http://money.cnn.com/2013/03/29/news/china-data-theft/index.html?iid=SF_E_LN
According to the American Chamber of Commerce in the People's Republic of China, more than one in four US businesses operating in China have experienced a breach of proprietary data. Over 40% of American businesses in China worry about data security and 53% say that the risk is static. This report adds tension to the US and China over the issues of computer hacking and cyber-security. At the end of last year it was reported that rising labor costs and slower economic growth in China were the greatest risks for foreign companies. Recently an American company found a major group of computer hackers who were linked to the Chinese government. The Chinese government denies this and claims to be the victim of many cyber attacks which originate from the US.
According to the American Chamber of Commerce in the People's Republic of China, more than one in four US businesses operating in China have experienced a breach of proprietary data. Over 40% of American businesses in China worry about data security and 53% say that the risk is static. This report adds tension to the US and China over the issues of computer hacking and cyber-security. At the end of last year it was reported that rising labor costs and slower economic growth in China were the greatest risks for foreign companies. Recently an American company found a major group of computer hackers who were linked to the Chinese government. The Chinese government denies this and claims to be the victim of many cyber attacks which originate from the US.
3 comments:
I wonder how this is going to affect foreign investments into China. I mean things like can this can really drive investors out of the country which is really going to affect the economy of China in the long run.
This could definitely affect the levels of investment in China. The Chinese government's behavior concerning the accusations could also negatively affect foreign investment, even before possible evidence of hacking is ever found. If the Chinese government cannot assure investors that it is not involved and does not vouch to prevent hacking, than the country appears insecure for investment. I wonder how involved the government is in cyber attacks and if most of it is done by nongovernment groups?
Interestingly, the Chinese government is not taking responsibility and are not addressing these allegations correctly. They are totally ignoring this and are saying that American firms that believe China is hacking into their networks do not have accurate information. I read an interesting article in The Economist and it states that many firms do not want to admit that countries, governments, hackers, anyone for that matter, have hacked into their network because of consumer confidence and investor confidence.
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