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Amazon Offloaded Its Chinese Server Business Because it Was Compromised, Report Says (techcrunch.com)

An anonymous reader shares a report: It looks like Amazon's move to sell off its physical server business in China last year was because the unit had been compromised by a Chinese government spying program. That's according to a report from Bloomberg which details how the Chinese government infiltrated a number of U.S. companies by sneaking tiny chips onto motherboards from Supermicro. They then became part of servers deployed by the companies giving remote operatives potential access to data. It's a huge story that includes a comparatively small but important passage shedding light on Amazon's China deal last November -- the U.S. firm sold the physical server business to local partner Beijing Sinnet for 2 billion yuan, or around $300 million. That transaction initially sparked reports that AWS would exit China, but Amazon later clarified it planned to continue to operate its cloud services in China. Selling the physical server business, it said, was down to the fact that "Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services." While it is correct that China did introduce cybersecurity laws that placed restrictions on overseas firms and appeared to give the government unprecedented access to data, the Bloomberg report claims that Amazon's China-based servers were in fact offloaded because they were plagued with compromised servers.

56 comments

  1. taylored denial... by Anonymous Coward · · Score: 0

    That the "hardware" or "chips" hadn't been physically changed... but they were a bit hazy on the software that was loaded on those chips.

  2. And now ... by cascadingstylesheet · · Score: 0

    ... for something completely different. A story that references the previous dubious story!

    So it's not a dupe, OK?? It's not, I tell you!

  3. "Blodbank sells off blood due to contamination..." by xpiotr · · Score: 1

    Remind me to avoid the Amazon Hospitals (tm) in the future....

  4. On one hand this discourages foreign investment by rsilvergun · · Score: 3, Insightful

    OTOH I'm not sure China wants foreign investment. This is the same country that spent a fortune figuring out how to make pens as nice as the Germans instead of just importing the occasional nice pen. China is very nationalistic.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:On one hand this discourages foreign investment by Anonymous Coward · · Score: 1

      It's not about importing the pens. It's about economic warfare. They've been blatantly waging economic warfare and western presidents sat and waited for their treat when the bankers told them to. Obama, Bush, Clinton, exactly the same. At least Trump is acknowledging the problem, though probably only to piss off the bankers who ran Hilary against him.

    2. Re:On one hand this discourages foreign investment by CrimsonAvenger · · Score: 4, Insightful
      Historically, China has had next to no interest in importing anything if they could possibly help it.

      For the last couple millenia, their general policy was "foreigners can come here to buy our (obviously superior) goods, but we have no need of, and no interest in, their obviously inferior (since not Chinese) goods."

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    3. Re:On one hand this discourages foreign investment by Anonymous Coward · · Score: 0

      Last couple of millennia is simply not true. That type of policy occurred mostly under Ming and Qing, so about 600 years. It can mostly be blamed on the Ming and their fortress mentality.

    4. Re:On one hand this discourages foreign investment by Anonymous Coward · · Score: 0

      Not sure why they do so many crappy knock offs then.

      For example, here's a bunch of cars.

  5. Re:Is this a record? by Anonymous Coward · · Score: 0

    You're new here, aren't you? Its happened plenty of times before and will again.

  6. Typical chinese games again by lengel · · Score: 2

    "Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services."

    Gee, I wonder why?

    The government thought process is obvious: We have done it to everyone else so we know it can be done. Therefore we are going to make a law so nobody can do it to us.

    1. Re: Typical chinese games again by Anonymous Coward · · Score: 0

      This is why you never trust a slantey eye chink.

    2. Re:Typical chinese games again by Anonymous Coward · · Score: 0

      Chinese law also requires:

      51% ownership of all ventures on their soil. Amazon has to partner with a Chinese company, giving them ownership and all IP rights.

      The Chinese government has to have PLA officers on company boards. It would be like having CIA, DHS, or NSA officers with full decision making power on every US company.

      Don't forget, that China has the ability to arrest and detain people indefinitely, perhaps even execute them and sell the harvested organs, if someone on Chinese soil does not sign the contracts generously offered by the Chinese government.

