Berlin The Chinese smartphone manufacturer Xiaomi has had some extremely successful months. Since its competitor Huawei is suffering from the sanctions imposed by the USA, the group was able to expand its market share to 17 percent in the second quarter – the devices are particularly in demand in Europe. But a headline from Lithuania could hurt business.
The government of the EU state has warned of security gaps and built-in censorship functions in Chinese cell phones – including a model from Xiaomi. According to the state center for cybersecurity in Vilnius, an investigation of three 5G smartphones from the manufacturers Huawei, Xiaomi and Oneplus revealed several cyber security risks. With Huawei phones, there are concerns in connection with the official app store, which is forwarding to unsafe providers.
With other devices there is a risk of loss of personal data and possible restrictions on freedom of expression, said the authority, which is subordinate to the Ministry of Defense of the Baltic EU and NATO country.
Technology companies in China have to meet strict requirements in order to be able to offer their products, including the censorship of content. The head of international cybersecurity policy at the New Responsibility Foundation, Sven Herpig, therefore considers the warning from the Lithuanian government to be justified. “It is entirely plausible that censorship software is installed on devices from Chinese manufacturers,” Herpig told Handelsblatt.
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In the case of the Xiaomi device, the Lithuanian cyber authority has stated that it has the technical ability to censor the content downloaded on it. Accordingly, it could recognize and block terms such as “Free Tibet”, “Long live Taiwan independence” or “Democracy movement”, it said in a statement.
The finding is also politically explosive. Relations between Lithuania and China had deteriorated recently. China last month demanded that Lithuania withdraw its ambassador in Beijing and announced that it would call back its ambassador in Vilnius. The reason for this was that Taiwan had announced that it would name its diplomatic mission in Lithuania “Taiwanese Representation Office”.
According to the government report, the censorship function in the Xiaomi device should be deactivated in cell phones sold in Europe, but it can also be switched on remotely at any time. The cybersecurity expert Herpig also points this out. The question arises why the censorship function on devices for the European market is only deactivated and not completely waived. There is therefore not only the “risk that the mechanism will be activated via a software update by the manufacturer, for example, but that it will only be installed, even if it was not previously on the device”.
The SPD digital politician Jens Zimmermann reacted with concern. “The discoveries by the authorities in Lithuania are alarming,” said the Bundestag member of the Handelsblatt. Zimmermann asked the Federal Office for Information Security (BSI) to investigate the information “immediately” and to assess the extent of the risk. “In particular, it must be clarified whether these devices also report the corresponding censorship to Chinese authorities,” he said.
Risk to commercial success too
Herpig called on the German cybersecurity authority BSI to act. “The BSI should do educational work here and tell consumers how they should behave now,” he said. The authority has recently also taken up digital consumer protection, then it should act accordingly and take a position on the Lithuanian government report. “The warning from the Lithuanian government against Chinese smartphones is serious.”
On request, the BSI announced that it had heard of the report today. “The BSI does not yet have its own findings on the analyzes published in it,” said a spokesman for the authority.
For the Chinese cell phone manufacturers, the allegations also have an economic dimension. Xiaomi is one of the largest smartphone manufacturers in China. In recent years, however, the company has greatly expanded its presence abroad, initially in Asia – especially in India, and now also in Europe.
A head office for business on the continent is currently being built in Düsseldorf. The self-confidence is great: “We are like Apple, only better and cheaper,” said company founder Lei Jun once at a product presentation. In view of these ambitions, it seems unlikely that Xiaomi is planning to censor users in the West – this is likely to put the commercial success in question.
However, even the appearance is dangerous, says IT security expert Herpig: “For Chinese smartphone manufacturers who want to gain a foothold on the European market, this can become a problem if the impression becomes solidified that their devices are receiving undesired functions or are unsafe . “
More: Smartphone sales: Xiaomi ousts Apple from second place – Samsung remains market leader