Category Archives: ZTE

Economic cyber-espionage is here to stay, U.S. counterintelligence report says

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A new report from a U.S. counterintelligence agency details persistent efforts by China, Iran, and Russia to steal U.S. trade secrets, warns that those campaigns are here to stay and raises concerns about the software supply chain as a vector for economic espionage. China, Iran, and Russia are “three of the most capable and active cyber actors tied to economic espionage,” and they will “remain aggressive and capable collectors of sensitive U.S. economic information and technologies, particularly in cyberspace,” the report from the National Counterintelligence and Security Center (NCSC) states. Last year was a “watershed” year in public reporting of big software supply-chain operations, with seven incidents reported compared to just four between 2014 and 2016, according to the NCSC, which is part of the Office of the Director of National Intelligence (ODNI). The counterintelligence agency cites the seminal NotPetya attack, which U.S. officials blamed on Moscow, and the CCleaner backdoor, which […]

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As defense bill approaches finish line, future of Chinese company ZTE hangs in the balance

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When House and Senate negotiators sit down next week to iron out their differences in the annual defense bill, the fate of Chinese telecom giant ZTE will be a key issue. Select lawmakers from both chambers are headed to a conference committee to reconcile the House and Senate versions of the National Defense Authorization Act (NDAA) for fiscal 2019. One notable discrepancy is ZTE-related language: Broadly speaking, the Senate version calls for stricter rules that would curtail the Chinese company’s ability to do business in the U.S.. The House NDAA would restrict the Department of Defense and its contractors from procuring equipment from Chinese telecoms ZTE and Huawei. The Senate version, taking stock of ZTE’s continuous flouting of U.S. sanctions, would explicitly block ZTE from doing business in the country writ large. The Senate’s version of the NDAA, with the ZTE ban tucked into it, passed with broad bipartisan support, 85-10. […]

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Senators want Commerce to help U.S. firms ditch ZTE

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A bipartisan trio of senators have asked the Department of Commerce to clarify that U.S. companies are welcome to remove products from their networks made by controversial Chinese telecom company ZTE. Republican Sens. Tom Cotton, Ark., and Marco Rubio, Fla., along with Sen. Chris Van Hollen, D-Md., say they strongly support the department’s April “denial order” barring ZTE from buying U.S. technology components for seven years. However, the senators are concerned that the order is ambiguous to the point of hindering the removal of ZTE gear from U.S. infrastructure. On Monday, they wrote Secretary of Commerce Wilbur Ross asking his department to issue guidance and waivers to help U.S. companies clear their networks of ZTE software and hardware. U.S. officials have long warned that the Chinese government could leverage technology built by ZTE and fellow Chinese telecom Huawei to spy on Americans – accusations the companies deny. The Commerce Department […]

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In private briefings, U.S. government raises concerns over Huawei and ZTE

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The U.S. government has been quietly warning technology companies about the security risks posed by doing business with Huawei and ZTE, two Chinese telecommunications firms that are closely linked with China’s government. Sen. Marco Rubio, R-Fla., told CyberScoop Thursday at a national security conference that the government is holding classified briefings to warn private companies of the intelligence concerns. He said the companies that have been briefed are aware of the concerns, but are also “prioritizing market access.” “I think it’s important for us to do what we can to warn people about the threat,” Rubio said. “I think some of those companies are aware of [the intelligence concerns], but they make the decision that they’ll worry about that later. They want access to 1.3 billion people.” The news comes as the Trump administration is trying to persuade lawmakers to drop their opposition to a trade deal that would revive ZTE’s access […]

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Adm. Mike Mullen: Cyber Command should be empowered to go on offensive

