Taiwan probes Xiaomi over security leak claims

The Taiwan government is investigating whether Xiaomi Inc, a leading smartphone firm by domestic shipments, is a cyber security threat and will make a decision within three months.

The government began performing tests on Xiaomi phones after reports in recent months that some models automatically send user data back to the firm's servers on China's mainland, Gin-Shian Lou, a director at Taiwan's Communications Commission, said yesterday.

Privately owned Xiaomi has faced several allegations of security leaks in recent months. Last month, the firm publicly apologized and said it would change a default cloud feature after a Finnish security company found proof that Xiaomi collected address book data without permission.

"We wanted to ensure the situation was as they said, so we decided to perform our own tests," Lou said in Taipei, referring to Xiaomi's assurances.

The test results should be made public soon, he said.

It wasn't immediately clear whether the investigation could lead to any ban for Xiaomi's low-priced smartphones in Taiwan.

The manufacturer declined to comment.

Xiaomi has also been accused in the Hong Kong media of sending copies of users' text-messages back to servers on the mainland, a claim that the company has vigorously called false and libellous.

Under Chinese law, companies storing data on Chinese soil must comply with any data requests from the government. Some firms, notably Google Inc, have opted not to situate servers on China's mainland.

Apple Inc said last month that it had begun to store users' personal data on servers on the mainland, marking the first time the tech giant has stored user data on Chinese soil.

Taiwan's government also said in a statement on Tuesday that popular Japanese instant messaging service Line, owned by South Korea's Naver Corp, will be banned from use on government work-related computers, also due to security concerns.

A Line spokeswoman based in Tokyo said the company is investigating the matter but would not provide more details.

Although the vast majority of Xiaomi's sales come from China, the company has set up shop elsewhere in Asia, including Singapore, Malaysia, Indonesia, the Philippines and India. It is also eying expansion into countries like Thailand, Brazil and Mexico.

Hong Kong's public broadcaster quoted the head of the mainland's Taiwan Affairs Office as expressing dismay over Taiwan's decision, saying "one cannot stop the attractiveness of Xiaomi phones among compatriots across the strait."