China: All Your Source Code Are Belong to Us

chinese-quality-computer-hardware.jpg

China has set in motion plans to force all foreign companies operating in China to share their source code with Chinese companies.

The governments of the US, Japan and Europe are objecting ferociously to what in China is likely to amount to state mandated piracy of their software secrets.

The system will mandate that companies producing electronics in China must disclose the source code to any firmware or other pertinent software to the Chinese “partner.”

Provisions are even included for Chinese staff to visit and check up on the manufacturers in the US, Japan or elsewhere, to ensure they have disclosed it all.

Companies who refuse to surrender their intellectual property in this way will be barred from exporting their goods from China.

One of China’s excuses for this is that it wants to ensure proper security for the code used in ATMs and smart cards, so as a result the details of their encryption systems will have to be shared with the highly reliable Chinese manufacturers, ensuring the Chinese can work on improving security for the world’s banking systems.

The law has been in the works for some time now, but now China has announced it will be brought into effect in May. A “grace period” will operate for a time, to give companies the chance to prepare to hand everything over.

Western countries are indignant at the law, but have yet to act decisively in response.

An important strategy used by producers outsourcing to China has been to ensure that technologically sophisticated elements of the production process are kept out of the hands of Chinese factory managers, to the extent of restricting such production steps to more reliable nations, or of using non-Chinese engineers and managers in the sensitive areas.

This measure seems designed specifically to foil any such efforts to prevent sensitive intellectual property being appropriated wholesale by less than scrupulous Chinese operators.

Via Yomiuri.

To put this in context, for a long time now China has operated a system where, in order to receive permission to do business in China, foreign companies have had to partner with a domestic company.

Naturally, there is the expectation that the Chinese company will eventually supplant the foreign devil company through a not necessarily voluntary or legal process of “technological transfer.”

Of course, Japan in the past operated similar highly untoward systems through its infamous “METI” ministry, and emerged the better for it (probably at huge expense to international companies). The issue appears to be rather when China will realise the wealthier it becomes, the less tolerable these practices are internationally.

We must also wonder what the many foreign companies piling into China for the dubious privilege of training a low-cost competitor who will receive all their IP are thinking…

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    270 Comments
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    Comment by Anonymous
    20:44 28/04/2009 # ! Neutral (0)

    Watch all the jobs go to India in 5... 4....

    Comment by Anonymous
    18:32 28/04/2009 # ! Neutral (0)

    I gues this is revenge for that trade embargo a while back.

    Avatar of Wynn
    Comment by wynn
    14:30 02/05/2009 # ! Neutral (0)

    Revenge of the Fallen ( prices of labour)

    Comment by Anonymous
    17:37 28/04/2009 # ! Neutral (0)

    Now these companies who went to China for "low cost" production are discovering what the TRUE cost is. There's no line entry on the accounting sheets for the cost of trying to do business in a country that has no ultimate respect for the concept of private property and contracts -- without which your business is always subject to takeover by the state.

    Also, I would be shocked if Russia weren't all over this, immediately contacting companies to get them to move production to Russia.

    As well, since the U.S. government is completely owned by the corporations, expect some reaction from the U.S., which might tumble us all into that Depression we're on the edge of.

    We live in interesting times, indeed.

    Avatar of metatron
    Comment by metatron
    15:19 28/04/2009 # ! Neutral (0)

    What a tactic China >.>

    Trying to legally pirate IPs I see >.>

    Comment by Anonymous
    15:53 28/04/2009 # ! Neutral (0)

    The time has come to tell them to stick it.

    Declaring the plans for the copycat high-speed trains to be their intellectual property may have been just to test the water. Now this..

    As far as I can tell, the Chinese have no business ethics whatsoever. If we don't fight this new "law, it's the beginning of our end. Depending on what else they have up their sleeve, it may already be too late.

    Comment by Anonymous
    17:21 28/04/2009 # ! Neutral (0)

    US is also do the same thing in medicine. If you want to sell medicine in US, although it already proofed work fine, you still need to open your recipe and how to produce those medicine. The EVIL America trying to stole our secret recipe.

    US is also do some censorship in video game, even for M rating. Their politician also complaining about violence and sexual theme in M rating game??? M rating you idiot! I think US politician need to learn how to read ABC again.

    Japan even worse, they censoring the genital part in AV, comic, etc. Very undemocratic, they should listen to the people voice, not became dictator like Saddam Hussein.

    Comment by Anonymous
    09:31 22/10/2009 # ! Neutral (0)

    At least the US takes pattent law seriously. The Chinese firms are producing knockoffs five years after the contracts are signed.

    Reminds me of the Russian Su-27 avionics that they thought were unhackable. The chinese cracked them in two years.

    Comment by Anonymous
    15:24 29/04/2009 # ! Neutral (0)

    Great, a lot of SBs excited until orgasm based on those shit rumors!!! such as this news and "China: Destroy Japanese Anime!""
    lol
    go on...

