Chinese Cyber Association Urges Security Assessment of Intel Products

A Chinese cyber association with ties to Beijing has called for reviews of Intel products, alleging that they pose national security risks. The Cybersecurity Association of China (CSAC) made these claims in a blog post on the Chinese social media platform WeChat, stating that Intel’s products could jeopardize China’s information infrastructure.

The association criticized the U.S. chipmaker over issues related to Xinjiang and Taiwan, as well as for cutting off chip supplies to Chinese companies Huawei and ZTE. This call for reviews comes after the U.S. Commerce Department revoked some export licenses in May, affecting companies like Intel and Qualcomm that were shipping chips to Huawei.

If the Cyberspace Administration of China (CAC) decides to conduct a security review, Intel products could face potential restrictions in China. An example of this was when the CAC conducted a seven-week review last year on products from U.S. memory chipmaker Micron and subsequently banned their use in China’s key information infrastructures.

A security review of Intel products could impact the company financially, as over a quarter of its revenues came from China last year. In response to these developments, Intel’s shares dropped by 2.7 percent in U.S. premarket trading due to a broader tech sell-off following negative news from chip equipment maker ASML.

The CSAC blog mentioned that Intel’s products have vulnerabilities and alleged that they contain a backdoor created by the U.S. National Security Agency, posing risks to critical information infrastructures globally, including those in China. The blog stated that the use of Intel products poses a serious threat to national security.

Intel was accused of harming China’s interests and national security by excluding goods and services from Xinjiang in its supply chains, resulting in Taiwan being listed as a separate country in its financial reports and leading to the halt of supplies to Huawei and ZTE. The United States has also implemented restrictions on exporting advanced chips and chip-making tools to China to limit the Chinese military’s modernization efforts.

In response to these allegations, an Intel spokesperson mentioned that security has always been a top priority for the company, and they are committed to working with relevant officials to address any concerns and demonstrate the safety and security of their products. The fragile relationship between the U.S. and China raises concerns about potential retaliatory actions amid talks of trade restrictions and tariffs.

(Reuters contributed to this report.)