The Snowden Affair

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leibowitz

Junior Member
I doubt the US is going to make a martyr out of Snowdon. He and those who betrayed their countries are considered very lucky to live in democratic societies, as there are justice and laws to deal with them. If Snowden was a Russian, he could indeed be a target for assassination ....... Remember the poison-tipped umbrella that killed a USSR defector/spy in London years ago? Also in recent years how "plutonium" was given and killed a Russian in London because he was considered a "traitor". This case is not closed and the Russians have refused to cooperate with the British investigators. That's how they usually deal with these defectors/traitors in autocratic countries ....... & worst still their families can also be targeted.

At the same time, though, the amount of paid-shill-pilloring by a pliant Western media is something autocratic societies can rarely bring to the table. It's honestly a trade-off; efficacy of message vs. personal safety risk.
 

AssassinsMace

Lieutenant General
This story goes against the White House story that the NSA doesn't target the general American public. When they say that they're suggesting they'll only spy on people in the US with already suspected links to terrorism. Well if an internet search containing key words will trigger a red flag and a visit from authorities, that goes beyond just targeting people in the US with suspected links to terrorism.

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delft

Brigadier
Apparently Snowdon didn't have his fingers crossed when he swore allegiance to the US constitution.
Here is Pepe Escobar's take on the current state of the affair:
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THE ROVING EYE
Our man in Moscow
By Pepe Escobar

So what is the "extremely disappointed" Obama administration, the Orwellian/Panopticon complex and the discredited US Congress to do? Send a Navy Seal Team 6 to snatch him or to target assassinate him - turning Moscow into Abbottabad 2.0? Drone him? Poison his borscht? Shower his new house with depleted uranium? Install a no-fly zone over Russia?

Edward Snowden, under his new legal status in Russia, simply cannot be handed over to Bradley Manning's lynch mob. Legally, Washington is now as powerless as a tribal Pashtun girl facing an incoming Hellfire missile. A President of the United States (POTUS) so proud of his constitutional law pedigree - recent serial trampling of the US constitution notwithstanding, not to mention international law - seems not to have understood the message.

Barack Obama virtually screamed his lungs out telling Russian President Vladimir Putin he had to hand him Snowden "under international law". Putin repeatedly said this was not going to happen.

Obama even phoned Putin. Nothing. Washington even forced European poodles to down Bolivian President Evo Morales's plane. Worse. Moscow kept following the letter of Russian law and eventually granted temporary asylum to Snowden.

The Edward Snowden saga has turned the Pentagon's Full Spectrum Dominance doctrine on its Hydra-head. Not only because of the humbling of the whole US security state apparatus, but also for exploding the myth of Full Spectrum Dominance by POTUS.

Obama revealed himself once again as a mediocre politician and an incompetent negotiator. Putin devoured him as a succulent serving of eggs benedict. Glenn Greenwald will be inflicting death by a thousand leaks - because he is in charge of Snowden's digital treasure chest. And Snowden took a taxi and left the airport - on his own terms.

Layers and layers of nuances have been captured in this fascinating discussion at Yves Smith's blog - something impossible to find across Western corporate media. For POTUS, all that's left is to probably boycott a bilateral meeting with Putin next month, on the sidelines of the G20 summit in St Petersburg. Pathetic does not even begin to explain it.

I did it my way
What a boost for good literature; Snowden spent most of his time in airport transit reading Dostoevsky's Crime and Punishment, a collection of Chekhov stories, a history of the Russian state by 19th century historian Nikolai Karamzin - and learning the Cyrillic alphabet.

He did take a taxi to the bright side when he left Sheremetyevo, alongside Sarah Harrison of WikiLeaks. He may have gone to a FSB safehouse - with zero chance of the CIA's Moscow station finding him, although his lawyer said he would choose his place of residence and form of protection. His father Lon may soon visit. Even self-described "pole-dancing superhero" girlfriend Lindsay Mills may soon resurface.

How he must have relished to close the nerve-racking waiting game by having the last word - as in his statement published by WikiLeaks; "Over the past eight weeks we have seen the Obama administration show no respect for international or domestic law, but in the end the law is winning. I thank the Russian Federation for granting me asylum in accordance with its laws and international obligations."

