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The Other Side of the US Lenovo Spy Probe
Daily Tech ^ | 03/30/06 | Tuan Nguyen

Posted on 03/30/2006 9:33:57 AM PST by Salo

The USCC launched a probe against Lenovo, but many wonder if the accusations are warranted

The United States government is planning to spend roughly $13M USD on computers from Lenovo. The company, famous for buying up IBM's PC manufacturing arm, is working on a deal with the US government to produce roughly 16,000 computers. Just recently, the U.S.-China Economic Security Review Commission (USCC) has requested that Lenovo be probed for any concerns about possible spying, eavesdropping or worse.

The supposed problem presented by the USCC is that the 16,000 computers are being built by a Chinese-mainland company. The USCC argues that a foreign intelligence like that of the Communist Party of China (CPC) can use its power to get Lenovo to equip its machines with espionage devices. Lenovo has strongly declined that it is involved in any such activities.

Many analysts would call these probes are excessive and knee-jerk. When manufactured under IBM, almost all Lenovo PCs were built in the People's Republic of China and the Republic of China (Taiwan) to some degree or another anyway. Of the top 10 system builders in the US, eight have some component manufacture attributed specifically to ECS-Tatung, at Taiwanese corporation that only assembles exclusively in the PRC. Of the other two not represented by ECS-Tatung, Dell and Apple, Dell has a strong reliance on ASUStek -- another company that builds exclusively in the PRC.

Despite the probe, Lenovo says that its international business, especially those that deal with the US, follow strictly laid out government regulations and rules. Lenovo also claims that even after purchasing IBM's PC division, its international business has not been affected negatively. Interestingly, in an interview with the BBC, Lenovo mentioned that an open investigation or probe may negatively affect the way that the company deals with future government contracts or bids. The Lenovo representative did not explain details on exactly what negative implications would occur if there were future investigations. The 16,000 PCs to be built for the US government are actually assembled outside of China in Mexico, Taiwan and Raleigh -- an oddity in the PC manufacturing business.

A top tier motherboard manufacturer spokesman spoke to us off the record claiming the Lenovo probe has "foreboding" implications. If US companies are intimidated by probes of the USCC, such probes could be easily applied to virtually every PC manufacturer in the US: Intel motherboards are built by Taiwanese Hon Hai Precision Industries from facilities in Shenzhen; Acer components are built by component manufacturers in Shanghai; Dell PCs are assembled in factories in Suzhou and Shanghai. The same spokesperson went on to say "We [Taiwanese manufactures] do more work in China than we do anywhere else in the world. I don't even want to think about what would happen to our US clients if we got a USCC probe."

CDW Government, the company originally contracted to fill the orders for the US government also carries several brands that are assembled in the PRC including Acer, BenQ, D-Link, HP, Sharp and Toshiba.


TOPICS: Business/Economy
KEYWORDS: china; eavesdropping; government; ibm; lenovo; nationalsecurity; spyware; trojanhorse
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Grist for the tech mill.
1 posted on 03/30/2006 9:33:59 AM PST by Salo
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To: ShadowAce; N3WBI3; Ernest_at_the_Beach

Pings.


2 posted on 03/30/2006 9:34:40 AM PST by Salo
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To: rdb3; chance33_98; Calvinist_Dark_Lord; Bush2000; PenguinWry; GodGunsandGuts; CyberCowboy777; ...

3 posted on 03/30/2006 9:36:04 AM PST by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: Salo
Hysteria reigns after the GOP folded like a cheap suitcase over the Dubai ports deal.

Concern over "espionage devices" hidden in workstations sounds like something from prisonplanet.com.

4 posted on 03/30/2006 9:38:39 AM PST by sinkspur (Things are about to happen that will answer all your questions and solve all your problems.)
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To: sinkspur
Concern over "espionage devices" hidden in workstations sounds like something from prisonplanet.com.

Computer can do anything, connected to Internet, it is open to remote control and "data collection" - not a technical problem, just somebody wanting to do it. With the amount of circuitry crammed onto the chips, it would be surprise that it is not done.
Chinese at your computer control, Putin at the gas valve, suicider muSlimes roaming around, RATs crippling the US - long live "free" world.
Vote the bastRATs out into oblivion!!!

5 posted on 03/30/2006 10:16:53 AM PST by Leo Carpathian (ffffFReeeePeee!)
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To: Salo

China is well known for spying on the US, anyone who doesn't think they won't use most every opportunity presented to them is a fool.

