US-China Cyber-Espionage Disagreements Affects Multinational Companies

US-China Cyber-Espionage Disagreements Affects Multinational Companies
Jun 02, 2014 By eChinacities.com

Editor’s note: With the ongoing cyber feud between China in the US there are some major companies based in China that are in line to get caught in the crossfire. This translated article looks at those companies and their function in China. How might they be affected by the tensions?
China’s National Information Office announced on May 22, that China will launch an investigation into technological products and services in the near future for the purpose of enterprise network security. This investigation will include a look into the domestic operations of branches of international information and IT companies.

IBM
Photo: Kansir

Which international companies operating in China have reason to stress? Let’s take a look:

IT Companies

1) IBM

IBM Core Business: Servers
Dominates the global high-end server market.
Role in China:
Finance, telecommunications, metallurgy, petro-chemical, transportation, circulation of commodities, and education in many important business areas.

2) Microsoft

Microsofe Core Business: Computer technology
The world leader in development of PC software
Role in China:
Microsoft’s operating system is widely used by financial, medical, telecommunications and other industries.

3) Oracle

Oracle Core Business: Data Services 
A global leader in data services.
Role in China:
Used in finance, telecommunications, medical, and educational institutions in tens of thousands of enterprises.

4) EMC²

EMC2 Core Business: Information Storage
Information storage and management products, services and solutions.
Role in China:
Used in telecommunications, finance, fitness system providers, medical nutrition and life sciences organizations, Internet service providers, air transport, educational institutions and public utilities. 

5) RSA

RSA Core Business: Encryption Technology
Role in China
Used by China Telecom, China Mobile, China Unicom, Bank of China, Industrial and Commercial Bank of China, China Construction Bank as well as by telecommunications equipment manufacturers Huawei and Hai’er.

6) CISCO

CISCO Core Business: Network Equipment
Scope of business covers almost every part of network construction including the composition of the Internet and data transmission routers, switches and other network equipment.
Role in China:
The backbone of China’s national financial data communications network, used by China Telecom, China Unicom, China Petrochemical Corporation (Sinopec), People’s Bank of China, the Beijing municipal government and many other central enterprises and government departments.

Consulting Corporations

1) McKinney

McKinsey Core Business: Management Consulting
Role in China:
The branches of the corporation in China are involved in the company’s overall strategy, corporate finance, marketing and consumer related channels, organizational structure, system maintenance, procurement, supply chain, technology, product development and other fields.

2) BCG

BCG Core Business: Management Consulting
Role in China:
BCG focuses on financial services, FMCG (fast-moving consumer goods), industrial services, healthcare, telecommunications and energy industries.

3) Bain

BAIN Core Business: Strategy Consulting
Role in China:
Financial services, private equity funds, consumer and retail, telecommunications and high-tech industries, industrial products and services, health care and other industries. Will these domestic Chinese companies become the preferred clients?

4) Inspur

INSPUR Core Business: Servers
Role in China:
In March 2013, China Postal Savings Bank began using products by the Inspur Group. The company works in server product development. The government plans to expand the scope of use for the servers to other banks.

5) Join-Cheer

JOIN-CHEER Core Business: Management doftware
Role in China:
Join-Cheer is mainly engaged in report management software, e-governance software, ERP software and business intelligence software research and development.

6) ICS&S

ICS&S Core Business: Comprehensive Software and Information Services
Role in China
ICS&S works in many areas from consulting, solutions and outsourcing services to IT personnel training, “end to end,” software and messaging services.

7) UNIS

UNIS Core Business: IT Services
Role in China:
UNIS engages in hardware product development and sales for different brands, IT distribution and software and system management as well as other services. The company’s products include scanners, CD drives and computers.

8) VRV

VRV Core Business: Endpoint Security Management
Role in China:
VRV works with endpoint security management, data security management and has recently diversified into messaging security product development, and consulting services.

Source: Ifeng.com

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Keywords: US-China Cyber-Espionage

1 Comments

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WCG

When I worked for the gov't, we didn't use Windows, we used some internally developed data base and interface. Surely, to protect the privacy of the information and prevent any backdoors, plus it's kind of a conflict of interest. I don't have security clearance, but I'm sure that any gov't who uses the software/operating system developed by a different country's businesses, needs to be aware that there may be a backdoor into their computers. I personally don't like where things are going as far as computers. They've got control over a lot of information. In order to use an updated version of Skype, I had to register with MSN network. In order to register with MSN, I needed to provide personal information, like a phone number, address, name, etc. MSN then went into my computer and changed the password of Windows 8 to my MSN account and my computer's name became that of my MSN account name. They have complete control and access to my computer. You can't open an email without providing information that is linked to your other personal information. They've closed the loop! No more anonymity. The only way to stay private is to stay off the grid or completely develop a false identity. I don't really do anything that the gov't would be interested in anyway, except voice my opinions on echinacities, but I do cherish my privacy and this is one more chisel away from that privacy. 1984, here we come!

Jun 04, 2014 08:10 Report Abuse