Snowden is legally allowed to work - and has already received a job offer, by the founder of Vkontakte (Russia's Facebook), Pavel Durov, to be a member of his "all-star security team". By 2018 he will be entitled to Russian citizenship. He promised Putin he won't leak "information that may harm the US" - the key condition for the asylum request to be granted. But then he does not have to; Greenwald has everything since those heady initial days in Hong Kong. What's Washington to do? Turn Greenwald's apartment in Rio into a Pashtun wedding party?

The timing could not have been more dramatic. Snowden finally landed in Russia immediately after Greenwald revealed the details of XKeyscore [1] - once again stressing how US public opinion, US media and the cosmically inept US Congress had no clue about the full extent of the NSA's reach. "Constitutional checks and balances", anyone?

There's got to be a serious glitch with the collective IQ of these people. The Obama administration as well as the Orwellian/Panopticon complex are in shock because they simply cannot stop death by a thousand leaks. The Roving Eye is among those who suspect the NSA has no clue about what Snowden, as a systems administrator, was able to download (especially because someone with his skills can easily delete traces of access). Even the top NSA robot - General Keith Alexander - admitted on the record the "no such agency" does not know how Snowden pulled it off. He could have left a bug, or infected the system with a virus. The fun may have not even started.

Watch lame duck POTUS
Credit to some cynical latitudes, as in South America, where people for years have been joking, "the gringos spy on everything we do"; the Internet, after all, was originally an American military program. Professor John Naughton of Britain's Open University goes one step ahead, [2] stressing that "the days of the internet as a truly global network are numbered." What lies ahead is balkanization - geographical subnets governed by the US, China, Russia, Iran, etc.

Naughton also stresses that the US and other Western sub-powers have lost their legitimacy as governors of the internet. To top it off, there's no more "internet freedom agenda", as parroted by the Obama administration.

This Big Brother obsession with watching, tracking, monitoring, controlling, decoding virtually everything we do digitally is leading to monumental stupidities like Google searches attracting armed US government's agents to one's house, as is pricelessly detailed here. And still Paranoia Paradise has not isolated Washington from a major ass kicking in Afghanistan and Iraq, or has foreseen the 2008 financial crisis; but then again it probably did, and the elites who arbitraged all that massive inside information royally profited from it.

For the moment, what we have is an Orwellian/Panopticon complex that will persist with its unchecked powers; an aphasic populace; a quiet, invisible man in a Moscow multitude; and a POTUS consumed with boundless rage. Watch out. He may be tempted to wag the (war) dog.



Notes:
1. XKeyscore: NSA tool collects 'nearly everything a user does on the internet', The Guardian, July 31, 2013.
2. Edward Snowden's not the story. The fate of the internet is, The Observer, July 28, 2013.

Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007) and Red Zone Blues: a snapshot of Baghdad during the surge. He has also written Obama does Globalistan (Nimble Books, 2009).

He may be reached at [email protected].

(Copyright 2013 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)
Internet is very important to many people, as it is to me. I think it will be balkanised as he describes.
 

delft

Brigadier
I found in Asia Times on line this article by Peter Van Buren (
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), relevant to the cases of Manning as well as Snowdon:
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DISPATCHES FROM AMERICA
Welcome to the Post-Constitution
By Peter Van Buren

On July 30, 1778, the Continental Congress created the first whistleblower protection law, stating "that it is the duty of all persons in the service of the United States to give the earliest information to Congress or other proper authority of any misconduct, frauds, or misdemeanors committed by any officers or persons in the service of these states".

Two hundred and thirty-five years later, on July 30, 2013, Bradley Manning was found guilty on 20 of the 22 charges for which he was prosecuted, specifically for "espionage" and for videos of war atrocities he released, but not for "aiding the enemy."

Days after the verdict, with sentencing hearings in which Manning could receive 136 years of prison time ongoing, the pundits have had their say. The problem is that they missed the most chilling aspect of the Manning case: the way it ushered us, almost unnoticed, into post-constitutional America.

The weapons of war come home
Even before the Manning trial began, the emerging look of that new America was coming into view. In recent years, weapons, tactics, and techniques developed in Iraq and Afghanistan as well as in the war on terror have begun arriving in "the homeland".

