China adds Apple and Cisco to its blacklist
China’s government has removed any lingering doubts that it’s making life difficult for US tech firms with the removal of Apple Inc. and Cisco Systems Ltd. from a list of approved companies.
The Reuters news agency obtained a list of the Chinese central government’s approved technology vendors, and the two tech giants are nowhere to be seen. Their removal from the list comes following disclosures from ex-NSA contractor Edward Snowden that the spy agency has been installed “backdoors” access to the hardware and software of numerous US tech firms.
According to Reuters, the number of foreign companies on the list has fallen by one third between 2012 and 2014. But while surveillance is likely to be a concern for China, there’s probably some protectionism at work too – products on the approved list number some 5,000, up from 2,000 just two years ago, but the majority of these are from local suppliers.
It’s not only hardware manufacturers who’re suffering. Software makers such as Microsoft are also feeling Beijing’s pinch, after the Chinese government blacklisted the latest version of Windows. Meanwhile, antivirus software from the likes of Kaspersky Labs and Symantec is also off the list. In addition, Intel’s McAfee unit and Citrix have also seen their security software pulled.
It’s no secret that Cisco has been struggling in China for some time. The company complained the Edward Snowden scandal had destroyed its reputation there as long ago as 2013, after his trove of documents revealed the NSA was routinely intercepting Cisco-made equipment for surveillance purposes, without the firm’s knowledge.
But despite the surveillance concerns, it’s common knowledge that China’s Huawei happens to be Cisco’s biggest rival in the networking equipment market. That company benefits hugely from Cisco’s omission from China’s approved list, which leads to suspicions it could be in retaliation for Huawei’s own blacklisting in the US.
As for Apple, it’s had its own problems with China’s regulators in the past. However its absence from the list will be less harmful to its Chinese operations because the firm is mostly focused on the consumer market. Nevertheless, it does highlight how Apple is facing increasing pressure from Chinese officials – last month, it reportedly agreed to let China’s State Internet Information Office conduct “security checks” on all products that it sells on the mainland.
Of course it’s impossible to tell what China’s real motivations are. While the cynics will believe its officials are simply trying to give home grown tech firms an advantage over foreign firms, the US’s policies have given Beijing all the excuses it needs to do just that.
image credit: TaniaVdB via Pixabay.com
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