China hacks Google =UPDATED=

Google Blog says, in its entirety:

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Like many other well-known organizations, we face cyber attacks of varying degrees on a regular basis. In mid-December, we detected a highly sophisticated and targeted attack on our corporate infrastructure originating from China that resulted in the theft of intellectual property from Google. However, it soon became clear that what at first appeared to be solely a security incident--albeit a significant one--was something quite different.

First, this attack was not just on Google. As part of our investigation we have discovered that at least twenty other large companies from a wide range of businesses--including the Internet, finance, technology, media and chemical sectors--have been similarly targeted. We are currently in the process of notifying those companies, and we are also working with the relevant U.S. authorities.

Second, we have evidence to suggest that a primary goal of the attackers was accessing the Gmail accounts of Chinese human rights activists. Based on our investigation to date we believe their attack did not achieve that objective. Only two Gmail accounts appear to have been accessed, and that activity was limited to account information (such as the date the account was created) and subject line, rather than the content of emails themselves.

Third, as part of this investigation but independent of the attack on Google, we have discovered that the accounts of dozens of U.S.-, China- and Europe-based Gmail users who are advocates of human rights in China appear to have been routinely accessed by third parties. These accounts have not been accessed through any security breach at Google, but most likely via phishing scams or malware placed on the users' computers.

We have already used information gained from this attack to make infrastructure and architectural improvements that enhance security for Google and for our users. In terms of individual users, we would advise people to deploy reputable anti-virus and anti-spyware programs on their computers, to install patches for their operating systems and to update their web browsers. Always be cautious when clicking on links appearing in instant messages and emails, or when asked to share personal information like passwords online. You can read more here about our cyber-security recommendations. People wanting to learn more about these kinds of attacks can read this U.S. government report (PDF), Nart Villeneuve's blog and this presentation on the GhostNet spying incident.

We have taken the unusual step of sharing information about these attacks with a broad audience not just because of the security and human rights implications of what we have unearthed, but also because this information goes to the heart of a much bigger global debate about freedom of speech. In the last two decades, China's economic reform programs and its citizens' entrepreneurial flair have lifted hundreds of millions of Chinese people out of poverty. Indeed, this great nation is at the heart of much economic progress and development in the world today.

We launched Google.cn in January 2006 in the belief that the benefits of increased access to information for people in China and a more open Internet outweighed our discomfort in agreeing to censor some results. At the time we made clear that "we will carefully monitor conditions in China, including new laws and other restrictions on our services. If we determine that we are unable to achieve the objectives outlined we will not hesitate to reconsider our approach to China."

These attacks and the surveillance they have uncovered--combined with the attempts over the past year to further limit free speech on the web--have led us to conclude that we should review the feasibility of our business operations in China. We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.

The decision to review our business operations in China has been incredibly hard, and we know that it will have potentially far-reaching consequences. We want to make clear that this move was driven by our executives in the United States, without the knowledge or involvement of our employees in China who have worked incredibly hard to make Google.cn the success it is today. We are committed to working responsibly to resolve the very difficult issues raised.

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Doesn't it look like they know that the Chinese government is behind all this? And that the decision to operate Google.cn openly is a response to that? Good work, Google. Now that you've talked the talk, walk the walk.

UPDATE: The New York Times has more:

Google did not publicly link the Chinese government to the cyber attack, but people with knowledge of Google’s investigation said they had enough evidence to justify its actions.

A United States expert on cyber warfare said that 34 companies were targeted, most of them high-technology companies in Silicon Valley. The attacks came from Taiwanese Internet addresses, according to James Mulvenon, an expert on Chinese cyberwarfare capabilities.

Mr. Mulvenon said that the stolen documents were sent electronically to a server controlled by Rackspace, based in San Antonio.

“For Google to pull up stakes and basically pull out China, the attack must have been large in scope and very penetrating,” Mr. Mulvenon said. “This attack highlights the fact that cyberwarfare has basically gone to the next level.”

Note again the abuse of Taiwan -- the attacks originated from here, just as China used Taiwan firms to send nuke tech to Iran. It's obvious that at least one payoff China is hoping for is western ire at Taiwan.

Hope the local papers give this wide publicity.

UPDATE II: "call me cynical, but would google be this principled if their China business were #1 and doing well?"(post to niubi)

There are a lot of comments from "knowing" expats that Google is just doing this because it is losing market share to Baidu. While true, it still commands a ~20% share and losses among users who actually spend money appear to be smaller (20% of China's educated internet users is bigger than many countries where Google dominates). But both that article and Google's 2006 blogpost say that they are in China for the long haul. Moreover, the post shows that Google has always been cognizant of the human values involved in investing in China.

The cynicism of "it's all about market share", and all such uses of cynicism as an analytical stance rather than as an emotional response, is really just a mask for an ideology of power that shills for China (and all forms of authoritarian power). By treating Google as the active agent, and China as the passive recipient of Google's action, it takes China's theft and spying activities, its authoritarian regime, its murderous, thuggish ways, as constants, like gravity, something part of the environment, but something which need not explain itself nor account for its actions. In the cynical formulation, "power" just is and has no moral agency of its own. Hence the spotlight is always focused on those who take action, "exposing" their hypocrisy. By putting the spotlight on Google, the cynics remove it from China -- but it is China that has acted evilly here, not Google.

So call me cynical, but would all those China expats be so quick to leap on Google if they lived outside China?

UPDATE III: Imagethief says Google detonates the China corporate communications script with many good links.
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Daily Links

• Iranian hackers take down Baidu!?
• In response to the US arms sales, China tests new anti-missile system, but no details are given. I just bought a Porsche, but I'm not showing you any pictures nor telling you where I bought it or how much I paid or which model it is. You'll just have to believe me. And then there is the timing. "Comrade! The Yanqui bastards have sold more arms to Taiwan!" "Quick, we must test our anti-missile systems!" "But comrade, it takes weeks to arrange the test vehicles and set up the equipment."
  

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