Consider, for instance, the rise of the warrior cop, of increasingly armored-up police departments across the country often filled with former military personnel encouraged to use the sort of rough tactics they once wielded in combat zones. Supporting them are the kinds of weaponry that once would have been inconceivable in police departments, including armored vehicles, typically bought with Department of Homeland Security grants.

Recently, the director of the FBI informed a senate committee that the bureau was deploying its first drones over the United States. Meanwhile, Customs and Border Protection, part of the Department of Homeland Security and already flying an expanding fleet of Predator drones, the very ones used in America's war zones, is eager to arm them with "non-lethal" weaponry to "immobilize targets of interest".

Above all, surveillance technology has been coming home from our distant war zones. The National Security Agency (NSA), for instance, pioneered the use of cell phones to track potential enemy movements in Iraq and Afghanistan. The NSA did this in one of several ways. With the aim of remotely turning on cell phones as audio monitoring or GPS devices, rogue signals could be sent out through an existing network, or NSA software could be implanted on phones disguised as downloads of porn or games.

Using fake cell phone towers that actually intercept phone signals en route to real towers, the US could harvest hardware information in Iraq and Afghanistan that would forever label a phone and allow the NSA to always uniquely identify it, even if the SIM card was changed. The fake cell towers also allowed the NSA to gather precise location data for the phone, vacuum up metadata, and monitor what was being said.

At one point, more than 100 NSA teams had been scouring Iraq for snippets of electronic data that might be useful to military planners. The agency's director, General Keith Alexander, changed that: he devised a strategy called Real Time Regional Gateway to grab every Iraqi text, phone call, email, and social media interaction. "Rather than look for a single needle in the haystack, his approach was, 'Let's collect the whole haystack,'?" said one former senior US intelligence official. "Collect it all, tag it, store it, and whatever it is you want, you go searching for it."

Sound familiar, Mr Snowden?

Welcome home, soldier (part I)
Thanks to Edward Snowden, we now know that the "collect it all" technique employed by the NSA in Iraq would soon enough be used to collect American metadata and other electronically available information, including credit card transactions, air ticket purchases, and financial records. At the vast new US$2 billion data center it is building in Bluffdale, Utah, and at other locations, the NSA is following its Iraq script of saving everything, so that once an American becomes a target, his or her whole history can be combed through.

Such searches do not require approval by a court, or even an NSA supervisor. As it happened, however, the job was easier to accomplish in the US than in Iraq, as Internet companies and telephone service providers are required by secret law to hand over the required data, neatly formatted, with no messy spying required.

When the US wanted something in Iraq or Afghanistan, they sent guys to kick down doors and take it. This, too, may be beginning to happen here at home. Recently, despite other valuable and easily portable objects lying nearby, computers, and only computers, were stolen from the law offices representing State Department whistleblower Aurelia Fedenisn. Similarly, a Washington law firm representing NSA whistleblower Tom Drake had computers, and only computers, stolen from its office.

In these years, the FBI has brought two other NSA wartime tools home. The bureau now uses a device called Stingray to recreate those battlefield fake cell phone towers and track people in the US without their knowledge. Stingray offers some unique advantages: it bypasses the phone company entirely, which is, of course, handy in a war zone in which a phone company may be controlled by less-than-cooperative types, or if phone companies no longer cooperate with the government, or simply if you don't want the phone company or anyone else to know you're snooping. American phone companies seem to have been quite cooperative. Verizon, for instance, admits hacking its own cellular modems ("air cards") to facilitate FBI intrusion.

The FBI is also following NSA's lead implanting spyware and other hacker software developed for our war zones secretly and remotely in American computers and cell phones. The bureau can then remotely turn on phone and laptop microphones, even webcams, to monitor citizens, while files can be pulled from a computer or implanted onto a computer.

Among the latest examples of war technology making the trip back to the homeland is the aerostat, a tethered medium-sized blimp. Anyone who served in Iraq or Afghanistan will recognize the thing, as one or more of them flew over nearly every military base of any size or importance. The US Army recently announced plans to operate two such blimps over Washington, DC, starting in 2014. Allegedly they are only to serve as anti-missile defenses, though in our war zones they were used as massive surveillance platforms.

As a taste of the sorts of surveillance systems the aerostats were equipped with abroad but the army says they won't have here at home, consider Gorgon Stare, a system that can transmit live images of an entire town. And unlike drones, an aerostat never needs to land. Ever.

