Apple's Security Compromises in China Outlined in New Report

[MacRumors]

Apple has been making concessions on privacy and security in order to continue building and selling its devices in China, according to an in-depth report from The New York Times.

The focal point of the report is Apple's decision to comply with a 2016 law that requires all personal information and data collected in China to be kept in China, which has led Apple to build a China data center and relocate Chinese customers' iCloud data to China, managed by a Chinese company.

Apple fought against China's efforts to gain more control over customer data, but given China's leverage over Apple, Apple had no choice but to comply. There were initially disagreements over the digital keys that can unlock iCloud encryption. Apple wanted to keep them in the United States, while Chinese officials wanted them in China.

Ultimately, the encryption keys ended up in China, a decision that "surprised" two unnamed Apple executives who worked on the negotiations and who said that the decision could potentially endanger customer data. There is no evidence that the Chinese government has access to the data, but security experts have said that China could demand data or simply take it without asking Apple, especially given compromises in encryption key storage and the fact that a third-party company manages customer data on Apple's behalf.

"The Chinese are serial iPhone breakers," said Ross J. Anderson, a University of Cambridge cybersecurity researcher who reviewed the documents. "I'm convinced that they will have the ability to break into the servers."

In a statement, Apple told The New York Times that it "never compromised" the security of users or user data in China "or anywhere we operate." Apple says that it still controls the keys that protect the data of Chinese customers, and the China data center is using the most advanced encryption technology available, which is more advanced than what Apple uses in other countries.

Apple has also been removing apps from the App Store in China at the request of the Chinese government after China began requiring an official license to release an app. Apple told The New York Times that it has done so to comply with Chinese laws.

"These decisions are not always easy, and we may not agree with the laws that shape them," the company said. "But our priority remains creating the best user experience without violating the rules we are obligated to follow."

The New York Times' report goes into much more detail on the compromises that Apple has made in China, and it is well worth reading in full.

Article Link: Apple's Security Compromises in China Outlined in New Report

 

[supremedesigner]

“Ultimately, the encryption keys ended up in China, a decision that "surprised" two unnamed Apple executives”

First, why encryption keys to China?
Second, wondered who’s the two executives?

 

[B4U]

Does this only apply to mainland China?

 

[icanhazmac]

Apple had no choice but to comply.

There is always a choice, Apple simply chose to comply in order to sell product/services/etc in China. Not passing judgement, just stating facts. Saying "Apple had no choice but to comply" makes them sound like a victim, which they are not, they are a complicit partner.

 

[xlii]

Apple just can’t bend over far enough to keep China happy.

 

[M5RahuL]

All Hail China …. /s

 

[redmac]

So, no sign of breaking into the servers, and all the claims are all hypothetical. Just another baseless anti-Apple article from NYT.

People keep forgetting that Apple is offering the safest computing experience within China without breaking local laws. There is no better option. Either they will stay and try to offer a safe environment to users, or leave the users with no option other than data sharing Chinese brands.

 

[contacos]

China is a good example how one nation managed to make everyone their little b … in such a short time. Ignorance is a bliss when you still make a lot of money I guess. It’s quite similar how other countries looked the other way with Nazi Germany and those initial „rumors“ of concentration camps back in the day, because making money was more important (until they tried to start a war on you). There should be a paper on that. Would be quite interesting to know how nazi Germany would have been handled if they had not started a war at everyone and kept to themselves. This is not bashing Apple, just telling about our society as a whole

 

[I7guy]

And this is NEW news?

 

[w00tini]

facebook is going to have a field day with this.

 

[redmac]

Apple just can’t bend over far enough to keep China happy.

It's not a decision they can make. Following the local laws is the only option other than being kicked out from the largest market in the world.

 

[zakarhino]

I’ve been referencing this for a while in response to the people that claim Apple fundamentally cares about privacy. They care to the extent that they need to for convincing marketing, that’s it. They will forever put money first over user privacy because that’s what they’re designed to do. If similar laws were passed in the EU or US Apple would comply without second thought (just as they did with the Prism program). There’s a long, long list of things they can do to improve user privacy but they refuse to do them.

 

[JPack]

After the Snowden revelation, it would be nuts to voluntarily keep your data in the U.S.

