Chinese investment in cyber security startups worries Pentagon

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The United States Department of Defense, shortly known as Pentagon is extremely worried about growing investments from Chinese firms on startups related to cyber security and military defense.

As per a New York Times reports, firms based in China are showing a lot of enthusiasm in investing in American startups, which includes rocket engine manufacturers, companies that design sensors for autonomous naval ships and fighter jets and those which are involved in offering products related to cyber defense.

The Media giant says that all those who are making investments in state-owned companies are somehow related to Chinese officials of high political rank.

Officials from Department of Defense (DoD) are worried that from past couple of years, China is encouraging companies with close government ties to invest in US startups related to technology like Cyber defense, military applications, and banking.

Last week, the Pentagon sent a report to the newly elected US President Donald Trump and also included the details of the size of deals including the nature of the deal and the need for the investment.

The Pentagon also included in its report that till date no startup which is operating on a Chinese investment has been accused of any crime. But the nature of deals and the need for companies operating in foreign nations to invest in America is alarming.

After analyzing the report, Trump government is said to have ordered for more scrutiny of China’s trade and economic relationships with the United States.

As per our Cybersecurity Insiders sources, Trump government has formed a team of officials which includes 2 from White House to analyze the ongoing deals and asked them to submit a report by this month-end.

Mike Brown, Chief Executive of Cyber Security Firm Symantec will lead the inquiry into the Chinese investments. First, the focus will be on those who invested in Military and defense applications. Then it will turn to Cyberspace and then to the other verticals related to technology.

More details will be updated shortly!

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Naveen Goud
Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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