, China said it will investigate providers of important IT products and services to protect “national security” and “economic and social development.” Central government offices have also this year been banned from using Windows 8, Microsoft Corp's latest operating system, in new computers.
 
“The nation's information security could come under direct threat if the software we use was implemented with backdoor viruses and the like,” Mian Wei, a minister at the Ministry of Industry and Information Technology (MIIT), was quoted as saying by the official China Daily newspaper on Friday. “Our job is to make sure such things do not happen.”
 
More local sourcing
 
At least four domestic software and hardware makers, including Neusoft and ChinaSoft, have received a “top-tier” rating from the MIIT, allowing them to provide services to government agencies that handle top secret information.
 
“We have used (in the past) IBM, Oracle and other foreign products and networks,” said Lin Shanshan, an investor relations officer at ChinaSoft, which is a subsidiary of China Electronics Corp, the central government conglomerate that controls 13 listed companies. “In future, we'll be using more China software for domestically manufactured networks.”
 
ChinaSoft, whose customers include the State Tobacco Administration, Environmental Protection Agency and Meteorological Bureau, is rolling out new cloud products to complement its firmware, security software and operating systems.
 
“National policy is a bellwether,” said ChinaSoft's Lin. “The government is vigorously promoting cloud applications, and we'll certainly need to keep up with this opportunity.”
 
At Neusoft, Lu Zhaoxia says that even as innovation has helped the company expand at home, government policies haven't hurt either, as China's use of online and mobile services become increasingly important and U.S. tech services providers remain suspect.
 
“For individuals, the state, businesses, data protection has become an urgent issue,” Lu said.

You May Like

Multimedia Obama Defends Immigration Action

Obama says with his executive action on immigration, enforcement resources will be focused on 'felons, not families; criminals, not children' More

US-Led Airstrikes in Syria Kill Over 900: Monitoring Group

British-based Syrian Observatory for Human Rights says the toll includes more than 50 civilians, five of them women and eight of them children More

Report: Obama Broadens US Combat Role in Afghanistan

The New York Times says resident Barack Obama has signed a classified order extending the role of US troops in Afghanistan for another year More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
New Skateboard Defies Gravityi
X
November 21, 2014 5:07 AM
A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Gay Evangelicals Argue That Bible Does Not Condemn Homosexuality

More than 30 U.S. states now recognize same-sex marriages, and an increasing number of mainline American churches are blessing them. But evangelical church members- which account for around 30 percent of the U.S. adult population - believe the Bible unequivocally condemns homosexuality. VOA's Jerome Socolovsky reports that gay, lesbian, bisexual and transgender evangelicals are coming out. Backed by a prominent evangelical scholar, they argue that the traditional reading of the bible is wrong.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Mexico Protests Escalate Over Disappearances

Protests in Mexico over 43 students missing since September continue to escalate, reflecting growing anger among Mexicans about a political system they view as corrupt, and increasingly tainted by the drug trade. Mounting outrage over the disappearances is now focused on the government of President Enrique Pena Nieto, accused of not doing enough to end insecurity in the country. More from VOA's Victoria Macchi.
Video

Video US Senate Votes Down Controversial Oil Pipeline - For Now

The U.S. Senate has rejected construction of a controversial pipeline to transport Canadian oil to American refineries. The $5 billion project still could be approved next year, but it faces a possible veto by President Barack Obama. As VOA’s Michael Bowman reports, the pipeline has exposed deep divisions in Congress about America’s energy future.
Video

Video Can Minsk Cease-fire Agreement Hold?

Growing tensions between government troops and separatists in eastern Ukraine further threaten a cease-fire agreement reached two months ago in the Belarusian capital of Minsk. Critics of U.S. policy in Ukraine say it is time the Obama administration gives up on that much-violated cease-fire and moves toward a new deal with Russia. VOA's Scott Stearns has more.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.
Video

Video Ferguson Church Grapples with Race Relations

Many white residents of Ferguson, Missouri, say they chose to live there because of the American Midwest community's diversity. So, they were shocked when a white police officer killed an unarmed black teenager in August – and shaken by the resulting protests and violence. Some local churches are leading conversations on how to go forward. VOA’s Ayesha Tanzeem reports.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8050
JPY
USD
117.90
GBP
USD
0.6376
CAD
USD
1.1259
INR
USD
61.655

Rates may not be current.