QAX, a spinoff from the enterprise business of Shenzhen-listed 360 Security Technology, said mainland Chinese organisations should “prioritise domestic suppliers” of cybersecurity software, “especially given the current complex international environment”. An employee of budget airline AirAsia uses paper and pen to record passenger details at a check-in counter at Hong Kong International Airport on Saturday. A global outage affected Microsoft cloud computing services around the world. Photo: Xiaomei Chen
Citing Beijing’s efforts since 2018 to promote the development of alternative, local solutions for cybersecurity, QAX said:[We] We need to ensure that security software, tools and platforms, which are as important as operating systems, are autonomous and controllable.”
The global outage was caused by an updated version of CrowdStrike’s Falcon sensor software that was meant to make customers’ computer systems more secure against hacks by updating the threats it protected against. But a flaw in the update’s code caused one of the most widespread technology outages in recent years for many businesses that use Microsoft’s Windows operating system and cloud computing services, including banks and airports.
CrowdStrike has since released information to remediate affected systems.
China’s emergence largely unscathed from the global technological turmoil highlights the success of its promotion of “secure and controllable” computing systems, accelerating the development and deployment of domestic cybersecurity solutions.
QAX estimated that it would take “several weeks” for many organizations around the world to fully recover from the outage.
A code flaw in an update to CrowdStrike’s Falcon Sensor software caused a global outage for many businesses that use Microsoft’s Windows operating system and cloud computing services. Photo: Shutterstock
Cybersecurity stocks in China rose the most compared with other industries on Monday, rising an average of 4% according to financial information provider Wind, which compiles an index of more than 40 companies in the sector listed in Shanghai and Shenzhen.
CrowdStrike’s Chinese rival, 360 Security Technology, said in a social media post last Friday that its technology was “more reliable, stable, comprehensive and intelligent” compared with that of U.S. companies.
“When selecting endpoint security software, it is important to thoroughly evaluate its defensive capabilities to avoid potential security risks and ensure business continuity and data security are not compromised,” reads a post from 360 Security Technology.
The major tech outage came years after Crowdstrike blamed China for cybersecurity incidents at U.S. companies. Crowdstrike reported multiple Chinese cyberattacks on U.S. technology and pharmaceutical companies as early as 2015, which China’s Foreign Ministry denied. In its latest annual report, Crowdstrike said that in 2023, “hostile forces with ties to China are increasingly targeting our third-party relationships.”
A global technical outage disrupted operations for many airlines at Hong Kong International Airport over the weekend. Photo: Xiaomei Chen
David Yip Ching-yung, founding chairman of the Hong Kong-China Network Security Association, said mainland China is not immune to turmoil because any software developer can make mistakes.
That’s why governments and businesses need to have redundant systems, Ip said, meaning if the primary system goes down, the backup can take over to ensure business continuity.
According to tech market research firm IDC, China’s cybersecurity market is expected to grow 13.5% annually from 2022 to reach $23 billion by 2027, outpacing the global industry’s annual growth rate of 11.7% over the same period.
Meanwhile, Federal Trade Commission Commissioner Lina Khan wrote in a post on X that the blackout “shows how concentration creates a vulnerable system. Concentrated production concentrates risk, and one natural disaster or disruption can have cascading effects.”