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The push to allow Cyber Command to go on the offensive is welcomed by former chair of the Joint Chiefs of Staff Adm. Mike Mullen, adding that nation-states that have targeted the U.S. need to pay a “fairly significant price” for their actions. “I’ve thought for some time we were going to have to go on offense,” Mullen told CyberScoop. “Our training says until the enemy starts to pay a price, it pretty much has an open runway. I think that line has to be drawn, and we have to respond, and they need to pay a fairly significant price for what they’re doing.” Mullen said he is comfortable with U.S. Cyber Command taking on these offensive measures as part of its rise to a unified combatant command. The unit was officially given that distinction in May. His comments come as he assumes the chair position at the newly formed […]

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Senate bill hopes to sort out supply-chain cybersecurity risks, prevent next Kaspersky drama

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A new bipartisan Senate bill would try to get to the bottom of supply chain risks by setting up a new federal acquisition council that would include representation from the intelligence community and Defense Department. The goal of the bill is to help streamline coordination between agencies so that the government can avoid buying technology that’s bugged by foreign spies. The “Federal Acquisition Supply Chain Security Act” was introduced Tuesday by Sens. James Lankford, R-Okla., and Claire McCaskill, D-Mo. It tasks agencies across the government with creating a strategy to tackle supply chain threats embedded in federally procured technology systems. If a malicious piece of equipment enters the supply chain of government agencies, experts say it could be used for espionage or more destructive purposes. The announcement comes after a year in which top officials have repeatedly grappled with national security concerns surrounding Moscow-based Kaspersky Lab, an anti-virus software maker that […]

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ZTE ban, tucked inside the NDAA, passes the Senate

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The $716 billion National Defense Authorization Act passed the U.S. Senate on Monday, including an amendment that kills a deal the Trump administration made with China that effectively saved telecommunications firm ZTE. The bill still has a long way to go. The House of Representatives’ version, which omits the ZTE Ban, has to be reconciled with the Senate version. Additionally, the White House strongly opposes the measure. Despite the process ahead, the amendment’s backers are taking the NDAA’s passage as a victory. “We’re heartened that both parties made it clear that protecting American jobs and national security must come first when making deals with countries like China, which has a history of having little regard for either,”  Sens. Marco Rubio, R-Fla., Tom Cotton, R-Ark, Chuck Schumer, D-N.Y., and Chris Van Hollen, D-Md. said in a statement. “It is vital that our colleagues in the House keep this bipartisan provision in the bill as […]

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Top U.S. counterintelligence official: Kaspersky’s move to Switzerland doesn’t matter

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The ongoing fight between the U.S. government and Moscow-based Kaspersky Lab led the company to begin moving “a good part” of its infrastructure to Switzerland in a highly-visible move toward transparency in the face of spying accusations. The U.S.’s top counterintelligence official, however, says Kaspersky’s move to Switzerland makes no difference to him. William Evanina, the Director of the National Counterintelligence and Security Center, looks at the way the U.S. government handles Kaspersky — which is now banned from the U.S. federal government and is losing ground in the private sector — as “an opportunity to create a model,” he said. “This will not be the last time this happens. I think there will be more to come along, I call them ‘nation-state threats that emanate through the global business process.’ ” Kaspersky’s opening of a “Transparency Center” in Switzerland is significant but leaves open a wide range of questions. The company has […]

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House panel rejects call for cyberthreat report on ZTE amid Trump deal

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On the heels of a reported U.S. deal with embattled Chinese telecom company ZTE, American lawmakers rejected a Democratic measure that would have directed the Department of Homeland Security to provide more information on any cybersecurity risks posed by the international tech company. The top Republican and Democrat on the House Homeland Security Committee sparred over the utility of the resolution, which would have tasked DHS with providing any documentation it has on cyber risks introduced by the use of ZTE products on federal, state and local government networks. The Republican-led panel voted 16-11 against the measure. Instead, lawmakers will get a classified briefing from officials at DHS, the FBI and the Defense Department on June 13 about the  national security risks posed by ZTE and Huawei, another Chinese technology giant. Texas Republican Michael McCaul, the committee’s chairman, announced the briefing at a committee markup Wednesday on Capitol Hill. U.S. […]

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