Feeds

Spy fears spook IBM-Lenovo deal

The PRC in your PC?

  • alert
  • submit to reddit

Using blade systems to cut costs and sharpen efficiencies

For years the Chinese government fretted that the US was using its technology lead to spy on the country - but now the tables are turned. The US government has much deeper concerns about what China can glean from the historic Lenovo-IBM PC deal than recent reports have indicated.

Concessions offered by IBM to the US Treasury's Committee on Foreign Investment in the United States were rejected yesterday, Bloomberg reports. The Committee is worried that IBM's North Carolina facility presents opportunities for industrial espionage. Even the IBM customer list - and the US government is a very big customer indeed - could divulge information the US doesn't want China to see.

And keeping this list private is one of the concessions apparently made by IBM. (Although it isn't clear how Lenovo can support IBM government staff if it doesn't know who or where they are.) Another concession includes prohibiting Lenovo employees from certain buildings. IBM had been asked not to transfer R&D staff to the facility, but rejected the suggestion. The Committee has until March 14 to file its report to the President.

In the late 1990s the PRC was worried that domestic CDMA networks were vulnerable to US political interference, as they use the DoD's GPS satellites to synchronize their base stations. However, a source told your reporter that Chinese government officials didn't object to monitoring of traffic on the ill-fated Iridium network.®

Related stories

IBM-Lenovo deal to face US govt. probe
US hints at IBM-Lenovo deal spy fears
IBM's Mr Thinkpad on life before Lenovo
IBM hands Lenovo billion-dollar PC loser
IBM CEO's memo clarifies PC biz sell-off
IBM sells PC biz to China
IBM to Power China
IBM said to be in PC divison sell-off talks

The smart choice: opportunity from uncertainty

More from The Register

next story
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
NEW, SINISTER web tracking tech fingerprints your computer by making it draw
Have you been on YouPorn lately, perhaps? White House website?
LibreSSL RNG bug fix: What's all the forking fuss about, ask devs
Blow to bit-spitter 'tis but a flesh wound, claim team
Black Hat anti-Tor talk smashed by lawyers' wrecking ball
Unmasking hidden users is too hot for Carnegie-Mellon
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
Own a Cisco modem or wireless gateway? It might be owned by someone else, too
Remote code exec in HTTP server hands kit to bad guys
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.