USA suspects Chinese network operators of spying through internet services
Three major Chinese network operators are still operating cloud and other internet services in the USA. This could lead to US data being transferred to Beijing.
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The US government is investigating China's three major network operators, which provide cloud and other internet services in the United States, for possible data breaches and espionage. The US Department of Commerce has subjected state-backed China Mobile, China Telecom and China Unicom to a risk-based analysis and subpoenaed the companies, reports Reuters, citing anonymous people familiar with the matter.
The Chinese network operators have been banned from providing telecommunications services in the US for years due to national security concerns raised by the government and regulators. At the beginning of 2022, for example, China Unicom had to suspend its services in the USA. Against the backdrop of the trade conflict between the US and China, China's network operators have already had to say goodbye to the US stock exchange.
China's network operators still active in the USA
However, the companies are still present in the USA on a smaller scale. China Mobile, for example, owns parts of a data center in California's Silicon Valley. Neither the telecommunications provider nor government agencies have commented on this when asked, but cloud services for international customers could be operated there. Experts therefore describe the data stored there as anything but safe from Chinese access, writes Reuters. "If you have your own data center, you have your own unique piece of China within the US," says Dutch cloud and security expert Bert Hubert.
According to its own website, China Telecom also operates eight so-called Points of Presence (PoPs) in the USA, which are located at public peering points (Internet Exchange Points, IXP). These enable the connection of various larger networks and exchange routing information with each other. According to the US Federal Communications Commission (FCC), these PoPs pose "serious risks to national security and law enforcement" if they are operated by companies that pose a national security risk. This is because the company could "potentially access and/or manipulate data if it is on the preferred path for US customer traffic", according to Reuters.
USA for secure internet routing
Just earlier this month, the FCC decided to legally oblige internet service providers in the USA to cryptographically secure their border gateways to make them less vulnerable to false or manipulated data routing. This is because the Internet's routing tables (Border Gateway Protocol, BGP) are susceptible to errors and deliberate manipulation. BGP hijacking" is used to maliciously redirect data traffic, to foist it or to bring it to a standstill. By requiring providers to take security measures, the FCC is preparing secure Internet routes.
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The US ministries have not yet decided regarding the three Chinese network operators. So far, they have only been summoned to explain themselves. Possible countermeasures have also not yet been determined. However, the authorities could prohibit the Chinese companies from carrying out transactions relating to the operation of data centers and internet routing. This would significantly restrict US business and worsen the competitive position of companies from the Far East compared to US companies.
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