By James T. Areddy
SHANGHAI--China said it would more closely scrutinize imported
Internet technology for vulnerabilities it might pose to the
nation's security amid intensifying accusations over hacking
between Washington and Beijing.
China's State Internet Information Office said on Thursday that
it plans to examine "major products and services" for security
risks and deny entry to its $320 billion-plus technology market to
businesses with products that fail its tests.
"The vetting is aimed at preventing suppliers from taking
advantage of their products to illegally control, disrupt or shut
down their clients' systems, or to gather, store, process or use
their clients' information, " said the official Xinhua news
agency.
China's government didn't say how its inspection process would
work nor what types of products and services will be
scrutinized.
Major sellers of such products in China, such as Cisco Systems
Inc. and International Business Machines Corp., didn't immediately
respond to requests for comment.
Technology consultant Zennon Kapron of Kapronasia Shanghai said
the move likely wouldn't harden China's position as a technology
importer, but said it may lead to more centralized control of
government technology-buying decisions that in some cases are now
made at a local level.
"It's nothing more than we would expect from any regulator
around the world," he said.
The new inspection plan comes three days after the U.S. charged
five Chinese military officers with stealing corporate secrets
stored online. China denied the accusations and warned of
unspecified consequences. It also marks increasing friction between
the two governments over cybersecurity: U.S. whistleblower Edward
Snowden's accusations that Washington routinely spies on foreign
governments including China and U.S. accusations that China has
ratcheted up its hacking efforts against U.S. companies and
others.
Chinese President Xi Jinping highlighted Beijing's fresh
attention to vulnerabilities in February when he took the helm of a
new leading group on Internet security.
Virtually all mobile phones and computers used in China, plus
the chips that run them, depend on technology developed overseas, a
government statement warned this week. "Although the number of
Internet users in China reached 618 million people, the structure
does not mean the country is an Internet power," said the
statement, from China's State Council Information Office.
Jiang Jun, a spokesman for the State Internet Information
Office, alleged China has faced widespread "invasion" and
wiretapping into systems connected to its government offices,
universities, businesses and telecommunication infrastructure,
according to Xinhua.
Mr. Jiang said China's attention to the issue was raised by Mr.
Snowden's revelations. "For a long time, governments and
enterprises of a few countries have gathered sensitive information
on a large scale, taking the advantage of their monopoly in the
market and technological edge," he said. "They not only seriously
undermine interests of their clients but also threaten
cybersecurity of other countries."
The Chinese statement said the U.S. Congress has scrutinized
Chinese equipment for similar risks, such as embedded technology,
and alleged national security risks with products from Huawei
Technologies Inc. and ZTE Corp. The companies denied their
equipment features such capabilities and said the congressional
committee made the statements without proof.
Chinese authorities have made no secret of their desire for the
country to develop more technology systems domestically. This
month, China said government employees won't be permitted to run
Microsoft Corp.'s latest Windows 8 operating system, for instance,
as officials announced the development of a homegrown system.
Microsoft said it was surprised by the decision, and that it has
been working with Chinese officials to make sure its products met
the government's specifications.
"Efforts should be made to build our country into a cyberpower,"
President Xi said in February.
Write to James T. Areddy at james.areddy@wsj.com
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