The friction between China and the US is not new to the world. There have been constant issues between these two countries every now and then. With entirely different perspectives on political and economic systems, these two countries have always been on the verge of wars and attacks. With time, this rivalry has only increased, with each of them banning the products and services offered by the other. Trade disputes, property thefts, allegations of data leaks, and cyber crimes have aided in escalating these tensions and friction. Not only did these issues affect the relationship between the two nations, but also had a significant impact on different strata of world relations and economy. Although not direct, the recent addition to this is an accusation against Intel by China.
The Cybersecurity Association of China, also known as CSAC has come up with a serious allegation against Intel, the US chipmaker company on Wednesday, 16/10/2024. According to their claim, the Intel products sold in China fail to keep up the security of their customers. They also shared that they found that these products have “constantly harmed” the national security and interests of China. They warned the civilians from using these products, suggesting that those domestic Intel products can cause major threats to personal and national safety.
The post that came up on the official WeChat account of CSAC has gained instant virality, sparking discussions and controversies. The post also called for an investigation and inquiry into the matter to safeguard the safety of the users. However, concerns and doubts arise because CSAC is not a governmental organization, but rather an industry group that has close connections with the Chinese state. Furthermore, the backdoor of the allegation is also a major reason for most of these discussions. It was recently that China was dealing to resist the US-led effort to prevent access to the country from its chipmaking process. In such a situation, Dan Coatsworth, investment analyst at AJ Bell noted that the relationships between these two nations are fragile and more talks on the restrictions will lead to a tit-for-tat situation. Soon after that China came up with this acquisition leading to further discussions.
Intel’s China unit and the Cyberspace Administration of China (CAC) had initially stayed silent on the allegations and controversies. However, Intel later responded that they have always given prime focus to their product safety and quality. The post which appeared on their official WeChat also mentioned that they will maintain communication with relevant authorities to clarify concerns and ensure their commitment to product safety and quality. However, reports suggest that the shares of Intel had seen a dip of 1.5% due to these controversies as a major part of their revenues came from China.
Although CAC has not made any statements on the issue, CSAC’s post contains accusations on all Intel chips including their Xeon processors that are used for artificial intelligence tasks, creating greater concerns for the Intel group. As the accusations suggest that these processors and products have serious security threats and defects in terms of product quality and security management, exposing the company’s irresponsible attitude toward its customers, experts note that even a temporary ban will cause a great loss for Intel’s reputation and profits.
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