Mundie also began talks with Chinese security officials to convince them that Microsoft's software was not a secret tool of the U.S. government. As a result, in 2003 the company offered China and 59 other countries the right to look at the fundamental source code for its Windows operating system and to substitute certain portions with their own software - something Microsoft had never allowed in the past. Now when China uses Windows in President Hu's office, or for that matter in its missile systems, it can install its own cryptography.
A great deal of Cisco manufacturing is now done overseas, specifically in China. Cisco made a decision a decade ago to manufacture product in China as a way of cutting production costs. What has happened is that many of the companies that do the outsourcing for Cisco now run an extra shift and sell the now counterfeit hardware out the back door. After all, they have the manufacturing capability, the expertise and the full blessing of Cisco. The result? More and more counterfeit Cisco hardware is now showing up on American shores. Part of the problem is that China does not have strong intellectual property protection laws. This is a situation that Cisco and many other companies are still struggling to solve and one that does not promise to be resolved soon.
The issue was raised again during the first Iraq war and more recently in the Israeli bombing of a suspected Syrian nuclear plant. In both cases there has been speculation that booby-trapped antiaircraft equipment had been remotely turned off.
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