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US Tech Firms Fear China Could Be Spying On Them Using Power Cords, Report Says (cnbc.com) 142

An anonymous reader quotes a report from CNBC: Fearing that China could be spying on them using power cords and plugs, several U.S. technology companies have asked their Taiwanese suppliers to shift production of some components out of the mainland, Nikkei Asian Review reported on Friday. The report cited unnamed executives from two Taiwanese companies: Lite-On Technology, a manufacturer of electronic parts, and Quanta Computer, a supplier of servers and data centers. Lite-On's clients include Dell EMC, Hewlett-Packard and IBM, while Quanta counts Google and Facebook among its customers, according to Nikkei. The executives told Nikkei that some of their American clients -- without specifying which companies -- asked them to move out of China partly because of cyberespionage and cybersecurity risks. The U.S. tech firms were worried that even mundane components such as power plugs could be tapped by Beijing to access sensitive data, according to the report. According to the report, Lite-On Technology is building a new factory in Taiwan to manufacture power components for servers due to China's cybersecurity concerns. Quanta has also shifted production out of mainland China to Taiwan due to similar concerns, as well as additional tariffs imposed by Washington as a result of the U.S.-China trade war.
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US Tech Firms Fear China Could Be Spying On Them Using Power Cords, Report Says

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  • Valid fear. (Score:5, Interesting)

    by Anonymous Coward on Friday March 08, 2019 @05:35PM (#58239714)

    https://www.amazon.com/KJB-Security-C1184-Camera-covert/dp/B0054GQAJU

  • by misnohmer ( 1636461 ) on Friday March 08, 2019 @05:38PM (#58239732)

    If you're worried about power plugs, you should be worried about anything that plugs in, or even is battery powered. An office heater or fan, desk lamp, etc can spy on your power signature almost as well as the extension cord used to power things. A battery powered headset can spy wirelessly too. You could even take it a step further and suspect shoes made in China, they could contain kinetically charged batteries with spying equipment.

    So, if you want to be paranoid, you have to ban everything made in China.

  • by EzInKy ( 115248 ) on Friday March 08, 2019 @05:40PM (#58239746)

    ...allowed to spy on Americans. I'm sure that is written in the Constitution somewhere.

  • by Anonymous Coward

    Dell's rather infamous for having a chip between your power adapter and laptop that cripples your machine's performance if it determines the power adapter is either missing the appropriate wattage or the 'authentic' chip that would tell it that this is the case. What more could that system do?

  • by WillAffleckUW ( 858324 ) on Friday March 08, 2019 @05:46PM (#58239770) Homepage Journal

    Next thing you know, you'll tell me that power lines can be used to provide high speed internet to devices, and it's relatively simple to use any USB device to do things, just like your keyboards as well as your microphones and cameras, even when you think they're off.

    oh

    wait

    it is

    • by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Friday March 08, 2019 @06:53PM (#58240180) Homepage Journal

      Next thing you know, you'll tell me that power lines can be used to provide high speed internet to devices,

      They can, but the signals don't tend to survive going through panels/breakers. Even the low-bitrate communications used in X10 home automation systems often have the same problem. If you got enough of them in your building they could bypass internal firewalls, but it's not a realistic way to get data out of a building.

  • by gweihir ( 88907 ) on Friday March 08, 2019 @05:52PM (#58239816)

    Apparently, these US companies have nobody left that understands technology. Such an attack would be both ineffective and far, far more expensive than other possibilities. Requires some minimal actual knowledge of IT security to see that though, but all these people seem to have is irrational fear.

  • ICD-10 Diagnose Code: F60.0 [wikipedia.org]

    Cause: a result of an underlying belief that other people are hostile [and long time [wired.com] spying [theguardian.com] on others [reuters.com]] in combination with a lack in self-awareness

    Treatment: hard to treat [wikipedia.org], i.e. a terminal illness.

