China ' victim of 500,000 cyber attack in 2010»

China's computer security agency claimed almost 15% of cyber-attacks on its organisations last year originated in the United States. Photo: Associated Press

China was hit by almost 500,000 cyber attacks last year, with almost half originating overseas, according to the country's computer security agency.

National network Emergency Response coordination data centre said 14,7% of attacks came from the United States and 8% from India.

The report follows the proposal Beijing might be behind the global cyber-attack in the last five years, targeting more than 70 government organisations.

A State newspaper called it "irresponsible" to link China with hacking the events reported by McAfee computer security firm.

China has not officially commented on the report but has previously denied charges of hacking.

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China Boosts internet monitoring

An internet cafe in Beijing. Photo: Liu Jin/AFP/Getty Images

Police have told cafes, hotels and other businesses in central Beijing to install monitoring technology for Wi-fi users or face fines and possible closure of a further tightening internet of controls.

China has the world's largest and most sophisticated censorship and web monitoring system, as it has tightened still further after the Middle Eastern uprisings. Measures included blocking large virtual private networks allow people to evade internet controls.

The new software, which costs about 20,000 yuan (£ 1.900) permits officials to verify the identities of users and monitor their activity. Companies that do not comply face a fine of the same size and could have their licenses revoked.

Strict control is already at the Internet cafes which poorer people rely on access.

It is unclear how the measures will be strictly enforced, and it appears that only Dongcheng district has told owners of the regulations. A member of staff at its internet safety unit said the initiative was the city-wide, but the Beijing police headquarters had not responded to a corrections query at the time of writing.

Dongcheng policeman added: "this Regulation shall be made, to improve internet security and assist the public safety offices to break criminal cases. Details on implementation are confidential. "

According to the New York Times said a message from the District Office measure would solve offenders seeking to "carry out extortion, goods traffic, gamble, spreading harmful information and disseminate computer viruses".

"This is undoubtedly an invasion of Wi-Fi users ' privacy," said Jason Chen, 22-year-old Beijing resident.

"We have already felt the restriction on University campuses because they have always been monitored. But this time, the control extends to cafes and people's sense of violation is sharper. If cafes cancel their Wi-Fi in will care a lot, and I think young people will react strongly. "

Some venues in Dongcheng complained that they already lose custom after cutting off the Wi-Fi.

"It is just incredible. Our customers are not happy either, "said Leona Zhang, manager Contempio bar.

"Some owners just think this is for the public safety offices to make money from us. The appendix is the same regardless of size, even for small with only two or three tables. "

Companies in other parts of Beijing said they had not heard of the measure.

"If the regulation was implemented here, it would struggle to be accepted. Cost is too high, "said a worker at the New seven day Bar in Haidian.

"That is also the privacy of our customers to protect."

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Google faces tax investigation of China

Chinese authorities have found three companies linked to Google Inc broke tax rules and examine possible evasion, a State-run newspaper said Thursday that increase the risk of recurrence of internet pressure on the search giant.

Google said two of the companies of the named its units and a third was a separate company, working closely with Google. But Google denied tax violations alleged in the Chinese-language economic daily.

"We believe we are and have always been in full compliance with Chinese tax legislation," said Google.

Although the report is unfounded or embellished, it could bring fresh headaches in China to Google, which has gone through difficult times since the beginning of last year when it clashed with the Government over internet censorship and hacking attacks.

China generates a small percentage of Google's revenue, but is the world's largest internet market with more than 450 million users. The country's Search market, dominated by homemade Baidu Inc, was worth 11bn Yuan (£ 1.05bn) in 2010 and will probably grow by about 50% every year for the next four years, according to iResearch.

The economic daily said the three companies were investigated and punished "Google enterprises in China".

"The tax authorities have already investigated and punished the three companies under the law," said the report on the front.

The companies were charged with submitting false and unreasonable demands for the total value of 40 m Yuan, the report said. It did not say when the alleged violations alleged to have happened.

"It is understood by this reporter that the tax authorities further examines Google enterprises in China on suspicion of tax evasion," said the short story, which also later was reported by China's official Xinhua news agency.

Google said two of the accused companies – Google information technology (China) Co Ltd and Google information technology (Shanghai) Co Ltd – was its sub-units.

It said the third company named, Google advertising (Shanghai) Co Ltd, was a separate undertaking that work "closely with Google as Google's only first-tier reseller in China" of advertising on the search engine's Web pages.

"Most foreign companies in China, particularly high-profile companies with a global reputation at stake, is very cautious in order to ensure they are in full compliance with the relevant tax laws," said Mark Natkin, Executive Director of the Marbridge consulting, a Beijing-based companythat advises investors on China's Internet and telecommunications sectors.

China's Foreign Ministry would not comment directly on the report. "In General, all companies operating abroad should obey the laws and regulations in the host country," said Ministry Spokeswoman Jiang Yu.

The report appeared after Google again clashed with the Chinese Government over internet censorship.

Earlier this month Google said difficulties that users in China may have faced open his e-mail service could be expected to be the result of the Government blocks.

China's ruling Communist Party has intensified censorship in recent months, fearing that calls for protests inspired by anti-authoritarian uprisings throughout the Middle East and North Africa could voyages.

Google's serious problems with the Chinese Government began in January 2010, when the company said it was no longer willing to censor search results in the country. Earlier, the accounts with a disclaimer on its China service that searches cannot be completed due to local laws.

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