China has dropped several major US tech brands for government purchases in wake of NSA spying

[Shawn Knight]

Edward Snowden has had a profound impact on the way the entire world views online privacy. The whistleblower’s NSA leaks have also cost some of the world’s leading technology brands quite a bit of money as a direct result of lost sales.

As highlighted in a recent report from Reuters, China has removed several western-based companies from its approved state purchase list in the wake of what has proven to be widespread cyber surveillance.

Cisco Systems, for example, had 60 products on the country’s Central Government Procurement Center’s list in 2012. By late last year, Cisco had been wiped off the list completely. And they’re not the only ones as Apple, server software maker Citrix Systems and McAfee have also been kicked to the curb.

The report notes that the number of products on the list has shot up by more than 2,000 in the past two years, currently sitting at just under 5,000 approved devices. Unfortunately for US companies, almost all of the new products are those created locally in China.

In total, the number of approved foreign tech brands has dropped by a third.

Tu Xinquan, Associate Director of the China Institute of WTO Studies at the University of International Business and Economics in Beijing, said the Snowden incident has become a real concern, especially for the country’s top leaders. Xinquan added that in some sense, the American government has some responsibility for that and China’s concerns have some legitimacy.

Permalink to story.

https://www.techspot.com/news/59863-china-has-dropped-several-major-us-tech-brands.html

 

[Asok Asus]

Once they reverse engineer a device they don’t need to purchase the original any more, AND they can direct the U.S. spyware harvest to THEIR own government instead of to the U.S. government. A real win-win for China!

 

[MilwaukeeMike]

Well, Shawn, if you had read the entire article that you linked you would have found this at the bottom...

Industry insiders also see in the changing profile of the CGPC [Central Government Procurement Center's] list a wider strategic goal to help Chinese tech firms get a bigger slice of China's information and communications technology market, which is tipped to grow 11.4 percent to $465.6 billion in 2015

So are they really dropping tech imports because of the NSA, or are they doing it so the govt can sell their own stuff instead? Especially since ...

The danger for China, say experts, is that it could leave itself dependent on domestic technology, which remains inferior to foreign market leaders and more vulnerable to cyber attack.

I know it doesn't fit into the 'look-how-bad-the-NSA-is' agenda, but maybe this story isn't so cut and dry?

 

[Nima304]

Good. China is a huge market, and if US businesses feel the loss by not being able to sell there, they'll hopefully lobby to slow down or stop the NSA's practices.

 

[RzmmDX]

Main reason why Microsoft finally dropped the kinect.

 

[Gaara]

Who in the world tush this country? lol lol

 

[Axle Greese]

"Cisco Systems, for example, had 60 products on the country’s Central Government Procurement Center’s list in 2012. By late last year, Cisco had been wiped off the list completely."

Oh, sweet justice... It was Cisco Systems that helped build the "Great Firewall of China". Bastids.

 

[Darth Shiv]

They were always going to go this way but it certainly didn't help US firms that China had additional incentive.

China may start with inferior products but they'll evolve them very quickly.

 

[cmbjive]

Good. China is a huge market, and if US businesses feel the loss by not being able to sell there, they'll hopefully lobby to slow down or stop the NSA's practices.

Yesh, we'll change our policies because China, the largest purveyor of spying and technological espionage, dropped American technology firms in favor of their own. Great logic there.

 

[dnldchesley]

Maybe we should stop importing so much of their junk,we are part to blame for how rich that country has become while ours is getting weaker every year.

 

[Archean]

Maybe we should stop importing so much of their junk,we are part to blame for how rich that country has become while ours is getting weaker every year.

Indeed, what about 3+ trillion $$$ they hold in reserves, securities/bonds etc.? It wouldn't make a pretty picture if they decide to ditch all of it in one incidence, making US go bankrupt overnight.

On the topic, nothing surprising in it, considering all those NSA+GCHQ shenanigans, in fact, I expect others to follow (may be bit more discretely) in the long term. Once others loose 'trust' in someone, unfortunately, there is absolutely no easy route back.

 

[Emexrulsier]

They were always going to go this way but it certainly didn't help US firms that China had additional incentive.

China may start with inferior products but they'll evolve them very quickly.

That's not how its been in the last few decades, china will start with inferior products, maintain inferior products and then move onto inventing new inferior products all with features striving to match flag products but with cheap construction and parts will never succeed.

 

[Archean]

Such is the ignorance ............... about 'quality' of Chinese products.

In last 15 years, almost every single hydropower project/dam my employer has constructed, installed Chinese turbines, with absolutely 0% rate of failure (with only normal operational maintenance as is the case with every one else). Just one example of how far they have come.

'Quality' is reflected through 'price' at which one gets whatever they want, and price is driven by the 'precise specifications' of the required product. Hence, IF one is willing to pay the right price for top quality products, Chinese products are just as durable.