Taiwan investigating security threat from Xiaomi

The Taiwanese government is investigating whether Xiaomi Inc, China's leading smartphone company by domestic shipments, posed a cyber security threat,
Reuters reported, adding the government would decide Xiaomi's fate within three months.

The government started conducting independent tests on Xiaomi phones following reports in recent months that a number of models automatically sent user data back to the firm's servers in mainland China, Gin-Shian Lou, a director at Taiwan's National Communications Commission, said today.

The probe serves as a reminder of the scrutiny Chinese technology firms were subject to abroad as governments turned increasingly wary of potential cyber security threats from the world's second-biggest economy.

Accusations of cyber and industrial espionage are frequently levelled against China's government and companies.

The investigation also served to highlight cross-strait politics. The two countries had been historical foes, since defeated Nationalists fled to the island following by the take over by China's Communists in 1949. China still considers Taiwan as a breakaway province.

The privately-held phone-maker had faced several allegations of security leaks in recent months, and in August, Xiaomi publicly apologised saying it would change a default cloud feature after a Finnish security company found proof that Xiaomi collected address book data without permission.

Meanwhile, Taiwan has banned all government workers from using instant messaging services including Naver Corp's Line and Microsoft Corp's MSN over security concerns, the cabinet said in a statement last night, Bloomberg reported.

A ban on downloading the software onto government PCs would also be enforced, with no restriction on personal computers or mobile phones, it added. The statement however gave no further details on the nature of the security concerns.

Cyber security came to the fore in August after Helsinki-based F-Secure Oyj (FSC1V) alleged devices from China's Xiaomi Corp collected and transmitted personal data to Beijing.

The statement said government ministries were asked to probe possible security concerns on Xiaomi phones and report back within three months.

The statement came last night following questioning of Taiwan's premier Jiang Yi-huah over cyber security.

The statement added, minister of science and technology, Simon Chang, the National Communications Commission and the economic ministry's Industrial Development Bureau were instructed to investigate Xiaomi devices.