With all the focus on Russian hacking, Russian
ambition, and Russian threats to U.S. national economic security,
another Red Threat continues seemingly unabated: China’s ongoing effort
to compete as a global economic power equal to, if not exceeding, the
United States. China has the population and the economic ability to
compete, and has made its ambitions crystal clear with its Made in China
2025 plans.
Part of the strategy is being played out now in the
battle over tariffs and trade policy, but far more important to the U.S.
innovation economy is the ongoing battle over forced technology
transfers and Chinese efforts to steal U.S. intellectual property and
control as much data online as possible.
Over the past decade, Chinese hackers have launched
cyber-attacks, stealing data from the U.S. Congress, the U.S Department
of Defense, and the federal
Office of Personnel Management,
one of the largest data breaches and thefts of American worker
identities in history. The Chinese have run sustained cyber operations
against our oil industry, critical infrastructure and utility
industries, and the entertainment industry. With trade tensions running
higher, China’s interest in hacking U.S. private businesses for data,
trade secrets and intellectual property has only
increased.
As noted by
Wired magazine, Chinese
government-backed hackers are also interested in so-called “command and
control” opportunities in the U.S., everything from satellites and main
frame computers to in-home laptops and security cameras. Yes, the
Chinese are even interested in that nanny cam you may have in your
nursery.
For some hackers, dealing with personal, in-home
technology is a game to show what they can accomplish. But for other
hackers, it’s an effort to find new ways to access personal information
and find security holes that might allow them to launch far greater
cyber-attacks from home networks.
If consumers start demanding up-front, full disclosure
from retailers prior to purchase, they’d likely find consumers drawn to
the devices that use the American based platforms, even if those devices
cost a dollar or two more.
American consumers, while alarmed by such data breaches
as the Yahoo email hack in which almost 3 billion consumers had
personally identifiable information stolen, or the various retail chain
hacks such as Target and Neiman Marcus, still tend to be lax about the
security measures they use and fewer than 15 percent utilize security
measures like password keepers to secure access to their important web
sites and data like bank and investment accounts, health care
information and access to their cloud storage, where they upload
everything from legal documents, financial information and tax returns,
to family photos, music and movies.
The cloud and the access the cloud can enable to home
networks is increasingly where consumers should be concerned. Most
probably aren’t asking where the data from their smart devices is going,
or who has access to that data. Nor are they asking what the rules and
regulations governing 3rd party access to that data are and where is it
actually stored.
But they should be.
Most consumers are completely unaware that the smart
devices, on which they’ve come to rely for everyday home convenience,
transmit data back to a platform that is then stored on “the cloud.”
When you go to Walmart or Target and buy a camera-enabled smart TV or a
baby cam monitor, you don’t consider that the digital video feed might
be transmitted to and stored in a cloud outside the United States and
viewed by a hostile, foreign government like the Chinese.
But that is exactly what is happening.
Those smart, internet of things (IoT) devices, which
numbered just over 8 billion in 2017, require platforms to “plug into”
and a significant amount of those devices have agreements with platforms
controlled by Chinese nationals with obvious ties to the Chinese
government. That’s right, not kidding: the communist Chinese government
may have access to your home via those smart devices.
This entire trend of the internet of things and smart
devices is only going to accelerate: there are estimates that by 2020
there will be over 20 billion IoT devices, all plugged in to some
platform somewhere. What retailers are not telling you is that those
technological wonders likely rely on platforms and cloud storage
controlled by Chinese nationals – sure it’s in the fine print on page 36
of the disclosures, but when was the last time you actually read all of
the fine print? But if you did, would you still buy those phones and
cameras that plug into certain platforms?
If consumers start demanding up-front, full disclosure
from retailers prior to purchase, they’d likely find consumers drawn to
the devices that use the American based platforms, even if those devices
cost a dollar or two more. We can be assured that the Chinese are going
to wage this cyber war. That doesn’t mean American consumers have to
help them win.
Ned Ryun is the Founder and CEO of American Majority, a national grassroots organization. Learn more at
AmericanMajority.org.