US tech companies will lose $35 bn due to NSA Spy Program PRISM; China wants Secret Code Opened

US tech companies will lose $35 bn due to NSA Spy Program PRISM; China wants Secret Code Opened

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It is a self-afflicted hurt that is being called as the most important reason why the US tech companies will be beaten down in the world.  Companies like Apple, Intel, Microsoft, Cisco, Salesforce, Qualcomm, IBM, and Hewlett-Packard have already suffered tremendously due to the NSA spying.

US tech companies will lose $35 bn due to NSA Spy Program PRISM; China wants Secret Code Opened Click To Tweet

ITIF, a nonpartisan Washington, D.C.-based technology think tank founded my members of Congress, first estimated in 2013 that American losses as a result of the National Security Agency’s PRISM program, which centers on the collection of Internet communications from major American technology firms, would tally between $21.5 billion and $35 billion, with the U.S. cloud-computing industry bearing the brunt of the fallout.The actual losses “will likely far exceed $35 billion,” according to the ITIF report, because the entire American tech industry has performed worse than expected as a result of the Snowden leaks.The massive financial hit is likely one key reason leading major American tech firms, like Apple and Google, to not only include strong encryption in their smartphones, tablets, and services, but to also publicly oppose the outlawing of strong encryption by law-enforcement authorities like James Comey, director of the Federal Bureau of Investigation, and Manhattan District Attorney Cyrus Vance, Jr.  (Source: U.S. tech companies expected to lose more than $35 billion due to NSA spying)

 

As the report authors, Daniel Castro and Alan McQuinn, say in an alarming critique:

“When historians write about this period in U.S. history, it could very well be that one of the themes will be how the United States lost its global technology leadership to other nations.”

The extent of this issue was brought out by Kaspersky when they found how the US spy agencies had embedded spy software deep inside the hard drives of the US Computer manufacturers.

The US National Security Agency (NSA) has figured out how to hide spying software deep within hard drives made by top computer manufacturers, allowing the agency to eavesdrop on the majority of the world’s computers, according to cyber researchers and former operatives.

The closely-guarded programme was discovered by Kaspersky Lab, the Moscow-based security software maker that has exposed a series of Western cyber-espionage operations.

Kaspersky said it found personal computers in 30 countries infected with spying programs, with the most infections seen in Iran, followed by Russia, Pakistan, Afghanistan, China, Mali, Syria, Yemen and Algeria.

China is already taking safety measures and asking the companies that sell computer hardware in China to hand over the secret source code to the government authorities.

The Chinese government has adopted new regulations requiring companies that sell computer equipment to Chinese banks to turn over secret source code, submit to invasive audits and build so-called back doors into hardware and software, according to a copy of the rules obtained by foreign technology companies that do billions of dollars’ worth of business in China.

The new rules, laid out in a 22-page document approved at the end of last year, are the first in a series of policies expected to be unveiled in the coming months that Beijing says are intended to strengthen cybersecurity in critical Chinese industries. As copies have spread in the past month, the regulations have heightened concern among foreign companies that the authorities are trying to force them out of one of the largest and fastest-growing markets.

This could spell doom for the US technology companies.

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 Featured Image source: flickr

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