"Xi, in South Korea to meet Trump on the sidelines of the Asia-Pacific Economic Cooperation summit, presented the pair of devices to Korean President Lee Jae Myung. In a video circulated on social media, Lee asked: "Is the line secure?" Xi chuckled, pointed at the gadgets and replied through an interpreter: "You can check if there's a backdoor." The two leaders burst into laughter."
"The exchange was striking because the issue of security and alleged espionage is a sensitive one and a major thorn in U.S.-Chinese relations. American lawmakers have raised the possibility that tech companies such as Huawei Technologies Co. build backdoors-ways to gain access to sensitive data-into their equipment or services, something the firms have repeatedly denied. Washington officials have in turn broached the idea of working similar access points or tracking technology into products such as Nvidia Corp. chips-which the U.S. company has publicly opposed."
Xi Jinping presented Xiaomi smartphones to South Korean President Lee Jae Myung and joked about checking the devices for backdoors, prompting laughter. A video on social media captured Lee asking if the line was secure and Xi suggesting the phones could be checked. The exchange touched on sensitive security and espionage issues that strain U.S.-Chinese relations, including concerns about companies like Huawei and debates over access points in technology such as Nvidia chips. Xiaomi shares rose as much as 4.4% in Hong Kong, and the handsets featured curved displays from a South Korean supplier, highlighting engineering collaboration.
Read at Fortune
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