Wednesday, December 15, 2010

WikiLeaks: China was behind Google hack

he much publicized attack on Google’s computer systems in China earlier this year was directed by China’s Politburo, according to classified U.S. government documents released by the Web site WikiLeaks.org and reported today by several news organizations.

“The Google hacking was part of a coordinated campaign of computer sabotage carried out by government operatives, private security experts and Internet outlaws recruited by the Chinese government,” The New York Times reported.

This latest WikiLeaks release included thousands of communications between U.S. diplomats, their foreign counterparts and the U.S. State Department. A Chinese contact told the American Embassy in Beijing in January about the Politburo’s involvement in the Google case, the Times noted. This is additional detail not previously revealed about the role of the Chinese government, which has denied involvement.

In all, 34 companies were identified as having their computer systems hacked. Google reacted to the hacking by refusing to continue to censor Google search results in China on behalf of the government and directed visitors to its site that is based in Hong Kong. Google later backed down and had its Internet Content Provider license renewed by China. Visiting China.cn does not redirect to the Hong Kong site, though there is a link to Hong Kong on the Chinese Google site. Google has also restricted searches on Google.cn to " music, products and translation," according to PC World.

Computer security experts said at the time that one of the ways hackers were able to gain access to the Gmail accounts of human rights activists was by exploiting a vulnerability in Microsoft Windows computers, particularly in unpatched versions of the Internet Explorer 6 Web browser.

An additional review of diplomatic cables revealed that Chinese hackers have broken into American government computers and those of Western allies, the Dalai Lama and American businesses since 2002, according to the Times.

I have reported previously on this blog about the suspicions of cyber security experts of the duplicity of government officials in various countries, mainly China and Russia, in supporting or even just condoning cyber crime. Today we’ve got more proof of institutional involvement. The Poliburo is the governing body of the Communist Party of China.

U.S. tech lead at risk, says Obama's top scientist

U.S. Secretary of Energy Steven Chu, the only member of President Barack Obama's cabinet with a degree in a hard science, believes the U.S. is at risk of losing its leadership in technology as the nation's competitiveness deteriorates.

Chu, co-winner of the Nobel Prize in physics in 1997, used statistics and blunt language in a speech at the National Press Club in Washington Monday to point out that the U.S. lead in technology is declining and is in need of turnaround. He characterized the current situation as a " Sputnik moment " for the U.S., particularly in the area of clean energy development.

Chu illustrated his concern, in part, by describing the decline of the U.S. share of worldwide high technology manufacturing. The U.S. hit a peak in 1998 by capturing about 25% of the world's technology export market. The U.S. share has declined steadily since then to the current 12% to 13% of the global market.

Chart: Percentage of global high-tech exports from the U.S., EU and China.

The U.S. has developed "the greatest innovation machine" in the world, but Chu said that "today this leadership is at risk - we are no longer leaders in manufacturing, but more startling we are no longer the leaders in high technology manufacturing."

China has seen its global share of tech export market increase from 6% in 1995 to 20% in 2008, Chu said.

TechAmerica, an industry group, reported Tuesday that the overall value of tech exports fell 16% in 2009, from $223 billion in 2008 to $188 billion.

Josh James, vice president for research and industry analysis at TechAmerica, attributed last year's decline to the economic downturn. Otherwise, tech exports in the U.S. exports have been increasing. From 2003 to 2009, the value of U.S. tech exports increased by 13%, he said.

The U.S. overall increase in tech exports is due to rising global demand. TechAmerica produces the annual export report, in part, to help make a case that Congress should pass pending free trade agreements, this year with Columbia, Panama and South Korea.

High-tech exports account for nearly 1 million jobs in the U.S, he added.

Chu cited the role of some of U.S. technology developments, such as transistor, integrated circuit, GPS and the Internet, for the "wonderful things" they did to create wealth in the United States in past years. Similarly, Chu sees development of alternative energy vehicles, renewable energy, high speed rail and supercomputing, as important to maintaining U.S. technology leads.

Chu sought to dispel the idea that China is rapidly expanding its overall share of worldwide trade solely due to low cost labor.

He noted that China is expanding research and development efforts, citing Applied Materials opening last year of a 400,000 square foot solar research and development center there as an example.

The U.S. "still has the opportunity to lead in a world" in producing inexpensive, carbon free technology, and in doing so create a way to "secure our future prosperity," said Chu. "But I think time is running out." Chu believed the U.S. can maintain its leadership with investment and government policies that help drive these industries.