
Did US use Microsoft bugs to spy on China's military?
China accuses the US of exploiting Microsoft's email server vulnerabilities to steal military data and launch cyberattacks on its defense sector. This accusation follows Microsoft's repeated blaming of China for major cyber incidents involving its software, including breaches of Exchange servers and SharePoint. The US embassy has not yet responded to the allegations.
Reuters Microsoft logo is seen through broken glass in this illustration taken, January 25, 2023. China accused the US of exploiting a flaw in Microsoft Corp.'s email servers to steal military data and carry out cyberattacks on its defense sector, Bloomberg reported.The Cyber Security Association of China, a little-known entity backed by the Cyberspace Administration of China, said Friday that US actors had been linked to two major cyberattacks on Chinese military companies. The attackers allegedly exploited vulnerabilities in Microsoft Exchange to control the servers of a key defense-sector company for nearly a year, it said.Washington-based Microsoft has repeatedly blamed China for major cyber incidents tied to its software. In 2021, an alleged Chinese campaign compromised tens of thousands of Microsoft Exchange servers. In 2023, another alleged Chinese breach of Exchange impacted senior US officials' email accounts, prompting a US government review that accused Microsoft of a 'cascade of security failures.' Last month, Microsoft also said state-backed Chinese hacking groups exploited flaws in its SharePoint file-sharing software.'Every nation state in the world carries out offensive cybersecurity campaigns against others,' said Jon Clay, vice president of threat intelligence at Trend Micro. 'I'm assuming at this point, because of the recent SharePoint vulnerability that Microsoft attributed to China, they are coming out and saying, hey, the US has been targeting us with exploits.'The US embassy in Beijing did not immediately respond to Bloomberg's request for comment.
Ben Read, director of strategic threat intelligence at Wiz.io, noted in a recent blog that China increasingly uses 'public attribution of cyber activities' to pressure Taiwan and shape 'the international dialogue around cybersecurity.' Earlier this year, Beijing accused Taiwan of multiple cyberattacks.In April, China alleged that three NSA employees hacked the Asian Winter Games in Harbin, targeting systems containing personal information of event participants. While Washington has often named alleged Chinese hackers and filed charges against them, Beijing has historically avoided directly accusing US spies, Bloomberg said.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Hindustan Times
an hour ago
- Hindustan Times
Why Amazon's Massive Retail Business Is No Longer Enough
The company's generally strong second-quarter report late Thursday was marred by what was considered a disappointing showing by its Amazon Web Services cloud-computing business. AWS revenue grew 17% from a year earlier to about $30.9 billion, which was largely flat with the growth rate shown the previous quarter and merely in line with Wall Street's projections. That came after rivals Microsoft and Alphabet's Google reported accelerating growth in their own cloud units for the same period. When pressed about AWS growth on the company's earnings call, Amazon Chief Executive Andy Jassy noted that 'we have a meaningfully larger business in the AWS segment than others.' He is right—to an extent. Microsoft said Wednesday that its Azure cloud-computing arm just surpassed $75 billion in annual revenue, which is about 36% below the $116 billion AWS is currently generating. But Azure doesn't include all of Microsoft's cloud offerings, or even all of its efforts in generative AI services such as Copilot. Microsoft said Wednesday that revenue for its total Microsoft Cloud business increased 27% year over year to $46.7 billion for the June quarter. And that was a sharp acceleration of 7 percentage points from the growth reported for the March quarter. Microsoft's shares rose nearly 4% Thursday after its report. Amazon's stock was down more than 6% in after-hours trading after its results. The irony is that the relative weakness in Amazon's cloud business comes as the company's retail side is humming. The online stores division—which reflects the products Amazon sells itself over its website—saw sales jump 11% year over year to $61.5 billion. That is the best growth rate for that unit since early 2021 when Amazon was still benefiting from a Covid-19-induced online shopping spree. North American operating income that reflects the bulk of Amazon's retail business hit $7.5 billion—34% ahead of Wall Street's projections. And that comes in a quarter clouded by questions about tariffs and the health of consumer spending. Still, given what Amazon, Microsoft and Google are spending to build up generative AI capabilities, trends in their respective cloud-computing arms