Welcome home, soldier (part II)
And so to Bradley Manning.

As the weaponry and technology of war came home, so did a new, increasingly Guantanamo-ized definition of justice. This is one thing the Manning case has made clear.

As a start, Manning was treated no differently than America's war-on-terror prisoners at Guantanamo and the black sites that the George W Bush administration set up around the world. Picked up on the "battlefield", Manning was first kept incommunicado in a cage in Kuwait for two months with no access to a lawyer. Then, despite being an active duty member of the army, he was handed over to the Marines, who also guard Guantanamo, to be held in a military prison in Quantico, Virginia.

What followed were three years of cruel detainment, where, as might well have happened at Gitmo, Manning, kept in isolation, was deprived of clothing, communications, legal advice, and sleep. The sleep deprivation regime imposed on him certainly met any standard, other than Washington's and possibly Pyongyang's, for torture. In return for such abuse, even after a judge had formally ruled that he was subjected to excessively harsh treatment, Manning will only get a 112-day reduction in his eventual sentence.

Eventually the Obama administration decided Manning was to be tried as a soldier before a military court. In the courtroom, itself inside a military facility that also houses NSA headquarters, there was a strikingly gulag-like atmosphere. His trial was built around secret witnesses and secret evidence; severe restrictions were put on the press - the army denied press passes to 270 of the 350 media organizations that applied; and there was a clear appearance of injustice. Among other things, the judge ruled against nearly every defense motion.

During the months of the trial, the US military refused to release official transcripts of the proceedings. Even a private courtroom sketch artist was barred from the room. Independent journalist and activist Alexa O'Brien then took it upon herself to attend the trial daily, defy the army, and make an unofficial record of the proceedings by hand. Later in the trial, armed military police were stationed behind reporters listening to testimony.

Above all, the feeling that Manning's fate was predetermined could hardly be avoided. After all, President Barack Obama, the former constitutional law professor, essentially proclaimed him guilty back in 2011, and the Department of Defense didn't hesitate to state more generally that "leaking is tantamount to aiding the enemies of the United States".

As at Guantanamo, rules of evidence reaching back to early English common law were turned upside down. In Manning's case, he was convicted of espionage, even though the prosecution did not have to prove either his intent to help another government or that harm was caused; a civilian court had already paved the way for such a ruling in another whistleblower case.

In addition, the government was allowed to label Manning a "traitor" and an "anarchist" in open court, though he was on trial for neither treason nor anarchy. His army supervisor in the US and Iraq was allowed to testify against him despite having made biased and homophobic statements about him in a movie built around portraying Manning as a sad, sexually confused, attention-seeking young man mesmerized by WikiLeaks founder Julian Assange. Finally, the same judge who essentially harassed the press throughout Manning's trial issued a 24-hour advance notice of her verdict to ensure maximum coverage only of the denouement, not the process.

Given all this, it is small comfort to know that Manning, nailed on the Espionage Act after multiple failures in other cases by the Obama administration, was not convicted of the extreme charge of "aiding the enemy".

Not Manning alone
Someday, Manning's case may be seen as a bitter landmark on the road to a post-constitutional America, but it won't be seen as the first case in the development of the post-constitutional system. Immediately following 9/11, top officials in the George W Bush administration decided to "take the gloves off". Soon after, a wounded John Walker Lindh, the so-called American Taliban, was captured on an Afghan battlefield, held in a windowless shipping container, refused access to a lawyer even after he demanded one as an American citizen, and interrogated against his will by the FBI. Access to medical care was used as a bribe to solicit information from him. "Evidence" obtained by such means was then used to convict him in court.

Jose Padilla, a US citizen who clumsily plotted to detonate a nonexistent "dirty bomb", was held incommunicado for more three years, over a year of which was in a South Carolina military jail. He was arrested only as a material witness and was not formally charged with a crime until years later. He was given no means to challenge his detention under habeas corpus, as president Bush designated him an "enemy combatant".

Pictures of Padilla being moved wearing sound-proof and light-proof gear strongly suggest he was subjected to the same psychosis-inducing sensory deprivation used as "white torture" against America's foreign enemies in Guantanamo.

