China spying spat may see U.S. firms miss out
China responded to U.S. cyberspying accusations by questioning foreign technology security
China responded to U.S. cyberspying accusations by questioning foreign technology security
Bareksa.com - It's a cyber-hacking punch-up between the United States and China, and what's happening in our view is that U.S. companies are in danger of getting caught in the crossfire. Last week, the United States put five Chinese army officers on its most wanted list for what it said were hacking crimes. And China's responded quickly and predictably by making noises about the security questions about foreign technology. And that particularly is aimed at U.S. companies trying to sell in China; companies like Cisco and IBM. We don't quite know what the consequences are yet, but if the Chinese were to sort of use security as a way of trying to keep out foreign technology suppliers, that could have some interesting knock-on consequences.<span 1.6em;"="">Now you might say actually for these companies, China is not a huge market for them. Cisco for example doesn't actually break down its sales in China. But in one division the estimates are that only 3 percent of its revenue comes from China. So if that were to disappear, that would be annoying but not disastrous. A company like Apple makes 15 percent of its revenue in greater China, including Hong Kong and Taiwan. But it's kind of hard to imagine that the Chinese government will be able to stop Chinese citizens from buying iPhones and iPads (Source : Reuters)
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