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CHIPS Act Anniversary: Must Play Offense and Defense

Posted on by China Tech Threat
Today, in honor of the first anniversary of the CHIPS Act, Commerce Secretary Gina Raimondo said, “The CHIPS for America program is a historic opportunity to solidify America’s leadership and protect national security.” Yes, the CHIPS Act is an important step in developing our own capabilities, but to be successful, we need to play offense and defense. Former Pentagon Chinese tech advisor Steve Coonen makes this point in the video below. Coonen cautions that we shouldn’t assist adversaries like China by supplying them with the semiconductor manufacturing equipment that they need to boost their own capabilities. For China, the ultimate aim is to dominate the global semiconductor market. We’ve seen this playbook before. China will subsidize and dominate – just… Read More

CHIPS Act Anniversary: Every Chip Matters

Posted on by China Tech Threat
For the CHIPS Act to succeed, we need to increase our domestic capabilities and decrease our dependence on China for all types of chips. Retired Major General James “Spider” Marks tells us that in a new video to mark the one year anniversary of the CHIPS Act. His emphasis on all types of chips is important. While the Biden Administration recently acknowledged the importance of legacy chips, its policy actions to date have been focused on advanced chips. But every chip matters. To underscore the critical value of legacy chips, Marks points to their very immediate and relevant applications in smart weapons systems. While the CHIPS Act will play a big role in increasing America’s domestic chipmaking capabilities, Marks ends… Read More

CHIPS Act Anniversary Arrives, Former National Security Advisor Weighs In

Posted on by China Tech Threat
This Wednesday (August 9), marks the one year anniversary of President Joe Biden signing the CHIPS Act into law. While it’s too early to judge if it’s ultimately a success or not, challenges persist, namely: U.S. export controls still ignore legacy Chinese chip manufacturers. Chinese chipmakers, including legacy leader SMIC, are growing stronger. Supply chain disruptions are front of mind. How do we ensure we have enough legacy chips for automotive, defense, and more if there’s another pandemic or global crisis? The U.S. military is still dependent on Chinese chips for mission-critical equipment. What do all these concerns share? Legacy chips. For these reasons and more, China Tech Threat recommended that when CHIPS Act funding allocations are made, that they… Read More

Why BIS End-Use Checks in China Are Useless

Posted on by China Tech Threat
By Steve Coonen Quoting an old Russian proverb, President Ronald Reagan once remarked, “Trust, but verify.” Reagan’s words may have been appropriate as the U.S. negotiated an arms control agreement with the USSR. But when it comes to inspecting how China is using American technologies, the U.S. government should adapt his words to go a step further: “Distrust and verify.” At their root, the Bureau of Industry and Security’s (BIS) end-use checks in China are practically useless. Under the terms of the U.S.-China end-use check agreement, it is impossible for U.S. export control officers (ECOs) to verify the ultimate destinations or end-uses of U.S. technology. With other countries, U.S. export control officers can conduct post-shipment verifications (PSV) with few restrictions… Read More

Scratching the Surface on Legacy Chips

Posted on by China Tech Threat
During Wednesday night’s Select Committee on the CCP hearing on “Ensuring U.S. Leadership in the Critical and Emerging Technologies of the 21st Century” Lindsay Gorman from The German Marshall Fund raised an important point. She said we must look at the CHIPS Act as a start of America’s recovery of strength in the semiconductor space, not an isolated initiative. Acknowledging that technology isn’t static, she said “we need a continuous iterative process where we evaluate to the best of our ability, what are the critical technologies of the future of the next 5, 10, 15 years? Where is China leading? Where are we leading?” Right now, America risks ceding the future of legacy semiconductors.  When it comes to semiconductors, the U.S. government… Read More

Reforming the Flawed Process of Listing Chinese Entities on A Case-By-Case Basis

Posted on by China Tech Threat
By Steve Coonen In 2019, the Department of Commerce’s Bureau of Industry and Security (BIS) wisely placed Huawei on the Entity List. This action was necessary for making sure the company could not obtain American components it needs to win the 5G race. But Huawei moved fast to protect its interests, quickly spinning off a company called Honor to maintain the flow of U.S. components required to produce 5G mobile devices. A state-owned company, Shenzhen Zhixin New Information Technology, subsequently purchased Honor in 2020, demonstrating the important role that the Chinese government plays in directing strategic technologies such as 5G. During my time serving at the Department of Defense (DOD), I personally pushed for the federal government to add Honor… Read More

Is Your State 1 of the 46 That Has Purchased Banned PRC-Owned Technology?

Posted on by China Tech Threat
Did your state contribute to the more than $285 million states have spent on dangerous PRC-owned tech? Has your state taken up policy to prohibit these dangerous contracts that put your residents, businesses and state infrastructure at risk? The answer to these questions can be found in China Tech Threat’s (CTT) 50-state research and analysis of spending on restricted Lexmark and Lenovo technology. View the interactive state maps at www.StopChinaSpending.com and the corresponding States of Denial vs States of Momentum report The links detail the 46 states that have recently made purchases from one or both PRC-owned companies, with recent spending totaling over $285 million. Scores of agencies charged with protecting sensitive data are using this dangerous technology, including six… Read More

Challenges Still Loom Large on the Eve of the CHIPS Act One Year Anniversary

Posted on by China Tech Threat
On August 9th of last year, President Biden signed the CHIPS and Science Act to restore American semiconductor manufacturing. Commerce Secretary Gina Raimondo described the impetus in response to China’s ominous ambitions: Over the past decade, China’s leaders have made clear that they do not plan to pursue political and economic reform and are instead pursuing an alternative vision of their country’s future… [T]hey are accelerating their efforts to fuse their economic and technology policies with their military ambitions. … Semiconductors are ground-zero… As we approach the one-year anniversary, four challenges remain paramount:  #1. U.S. Export Controls Still Ignore Legacy Chinese Manufacturers  Legacy (or mature) chips are critical to defense systems, critical infrastructure, automobiles, medical devices, consumer electronics, and other… Read More

China Select Committee Puts Tech Vulnerabilities on Full Display

Posted on by China Tech Threat
Yesterday, the House Select Committee on the Chinese Community Party (CCP) held a hearing on “The Biden Administration’s PRC Strategy.” When asked if U.S. technology should go to a company that spies on the U.S. like Huawei, there was universal agreement from the witnesses: No. Huawei has become the poster child for Chinese companies that threaten our national security. While the U.S. took actions that at one point left the telecom giant “struggling to survive,” it has since rebounded. Not only did a Wall Street Journal exclusive recently reveal that Huawei workers were tracked to suspected Chinese spy sites in Cuba, Huawei is also working with SMIC to get chips to “overcome U.S. sanctions.” The U.S. needs to take additional… Read More

Georgia’s Early Leadership To Prohibit Purchases of Dangerous China Tech Is An Example For Other States

Posted on by China Tech Threat
As China Tech Threat (CTT) reported in February, Georgia emerged as an early leader with the passage of SB 346 to protect Georgia residents from China intrusion. Authored by State Rep. Martin Momtahan and signed into law in 2022 by Governor Kemp, the law prohibits companies owned or operated by China from bidding on state contracts. This law was timely as CTT’s research showed Georgia recently spent $47,259,946 on restricted Chinese technology from Lexmark and Lenovo. Implementation of this new law will help eradicate the use of Georgia taxpayer dollars to purchase dangerous Chinese technology. Rep. Momtahan has been working for its enforcement and in a February 2023 letter to Georgia’s Department of Administrative Services, he called for the Department… Read More