Wednesday, February 15, 2012

Thoughts on State Capitalism and Cyber-Espionage

CTV National News ran an item last night alleging years-long Chinese state involvement in hacking into the Nortel comnpany's computers and removing information about new technologies and about confidential commercial negotiations (Hackers had 'widespread access' to Nortel's network  via ) It is logical that Chinese large state-owned enterprises, whose heads are appointed by the Organization Department of the Central Committee of the Chinese Communist Party, should have full access to all of the resources of the Chinese state.  This would include the use of intelligence agencies to get them information on rival proprietary technologies and information on their competitors' commercial negotiations.

Canadian companies such as RIM on the other hand have no reciprocal access to the resources of the Canadian Government's Communications Security Establishment of Canada, because RIM is a private company whose focus is profit for its shareholders.  RIM does not have a mandate to further the interests of the Canadian state per se.

There is therefore a qualitative difference between Chinese state owned firms' investment in Canada and investments by purely commercial entities based in the USA and elsewhere,  State-owned firms ultimately put the interests of the State that they are an arm of over all else.

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