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Two-Year Legal Saga Of Chinese Cyber Hack Of U.S. Military Aircraft May Be Ending.

On 28 June 2014, a Chinese businessman based in Canada was arrested on the charge of stealing information about a raft of U.S. military aircraft and weapon systems. This particular case of industrial espionage was described by the U.S. Justice Department as being “unusual for the tremendous amounts of data that is involved.” According to e-mails that were obtained by the U.S. Federal Bureau of Investigation (FBI), “tremendous amounts” came to more than 65 gigabytes over one specifically identified two-year period and involved “dozens of U.S. military projects.”

The businessman in question, Su Bin, finally agreed a plea deal with the U.S. government in March of this year in which he admitted using his company, Lode Technology, to steal data in U.S. military aircraft and weapons programs for years. Court documents also detail how he then collaborated with contacts inside of the People’s Republic of China (PRC) to sell this information to various Chinese military aircraft R&D and production centers.

The data is reported to have been stolen from different computer systems included detailed information on the Boeing C-17 Globemaster cargo lifter and two jet fighter programs for which Lockheed Martin is the prime contractor—the F-22A Raptor and F-35 Joint Strike Fighter (JSF).

Source: Cyber Warfare Episode Plays Out in Court Case | Defense News: Aviation International News

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Regional regulations are affecting cross-border data flows, whether motivated by protection of user privacy, control over the Internet, or otherwise. Europe and the U.S. have sought to protect cross-border data flows between the two regions through the U.S.-E.U. Privacy Shield. .  At the same time, there is a growing sense of concern that Asia is becoming Balkanized when it comes to cross-border data flows there.

On July 6, 2015, China’s National People’s Congress (NPC) released a draft of a Cyber Security Law for comment.  A number of multinationals and foreign business associations expressed concern about required safety certifications and inspections for “suppliers of network products and services” before market entry and mandated siting of data centers in China.  After receiving those comments, the NPC did not take action, even during the so-called “Two Meetings” that included the NPC’s annual meeting earlier this year.

Source: Latest Developments on China’s Cybersecurity Regulation – Forbes

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China moved closer on Monday to adopting a controversial cybersecurity law, after parliament held a second reading of the draft rules, which carry significant consequences for domestic and foreign business and threaten greater censorship.

China enforces widespread controls over the internet that it has sought to codify in law, and Chinese laws often go through multiple readings and drafts before they are adopted.

The draft, presented before the standing committee of the National People’s Congress, requires network operators to comply with social morals and accept the supervision of the government and public, official news agency Xinhua said.

Source: China moves closer to passing controversial cybersecurity law

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