Well I would not be surprised if some alphabet agency, ordered by executive order, confiscated all this crap and or was aware of this crap and thats why apple/big dogs stopped doing business with these people. the whole trade war could have been planned way in advanced.
If you admit to compromise all sorts of foreign companies not on US soil could benefit greatly and massive amounts of US infrastructure could be considered compromised. If intelligence was able to figure out what the Chinese were doing we could do damage control and play geopolitical and economic games using these things, i.e. controlled leaks.
Given how focused the american goverment is on economic growth I don't really think they would just flip out, they have to plan something out to limit economic damage (cuz now we are in a three superpower world, not only USSR/USA), so if our economy falls the Russians and other people can get stronger.
It's often the case when taps and other bugs are discovered they are left in place and used to misguide the enemy.
I expect that this whole thing is a complete and utter cluster fuck by our standards. I think that there might be secret services doing counter stock market manipulation using knowledge of stuff like this.
Also the DHS is new by intelligence standards and they don't have the same connections as the CIA/OSA that has been around for a long time now, so they don't know fuck.
If it was used for counterintelligence purposes, identical boards could have been made in CIA run facilities to replace compromised boards with some kind of filter or protection diode or whatever too, then reinstalled, with the surveillance chips removed when no longer useful. This could be used to cover up machiavelian stock market manipulation, which favors the growth and protection to companies that are more vital to the US economy then companies which were naturally more successful (kind of like load balancing, the successful companies that can tolerate the hit got hit, while the weaker or more important ones for reputation were protected to have a overall less effect on the US economy). A few businesses suffering on the stock market or losing IP is alot better then some big one going down, causing big unemployment, leading to the expensive retrofit of otherwise high quality infrastructure and military stuff.
The existence of communist china, with its great focus on economic growth by any means necessary, could have lead to this reaction, be it necessary or out of a sense of justice or pride. Since many businesses could be seen as doing Machiavellian things (like operating out of low tax areas to avoid paying the US government) they could be seen as pawns to manipulate with little moral qualm from someone that considers themselves a patriot that wants to protect their own country and sees those companies as having a hostile or 'i dont give a fuck about anything but my business' mentality. Eventually when you try to make money by any means necessary some patriots are going to get pissed off when your logically fucking the country you live in in a legal way. If you make a 'psychological profile' of a company you can kind of determine its various levels of allegiance to values, stock holders, employees, country of origin and its owners. A focus on pure economy is easily seen as sociopathic, so you don't really have much of a concern for its well being?
Someone setting up massive factories in china, allowing communist party members into its nerve centers and running out other loyal American businesses is not really seen as that much of a friendly citizen, especially if their trying to avoid paying taxes.
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