    3. Re: Typical chinese games again by Anonymous Coward · · Score: 0

      Warning on that link nsfw

    4. Re: Typical chinese games again by Anonymous Coward · · Score: 0

      "pornhub" link; thanks for the warning.

    5. Re: Typical chinese games again by Anonymous Coward · · Score: 0

      Thank you for the very tasteful bondage link.

      It's Japanese though, not Chinese.

  7. Trump is right by Anonymous Coward · · Score: 2, Informative

    China is the enemy.

    1. Re:Trump is right by Anonymous Coward · · Score: 2, Interesting

      And you believe China is the only country doing this type of hardware hacking (or any hack for that matter)? Like the three letter agencies have so much integrity that they would never ever do such a thing? Did you ever wonder whether it was those very agencies that did it in the first place and if caught, they would have plausible deniability as well as being able to put the blame on China? As Trump once said "you think our country is so innocent?" Think outside the box a little and don't believe everything you read. The people at Bloomberg know every intimate detail of this hack, but they can never get to the bottom of who actually did the hack even though it would be so easy to follow the supply chain back directly to the attacker, but they would never go so far. Why? Because this story leads right back to those three letter agencies right here in the US of A. If caught, just blame China for it. Just because it was built in China doesn't mean they are the only ones to place blame. I'm surprised they didn't blame Russia for it. Now China and Russia are the boogie men.

    2. Re:Trump is right by Anonymous Coward · · Score: 0

      So... You're Chinese, right?

  8. Don't spy me! by Anonymous Coward · · Score: 0

    China & United States are not our enemies but unwanted spies and sometimes e-criminals.

    Home microprocessors (from US and China) are plagued of backdoors, trojans, etc.

  9. Dupedot! by Anonymous Coward · · Score: 0

    Are you window-lickers even trying anymore?

  10. And my Ben-Wa balls? by Anonymous Coward · · Score: 0

    Those are wi-fi enabled. I noticed some erratic behavior activity around PRC labor day, last May

  11. Re:Amazon is not so tough after all by Anonymous Coward · · Score: 0

    //Looks like they had a chink in their armor this whole time.//

    It does raise a yellow, er red, er, um checkered flag of sorts.

  12. Re:Amazon is not so tough after all by Anonymous Coward · · Score: 0

    // chink in their armor //

    It does raise a yellow, er, red flag.

  13. Re:"Blodbank sells off blood due to contamination. by Oswald+McWeany · · Score: 2

    Remind me to avoid the Amazon Hospitals (tm) in the future....

    If you're a member of Amazon Prime you will be guaranteed to be delivered to the afterlife in 2 days or less.

    --
    "That's the way to do it" - Punch
  14. Only bad if the Chinese do it by ArchieBunker · · Score: 2, Interesting

    Wasn't it confirmed by the Snowden leaks that Uncle Sam intercepts hardware during shipment to be compromised?

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
    1. Re:Only bad if the Chinese do it by mi · · Score: 1

      Wasn't it confirmed by the Snowden leaks that Uncle Sam intercepts hardware during shipment to be compromised?

      NSA, generally, works for the US interests. Chinese work for China — against US interests.

      Pick your side — and stick to it.

      --
      In Soviet Washington the swamp drains you.
    2. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      Anything that happens in Washington D.C. is in our interests, yeah right. You'll believe anything a politician tells you.

      Say, wasn't Washington D.C. the murder capital of the United States a couple of decades ago? More homicides per capita than literally any other city in the United States. If that city doesn't have everything in order, how do you expect its politicians to be competent enough to run the business of the rest of the country?

    3. Re:Only bad if the Chinese do it by Holi · · Score: 4, Insightful

      Wasn't the NSA found to be acting outside of its charter by intercepting US Citizens communications, like all of them.

      That is the NSA working for someone's interest, but certainly not ours.

      --
      Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
    4. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      Local politics and cops. Federal government doesn't control the city itself.

