What Happened: The internet intelligence division of U.S.-based tech company Oracle has confirmed the results of a 2018 study by the U.S. Naval War College and Tel Aviv University that accused China Telcom, one of China's biggest state-owned internet services, of rerouting internet traffic from sources in North America, Europe and Asia through Chinese servers before sending it to its intended destination, ZDNet reported Nov. 6.
Why It Matters: Western governments have repeatedly expressed concerns that the Chinese government could make use of its tech companies, such as China Telcom, to compromise foreign networks and collect intelligence on governments and businesses.
Background: Rerouting internet traffic means directing all information sent through specific networks through Chinese state-owned servers and potentially leaving sensitive data exposed to theft by Chinese entities, including intelligence services. While it is unclear what data was re-routed to Chinese servers, it is likely that Chinese entities were able to mine a large amount of data on their targets.
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