27 Feb 15. China has dropped several top U.S. technology companies, including Cisco and Apple, from a list of brands that are approved for state purchases, amid a widening rift with the United States about cyberspace. The move, reported by the Reuters news agency Thursday, comes in the aftermath of Edward Snowden’s revelations about a massive U.S. cyber-espionage program code-named PRISM. It also comes as China is energetically bolstering what it calls its “cyber-sovereignty.” The latest action can also be seen as part of the wider cyberwar between China and the United States — a tit-for-tat response to the U.S. government’s accusations that the Chinese army was spying on American companies. The U.S. accusations ruptured a dialogue between the two countries about cyber issues. An element of protectionism was also likely behind the move: Government procurement in China often tends to favor local companies, and the delisting can be seen as a way of supporting China’s technology sector. A Reuters analysis of Central Government Procurement Center lists showed that the chief casualty was Cisco Systems, the U.S. maker of network equipment, which in 2012 had 60 products listed but by late 2014 had none. Other companies dropped included Apple, Intel’s McAfee security software firm, and network and server software company Citrix Systems. Hewlett-Packard and Dell products remained on the list. “The main reason for dropping foreign brands is out of national security. It’s the effect of Snowden and PRISM,” said Mei Xinyu, a researcher with the Ministry of Commerce. “When it comes to national security, no country should let their guard down.” But Mei said that Apple may have also suffered because its products are generally much more expensive than Chinese equivalents. “Apple products are rare on government procurement lists to begin with, and even more so now that there’s this anti-corruption campaign going on,” he said, referring to an ongoing government crackdown on graft. “What would the public say if they see our officials use Apple products?” James Zimmerman, chairman of the American Chamber of Commerce in the People’s Republic of China, said that in the high-tech sector in particular, “restrictive policies and standards made it more difficult for foreign companies to participate in government procurement.”
“AmCham China urges the Chinese government to not apply these standards to all government procurement, but only to those projects and areas where such standards are essential,”
Zimmerman said. “We also recommend that the choice of technologies in government procurement should be performance-based and technology-neutral in terms of [intellectual property] origins.”
The list covers regular spending by the Chinese central government up to an order value of 500,000 yuan ($80,000), but not larger orders which would typically go to competitive tender. It is not binding on local governments, state-owned firms or the military, which runs its own procurement system. In 2013, Snowden revealed the existence of a global cyber-surveillance program run by the National Security Agency with the cooperation of European governments and telecommunications companies. And last year, the atmosphere between the United States and China deteriorated sharply after the Justice Department charged five People’s Liberation Army members with spying. (Source: glstrade.com/Washington Post)
27 Feb 15. Kirby: Iraqi Leaders, Troops Will be Force Against ISIL. Any operation in Iraq against the Islamic State of Iraq and the Levant “is going to be and must be” an Iraqi-led and Iraqi-manned operation, Pentagon Press Secretary Navy Rear Adm. John Kirby told reporters. Any operation against ISIL will be dependent on the Iraqi military being able to perform the mission, the admiral said during a Pentagon press briefing. Kirby was speaking about reports that Iraqi forces would take back the city of Mosul from ISIL in April. “I just can’t put a date certain on there