      But you apparently believe the feds can do anything that they want. Fuck off slaver.

    5. Re:Only bad if the Chinese do it by Megol · · Score: 2

      How about rejecting them both?

    6. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      If we were *allowed to hold the US government accountable for the roughly 70% of Constitutionally-unsanctioned activities it is currently embroiled in, we could find a way to keep roughly 70% of the outrageous taxes we pay.

      And the Deep State Mass Surveillance Apparatus would have to find alternate funding.

      But alas, voting changes nothing except which side of the Duopoly can righteously and correctly complain that Their Guy made The Other Guy too powerful before he left office...and the power just creeeeps away.

      But hey, Judge Judy's about the bring in CSI to convict Kavanaugh of rape and sentence him to life on Survivor Island,
      so by all means Don't Look Ethel!
      The circus is on! :-(

      Captcha: DISMISS

    7. Re:Only bad if the Chinese do it by mi · · Score: 2

      Wasn't the NSA found to be acting outside of its charter by intercepting US Citizens communications, like all of them.

      Of course. Since the times of Alan Turing, to intercept the bad guys' communications, you have to intercept all communications — and then sift through them. Of course, some of that can also be used for internal needs, such as to sabotage political enemies.

      That is the NSA working for someone's interest, but certainly not ours.

      That usage of NSA-intercepted traffic to help the entitled one was done by Obama, not by the NSA themselves.

      Wherever your political preferences lie, the major difference between us and China are that we consider privacy a right and any invasion of it — scandalous and possibly criminal. In China (or even in India) these would hardly raise an eyebrow...

      --
      In Soviet Washington the swamp drains you.
    8. Re:Only bad if the Chinese do it by mi · · Score: 1

      How about rejecting them both?

      Go ahead, build your own motherboards — for servers, and other computers you use (including your cellphone). At least, in the US there is no law against that.

      --
      In Soviet Washington the swamp drains you.
    9. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      Any gun free zone in the US will become the murder capital. All of DC is gun free. Chicago is also gun free. Didn't Chicago just the other day set a record for 22 hours without anyone getting shot?

      That is why the US will never become a gun free zone.

    10. Re: Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      I pick the van down by the river.

    11. Re:Only bad if the Chinese do it by Aighearach · · Score: 1

      No. I mean I agree it would be interesting if true, but no.

      You're probably remembering the first 6 months of reporting where they used the teaching notes from the UK people who didn't actually have access to the program details, but were assigned to write PDFs to try to teach it. That was the real scandal; they led with the mistakes instead of the truth, trickling out bullshit for an extended period of time before the real programs got leaked. And by then, almost nobody paid any attention. And so the internet is full of people who purport to care a lot but don't know any details. It is almost as if somebody wanted them to be used to surveillance, rather than that somebody wanted to tell them what was going on.

      If you paid any attention at all to the leaks, you'd know that the US doesn't intercept hardware to be compromised at all! If it is to be compromised that is done on-site, either over the network or by planting USB drives in convenient places. When the hardware is to be altered, that is done with the assistance of the equipment provider; nothing is "compromised" at all, the vendor is asked to help, they agree, and they get paid.

      It is very different than breaking into the factory and altering what gets produced, as is the accusation against China here.

    12. Re:Only bad if the Chinese do it by Aighearach · · Score: 1

      Wasn't the NSA found to be acting outside of its charter by intercepting US Citizens communications, like all of them.

        That is the NSA working for someone's interest, but certainly not ours.

      1) No

      2) What country are you from? They're not supposed to be working for your interests. They're supposed to be working for the interests of the US Government. When you say "our" in a way that leaves out the US Government, and even leaves out any American who disagrees with you, then it is clear you don't even understand what the nature of the United States is, and what the nature of "our shared interests" are.

    13. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      Yeah except Chicago and DC aren't gun free zones you fucking liar.

      -District of Columbia vs. Heller 2008?
      -McDonald vs. City of Chicago 2010?

      So, no... The reason the US will never become gun free is because of morons like you who are too fucking stupid to turn off their Lookie-Talkie boxes...

