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

Sydney Hostage-taker Failed to Manipulate Social Media

Gunman forced captives to use personal Facebook, YouTube accounts to issue his demands; online community helped flag messages, urged others not to share them More

UN Seeks $8.4 Billion to Help War-Hit Syrians

Effort aimed at helping Syrians displaced within their own country and those who've fled to neighboring ones More

Who Are the Pakistani Taliban?

It's an umbrella group of militant organizations whose objective is enforcement of Sharia in Pakistan 'whether through peace or war' 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.
Putin: Russian Economy to Rebound in 2 Yearsi
X
December 18, 2014 5:13 PM
Russian President Vladimir Putin held his annual end-of-the-year news conference Thursday, tackling questions on the Russian economy, the crisis in Ukraine and Russian relations with the west. VOA's Jeff Custer reports.
Video

Video Putin: Russian Economy to Rebound in 2 Years

Russian President Vladimir Putin held his annual end-of-the-year news conference Thursday, tackling questions on the Russian economy, the crisis in Ukraine and Russian relations with the west. VOA's Jeff Custer reports.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.

All About America

AppleAndroid