2024 State Momentum Update: February 7

Since our last update on January 23, a number of states have added to the strong momentum with bills to prohibit the purchase of technology by companies owned or operated by the Chinese government. Below is the latest roundup of legislative activity by state lawmakers leading the fight to help protect residents, businesses, government offices, infrastructure, and personal and sensitive data from threats posed by the Chinese government.

Utah (New): On January 26, 2024 Representative Candice Pierucci introduced the Public Entity Restrictions bill, HB 404. Among other things, it prohibits procurement of technology or technology services, networks, or systems from restricted foreign entities, including China. 

Maryland (New): On February 2, 2024 Delegate Brian Chisolm introduced HB 894 which prohibits an entity owned, operated, or controlled by the government of the People’s Republic of China from participating in any procurement with the state, a local government in the state, a public instrumentality in the State, or any governmental unit in the state. 

Tennessee (Update): The Procurement Protection Act (HB 1841) introduced on January 11, 2024 by House Government Operations Committee Chairman Representative John Ragan was followed by the companion Senate bill (SB 2859) introduced by Senator Kerry Roberts. The bills prohibit certain foreign entities including China, from submitting bids for contracts with the state or a political subdivision of the state and requires entities bidding on contracts to make certain disclosures and certifications 

Nebraska (Update): On February 8, the Government, Military and Veterans Affairs Committee will hold a hearing on the Adopt the Pacific Conflict Stress Test Act and the Foreign Adversary Contracting Prohibition Act (LB 1300), introduced by Senator Eliot Bostar where China Tech Threat will provide expert testimony. CTT has released new data on even more recent spending on restricted tech than was found in our 2023 report. For more information, click here

Maine (Update): On January 25, the Joint Committee on State and Local Government voted to advance the Act to Prohibit State Contracts with Companies Owned or Operated by the Government of the People’s Republic of China (LD877, SP0374), introduced by Senator Lisa Keim. CTT has released new data on even more recent spending on restricted tech than was found in our 2023 report. For more information, click here

Arizona: The Protection Procurement Act (House Bill 2436) has been introduced by Representative Lupe Diaz. The bill follows a comprehensive hearing by the Senate Military Affairs, Public Safety, and Border Security (MAPS) Committee on policies to address threats posed by China. Read more about the hearing and legislation here

The fact is, Chinese companies that have been banned or restricted from U.S. military and national security networks like Lenovo, Lexmark, Hikvision, and DJI can still contract with state governments. While federal policy directs information security at the federal level, states must determine their own security standards making them vulnerable to intrusion through the purchase of these risky Chinese technology products and services. A report by CTT found that 46 states have cumulatively bought a total of at least $230 million worth of Lexmark or Lenovo equipment since 2015, with individual states spending up to $47 million. CTT continues to update our previous findings, as in Maine and Nebraska, and we’ll be announcing new data from other states in the weeks ahead.