Japan Institute for National Fundamentals

　　　　　I have to confess that I had once used EMOBILE, mobile Internet services、 most tools of which are products of China's Huawei. If we use EMOBILE, Chinese firm Kingsoft's cheap software products similar to the Microsoft Office series (including Word and Excel) or cheap China-made antivirus software, our personal data could be leaked to Chinese authorities.
　　　　　In 2012, Microsoft announced a survey finding that it detected backdoors (to transfer data to Chinese authorities) or malware malicious software in four out of 20 personal computers it bought for sampling in multiple Chinese cities. While many foreign countries have issued advisories against using Chinese telecommunications or software products, such facts have failed to be recognized in Japan.

Overseas responses
　　　　　In October 2012, the U.S. House of Representatives Permanent Select Committee on Intelligence published a report titled “Investigative Report on U.S. National Security Issues Posed by Chinese Telecommunications Companies Huawei and ZTE” in which the committee condemned the two companies for sending massive data to China. They are viewed as front companies for the People's Liberation Army. The Australian government banned Huawei from making bids for the National Broadband Network based on an advice of Australian Security Intelligence Organization in 2012.
　　　　　The 2013 U.S. Consolidated and Further Continuing Appropriations Act says: "None of the funds […] made available under this Act may be used by the Departments of Commerce and Justice, the National Aeronautics and Space Administration, or the National Science Foundation to acquire an information technology system unless the agency has […] conducted an assessment of […] any risk associated with such system being produced, manufactured, or assembled by one or more entities […] that may be owned, directed or subsidized by the People's Republic of China." In 2013, the Committee on Foreign Investment in the United States approved Japanese firm SoftBank's acquisition of U.S. mobile carrier Sprint on condition that Chinese telecommunications systems including Huawei products never be used.
　　　　　The Indian Ministry of Home Affairs has also warned that foreign-made communications equipment could contain spyware. Yet Japan has had no such security concerns. Moreover Huawei Japan is a major member of the Japan Business Federation known as Keidanren, while SoftBank Chief Executive Officer Masayoshi Son has praised Huawei products.

Why have danger failed to be recognized in Japan?
　　　　　The Sankei Shimbun newspaper carried an article about the 2012 House Intelligence Committee report on its front page. The Nikkei Shimbun also ran a short story about the report. But no other Japanese newspapers covered the report. As a result, Japanese government agencies as well as the private sector have used many Chinese telecommunications and software products. Behind the prevalence of such Chinese products in Japan are the practice of adopting lowest bids and the Commercial-Off-The-Shelf (COTS) policy (of using ready-made products on the open market).
　　　　　In May this year, personal data for more than one million people leaked from the Japan Pension Service. In the same month, the U.S. Office of Personnel Management found that personal data for 21.5 million incumbent and former federal government officials had been stolen. If personal data for intelligence officials are leaked to China, their weaknesses (including monetary and sexual affairs) may be made available to Chinese authorities, affecting national security.

Fumio Ota is a JINF Planning Committee Member and the former Director of Defense Intelligence Headquarters in Japan Defense Agency.