Canada ups cyber security spending as China worry rises

Wed Oct 17, 2012 4:21pm EDT
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By Randall Palmer

OTTAWA (Reuters) - Canada said on Wednesday it will beef up spending on defenses against Internet hackers as it grapples with reports of Chinese hacking of Canadian companies and a U.S. warning of the risks of Chinese cyber espionage.

The Conservative government will spend an additional C$155 million ($158 million) over five years on strengthening its response center for dealing with cyber threats in the private sector as well as boosting the security of the government's own communications, Public Safety Minister Vic Toews said.

The announcement came less than a month after Toews' department acknowledged a pair of cyber attacks on a Canadian energy company and on a manufacturer of software used by energy firms. The government declined to comment on reports that suggested a Chinese connection.

A U.S. congressional report last week warned of the risks of doing business with Chinese telecom equipment makers Huawei Technologies Co Ltd and ZTE Corp because of possible Chinese cyber espionage.

"Keeping our cyber networks and infrastructure secure and resilient is one of the most challenging issues facing our government, our citizens and our allies," Toews told a news conference at a technical college in Ottawa.

"I can assure you that our government is fully engaged in meeting and overcoming this challenge."

Declining to name China or any company, Toews said his announcement was partly in response to concerns that have been raised, but also part of a broader strategy laid out two years ago to try to make Canada's cyber infrastructure safe.

The focus on China has come at an awkward time for Chinese state-owned CNOOC Ltd, whose $15.1 billion bid to buy Canadian oil producer Nexen Inc needs Canadian government approval.   Continued...

Vic Toews, Canadian minister of public safety announces the integrated cross-border law enforcement unit known as the Shiprider program in White Rock, British Columbia October 12, 2012. REUTERS/Ben Nelms