    14. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      Didn't Venezuela pass nationwide bans on civilian ownership a few years back? I recall posts on Slashdot saying that violent crime went down to 1/1000 of what it was before that law was passed. Same with Nicaragua.

      Gun free zones do work.

    15. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      No you idiot, it's bad if anyone is doing it. Be it Americans or Chinese.

    16. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      It would be nice if that was doable, but parts availability for anything made outside of China is scarce. Want a motherboard, you have China, Taiwan, and maybe Japan. It would be nice if a a group of companies could fab the chips and build the motherboards in the US, or even the US and Europe.

    17. Re: Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      Congress controls ultimately so yes it's the Fed's problem/cause.

    18. Re:Only bad if the Chinese do it by Anonymous Coward · · Score: 0

      do you know what's going on in Venezuela right now? moron.

  15. ALL of your equipment is hacked by now. by Anonymous Coward · · Score: 0

    If you bought ANYTHING electronic that has the ability to perform communications and that product came within 1,000 miles of Red China than you should expect that it has been hacked. People view China through their own eyes. The fact are that China is NOT anything like the rest of the world. They do not have compassion which is a Christian teaching. If you do not contribute to the Great State than your life isn't worth dirt. If you are elderly or disabled you should just up and die as your time is up. China worships only the state and there is no other purpose in life but to better the state at all costs. 30 MILLION people died of starvation under MAO from the 1940's and 1950's.

    Mao's Great Leap Forward 'killed 45 million in four years. Nothing new there but I bet that 99% of people who read this haven't a clue how many 100's of million have been and still are being killed today. Sure, they're Muslims and Christians so you don't care.because you only worship your own body and your self in your hedonist fashions.
    This generation DESERVES everything that will happen to it. World War 3 will occur. Russia and China will start it. And it will nuclear and it will effect everyone's game playing abilities.

  16. taxes by originalGMC · · Score: 1

    Really, they "...weren't paying their taxes" and were about to be "disappeared" so they got the fuck out. https://www.independent.co.uk/...

  17. Intel Management Engine by goombah99 · · Score: 1

    SO is amazon using intel chips? If so there's the intel management engine which is basically a backdoor that can do absolutely anything including run when the computer is turned off (but powered).

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. Re:Intel Management Engine by Anonymous Coward · · Score: 0

      From reading the article the added chip seems to exploit the the management engine through hardware. Either the management system is secure from a software standpoint or the Chinese government doesn't have the access codes to it.

    2. Re:Intel Management Engine by Anonymous Coward · · Score: 0

      That is what I couldn't find any reference to in the mountain of other threads popping up over this. Intel got pwned, why is supermicro being targeted? I fully expect they and others were all involved as part of doing business with China and I
        certainly understand why none of them would ever come out publicly to say it, but we already knew about Intel.

      When you have countries STILL trying to outlaw encryption it's not far fetched to assume they are engaged in espionage (for you kids too damn young to understand that means "spying").

  18. Chip? by Anonymous Coward · · Score: 0

    What chip? How about a little specifics here, dumb article.

  19. Stealth hardware has come along by UnixUnix · · Score: 2

    The Bloomberg link is worth reading, grain of rice -sized HW backdoor and all. Things have progressed quite a bit since 2005, when I opened up an Averatec laptop and noticed a stealth CastleNet mini comm board -- no, it wasn't on any bus or otherwise part of the architecture, it was "in the air", GLUED to the underside of the top cover, with just a cable running to the Ethernet port! Most likely injection somewhere in the supply chain. How crude, huh. What a difference 10 years can make.

  20. No Comprede? by Anonymous Coward · · Score: 0

    None of this changes the fact that China is the enemy.

  21. If AWS dropped a DC, what about iCloud/china? by Anonymous Coward · · Score: 0

    Seriously, if AWS dropped a whole DC due to contamination, what the hell is going on with Apple and their chinese iCloud DC, being run by a local chinese company? Has all their efforts to lock down their iCloud china keys been in vain?