Shares of Chinese hardware companies tumbled in Hong Kong on Friday, led by computer maker, Lenovo, which lost more than a fifth of its value in morning trade. Chinese telecomms maker, ZTE, also saw steep falls of more than 14%. The cause of the share price drops wasn't immediately clear, but they did follow a Bloomberg report from Thursday saying some US tech companies' systems had been infiltrated by malicious chips-
> Linking those chips to a unit of the Chinese military. The reports cited unidentified sources from intelligence agencies and businesses saying Chinese spies had placed computer chips inside equipment used by about 30 companies and US government agencies. Those chips, said the report, could give Beijing secret access to internal networks.
Reuters' Anne-Marie Roantree is on the story.>> Bloomberg put out a report saying that some Chinese companies, their systems had been infiltrated with a malicious chip, which they said apparently was input by Chinese agents. The story Apple and Amazon have come out, and they've both denied that any of their systems have been infiltrated.
Bloomberg has strongly defended its reporting. Whatever the case, shares of the likes of Lenovo in Hong Kong here today, they found more than 20%. Shares of ZTE were down more than 14%. So the story's clearly having an impact so far.>> Both Amazon and Apple flat out called the reports untrue.
Lenovo issued a statement saying they don't have products in their supply chain from the company Bloomberg said had seen its supply chain infiltrated by China. A San Jose based chip maker named Super Microcomputer also said they'd never sold compromised chips or found any in their production lines. China's Ministry of Foreign Affairs did not respond to a written request for comment on the Bloomberg report.