    Avatar of Artefact
    Comment by Artefact

    Your own government's policies are rumours?

    Comment by Anonymous
    18:52 29/04/2009 # ! Neutral (0)

    Those news not real, ok?
    that just from Japanese website.
    ok, i know
    you no need to make sure any news you put here,
    because u just need sth can be made use of Anti-China!

    Go on...

    Comment by Anonymous
    10:14 11/03/2013 # ! Neutral (0)

    its ok, china can SMD coz they speak stronk enrish and pirates everything they see, bitch please

    Comment by Anonymous
    03:25 30/04/2009 # ! Neutral (0)

    AND ALL of your "weird China news" are from the "weird board" of 163, baidu and so on.
    The Japanese web translate it frist, and you'll translate it again and write some stupid titles and articles.
    such as "Dog Walking Chinese Style"
    here is the source of Chinese BBS

    the title is "无锡马路上拍到最残忍无耻的一幕"
    and check the comments, ererybody was accusing this action.

    and check your title and the comments here!
    it represent Chinese...lol
    An action which no Chinese support it could represent Chinese.
    So good.

    Comment by Anonymous
    03:23 30/04/2009 # ! Neutral (0)

    GREAT!!!Artefact!!!

    what are u talking about?
    "plenty of English language sources for all this" means this is true?
    What logic!

    If you check the sources from China BBS,
    most of these news are rumours and distortions.

    Comment by Anonymous
    03:26 30/04/2009 # ! Neutral (0)

    No one blindly supporting China gov.
    Many young people censure gov. in their BLOG erery day, most of netizens DO NOT like many policies of gov, but not base on rumours.

    just u guys are blindly libeling China...FOR FUN.

    Not these site cause your bias, and this debate cannot correct it also.

    Comment by Anonymous
    11:19 30/04/2009 # ! Neutral (0)

    from one or two Japanese source is not very convincing, the article if true obviously stated foreign companies in general, so i would expect other nations, especially US to headline this somewhere. As of yet, that hasn't happened, so I highly doubt it's validity.

    Comment by …
    22:06 29/04/2009 # ! Neutral (0)

    artefact is just a shitty lowlife human who has so many spare time in his life, so, to make his miserable life more productive he started grabbin' weird, outdated, biased, and otaku related news all over the world and compile it in a blog called Sankaku Complex..

    now, you must acknowledge yourself first that before entering this site, be prepared that your race might be ridiculed in his articles and you might find some pictures here offensive..

    where was I? oh yeah, China ftw...lol

    Avatar of Artefact
    Comment by Artefact

    There are plenty of English language sources for all this, so please consider checking it yourself before blindly supporting the wretched actions of the PRC in this area.

    Comment by …
    12:04 30/04/2009 # ! Neutral (0)

    butthurt china fan/chinese fag detected

    Comment by Anonymous
    12:12 30/04/2009 # ! Neutral (0)

    immature kid detected

    Comment by Anonymous
    09:33 29/04/2009 # ! Neutral (0)

    hm... I'm chinese and if this is true then it's messed up, but why don't i see this as a news being reported anywhere else on the web?

    Comment by Anonymous
    00:55 29/04/2009 # ! Neutral (0)

    "a country is only as good as the people who run it, in this case, shit"

    Avatar of Icy-nee-san
    Comment by Icy-nee-san
    03:23 29/04/2009 # ! Neutral (0)

    China? Piracy? lolwut?

    Comment by mi
    14:57 28/04/2009 # ! Neutral (0)

    it's like making their people animal

    guh, i hate their system

    Comment by Otherworlder
    10:26 28/04/2009 # ! Neutral (0)

    Hahaha, all is fair in love and war.

    Comment by Anonymous
    10:24 28/04/2009 # ! Neutral (0)

    Piracy is legal!

    There, they said it.

    Comment by Jacko
    10:32 28/04/2009 # ! Neutral (0)

    China people are bunch of racist to us and stalker as well!

    get a life Chinese people

    Comment by El Gorongo
    22:23 28/04/2009 # ! Neutral (0)

    . . . what you just said IS racism. . .

    Change your ways before before talkin abut other people. . .

    Comment by kenjiharima
    10:58 28/04/2009 # ! Neutral (0)

    Someone needs to create a new OS and Language.

    Comment by AnonXX
    10:11 28/04/2009 # ! Neutral (0)

    Fxxx it and they dun even need employ hackers to get the codes!A truly brilliant move from the fxxxing communists! Where are the celestial beings when we need them?

    Comment by The Deadman
    11:04 28/04/2009 # ! Neutral (0)

    I'm glad I'm a Malaysian-Chinese. I'd rather go to US/Japan/Taiwan/Hong Kong/Singapore but certainly NOT China

    Comment by jinhong91
    19:59 28/04/2009 # ! Neutral (0)

    Maybe you do not want to certain parts of the US yet.
    But I agree with you about the going to other parts but China.

