US report links telecoms company to Chinese spy services

Sun Yafang

Sun Yafang

By JOSEPH FITSANAKIS | intelNews.org |
For the first time a United States government agency has openly linked one of China’s main telecommunications companies with the country’s intelligence services. The alleged link is provided in a new report by the US Open Source Center, which acts as the open-source intelligence (OSINT) arm of the Office of the Director of National Intelligence. The report concludes that the company, Huawei Technologies, relies on a series of formal and informal contacts with the Chinese People’s Liberation Army and the Ministry of State Security (MSS), which oversee and administer China’s military and civilian intelligence apparatus. Founded in 1987 to import Western office telephone systems to China, the company has become one of the country’s leading exporters of all kinds of communications hardware equipment, ranging from routers to cell towers and undersea cables. But Huawei’s export growth has been hampered in recent years by widely circulated suspicions that the company maintains close ties to the Chinese military and intelligence establishments. The Open Source Center report adds to these suspicions, by pointing out that Huawei’s current chairperson, Sun Yafang (pictured), was an employee of the MSS Communications Department prior to joining Huawei in 1989. It also says that, prior to joining the company, Sun utilized her personal contacts at MSS to “help Huawei through financial difficulties at critical moments when the company was founded in 1987”. The close contacts between the —ostensibly private— company and the Chinese government have persisted ever since, says the report, and points out that the Chinese state has funded Huawei with nearly a quarter-billion dollars for “research and development” projects in the past three years alone. This is not the first time that Huawei has been accused of maintaining close contacts with Chinese intelligence agencies. In 2009, the Australian Security Intelligence Organisation (ASIO) investigated one of Huawei’s Australian-based subsidiaries for links to Chinese intelligence operations. In the following year, the Indian government barred the company from operating in India, citing its allegedly “strong links with the Chinese military”. Read more of this post

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News you may have missed #0208

  • Georgia denies entry to Russian ‘spies’. Georgia has denied entry to a delegation of Russian scholars from the Russian State Archive and the Center for Caucasian Research at the Moscow State Institute of International Relations. It’s the second time this year that the Georgians have accused Russian researchers of being spies.
  • US monitors China’s hiring of foreign journalists. A report by the Open Source Center of the US Directorate of National Intelligence notes that China has been hiring a growing number of foreign reporters to serve as overseas correspondents.
  • Audio interview with NSA’s information assurance director. Dickie George, technical director of information assurance at the US National Security Agency, has given a rare audio interview to GovInfo Security. The first part of the interview is available here. The second part will be posted in a few days.

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News you may have missed #0039

  • Russians suspect sabotage behind ICBM test failure. The FSB is investigating the reasons behind the test failure earlier this month of a Russian Navy Bulava-30 (SS-NX-30) sea-based intercontinental ballistic missile, which disintegrated 28 seconds after launch. The Russian Navy developed the ICBM specifically to avoid future US ballistic missile defenses.
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  • US DNI sees signs of North Korean succession. The Open Source Center of the US Directorate of National Intelligence adds its voice to widespread speculation that Kim Jong il may be preparing to hand power to his third son, Kim Jong Un.

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Al-Qaeda book warns West is winning spy war

al-Libi

Abu al-Libi

By IAN ALLEN | intelNews.org |
A guidance report authored by an al-Qaeda field commander in Afghanistan says that Western-handled spies have infiltrated the organization’s networks and are sabotaging is activities. As intelNews pointed out on July 12, the report, penned by Abu Yahya al-Libi, also contains an illustrated essay on the CIA’s use of SIM cards planted on al-Qaeda militants’ cell phones to direct unmanned drone strikes. But most of the circular, entitled Guidance on the Ruling of the Muslim Spy, is devoted to cautionary advice on the “swarms of locusts” of Western-aligned spies, who have even penetrated “the military and financial supply roads of the mujaheddin, which are far from the enemy’s surveillance”. Read more of this post

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