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

    Video Rubio Looks to Surge in New Hampshire

    Republican presidential candidate has moved into second place in several recent surveys and appears to be gaining ground on longtime frontrunner Donald Trump

    UN Calls for Global Ban on Female Genital Mutilation

    Recent UNICEF report finds at least 200 million girls and women alive today have undergone female genital mutilation in 30 countries

    UN Pilots New Peace Approach in CAR

    Approach launched in northern town of Kaga Bandoro, where former combatants of mainly Muslim Seleka armed group and Christian and animist anti-Balaka movement are being paid to do community work

    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.
    German Artists to Memorialize Refugees With Life Jacket Exhibiti
    X
    Hamada Elsaram
    February 05, 2016 4:30 PM
    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video Former Drug CEO Martin Shkreli Angers US Lawmakers

    A former U.S. pharmaceutical business executive has angered lawmakers by refusing to explain why he raised the price of a life-saving pill by 5,000 percent. Martin Shkreli was removed from a congressional hearing on Thursday after citing his Fifth Amendment right to stay silent. Zlatica Hoke has more.
    Video

    Video Super Bowl TV Commercials are Super Business for Advertisers

    The Super Bowl, the championship clash between the two top teams in American Football, is the most-watched sporting event of the year, and advertisers are lining up and paying big bucks to get their commercials on the air. In fact, the TV commercials during the Super Bowl have become one of the most anticipated and popular features of the event. VOA's Brian Allen has a sneak peek of what you can expect to see when the big game goes to commercial break, and the real entertainment begins.
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Solar Innovation Provides Cheap, Clean Energy to Kenya Residents

    In Kenya, a company called M-Kopa Solar is providing clean energy to more than 300,000 homes across East Africa by allowing customers to "pay-as-you-go" via their cell phones. As Lenny Ruvaga reports from Kangemi, customers pay a small deposit for a solar unit and then pay less than a dollar a day to get clean energy to light up their homes or businesses.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.
    Video

    Video Apprenticeships Put Americans on Path Back to Work

    Trying to get more people into the U.S. workforce, the Obama administration last year announced $175 million in grants towards apprenticeship programs. VOA White House correspondent Aru Pande went inside one training center outside of Washington that has gained national recognition for helping put people on the path to employment.
    Video

    Video New Material May Reduce Concussion Effects

    As the 2016 National Football League season reaches its summit at the Super Bowl this coming Sunday (2/7), scientists are trying to learn how to more effectively protect football players from dangerous and damaging concussions. Researchers at Cardiff and Cambridge Universities say their origami-based material may solve the problem. VOA’s George Putic reports.
    Video

    Video Saudi Arabian Women's Sports Chip Away at Stereotypes

    Saudi Arabian female athletes say that sports are on the front line of busting traditions that quash women’s voices, both locally and internationally. In their hometown of Jeddah, a group of basketball players say that by connecting sports to health issues, they are encouraging women and girls to get out of their homes and participate in public life. VOA’s Heather Murdock reports.
    Video

    Video A Year Later, Fortunes Mixed for Syrians Forging New Lives in Berlin

    In April of last year, VOA followed the progress of six young Syrian refugees -- four brothers and their two friends -- as they made their way from Libya to Italy by boat, and eventually to Germany. Reporter Henry Ridgwell caught up with the refugees again in Berlin, as they struggle to forge new lives amid the turmoil of Europe's refugee crisis.
    Video

    Video Zika Virus May be Hard to Stop

    With the Zika virus spreading rapidly, the World Health Organization Monday declared Zika a global health emergency. As Alberto Pimienta reports, for many governments and experts, the worst is yet to come.

    World Currencies

    EUR
    USD
    0.8926
    JPY
    USD
    116.68
    GBP
    USD
    0.6871
    CAD
    USD
    1.3751
    INR
    USD
    67.653

    Rates may not be current.