Foreign media: China wants to build its own secure smartphone

According to foreign media reports, China is trying to manufacture its own secure smartphones to protect these devices from US surveillance. State-owned companies and some tech-savvy Chinese companies are involved in the program. This is also the latest attempt by Beijing to create a localized technology industry and get rid of US suppliers. For a long time, Chinese officials have been irritated by the fact that US companies dominate the smartphone operating system and processor space—the operating system and processor are the most vulnerable parts of the phone.

China has the world's largest smartphone market, but almost all of its devices come from Apple and Google, which launched Android.

The backwardness of technology means that China has not made any achievements on this issue for many years.

Today, a large number of Chinese technology companies have made progress in getting rid of Western technology. Chinese officials have encouraged this effort due to the stimulation of the “Prism Gate” event in 2013. “Prism Gate” refers to the incident disclosed by Snowdon, a former contractor of the US National Security Bureau, and the National Security Bureau implanted a surveillance “back door” in some US equipment sold overseas.

China's smartphone maker ZTE is developing a secure smartphone for government agencies. A spokesperson for the company said the device uses a self-developed operating system with processor chips from Chinese suppliers. China's largest chip design company, Spreadtrum Communications, said that the company will mass produce a set of chips that can run domestic operating systems before the end of the year.

E-commerce company Alibaba has already cooperated with the Chinese Ministry of Public Security to develop a mobile phone operating system for police officers, and the payment made above is more secure.

All of these efforts are aimed at a group of specific customers such as government agencies and state-owned enterprises, and are unlikely to attract ordinary consumers. Take ZTE's secure mobile phone as an example. This device has no camera, no GPS, no WiFi or Bluetooth, in order to minimize the security risks.

This trend does not affect the market share of US mobile phone components and software in China. Analysts at market research firm IDC expect that the proportion of smart phones in China's smartphone sales will account for up to 3%, or about 2 million, next year. However, if more domestic operating systems and processors advance into consumer devices, it is likely to pose challenges for Google's Android and Qualcomm.

According to another analyst firm, Strategy AnalyTIcs, Qualcomm processors accounted for 52% of the smartphone market last year. The company declined to comment on the report. IDC's statistics show that Google Android accounted for 82.8% of the global smartphone share in the second quarter of this year. Google did not immediately comment on the matter.

Other US technology companies have also felt the chill from China. As Chinese government agencies and state-owned enterprises purchase more products from local companies such as Huawei and Huawei, revenues from US network equipment or computing equipment manufacturers such as IBM and Cisco have declined.

Cisco does not disclose sales data for specific countries, but said that the Snowden incident affected the sales of products in China. IBM attributed the decline in sales to a slowdown in China's economic growth. Both companies said they did not place a "back door" in their technology.

The Bank of China began to purchase more local brands of smartphones, but due to US pressure, the official plan was suspended at the beginning of this year. The Wall Street Journal saw the copy of the suspended regulations, saying that China wanted to ask half of the financial institutions to purchase new machines to meet the "safe and controllable" standards.

There are also economic benefits to driving home-made security devices: those components that are critical to security are also some of the most profitable components. However, even with Chinese-made processors, modems and operating systems, China's security phones may still contain a large number of external components, but such components are not as sensitive on this issue.

A spokesperson for ZTE said that it is impossible to have only hardware and software developed by China on smartphones, but in order to meet the needs of government agencies, the company is trying to use as many products as possible from local suppliers.

Other Chinese mobile phone manufacturers, including Coolpad and Qihoo 360, also want to take a slice of the market. These companies have promoted security features such as data encryption in new products launched this year.

Spreadtrum CEO Li Liyou said that his company will launch a special chipset this year, allowing users to switch between Android and a cryptographic operating system developed by Yuanxin. "It's very safe to encrypt voice and encrypt data," he said.

But Bryce Boland, chief technology officer of network security company FireEye, points out that relying on locally produced internal components does not mean security is guaranteed. He said that hackers can still steal data directly from telecom operators, and the new operating system may have more vulnerabilities.

It is not only China that wants to provide security smartphones for government agencies. The National Security Bureau developed a local version of the phone in 2009, but it switched to a Samsung smartphone-based system this year, supplemented by customized security software. The mobile phone developed by the US National Security Bureau "has fallen behind in technology when it is actually launched," said Debora Plunkett, director of information security at the National Security Bureau, in an interview in 2012.

The secretary-general of the China Mobile Alliance, said that some Western governments have cooperated with Canadian BlackBerry to customize high-security mobile phones for officials, but Chinese and Western companies don’t trust each other enough, so this cannot be achieved. "China has no choice but to develop its own operating system to ensure security," he said.

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