Communist China Caught In Massive Hack, Spy Chips Put In Hardware Of Nearly 30 Companies

Bloomberg Businessweek report details immense hacking operation by the Communist state, with even Apple and Amazon among those reportedly hacked.

Communist China has been caught in a massive hack of nearly 30 U.S. companies.

According to a Bloomberg Businessweek report, the Chinese government inserted small microchips into hardware during manufacturing – without the knowledge of the companies.

Those chips were used to hack intellectual property and trade secrets.

It is believe that Super Micro – a Chinese server company – put the chips on the hardware.

The report indicates that Apple and Amazon were among the companies hacked, though both companies have disputed the report.

Here’s a key section of the report:

“The chips had been inserted during the manufacturing process, two officials say, by operatives from a unit of the People’s Liberation Army. In Supermicro, China’s spies appear to have found a perfect conduit for what U.S. officials now describe as the most significant supply chain attack known to have been carried out against American companies.

One official says investigators found that it eventually affected almost 30 companies, including a major bank, government contractors, and the world’s most valuable company, Apple Inc. Apple was an important Supermicro customer and had planned to order more than 30,000 of its servers in two years for a new global network of data centers. Three senior insiders at Apple say that in the summer of 2015, it, too, found malicious chips on Supermicro motherboards. Apple severed ties with Supermicro the following year, for what it described as unrelated reasons.”

Super Micro also disputed the report, but that didn’t stop their stock price from collapsing over 40%.

China denied the report, saying “China is a resolute defender of cybersecurity.”

According to CNBC, “China has long been suspected — but rarely directly implicated — in en masse spy campaigns based on hardware made there. The majority of electronic components used in U.S. technology are manufactured in China. Companies including component manufacturers Huawei and ZTE, as well as surveillance camera maker Hikvision, have all fallen under intense suspicion and scrutiny from the U.S. government in the past year. Intellectual property theft is one of the core arguments for tough trade restrictions on China by the Trump administration.”

The revelation of China’s massive hacking effort is just the latest example of why China’s Communist government cannot be trusted, and why there can be no such thing as “free trade” with the Communist state.

You can read the full Bloomberg Businessweek report on China’s hacking at the link below:

“The Big Hack”

Spencer Fernando