AZ Spending on Restricted China Tech Continues, But Lawmakers Working to Stop It

Updated research at the start of 2024 shows that the State of Arizona continues to spend taxpayer money on Lenovo technology, despite its close connections to the Chinese government. According to data available on the state’s Arizona’s Financial Transparency Portal, the state has spent an additional $648,129 on Lenovo technology already in 2024 and $543,881 in 2023. This additional spending comes on top of the previous spending disclosed in China Tech Threat’s 2023 report and brings the total the state of Arizona has spent on this restricted Chinese technology from Lenovo, Inc. to  $7,012,317between 2016 and 2024.

Fortunately, Arizona lawmakers are making it a priority to stop this spending in 2024 and have introduced legislation to prohibit such spending and held hearings to examine the potential threats. On January 10, the Arizona Senate Military Affairs, Public Safety, and Border Security (MAPS) Committee held a hearing on policies to address threats posed by China. That same week, State Representative Lupe Diaz introduced the Protection Procurement Act (House Bill 2436) which will require agencies and vendors who are contracting with the State to disclose their purchases from hostile enemy nations such as China, North Korea and Iran. The bill further states, “A covered company may not bid on, submit a proposal for or enter into a contract with a state agency or political subdivision of this for good or services.” China Tech Threat Principal Gen. Spider Marks and its policy director provided expert testimony on the comprehensive nature of the threats and what Arizona leaders can do about it at the January 10 hearing. You can view the full hearing here.