    Avatar of misterchef
    Comment by Riot Gear
    13:43 28/04/2009 # ! Neutral (0)

    China: All Your Source Code Are Belong to Us(and it will be available on pirated PC Discs for only 99 cents so buy one now and get free limited edition Pentagon secret files downloads if you call for the next five minutes).Wow,China's telemarketing is really something.

    Avatar of NitWit005
    Comment by NitWit005
    12:30 28/04/2009 # ! Neutral (0)

    It's a good thing the Chinese company we're partnered with is too incompetent to do anything useful with out source code.

    Comment by Anonymous
    12:51 28/04/2009 # ! Neutral (0)

    Easy answer for the companies making products in China: add the chips with embedded code elsewhere, or (in the case of EEPROMS) flash them elsewhere.

    If I were the China goverment, I'd be more concerned about the code in devices being _imported_.

    U.S. government worked with U.S. manufacturers to embed code in printers (and FAX machines?) which allowed the U.S. government to snoop.

    How do you set things up so that manufacturers aren't forced to "give away the store", and yet still make things sufficiently transparent for the countries importing devices so that they can determine whether or not those hardware/software devices contain spyware (or built-in "die when command 'X' is sent" code)?

    Avatar of Artefact
    Comment by Artefact
    17:07 29/04/2009 # ! Transparent

    This is what they were doing up until now.

    Avatar of Hntcboy
    Comment by Hntcboy
    22:09 15/11/2009 # ! Neutral (0)

    You fucking stupid Americans have no idea what the holy business is going on in Holy China!
    Yeah,both Communist and Chinese goverment are bullshit,but i believe that Chinese are all Holy and best!Finally,we'll rule the world!

    Comment by Anonymous
    17:37 15/11/2009 # ! Neutral (0)

    I am Chinese. I have to say that our government sucks in many aspects.
    The reason is from 'open and reform' policy 30 years ago. To much emphasize on economic development leads to social problems and corrput. Still, i believe one day rules will change since top chinese leaders are fully known what they are doing. The majority middle level governors really suck.

    Avatar of thunderlord
    Comment by thunderlord
    14:22 04/11/2009 # ! Neutral (0)

    now this is where i put my foot down. and things what there asking to me can start wars... i say nuck the mothers.

    Avatar of NOXT47
    Comment by NOXT47
    05:23 05/12/2009 # ! Neutral (0)

    one word: EPIC FAIL

    Comment by Anonymous
    04:10 13/12/2009 # ! Neutral (0)

    simply solution:
    add some wonderfully destructive easter eggs into the source code and let china use it all it wants.

    Comment by Anonymous
    23:13 16/12/2009 # ! Neutral (0)

    i think japan needs to rape china again.

    Comment by Anonymous
    12:52 15/09/2009 # ! Neutral (0)

    go to canada and play wow

    Comment by Anonymous
    23:15 16/12/2009 # ! Neutral (0)

    all chinese products are shit, they destroyed ebay with their clones. FUCKING STICK TO DRY CLEANING AND CHINESE FOOD! FUCK!!!!!!!!!!!!!!

    Avatar of Hntcboy
    Comment by Hntcboy
    15:47 18/12/2009 # ! Neutral (0)

    Anonymous said:
    i think japan needs to rape china again.

    I think America needs more nine-eleven incidents.

    Avatar of Eleriel
    Comment by Eleriel
    05:56 21/12/2009 # ! Neutral (0)

    I've been trying to find more reliable sources for this piece of news now for five hours...
    can't be done.

    most reliable I've found so far is a slashdot article from 5th of october, 2008, but it too only links to the Yomiuri article, which no longer exists...

    I'm about ready to call shenanigans.
    (In case you're wondering, I'm writing a small paper on Chinas foreign and domestic affairs and their attitude towards other countries in general).

    Comment by Anonymous
    10:52 30/04/2009 # ! Neutral (0)

    what the fuck. i've never heard about this. what a rumour.

    this new was come from a .jp site, it can be only a joke.

    Comment by BlackHole
    14:36 16/05/2009 # ! Neutral (0)

    KILL chinese !

    Comment by Aedion
    16:22 01/06/2009 # ! Neutral (0)

    What if people decided to like, quarantine china from the world.

    Comment by Devilkid
    22:39 20/06/2009 # ! Neutral (0)

    if one source code is made to match products it would be bad effect on all nations put it this way one source code One hacker boom there the theory for you
    so why bother shearing that information we all know the US only want to make money

    Comment by Anonymous
    14:27 30/04/2009 # ! Neutral (0)

    ha. the world will be a lot safer place when everyone have equally big guns. China is making a great leap toward it by enforcing that everyone must know what everyone else know, including how to make the big guns. it might seems that the Chinese will be the only one with the know-how, but China does sell lotsa things to lotsa people. where the heck do you think those nice AK-47 comes from?

    i'm amused, really.

    oh, and saged for not related to "anime, manga, and game".








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