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

Photogallery Strong Words Start, May End, S. African Xenophobic Attacks

President Jacob Zuma publicly condemned rise in attacks on foreign nationals but critics say leadership has been less than welcoming to foreign residents More

Video Family Waits to Hear Charges Against Reporter Jailed in Iran

Reports in Iran say Jason Rezaian has been charged with espionage, but brother tells VOA indictment has not been made public More

Video Overwhelmed by Migrants, Italy Mulls Action to Stabilize Libya

Amnesty International says multinational concerted humanitarian effort must be enacted to address crisis; decrepit boats continue to bring thousands of new arrivals daily 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.
Are Energy Needs Putting Thailand's Natural Beauty at Risk?i
X
Steve Sandford
April 17, 2015 12:50 AM
Thailand's appetite for more electricity has led to the construction of new dams along the Mekong River to the north and new coal plants near the country's famous beaches in the south. A proposed coal plant in a so-called "green zone" has touched off a debate. VOA's Steve Sandford reports.
Video

Video Are Energy Needs Putting Thailand's Natural Beauty at Risk?

Thailand's appetite for more electricity has led to the construction of new dams along the Mekong River to the north and new coal plants near the country's famous beaches in the south. A proposed coal plant in a so-called "green zone" has touched off a debate. VOA's Steve Sandford reports.
Video

Video Overwhelmed by Migrants, Italy Mulls Military Action to Stabilize Libya

Thousands more migrants have arrived on the southern shores of Italy from North Africa in the past two days. Authorities say they expect the total number of arrivals this year to far exceed previous levels, and the government has said military action in Libya might be necessary to stem the flow. VOA's Henry Ridgwell reports.
Video

Video Putin Accuses Kyiv of ‘Cutting Off’ Eastern Ukraine

Russian President Vladimir Putin, in his annual televised call-in program, again denied there were any Russian troops fighting in Ukraine. He also said the West was trying to ‘contain’ Russia with sanctions. Henry Ridgwell reports on reactions to the president’s four-hour TV appearance.
Video

Video Eye Contact Secures Dog's Place in Human Heart

Dogs serve in the military, work with police and assist the disabled, and have been by our side for thousands of years serving as companions and loyal friends. We love them. They love us in return. VOA’s Rosanne Skirble reports on a new study that looks at the bio-chemical bond that cements that human-canine connection.
Video

Video Ukrainian Volunteers Search for Bodies of Missing Soldiers

As the cease-fire becomes more fragile in eastern Ukraine, a team of volunteer body collectors travels to the small village of Savur Mohyla in the what pro-Russian separatists call the Donetsk Peoples Republic - to retrieve bodies of fallen Ukrainian servicemen from rebel-held territories. Adam Bailes traveled with the team and has this report.
Video

Video Xenophobic Violence Sweeps South Africa

South Africa, long a haven for African immigrants, has been experiencing the worst xenophobic violence in years, with at least five people killed and hundreds displaced in recent weeks. From Johannesburg, VOA’s Anita Powell brings us this report.
Video

Video Sierra Leone President Koroma Bemoans Ebola Impact on Economy

In an interview with VOA's Shaka Ssali on Wednesday, President Ernest Koroma said the outbreak undermined his government’s efforts to boost and restructure the economy after years of civil war.
Video

Video Protester Lands Gyrocopter on Capitol Lawn

A 61-year-old mailman from Florida landed a small aircraft on the Capitol lawn in Washington to bring attention to campaign finance reform and what he says is government corruption. Wednesday's incident was one in a string of security breaches on U.S. government property. Zlatica Hoke reports the gyrocopter landing violated a no-fly zone.
Video

Video Apollo 13, NASA's 'Successful Failure,' Remembered

The Apollo 13 mission in 1970 was supposed to be NASA's third manned trip to the moon, but it became much more. On the flight's 45th anniversary, astronauts and flight directors gathered at Chicago's Adler Planetarium to talk about how the aborted mission changed manned spaceflight and continues to influence space exploration today. VOA’s Kane Farabaugh reports.
Video

Video Badly Burned Ukrainian Boy Bravely Fights Back

A 9-year-old Ukrainian boy has returned to his native country after intensive treatment in the United States for life-threatening burns. Volodia Bubela, burned in a house fire almost a year ago, battled back at a Boston hospital, impressing doctors with his bravery. Faith Lapidus narrates this report from VOA's Tetiana Kharchenko.
Video

Video US Maternity Leave Benefits Much Less Than Many Countries

It was almost 20 years ago that representatives of 189 countries met at a UN conference in Beijing and adopted a plan of action to achieve gender equality around the world. Now, two decades later, the University of California Los Angeles World Policy Analysis Center has issued a report examining what the Beijing Platform for Action has achieved. From Los Angeles, Elizabeth Lee has more.
Video

Video Endangered Hawaiian Birds Get Second Chance

Of the world's nearly 9,900 bird species, 13 percent are threatened with extinction, according to BirdLife International. Among them are two Hawaiian honeycreepers - tiny birds that live in the forest canopy, and, as the name implies, survive on nectar from tropical flowers. Scientists at the San Diego Zoo report they have managed to hatch half a dozen of their chicks in captivity, raising hopes that the birds will flutter back from the brink of extinction. VOA’s George Putic reports.
Video

Video Exhibit Brings Renaissance Master Out of the Shadows

The National Gallery of Art in Washington has raised the curtain on one of the most intriguing painters of the High Renaissance. Mostly ignored after his death in the early 1500s, Italian master Piero di Cosimo is now claiming his place alongside the best-known artists of the period. VOA’s Ardita Dunellari reports.
Video

Video Sidemen to Famous Blues Artists Record Their Own CD

Legendary blues singer BB King was briefly hospitalized last week and the 87-year-old “King of the Blues” may not be touring much anymore. But some of the musicians who have played with him and other blues legends have now released their own CD in an attempt to pass the torch to younger fans... and put their own talents out front as well. VOA’s Greg Flakus has followed this project over the past year and filed this report from Houston.
Video

Video Iran-Saudi Rivalry Is Stoking Conflict in Yemen

Iran has proposed a peace plan to end the conflict in Yemen, but the idea has received little support from regional rivals like Saudi Arabia. They accuse Tehran of backing the Houthi rebels, who have forced Yemen’s president to flee to Riyadh, and have taken over swaths of Yemen. As Henry Ridgwell reports for VOA, analysts say the conflict is being fueled by the Sunni-Shia rivalry between the two regional powers.

VOA Blogs

World Currencies

EUR
USD
0.9247
JPY
USD
118.78
GBP
USD
0.6657
CAD
USD
1.2190
INR
USD
62.395

Rates may not be current.