The China Market Has Been Lost. Thanks, NSA!

China is Planning to Purge Foreign Technology and Replace With Homegrown Suppliers

China is aiming to purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020, stepping up efforts to shift to Chinese suppliers, according to people familiar with the effort.

The push comes after a test of domestic alternatives in the northeastern city of Siping that was deemed a success, said the people, who asked not to be named because the details aren’t public. Workers there replaced Microsoft Corp.’s Windows with a homegrown operating system called NeoKylin and swapped foreign servers for ones made by China’s Inspur Group Ltd., they said.

The plan for changes in four segments of the economy is driven by national security concerns and marks an increasingly determined move away from foreign suppliers under President Xi Jinping, the people said. The campaign could have lasting consequences for U.S. companies including Cisco Systems Inc., International Business Machines Corp., Intel Corp. and Hewlett-Packard Co.

“The shift is real,” said Charlie Dai, a Beijing-based analyst for Forrester Research Inc. “We have seen emerging cases of replacing foreign products at all layers from application, middleware down to the infrastructure software and hardware.”

This is not going to work out well for anyone.

It began with the U.S. government flinging accusations at Huawei.

Will it end with all Chinese products being suspect?

It’s bad enough that some products from China are pre-loaded with malware — but that kind of thing can be detected.

What happens if China policy dictates State-created malware be installed — or China’s version of the NSA just intercepts shipments to foreign countries and loads their own undetectable malware? That’s what the NSA has done! And that revelation freaked out China enough to make this move.

If Xiaomi thought entering the American market would be difficult — that difficulty has just been increased at a level that now can’t even be calculated.

Espionage has to get the fuck out of free enterprise. This is going to have economic repercussions that will screw everybody.

9 Comments

Filed under Collapse, Digital Overthrow, Friction, Infowar, Marketing, Stupid

9 responses to “The China Market Has Been Lost. Thanks, NSA!

  1. Robert Jasiek

    Not only the NSA is responsible but first of all the US citizens electing parties issuing laws for attacking data of non-US people world-wide. US companies suffer not only in China but everywhere in the world, although outside China and Russia still only slightly. Those companies actively attacking their customers’ data suffer relatively more. The most affected US companies are those that produced encryption softwares: some already had to stop their business.

    • Yes. And no one has ever answered my question about anti-viral software. Has that been compromised by espionage agencies? My damn PC does shit behind my back, spinning my hard drive, yet Task Manager insists nothing is happening and all scans come up negative!

      • Robert Jasiek

        I can only try to help you a bit if your PC uses Windows. Old Windows versions, such as 98SE, allowed the hard drive to rest when nothing happens. Newer Windows versions, such as NT6.x, always keep the system itself busy and a constantly running hard drive need not scare you. If it annoys you, use an SSD.

        If you cannot trust AV-ware, do not use it. Use different and more effective malware protection, such as http://home.snafu.de/jasiek/windows_security_concept.html applied fully, partially or similarly. Use Microsoft / Sysinternals http://technet.microsoft.com/de-de/sysinternals/bb545021.aspx ProcessExplorer and TcpView for seeing processes and communication in greater detail than in the task manager.

        However, before implementing a new security concept and using new tools, first ensure that your PC is clean: check if the firmware is clean and make a clean new installation of Windows on a freshly partitioned drive. Then immediately implement the security means. In particular, by using checksums, you can know if your operating system has manintained its integrity. You cannot easily check this for the firmware and if it might be running a rootkit with a hypervisor above the operating system. Therefore, always ensure that your security concept has worked properly since starting from a clean PC.

        If you are afraid of NSA backdoors in Windows, use Linux and study its source code…!

      • >>>and make a clean new installation of Windows on a freshly partitioned drive

        That suggestion, whenever offered — and I’m not singling you out — is hilarious. It presupposes users can just wipe out all their data and programs and bookmarks and everything as if it was a trivial matter!

  2. Stroppirob

    So what impact will this have on us, the average consumer? I can only see this mistrust and friction between China and the West escalating if they are going to block Western products and develop their own national operating system. Will Western tech brands look for new manufacturing sources eg India, South America or even Africa? Why would a tech brand continue to have their products made in a country that will steal their patents and design ideas and then essentially ban their products from being sold there? If tech brands do slowly move manufacturing from China what impact will it have on the price of tech products for us here in the West?

  3. Thank god for China, it’s nice to see a place that isn’t totally corrupt by the Capitalism-psuodo democratic paradigm that is so prone to elitism.

  4. cragmuer

    If structured and organized properly, you can easily format a system drive and be back up and running with a fresh install in less than an hour. I’ve been doing this since I was a kid with my first computer, which was a 486 DLC40 running Windows 3.1. Granted nowadays I format a lot less as operating systems have become much more stable, nonetheless I still format Windows and Linux (if using X) installs at lest once a year. So if formatting a Windows install is not a trivial matter for you, then you’re not doing it right.

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