are watched closely for signs of a return on that investment. And those amounts are getting even more staggering. Amazon said Thursday its cash capital expenditures of $31.4 billion in the second quarter are 'reasonably representative' of what it will spend in the next two periods, which would bring the year's total to about $118 billion. That is nearly double what Amazon averaged over the previous five years, which included a massive step up in investments in the company's order-fulfillment network. And that isn't cheap even for a company that now sells $670 billion of goods and services annually. Amazon's free cash flow is expected to slip 6% this year despite a projected 9% increase in sales, according to consensus estimates from Visible Alpha. Amazon's big-spending, Big Tech rivals are in the same boat. But Microsoft, Google and Meta Platforms gave investors plenty of good news in their latest reports that softened the blow of those big bills. If Amazon is going to sell its AI vision, it will need AWS to pack a bigger punch. Write to Dan Gallagher at


Time of India
2 hours ago
- Time of India
With new 40% tariff on transshipments, Trump takes aim at US dependence on China's factories
Ever since President Trump began raising tariffs on goods from China during his first term, Chinese companies have raced to set up warehouses and factories in Southeast Asia, Mexico and elsewhere to bypass US tariffs with indirect shipments to the American market via other countries. But on Thursday, Trump took aim at all indirect American imports, which he blames for part of the $1.2 trillion US trade deficit. Trump imposed 40% tariffs on so-called transshipments, which will take effect in a week. And a senior administration official who briefed reporters said work was under way that could broaden considerably the definition of indirect shipments. The new rules cover indirect shipments from anywhere, not just China. But China, with its massive factory infrastructure and expansive manufacturing ambition, has been the main country to develop a global network for such shipments. Trade experts were quick to predict that China would be the most affected - and the most executive order Thursday created a new category of imports: goods that are transshipped through other countries instead of coming straight from the country of origin. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like They Were So Beautiful Before; Now Look At Them; Number 10 Will Shock You Reportingly Undo The 40% tariffs on these goods will be on top of whatever tariffs would have applied if the goods had come directly from the country where they were originally made. The legal definition of transshipment is narrow: a good that did not undergo a "substantial transformation" in the country through which it was indirectly shipped. Countries in Southeast Asia have long denied that they allow a lot of transshipment. They contend that their soaring imports of Chinese components are being assembled into new and different products that can appropriately be labelled made in their countries, and not labelled "made in China. " Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025


Mint
3 hours ago
- Mint
Apple CEO Tells Staff AI Is ‘Ours to Grab' in Hourlong Pep Talk
(Bloomberg) -- Apple Inc. Chief Executive Officer Tim Cook, holding a rare all-hands meeting following earnings results, rallied employees around the company's artificial intelligence prospects and an 'amazing' pipeline of products. The executive gathered staff at Apple's on-campus auditorium Friday in Cupertino, California, telling them that the AI revolution is 'as big or bigger' as the internet, smartphones, cloud computing and apps. 'Apple must do this. Apple will do this. This is sort of ours to grab,' Cook told employees, according to people aware of the meeting. 'We will make the investment to do it.' The iPhone maker has been late to AI, debuting Apple Intelligence months after OpenAI, Alphabet Inc.'s Google, Microsoft Corp. and others flooded the market with products like ChatGPT. And when Apple finally released its AI tools, they fell flat. But Cook struck an optimistic tone, noting that Apple is typically late to promising new technologies. 'We've rarely been first,' the executive told staffers. 'There was a PC before the Mac; there was a smartphone before the iPhone; there were many tablets before the iPad; there was an MP3 player before iPod.' But Apple invented the 'modern' versions of those product categories, he said. 'This is how I feel about AI.' An Apple spokesperson declined to comment on the gathering. The hourlong meeting addressed a range of topics, including the retirement of operating chief Jeff Williams, increasing Apple TV viewership and advances in health care with features like the AirPods Pro hearing-aid technology. It also touched on donations and community service by Apple employees, the company's goal to become carbon neutral by 2030, and the impact of regulations. 