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The National Security Risks of US Tech Companies' Activities in China: A Growing Concern




The recent warning from Senator Richard Blumenthal (D-CT) that American tech companies’ activities in China represent a national security risk is not an isolated incident. The senator's statement, made during a hearing titled "Big Hacks & Big Tech: China’s Cybersecurity Threat", highlights the dangers of extensive economic ties between the US and China, which can be exploited by Beijing to compromise American security.

Blumenthal's warning is particularly timely given the increasing reliance of the Pentagon on SpaceX services. Tesla makes half of its cars and as much as a third of its sales in China, with Elon Musk pledging to uphold "core socialist values" in China. This has raised concerns about the potential for Chinese espionage to influence American policy.

The recent warning from Senator Richard Blumenthal highlights a growing concern about the national security risks posed by US tech companies' activities in China. It also underscores the need for greater scrutiny of these companies' ties to Beijing and their potential role in compromising American security.

  • The recent warning from Senator Richard Blumenthal highlights a growing concern about national security risks posed by US tech companies' activities in China.
  • CrowdStrike has tracked over 63 "Pandas" - designations for network intruders linked to China, with one crew, Liminal Panda, compromising telecom networks and stealing sensitive data.
  • Chinese espionage is targeting sources of political and military secrets, intellectual property that can advance China's national interests.
  • US tech companies' ties to Beijing pose a risk to American security, particularly if they are forced to choose between profits and national security.



  • The recent warning from Senator Richard Blumenthal (D-CT) that American tech companies’ activities in China represent a national security risk is not an isolated incident. Rather, it is part of a broader concern that has been brewing for some time now. The senator's statement, made during a hearing titled "Big Hacks & Big Tech: China’s Cybersecurity Threat", highlights the dangers of extensive economic ties between the US and China, which can be exploited by Beijing to compromise American security.

    Blumenthal's warning is particularly timely given the increasing reliance of the Pentagon on SpaceX services. Tesla makes half of its cars and as much as a third of its sales in China, with Elon Musk pledging to uphold "core socialist values" in China. This has raised concerns about the potential for Chinese espionage to influence American policy. Senior Chinese officials are even looking to use Mr. Musk to influence the White House, further underscoring the national security risks posed by US tech companies' activities in China.

    One company that has been at the forefront of this debate is CrowdStrike, a leading cybersecurity firm that tracks "Pandas" - the designation given to network intruders based in or linked to China. Recently, CrowdStrike Senior VP of Counter Adversary Operations Adam Meyers testified before the Senate Committee on the Judiciary's subcommittee on Privacy, Technology, about another alleged Beijing-linked cyberspy crew, Liminal Panda.

    Liminal Panda is one of 63 different "Pandas" that CrowdStrike tracks - this is the designation that the cybersecurity firm gives to network intruders based in or linked to China. According to Meyers, Liminal Panda has been sneaking into telecommunications networks in South Asia and Africa since at least 2020.

    The group's modus operandi involves using a mix of custom malware, publicly available tools, and proxy software to provide covert access, route command-and-control (C2) communications, and ultimately steal sensitive data. Liminal Panda is especially adept at understanding interconnections between providers and exploiting protocols that support mobile telecommunications - "legacy protocols that are largely unmanaged and unknown to cybersecurity professionals", as Meyers put it.

    Meyers detailed a recent incident in which Liminal Panda compromised telecom networks, installed multiple access routes to the targeted organizations, and snooped on their customers. The adversary ultimately emulated the global system for mobile communications (GSM) protocols to enable Command and Control (C2) and developed tooling to retrieve mobile subscriber information, call metadata, and text messages, and facilitate data exfiltration.

    Meyers has tracked China-based threats for more than two decades, and testified that these threats have evolved from "smash-and-grab" raids to targeted activities that focus on high-value individuals and information. This often means targeting sources of political and military secrets, and intellectual property that can advance China's national interests.

    The hearing also highlighted the role of Apple in this debate. Blumenthal blasted Apple for complying with China's censorship and surveillance demand, citing 20 percent of its sales and 80 percent of its suppliers are based in China. When forced to choose between American security and hugely profitable access to the Chinese market, Americans may doubt that SpaceX, Mr Musk, Tim Cook, and other technology leaders will side with America.

    The warning from Senator Blumenthal is a stark reminder of the national security risks posed by US tech companies' activities in China. It also underscores the need for greater scrutiny of these companies' ties to Beijing and their potential role in compromising American security.

    In conclusion, the recent warning from Senator Richard Blumenthal highlights a growing concern about the national security risks posed by US tech companies' activities in China. The Liminal Panda cyber-espionage crew is just one example of the dangers that this poses, and underscores the need for greater scrutiny of these companies' ties to Beijing and their potential role in compromising American security.



    Related Information:

  • https://go.theregister.com/feed/www.theregister.com/2024/11/20/musk_chinese_cyberspies/

  • https://www.theregister.com/2024/11/20/musk_chinese_cyberspies/

  • https://finance.yahoo.com/news/elon-musks-china-ties-profound-093000681.html


  • Published: Wed Nov 20 18:18:14 2024 by llama3.2 3B Q4_K_M













         


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