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Business

China probes IBM, Oracle and EMC

Published: 18 Aug 2013 - 12:38 am | Last Updated: 30 Jan 2022 - 03:25 pm

SHANGHAI: China’s Ministry of Public Security and a cabinet-level research centre are preparing to investigate IBM Corp, Oracle Corp and EMC Corp over security issues, the official Shanghai Securities News said.

The report follows revelations by former US spy agency contractor Edward Snowden of widespread surveillance by the National Security Agency. It also comes as Beijing probes Western drugmakers over allegations of bribery and over-pricing.

Documents leaked by Snowden revealed that the NSA has had access to vast amounts of Internet data such as emails, chat rooms and video from companies including Facebook Inc and Google Inc, under a government program known as Prism.

“At present, thanks to their technological superiority, many of our core information technology systems are basically dominated by foreign hardware and software firms, but the Prism scandal implies security problems,” the newspaper quoted an anonymous source as saying.

Officials with EMC, IBM and Oracle declined to comment.

China’s Ministry of Public Security also declined to comment. 

The State Council’s Development Research Centre, one of the groups reportedly involved, said they were not carrying out such an investigation. China has been a focal point for the Snowden case since he stopped in Hong Kong en route to Moscow. He also claimed that the NSA hacked into critical network infrastructure at universities in China and in Hong Kong.

Daniel Castro, a senior analyst with the Information Technology & Information Foundation, said he was concerned that a Chinese government probe could result in demands for U S companies to provide authorities with the blueprints to their technology so that Beijing can screen them for potential security threats.

China, repeatedly accused by the United States of hacking, was given considerable ammunition by Snowden’s allegations, which Beijing has used to point the finger at Washington for hypocrisy.

Reuters