Of course I was strongly opposed to allowing the Chicom government to purchase the IBM PC division, and American icon, when it was originally announced by IBM.

If we start blocking shipments of those PC's into the US now, will help to make up for it. More business for US businesses like HP and Dell, which they could use when fighting against an opponent who has unlimited resources that can be moved over from other Chicom-owned business fronts.


6 posted on 03/30/2006 10:44:18 AM PST by Golden Eagle
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To: Golden Eagle

If we start blocking shipments of those PC's into the US now, will help to make up for it. More business for US businesses like HP and Dell, which they could use when fighting against an opponent who has unlimited resources that can be moved over from other Chicom-owned business fronts.

The same HP and Dell that buy their laptops from China?


7 posted on 03/30/2006 10:58:06 AM PST by kaktuskid
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To: Golden Eagle

You must have skimmed:

Of the other two not represented by ECS-Tatung, Dell and Apple, Dell has a strong reliance on ASUStek -- another company that builds exclusively in the PRC.

CDW Government, the company originally contracted to fill the orders for the US government also carries several brands that are assembled in the PRC including Acer, BenQ, D-Link, HP, Sharp and Toshiba.


8 posted on 03/30/2006 11:11:31 AM PST by Salo
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To: Golden Eagle
The 16,000 PCs to be built for the US government are actually assembled outside of China in Mexico, Taiwan and Raleigh -- an oddity in the PC manufacturing business.

So you'd rather have HP's, assembled in China, than Lenovos, assembled in the United States?

9 posted on 03/30/2006 11:34:48 AM PST by sinkspur (Things are about to happen that will answer all your questions and solve all your problems.)
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To: sinkspur

Any number of instructions can be easily burned into ROM at the time of manufacture. Even instructions that give a backdoor to the manufacturer to access the computer over a network.


10 posted on 03/30/2006 11:37:29 AM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: sinkspur

Who manufactures the ROM?


11 posted on 03/30/2006 11:37:55 AM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: hedgetrimmer
Who manufactures the ROM?

IBM.

12 posted on 03/30/2006 11:56:22 AM PST by sinkspur (Things are about to happen that will answer all your questions and solve all your problems.)
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To: kaktuskid
The same HP and Dell that buy their laptops from China?

Don't you mean Taiwan?

13 posted on 03/30/2006 11:56:34 AM PST by Golden Eagle
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To: Salo
Well maybe this is the first step to prohibiting ALL USgov from coming from China factories whatsoever. That would be even better.
14 posted on 03/30/2006 12:14:41 PM PST by Golden Eagle
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To: Golden Eagle

FYI: PRC = ChiComs. As near as I can tell, even the Tiawanese companies outsource to ChiComs. It looks like Apple might be the only exception, and I'd be willing to bet their components ship with fortune cookies, too.


15 posted on 03/30/2006 12:19:16 PM PST by Salo
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To: Salo

Fine, whatever. You somehow missed my point about this possibly being a watershed moment that leads to the US government to require all their computers be manufactured in the US. All they'd have to do is require it, and plenty of offers would start rolling in.

But if you're not going to block the Chinese government from building the US government systems overseas, you're obviously not going to ever block Dell.

This needs to be a precident, with more to follow on security grounds.


16 posted on 03/30/2006 12:29:16 PM PST by Golden Eagle
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To: sinkspur

And which offshore company makes them for IBM?


17 posted on 03/30/2006 12:33:55 PM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: hedgetrimmer
And which offshore company makes them for IBM?

IBM makes all the chips it uses, and is the outsourcer for other manufacturers.

18 posted on 03/30/2006 12:40:59 PM PST by sinkspur (Things are about to happen that will answer all your questions and solve all your problems.)
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To: sinkspur

IBM openly admits if not outright brags most of their employees work outside the US, so coming "from IBM" is hardly reassuring.


19 posted on 03/30/2006 12:47:39 PM PST by Golden Eagle
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To: Golden Eagle
IBM openly admits if not outright brags most of their employees work outside the US, so coming "from IBM" is hardly reassuring.

IBM is still the largest manufacturer of computer hardware in the world, so there must be one or two folks out there who are reassured.

This knee-jerk hysteria post Dubai ought to be embarrassing to the government, and to those who are infected with it at FR, but apparently it's not.

20 posted on 03/30/2006 12:58:43 PM PST by sinkspur (Things are about to happen that will answer all your questions and solve all your problems.)
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