Chinese Vendor Imprisoned and National Security Breach: The Perils of Outsourced Railway Data Collection

Chinese merchant imprisoned for sharing rail information with foreign entities, reports State Security Ministry. The ministry indicates that a Chinese firm was lured by a profitable agreement to collect what was later classified as 'intelligence information'.

Time: 05

China carried out the execution of a scientist accused of espionage in 2016, as highlighted in a documentary that unveiled 10 startling cases.

The report mentioned that a Chinese IT firm, which was not named, secured a commercial deal towards the end of 2020. This contract involved gathering electronic signal data across China's extensive railway systems. The deal was with an international company, previously engaged in market research, that had entered the Chinese railway sector to offer technical support services.

According to the ministry, the international firm, unable to dispatch its staff to China due to Covid-related restrictions imposed by Beijing, delegated the tasks to local Chinese suppliers. The ministry also discovered that this company served a diverse clientele, including foreign intelligence services, military and defense sectors, and various government agencies.

The report indicated that the Chinese firm knew the overseas company could have hidden agendas, yet, lured by the promise of a profitable deal, proceeded to purchase and set up the equipment as per the stipulations of the foreign company’s contract. The Chinese company gathered data at designated sites and also carried out mobile tests and data collection across various cities and along high-speed railway routes, as directed by their international client.

The department reported that, within a span of one month, the initiative amassed 500 gigabytes of data, encompassing information from Internet of Things signals, mobile and railway communications, as well as secure networks.