U.S. presses Europe to uproot Chinese security-screening company. A campaign led by the National Security Council and a handful of U.S. agencies is trying to rally European governments to uproot Nuctech Co., a well-connected Chinese state-controlled company, The Wall Street Journal reports. The U.S. contends Nuctech, whose screening systems for cargo, luggage and passengers are becoming a fixture at ports, border crossings and airports across Europe, is a threat to Western security and businesses, according to documents and people familiar with the matter.
Secrets to share: U.S. officials worry Nuctech could turn over personal and commercial data to Chinese authorities, the State Department said in a May 26 memo, viewed by the Journal. Nuctech said it was unaware of the U.S. effort and operates independently, receiving no state aid or government instructions. The company said Nuctech products don’t pose a security risk, saying they contain no secret access points and all data are kept with the customers.
Low-ball prices: Nuctech has marched into dozens of other countries aggressively competing on price, edging aside U.S.-based rivals OSI Systems, Inc. and Leidos Holdings Inc., and the U.K.’s Smiths Detection Group Ltd. The State Department, in its May 26 memo, said Nuctech’s gains came from selling goods below market prices in “a decade-long aggressive campaign to grab significant market share in critical infrastructure segments in Europe at the expense of U.S. manufacturers.” Competitors have said Nuctech prices its products at roughly 25% to 50% beneath their own.
Knoxville says it won’t pay ransom. The Tennessee city has isolated a ransomware infection in its network and is working to recover downed systems, WLTV reports. Knoxville’s “redundant and diversified IT systems and quality data backups” mean the resident services have remained available and Knoxville doesn’t plan to pay the unspecified ransom demanded after the early June attack, the city said in a statement on Friday. Knoxville hired cybersecurity company CrowdStrike Holdings Inc. and Mullen Coughlin LLC, a law firm that specializes in
cyber matters, to investigate.
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