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Chinese Spies At Bay, Or How Hardware Vendors Help The Government

Huawei Zte

Do you have an internet connection at home? Maybe you use a Wi-Fi router to access the internet with your tablet or smartphone. Then you surely own some Huawei or ZTE equipment. It may be a modem or a router or just a network adapter.  Then you should know that Chinese government may have a possibility to spy on you.

Business telecommunication equipment

That fact was claimed by the report of House Intelligence Committee released on the October 8. “Huawei and ZTE cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems … Malicious implants in the components of critical infrastructure, such as power grids or financial networks, would also be a tremendous weapon in China’s arsenal.” – said the report.

House Intelligence Committee warns U.S. businesses to stay away from those two major telecommunication equipment vendors due to the threat of espionage and even diversion that can be committed through security gaps of that equipment. They say that Chinese network equipment has security backdoors for Chinese spies. And that can be really possible because due to the report Huawei and ZTE have the motive, possibilities and means to do so, and American government fears that those companies cooperate with Chinese government.

Mike Rogers

US lawmaker Mike Rogers, chairman of the House Intelligence Committee has worked on the report about Huawei and ZTE.

Growing companies

Huawei and ZTE are a fast growing companies and their total revenue rose from 783 millions $ to 1.3 billion dollars in 2012. So the reason of the investigation and the report may hide in those numbers. Many financial analytics say that their sales will fall to approximately 45% of the actual point.

You should know also that that this report is based on almost a yearlong investigation committed by House Intelligence Committee in November 2011. Huawei and ZTE cooperated with the investigators and gave all the information and data they’ve asked. Chinese official are outraged by such American policy and the way of action considering Huawei and ZTE and they count that as just a way to jam those two telecommunication giants out of the market.

The reason for such a concern in Huawei’s and ZTE’s business is in that that those companies manufacture the network equipment for key structures such as electric power grid remote controlling and many others critical networks. Most of networked systems of the United States are working via Chinese switches, routers and other hardware. Huawei is the biggest manufacturer of wireless data transmission devices in USA with a 28.7% share of a market and ZTE is on the fifth position with the share of market up to 6.4%. The most vulnerable the 4G network will be because it is built on their hardware and works and develops so quickly just thanks to those Chinese giants.

Maybe it’s all about the money, but what if that Chinese equipment is really has some undocumented features that let evildoers to steal the traffic information and even compromise a DoS attacks on critical structures that are more than important for modern American society? In that specific case we will be in a serious danger, because lots of such networks run on Huawei’s and ZTE’s equipment.

Cyber Conflict

Plus, even without this report ZTE has already ruined its reputation by selling American equipment to Iran, violating the U.S order banning the distribution of high tech electronic gear to a Middle East controversial country. And American companies claim that they suffer losses as big as 300 billion dollars per year for reasons of economical espionage and in some cases they are sure that it happens due to Huawei’s and ZTE’s activity.

Modern jammers

So, as I can see another conflict between the USA and China is about to begin and if Chinese equipment has backdoors in their security systems – it is the best time for spies to use it and the best time for Americans to think about protection. As you already know Huawei and ZTE are the biggest manufacturers of wireless networking equipment and we have the biggest anti-wireless manufacturer – Jammer-Store Inc. You may need some protection and we will gladly provide it. The most of 3G modems and routers, as well as Wi-Fi routers are built on the Huawei’s and ZTE’s plants, as well as the whole 4G network in the country, so you’ll surely need a 3G, 4G LTE and Wi-Fi shielding. Be sure to prepare a proper shielding for you and your relatives in a coming cyber conflict!

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