Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

US-China tech exchange strained over hacking accusations

Michael Kan | May 26, 2014
The U.S.' escalating feud with China over hacking charges could end up hurting IT suppliers in both countries, as suspicions and eroding trust threaten to dampen the tech exchange between the two nations.

Analysts, however, don't expect China to do away with U.S. technology anytime soon. U.S. vendors still have a strong foothold in the market. Furthermore, China's alleged hacking of U.S. companies for trade secrets hasn't stopped, Cheung said.

But the greater worry is what the continued mistrust between the U.S. and China will do to industry players. The recent escalation could be political posturing, but past interference in technology markets has had detrimental results for companies involved.

This happened in 2012, when a U.S. congressional committee declared that the Chinese companies Huawei Technologies and ZTE were security threats due to their alleged ties with the Chinese government. The committee then advised U.S. tech companies to source their networking gear from other suppliers. Neither company's networking business in the U.S. has been the same since.

China's own vetting system could be seen as potential payback, one that could help local industries and maintain national security. But even so, it may do little to generate trust for Chinese IT products, Cheung said. "Just because China says that they are vetting their IT systems, doesn't mean they really are," he added. "They could be implementing their own NSA-like monitoring equipment for other nations."

 

Previous Page  1  2 

Sign up for Computerworld eNewsletters.