'The reality is that Big Tech is under a lot of scrutiny around the world,' Cook said. 'We need to continue to push on the intention of the regulation and get them to offer that up, instead of these things that destroy the user experience and user privacy and security.' Cook often holds town hall-style chats when visiting Apple's offices around the world, but companywide meetings from the Steve Jobs Theater at headquarters are unusual. The remarks followed a blockbuster earnings report, with sales growing nearly 10% during the June quarter. That beat Wall Street expectations and eased concerns about iPhone demand and a slowdown in China. Apple still faces myriad challenges, including Trump administration tariffs and a regulatory crackdown on its business practices. The company said Thursday that tariffs would bring a $1.1 billion headwind this quarter, though Apple was upbeat about sales growth. It also said that App Store revenue rose by a percentage in the double digits last quarter, despite efforts in the EU and elsewhere to further restrict that business. Echoing comments he made during the earnings conference call, Cook told employees the company is investing in AI in a 'big way.' He said 12,000 workers were hired in the last year, with 40% of the new hires joining in research and development roles. Apple's chip development efforts, led by executive Johny Srouji, are key to the company's AI strategy, Cook said. Apple is working on a more powerful cloud-computing chip — code-named Baltra — to power artificial intelligence features, Bloomberg News has reported. It's also setting up a new AI server manufacturing facility in Houston. The meeting included Craig Federighi, senior vice president of software engineering, who discussed the future of Apple's Siri voice assistant. The company had planned to roll out a Siri overhaul as part of Apple Intelligence earlier this year, adding the ability to tap into user data to better fulfill requests. It was delayed, spurring management changes for the company's AI work. Federighi explained that the problem was caused by trying to roll out a version of Siri that merged two different systems: one for handling current commands — like setting timers — and another based on large language models, the software behind generative AI. 'We initially wanted to do a hybrid architecture, but we realized that approach wasn't going to get us to Apple quality,' Federighi said. Now, Apple is working on a version of Siri that moves to an entirely new architecture for all of its capabilities. That iteration is slated for as early as spring, Bloomberg News has reported, though Apple executives haven't confirmed a timeline other than a release next year. 'The work we've done on this end-to-end revamp of Siri has given us the results we needed,' the engineering executive told employees. 'This has put us in a position to not just deliver what we announced, but to deliver a much bigger upgrade than we envisioned. There is no project people are taking more seriously.' Federighi cited leadership changes, including putting Vision Pro creator Mike Rockwell and his headset software leadership team in charge of Siri, as a driving force in improving the product. He said Rockwell and his group have 'supercharged' the company's work in the area. In his speech, Cook also pushed employees to move more quickly to weave AI into their work and future products. 'All of us are using AI in a significant way already, and we must use it as a company as well,' Cook said. 'To not do so would be to be left behind, and we can't do that.' Employees should push to deploy AI tools faster, and urge their managers and service and support teams to do the same, he said. Cook also addressed the company's retail strategy, stressing that the current plan is to focus on opening new stores in emerging markets and upping the investment in Apple's online store. The iPhone maker is opening outlets in India, the United Arab Emirates and China this year, and is preparing to add its first location in Saudi Arabia next year. 'We need to be in more countries, and you'll see us go into more emerging markets in particular,' Cook said. That doesn't mean Apple will ignore other places, he said, but a 'disproportionate amount of growth' will be in new areas. The CEO also shared his enthusiasm about upcoming products, though he didn't get specific. 'I have never felt so much excitement and so much energy before as right now,' he said. Bloomberg News has previously reported that Apple plans to launch its first foldable iPhone next year and is also working on a stream of smart home devices. New headset products, smart glasses, a push into robotics and a redesigned iPhone for the two-decade anniversary are also underway. 'The product pipeline, which I can't talk about: It's amazing, guys. It's amazing,' Cook said. 'Some of it you'll see soon, some of it will come later, but there's a lot to see.' More stories like this are available on