News / Asia

Report: Some US Firms in China Face Data Theft

China's Foreign Ministry spokesman Hong Lei (seen here in a file photo) called the survey which found that a quarter of US firm in China face data theft, "completely irresponsible." China's Foreign Ministry spokesman Hong Lei (seen here in a file photo) called the survey which found that a quarter of US firm in China face data theft, "completely irresponsible."
x
China's Foreign Ministry spokesman Hong Lei (seen here in a file photo) called the survey which found that a quarter of US firm in China face data theft, "completely irresponsible."
China's Foreign Ministry spokesman Hong Lei (seen here in a file photo) called the survey which found that a quarter of US firm in China face data theft, "completely irresponsible."
Reuters

A quarter of firms that are members of a leading U.S. business lobby in China have been victims of data theft, a report by the group said on Friday, amid growing vitriol between Beijing and Washington over the threat of cyber attacks.

Twenty-six percent of members who responded to an annual survey said their proprietary data or trade secrets had been compromised or stolen from their China operations, the American Chamber of Commerce in China report said.

"This poses a substantial obstacle for business in China, especially when considered alongside the concerns over IPR [intellectual property rights] enforcement and de facto technology transfer requirements,'' the Chamber said.

A U.S. computer security company, Mandiant, said in February a secretive Chinese military unit was likely behind a series of hacking attacks that targeted the United States and stole data from more than 100 companies.

That set off a war of words between Washington and Beijing. U.S. Representative Dutch Ruppersberger said last month American companies suffered estimated losses in 2012 of more than $300 billion due to trade secret theft, much of it the result of Chinese hacking.

China says the accusations lack proof and that it is also a victim of hacking attacks, more than half of which originate from the United States. Foreign Ministry spokesman Hong Lei called the survey a "completely irresponsible action."

"We hope the relevant side doesn't politicize financial and trade problems, does not exaggerate the so-called issue of online leaks and does more conducive things for China and the United States,'' Hong told reporters.

The Chamber's survey was conducted among 325 members across China late last year, before the release of Mandiant's report. Only 10 percent of companies in the survey said they would use China-based cloud computing services, with most citing cyber security concerns as a reason. Blocked Internet searches in China had impeded business for 62 percent of respondents.

U.S. officials have pressed China to address Internet attacks and cyber spying against American companies. U.S. President Barack Obama raised hacking concerns in a phone call with Chinese President Xi Jinping earlier in March.

A recent assessment by U.S. intelligence leaders said for the first time cyber attacks and cyber espionage had supplanted terrorism as the nation's top threat.

Most firms expressed optimism about the business outlook in China, with many reporting higher margins for their China units.

But companies gave lower expectations for investment and cited rising labour costs as a top concern. Perceptions that China's investment environment is stagnating are increasing, according to the survey.

"Members ... have not felt over the last four or five years that there have been commercially significant positive changes in the business environment or the investment environment,'' Chamber president Christian Murck told reporters. "When you have an economy which is making a transition to a market economy, but which is not yet there, there is a feeling that if you are not moving forward with an indicated path of future policy that you are effectively moving backward.''

The Chamber's survey also cited a steep rise in concerns over IPR enforcement, with 72 percent of respondents saying enforcement was ineffective or totally ineffective, an increase of 13 percentage points over last year.

Perceptions that technology transfer was increasingly a requirement for access to China's market also jumped 10 points to 37 percent, the Chamber said, with higher rates of concern reported in the aerospace, automotive, chemical in information technology sectors.
 

You May Like

Is Air Travel Safe?

Aviation expert says despite tragic losses of Malaysian Airlines flights 370 and 17, industry experienced lowest fatality rate in recorded history last year More

Multimedia 100 Days Later, Nigerian Girls Still Held

Activists holding rallies in Nigeria and several other countries to mark 100th day of captivity for more than 200 schoolgirls being held by Boko Haram More

Chocolate Too Bitter? Swap Sugar for Mushrooms

US food technology company develops fermentation process using mushrooms to reduce bitterness in cocoa beans, believes it will cut sugar content in candy 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.
US Carriers Suspend Travel to Israeli
X
Carolyn Presutti
July 23, 2014 1:21 AM
The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video US Carriers Suspend Travel to Israel

The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video NASA Focuses on Earth-Like Planets

For decades, looking for life elsewhere in the universe meant listening for signals that could be from distant civilizations. But recent breakthroughs in space technology refocused some of that effort toward finding planets that may harbor life, even in its primitive form. VOA’s George Putic reports on a recent panel discussion at NASA’s headquarters, in Washington.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.

AppleAndroid