Certainly, the most egregious case of pre-Manning post-constitutional justice was the execution of American citizen Anwar al-Awlaki by drone in Yemen, without due process or trial, for being an al-Qaeda propagandist. In this, President Obama and his top counter-terrorism advisers quite literally took on the role of judge, jury, and executioner.

In a similar fashion, again in Yemen, the US killed al-Awlaki's American teenage son, a boy no one claimed was connected to terrorism. Obama administration lawyers went on to claim the legal right to execute US citizens without trial or due process and have admitted to killing four Americans. Attorney General Eric Holder declared that "United States citizenship alone does not make such individuals immune from being targeted".

Then-FBI Director Robert Mueller, asked in a congressional hearing if the FBI could assassinate an American citizen in the United States, replied that he simply did not know. "I have to go back. Uh, I'm not certain whether that was addressed or not." He added, "I'm going to defer that to others in the Department of Justice." As if competing for an Orwellian prize, an unnamed Obama administration official told the Washington Post, "What constitutes due process in this case is a due process in war."

Post-constitutional America
So welcome to post-constitutional America. Its shape is, ominously enough, beginning to come into view.

George Orwell's famed dystopian novel 1984 was not intended as an instruction manual, but just days before the Manning verdict, the Obama administration essentially buried its now-ironic-campaign promise to protect whistleblowers, sending it down Washington's version of the memory hole. Post-9/11, torture famously stopped being torture if an American did it, and its users were not prosecutable by the Justice Department.

Similarly, full-spectrum spying is not considered to violate the Fourth Amendment and does not even require probable cause. Low-level NSA analysts have desktop access to the private emails and phone calls of Americans. The Post Office photographs the envelopes of every one of the 160 billion pieces of mail it handles, collecting the metadata of "to:" and "from:" addresses. An Obama administration Insider Threat Program requires federal employees (including the Peace Corps) to report on the suspicious behavior of co-workers.

Government officials concerned over possible wrongdoing in their departments or agencies who "go through proper channels" are fired or prosecuted. Government whistleblowers are commanded to return to face justice, while law-breakers in the service of the government are allowed to flee justice. CIA officers who destroy evidence of torture go free, while a CIA agent who blew the whistle on torture is locked up.

Secret laws and secret courts can create secret law you can't know about for "crimes" you don't even know exist. You can nonetheless be arrested for committing them. Thanks to the PATRIOT Act, citizens, even librarians, can be served by the FBI with a National Security Letter (not requiring a court order) demanding records and other information, and gagging them from revealing to anyone that such information has been demanded or such a letter delivered. Citizens may be held without trial, and denied their constitutional rights as soon as they are designated "terrorists". Lawyers and habeas corpus are available only when the government allows.

In the past decade, 10 times as many employers turned to FBI criminal databases to screen job applicants. The press is restricted when it comes to covering "open trials". The war on whistleblowers is metastasizing into a war on the First Amendment. People may now be convicted based on secret testimony by unnamed persons. Military courts and jails can replace civilian ones. Justice can be twisted and tangled into an almost unrecognizable form and then used to send a young man to prison for decades. Claiming its actions lawful while shielding the "legal" opinions cited, often even from congress, the government can send its drones to assassinate its own citizens.

One by one, the tools and attitudes of the war on terror, of a world in which the "gloves" are eternally off, have come home. The comic strip character Pogo's classic warning - "We have met the enemy and he is us" - seems ever less like a metaphor. According to the government, increasingly we are now indeed their enemy.

Peter Van Buren blew the whistle on State Department waste and mismanagement during Iraq Reconstruction in his first book, We Meant Well: How I Helped Lose the Battle for the Hearts and Minds of the Iraqi People. A TomDispatch regular, he writes about current events at his blog, We Meant Well. Van Buren's next book, Ghosts of Tom Joad: A Story of the #99Percent, will be available March 2014.

Used with permission TomDispatch

(Copyright 2013 Peter Van Buren)
We do live in interesting times and I'm not happy about it even when I think we will grow out of them sometime.
 

kwaigonegin

Colonel
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Snowden’s e-mail provider is closing, cannot legally say why
By Andrea Peterson, Published: August 8 at 5:23 pmE-mail the writer

The e-mail service used by National Security Agency (NSA) leaker Edward Snowden is suspending operations. And they can’t tell us why — although this cryptic post heavily suggests it has something to do with a government request for information:

I have been forced to make a difficult decision: to become complicit in crimes against the American people or walk away from nearly ten years of hard work by shutting down Lavabit. After significant soul searching, I have decided to suspend operations. I wish that I could legally share with you the events that led to my decision. I cannot. I feel you deserve to know what’s going on — the first amendment is supposed to guarantee me the freedom to speak out in situations like this. Unfortunately, Congress has passed laws that say otherwise. As things currently stand, I cannot share my experiences over the last six weeks, even though I have twice made the appropriate requests.

