Google became aware of unauthorized digital certificates for several of its domains.
The certificates were issued by an intermediate certificate authority apparently held by a company called MCS Holdings. This intermediate certificate was issued by CNNIC.
CNNIC is included in all major root stores and so the misissued certificates would be trusted by almost all browsers and operating systems. Chrome on Windows, OS X, and Linux, ChromeOS, and Firefox 33 and greater would have rejected these certificates because of public-key pinning, although misissued certificates for other sites likely exist.
Google promptly alerted CNNIC and other major browsers about the incident, and blocked the MCS Holdings certificate in Chrome with a CRLSet push.
CNNIC responded on the 22nd to explain that they had contracted with MCS Holdings on the basis that MCS would only issue certificates for domains that they had registered. However, rather than keep the private key in a suitable HSM, MCS installed it in a man-in-the-middle proxy.
These devices intercept secure connections by masquerading as the intended destination and are sometimes used by companies to intercept their employees’ secure traffic for monitoring or legal reasons. This situation is similar to a failure by ANSSI in 2013.
This explanation is congruent with the facts. However, CNNIC still delegated their substantial authority to an organization that was not fit to hold it.
Google has no indication of abuse and is not suggesting that people change passwords or take other action.