File photo of online police officers in Shenzhen, China.
A group representing
international companies in China has warned members that police in
Beijing, Hebei and Shandong have required international firms to
purchase Internet monitoring devices or risk having their connections
cut.
The Quality Brands
Protection Committee (QBPC), a group aimed at safeguarding intellectual
property rights in China, sent an email to its 216 members late last
month warning of the police visits, saying it "would cause serious
concerns from our members."
The emailed alert, copies
of which were provided to CNN, raise particular concerns for
international businesses operating in China because many companies often
use private networks that allow employees to skirt China's so-called
"Great Firewall" of censors. But, based on the QBPC alert, it appears
firms in some areas are being asked to install a device within their
private systems to track all internet activity-- and that information
must be made available to police, looking for "illegal activity."
"It has come to our
attention that three of our QBPC members reported that local police
units in Beijing, Hebei and Shandong approached them, forcing two
members to purchase Internet security software from the police
designated suppliers," wrote Ron Davis, chairman of the QBPC membership
services committee, in the email obtained by CNN.
"Reportedly, if they failed to do so, the police threatened to cut off their Internet connection and fine them."
Another QBPC member
company received a questionnaire from the local police unit asking about
its Internet security measures, according to the QBPC email. "Given
that if the local PSB (public security bureau) initiative were carried
forward, it would cause serious concerns from our members, we are
attempting to determine if any of our other 200-plus member companies
have faced this same situation or know other member companies who have,"
Davis wrote.
The email doesn't detail
which companies were targeted. The QBPC membership represents a broad
swath of international firms with operations in China, including
technology companies like Apple, Nokia and Emerson, consumer product
makers such as Anheuser-Busch, Procter & Gamble and
Colgate-Palmolive, and automotive companies Toyota, Audi and Volkswagen
AG. Time Warner, the parent company of CNN, is also a member.
Davis has confirmed that
he sent the email obtained by CNN. A spokesperson for QBPC said, so far,
the group has received 15 replies from its members. Three member
companies were asked by police to install internet logging equipment and
two reported police requests to inspect their internet security
measures. The others reported no contact from police.
QBPC wouldn't name the
members who were approached. "The three companies are in different
industries," the spokesperson said. "Based on the members' response, it
seems the police visits are isolated incidents." QBPC has reported the
incidents to the Ministry of Commerce and "had informal discussion with
various departments of the MPS (Ministry of Public Security)."
Thomas Parenty, an
information security specialist and former employee of the U.S. National
Security Agency, said the devices could be used to spy on foreign
companies and creates industrial espionage concerns.
"From an information
security perspective, something like this in place in a company's
network could be used for exploratory attacks into the network itself,"
Parenty said. "It's a Trojan horse that fits in a computer rack.
"If you're concerned
about IP (intellectual property), you might as well roll up your tents
because it's essentially game over," Parenty said.
Copies of Shandong
province police orders provided to CNN require companies to purchase the
equipment from one of two equipment providers, Netbox Info-Tech and
Shanghai Pronetway. Shanghai Pronetway could not be reached for comment.
When CNN called Netbox's sales center in Jinan, the capital of Shandong
province, a man who identified himself as Zhao-- but declined to give
his full name or position-- said the company is cooperating with the
Shandong Public Security Bureau and providing devices to cities around
the province.
Zhao said many Chinese
companies have received police notifications and have purchased the
equipment, including a number of foreign joint venture companies, but he
declined to name them.
The Shandong order notes
that businesses "are often used to disseminate pornography and
superstitious information, online fraud and gambling, or used by hackers
to jeopardize national security and people's interests."
Companies reached by
police "must install the Internet Security Censor Managing System, and
connect with the Public Security Bureau's server and make sure all the
data collected is uploaded accurately to PSB's system so the PSB will be
able to prevent and control the illegal information," the order says.
International companies
aren't the only ones in the spotlight. The Beijing police order includes
government offices, clubs, hotels and company offices. CNN surveyed
Chinese companies in a neighborhood surrounding Tianhua Road Police
Station in Beijing, one of the stations that issued the Internet
surveillance order. Staff members at the Beijing Jin Jiang Fu Yuan Hotel
told CNN that they were told by police to purchase Internet monitoring
equipment. An owner of a photo studio in the area said in June she was
asked to attend a police meeting on Internet security, but was not asked
to purchase surveillance equipment.
It's a Trojan horse that fits in a computer rack
Thomas Parenty, information security specialist
Shandong and Beijing
police didn't respond to interview requests. Police in Heibei and
Changsha, which have issued similar orders, also didn't respond to CNN
interview requests.
CNN also contacted
China's Minister of Public Security, which oversees local police
departments nationwide and has a role in internet security. They said
they had received faxed questions from CNN and would look into it.
Word of the Internet
monitoring order comes as China prepares for its 18th National Congress
of the Communist Party, scheduled in the latter half of this year.
Beijing will select its new party leadership to guide the nation
forward. The country has seen public security officials step up moves
against dissent ahead of the congress, such as the summer crackdown on
illegal expatriates living in Beijing, closure of web sites and the
suspension of China's major microblogging sites for several days earlier
this year. The sites closed were "punished for allowing rumors to
spread" of a coup attempt in Beijing, state-run media reported at the
time. The rumors spread after the shocking March dismissal of Communist
Party politburo member and Chongqing party chief Bo Xilai. His wife, Gu
Kailai, was found guilty of murdering a British businessman and received
a suspended death sentence on Monday, though she'll likely be jailed
for life.
Three years ago,
international businesses and Chinese netizens led a successful fight to
stop content filtering software "Green Dam Youth Escort" from being
required on all computers sold in China. International chambers of
commerce and other trade groups decried the filtering plan, which was
marketed as a means to protect young online users from pornography, but
criticized for leaving businesses vulnerable to cyber attacks.
In 2000, the government
stepped back from laws restricting importation of encryption software
that would have banned Web browsers such as Microsoft Explorer, which
include encryption functions. In 2004, the government backed down on
developing its own wireless Internet standard when Intel threatened to
ban sale of its chips in China as a result.
