US Companies In China Distrust Cybersecurity Efforts And Claim Data Breaches

U.S. companies with operations in China are weary about cybersecurity and 90 percent of them distrust China's cloud computing services, according to a new report from a business support lobby in Beijing.

The study was released Friday and conducted in late 2012 by the American Chamber of Commerce in the People's Republic of China, or AmCham China, a nonprofit organization that advocates for U.S. companies and individuals doing business in China.

Although the 325 businesses surveyed by the group report high margins and expect business activity in China to grow, 26 percent of them say their proprietary data and trade secrets have been compromised by hackers.

"Data security is clearly top of mind for member companies," Greg Gilligan, chairman of AmCham China, said. "Over a quarter reported that proprietary data or trade secrets had been breached or stolen from their China operations. Over 40 percent stated that the risk of a data breach to their China operations is increasing."

The report comes as tension builds between Beijing and Washington over growing incidents of cyberattacks. U.S. President Barack Obama raised hacking concerns in a phone call with Chinese President Xi Jinping earlier in March.

"This poses a substantial obstacle for business in China, especially when considered alongside the concerns over IPR [intellectual property rights] enforcement and de facto technology transfer requirements," the chamber said.

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