 

[zakarhino]

After the Snowden revelation, it would be nuts to voluntarily keep your data in the U.S.

In some ways it could be advantageous for a US citizen to keep their data in China LOL. What’s China gonna do with your data when they have no control over you?

 

[magicschoolbus]

My avatar says it all; really. Western companies need to tread carefully with the commies. They do not play fair and will make you disappear overnight. Why companies concentrate so much $$ here for growth rather then look elsewhere in the world is beyond me. To much risk; but high reward.

 

[laz232]

There is always a choice, Apple simply chose to comply in order to sell product/services/etc in China. Not passing judgement, just stating facts. Saying "Apple had no choice but to comply" makes them sound like a victim, which they are not, they are a complicit partner.

Come on now, principled Tim Apple had no choice: those overpriced rainbow watchbands that are vital for virtue signalling slactivists don't have the same profit margin if they were made in those terrible racist Western democracies (what's left of them). Gotta appease China /s

(multicultural family with an aunt that came out as gay long before it was fashionable - I despise the cynical commercialisation based on intersectional theory that TC has brought to APPL)

 

[laz232]

In some ways it could be advantageous for a US citizen to keep their data in China LOL. What’s China gonna do with your data when they have no control over you?

Are you honestly that naïve?
To spell it out to other people: the personal information on your phone is a treasure trove to foreign powers, especially if one works in any industry related to high-tech or military.

 

[zakarhino]

My avatar says it all; really. Western companies need to tread carefully with the commies. They do not play fair and will make you disappear overnight. Why companies concentrate so much $$ here for growth rather then look elsewhere in the world is beyond me. To much risk; but high reward.

It’s ignorant to suggest that China is a huge threat whereas the West is not. The US is significantly more powerful than China and don’t forget that the most far reaching, extensive surveillance system in the world is controlled by the US to spy on civilians and even other "allies" such as Germany. If you’re against the surveillance systems in China you must by definition be opposed to the even more powerful system used here in the US that is even less transparent than the one in China. "Western companies" are no friend to anyone except the guy in the room with the biggest wallet. Remember, western companies happily agreed to collaborate on warrantless surveilance of Americans.

 

[GeoStructural]

There is always a choice, Apple simply chose to comply in order to sell product/services/etc in China. Not passing judgement, just stating facts. Saying "Apple had no choice but to comply" makes them sound like a victim, which they are not, they are a complicit partner.

Exactly, Privacy is a human right on Apple's eyes only when it doesn't affect their business. Why don't they stand up against China?

And I will always say it: the only reason Apple keeps touting the Privacy argument (which is a fallacy anyway) is because they ended their ad business, otherwise they would be mining our breath to sell us different kinds of mint.

My avatar says it all; really. Western companies need to tread carefully with the commies. They do not play fair and will make you disappear overnight. Why companies concentrate so much $$ here for growth rather then look elsewhere in the world is beyond me. To much risk; but high reward.

Are you suggesting China is a communist nation? They are more capitalist than the US.

 

[crawfish963]

It's not a decision they can make. Following the local laws is the only option other than being kicked out from the largest market in the world.

China is not Apple's largest market. Apple isn't even close to the largest in market share in the phone market in china.

 

[Techwatcher]

Such a shame.

 

[acgmph]

Exactly, Privacy is a human right on Apple's eyes only when it doesn't affect their business. Why don't they stand up against China?

There are 1.3 billion people living in China. If they’re not uprising against the commies, who’s Apple to decide what’s best for those people? As long as these decisions only affect China, then whatever. I have issues when western corporations decide that what’s good for China is also good for everywhere else. Not OK.

 

[wankey]

Ah, New York Times... the narrative generator.

 

[Deliro]

Apple just can’t bend over far enough to keep China happy.

Neither can entities like the NBA and elected officials of the US (cough).

Since Apple is so about social justice, they showed little compassion or regard for the Hong Kong protests.

I really wonder how Jobs would have handled this. Kinda think the opposite of Cook.

 

[wankey]

China is not Apple's largest market. Apple isn't even close to the largest in market share in the phone market in china.

China has 851.2M smartphone users and has 988.2M internet users. China has more netizens than America has people.