    • by Gravis Zero ( 934156 ) on Friday March 08, 2019 @06:19PM (#58239974)

      Cause: a result of an underlying belief that other people are hostile [and long time spying on others] in combination with a lack in self-awareness

      China is the number one thief of IP while the US is the number two thief of IP. The later fact does not negate the former.

      It's not wrong for them to be concerned. Sure, it's hypocritical but it's not wrong.

      • It's not even hypocritical. US tech firms face an industrial espionage, not a foreign state attacking state secrets. In that regard when the person doing spying is the US government or another US entity there is actual legal recourse which limits commercial damage.

        The same cannot be said for Chinese industrial espionage where good luck suing a Chinese company about stolen IP.

  • Yes! (Score:5, Insightful)

    by Gravis Zero ( 934156 ) on Friday March 08, 2019 @06:13PM (#58239932)

    This is the proper level of "paranoia" required to keep data secret! However, US tech companies should also be having the realization that they need to stop selling/enabling insecure products because the buyers may end up being their workers. Hack a worker's wireless printer via internet (easy), move laterally via bluetooth to their smartphone (outdated and insecure) and you have a remote surveillance device in your "secure" workplace. Each step of insecurity brought to you by good ol' US tech companies.

    There is so much insecurable crap in computers and products that it's going to be a monumental task to actually secure companies. Sure hope PS/2 keyboards and mice are coming back into fashion because USB is a security nightmare.

    You reap what you sow, US tech companies!

  • ... proud that their country hosts hackers that are the envy of the world. There are major roles in movies that glamorize the nerdy hacker.

    The USA, meanwhile, represents the gullible victim.

  • by ffkom ( 3519199 ) on Friday March 08, 2019 @06:47PM (#58240136)
    ... from the same "reliable" sources that still owe us a presentation of the spy-chips on the SuperMicro boards?
    • by Anonymous Coward

      ... from the same "reliable" sources that still owe us a presentation of the spy-chips on the SuperMicro boards?

      First, they scared us with their spy-chip in SuperMicro board fable. It flopped.

      They then came back with 'power cord sending critical info to Chicom' fairy tale. This also flops.

      I am sure they will be back again. Maybe this time they will put everything in, including Pen, Pencils, Erasers, Plastic Lego Bricks (now being manufactured in China), and of course, they will throw in that famous Kitchen Sink to make their story stick.

  • by CanadianMacFan ( 1900244 ) on Friday March 08, 2019 @09:34PM (#58240854)

    Is there really that much difference between China and Taiwan if China were going to have a backdoor installed into a product? (I'm not trying to start a debate on whether Taiwan is or isn't a part of China. Just pointing out that China's influence isn't that much reduced there.) If you were wanting to be protect yourself from Chinese backdoors then it would be better to choose one of the many other low cost production countries. Especially for something as simple as a power cord.

    However, this sounds like another BS don't trust the Chinese stories put out by the US government in order to further weaken trade between the two countries. The problem is these don't trust the Chinese government and businesses start becoming shortened to don't trust Chinese and it becomes ingrained into the nation if done for long enough.

    • by hackingbear ( 988354 ) on Saturday March 09, 2019 @12:59AM (#58241362)

      The US has been making up various accusations against China pretty much after the collapse of the Soviet Union. (Before then, the US betrayed Taiwan and fell in bed with the "Chinese communist" in order to fight the all powerful SU.) The Americans have already been doped to say that China's evil, but their real votes are their pocket, just like they used to have the same split behavior toward the Japanese when Japan was all the rage of going to dominate the world -- after they "stole" / imitate US technology -- and the US started cracking down on the Japs. We should thank the self-contradiction of the public, else the world would have fought a lot more wars.

      (Before the Japanese, the British treated Americans as thefts for the same IP theft accusations. History always repeats itself.)

  • US Calm down. (Score:2, Insightful)

    by Anonymous Coward

    Despite your continuing genocide and oppression the world over not everyone is out to get you. So calm down and take some of what ever your pharmaceutical industry is pushing the most currently.

Saliva causes cancer, but only if swallowed in small amounts over a long period of time. -- George Carlin

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