What’s going to happen now? We’ve already started preparing the paperwork needed to continue to fight for the Constitution in the Fourth Circuit Court of Appeals. A favorable decision would allow me resurrect Lavabit as an American company.

Lavabit was created by a group of Texas programmers who had concerns about privacy protections in Gmail. Snowden used their encrypted e-mail service, and the 6-week timeframe suggests that Snowden’s own account might be at issue.
It seems likely that the government has requested data under a statute that allows them to enforce a gag order, such as the Patriot Act and the FISA Act. Civil liberties groups have argued that these gag orders violate the First Amendment.
We don’t have much more information now, but assure you we’ll be keeping our eyes out for legal paperwork filed by the company in the 4th Circuit.

This is BS.. The Patriot Act and FISA are the absolute worst things to have came out of 9/11!
It is anything but Patriotic!
 
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Geographer

Junior Member
The tragic irony behind the PATRIOT Act, FISA, the NSA spying, and all the increased police surveillance is that it is all designed to fight a miniscule threat.

The entire War on Terror was a colossal misplacement of priorities. Terrorists were never a big threat to the United States. More people die in car accidents every year (~35,000) than all the terrorist attacks on America in the last 100 years, probably ever. The money that has been sunk into two wars, the endless drone strikes, surveillance, buying NBC gear for local police, overtime for local police must be at least $500 billion.

What better things could we do with $500 billion?

Cancer research?
HIV/AIDS research?
Mosquito nets for Africa to fight malaria?
Figure out what's causing Sudden Infant Death Syndrome (SIDS)?
Develop safer cars using computer-assisted driving?
 

bd popeye

The Last Jedi
VIP Professional
Final notice before shut down.

Effective 1 September 2013 ALL political threads will be closed and no other political threads shall be open.

So it is written.. so it shall be done.


bd popeye super moderator
 

A.Man

Major
China to probe IBM, Oracle, EMC for security concerns: paper

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SHANGHAI (Reuters) - China's Ministry of Public Security and a cabinet-level research center are preparing to probe IBM Corp, Oracle Corp and EMC Corp over security issues, the official Shanghai Securities News said on Friday.

The report follows revelations by former U.S. spy agency contractor Edward Snowden of widespread surveillance by the National Security Agency and his assertion that the agency hacked into critical network infrastructure at universities in China and in Hong Kong.

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 large companies, including Facebook and Google, 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.

IBM, Oracle and EMC were not immediately available for comment.

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.

Chinese regulators and the police have begun a series of investigations in recent weeks into how foreign and domestic companies do business in the world's second-biggest economy.

(Reporting by Pete Sweeney; Editing by Paul Tait)
 

delft

Brigadier
China to probe IBM, Oracle, EMC for security concerns: paper

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SHANGHAI (Reuters) - China's Ministry of Public Security and a cabinet-level research center are preparing to probe IBM Corp, Oracle Corp and EMC Corp over security issues, the official Shanghai Securities News said on Friday.

The report follows revelations by former U.S. spy agency contractor Edward Snowden of widespread surveillance by the National Security Agency and his assertion that the agency hacked into critical network infrastructure at universities in China and in Hong Kong.

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 large companies, including Facebook and Google, 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.

IBM, Oracle and EMC were not immediately available for comment.

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.

Chinese regulators and the police have begun a series of investigations in recent weeks into how foreign and domestic companies do business in the world's second-biggest economy.

(Reporting by Pete Sweeney; Editing by Paul Tait)
This is going to costs US companies vast amounts of money. It shows the background to the trouble Huawei and ZTE have in breaking into the US market and it will eventually, after several years, mean a huge loss of market share for US technology companies in China. In twenty years time the US companies will have a smaller home market than the Chinese companies and that will result in scale advantages to the Chinese companies.
 
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