Silicon Sellout Report: Why Apple is Making a Deal with Chinese Semiconductor Manufacturer YMTC

Today, the Coalition for a Prosperous America and China Tech Threat have released Silicon Sellout, a new report detailing how Apple’s decision to use chips made by Chinese semiconductor manufacturer YMTC threatens to harm Americans’ security and privacy and reshape the global semiconductor market in China’s favor.  To recap: Right now Apple has entered into an agreement with YMTC to source YMTC chips for the iPhone. This deal will have serious negative consequences for both Americans and the world: It will concentrate more chip production inside China at a time when supply chains are already vulnerable to Chinese lockdowns and government diktats. It will create major security and privacy risks to Apple users all over the world. It will increase… Read More

“Silicon Sellout” Report Set to Highlight Dangers of Apple-YMTC Deal

Next week China Tech Threat and the Coalition for a Prosperous America will release a new report detailing the dangers an impending – if not already consummated – deal between Apple, the world’s largest company, and YMTC, a Chinese state-subsidized semiconductor manufacturer with deep ties to the Chinese military. The report is one the Chinese government doesn’t want you to read.    CTT has already spent months sounding the alarm on the dangers of an Apple-YMTC agreement. If reports from March are to be believed, Apple is already shipping versions of the iPhone 14 with YMTC chips. The presence of Chinese-made chips inside the world’s most popular smartphone presents massive risks to the security and privacy of the American people.… Read More

“They Are Going to Be on the Bad Boy List” – BIS Under Secretary Alan Estevez Hints at Tough Export Control Actions

At an event promoting the launch of the Global Tech Security Commission – a project of the Atlantic Council and the Krach Institute for Tech Diplomacy – former State Department Under Secretary for Economic and Business Affairs Keith Krach interviewed Alan Estevez, currently the Commerce Department’s Under Secretary Bureau of Industry and Security (BIS). In what he described as “my coming out party” since being confirmed as Under Secretary on March 31st, Estevez conveyed that his job really could be titled “chief technology protection officer of the United States.” While acknowledging that Russia remains a challenge, Estevez made clear that his major focus is “China, China, China.” His top long term priority is to “stop them from using our technology… Read More

Entity-Listed Hikvision Stays in the News for Complicity in Human Rights Abuses

This week the Victims of Communism Memorial Foundation released an explosive new trove of documents detailing more of the Chinese government’s horrific abuses of Uyghur Muslims inside Xinjiang. The Commerce Department wisely added Hikvision, the Chinese surveillance technology giant, to the Entity List in 2019 for complicity in the Xinjiang nightmare – some of the worst crimes against humanity of the 21st century. In April, IPVM published a video entitled “Hikvision Cameras in My Concentration Camp Cell.” In it, a former concentration camp prisoner named Ovalbek Turdakun described how a Hikvision camera watched over him and 22 other prisoners held in a cramped cell, with devices even positioned over the toilet. When IPVM showed him the Hikvision logo, he instantly… Read More

4 State Policy Ideas to Counter China Tech Threats

China Tech Threat (CTT) released a memo to state policymakers offering four specific policy ideas to counter China threats at the state level. CTT has been closely tracking the state-federal tech threat disconnect, and warning that while federal agencies and the U.S. military have rightly taken action to restrict the use of tech makers with ownership ties to the government of the People’s Republic of China (PRC) due to the security risks they pose, those policies are not necessarily adopted at the state level. The memo cites a March 2022 AP report on at least six state governments that were hacked by the Chinese government in the last year. CTT’s own report that found 40 states continue to use Chinese… Read More

BIS Leader Previews New Civil Penalties for Export Control Violations

The Commerce Department’s Bureau of Industry and Security’s (BIS) Assistant Secretary for Export Enforcement, Matthew Axelrod, sounded all the right notes at a speech to the Society for International Affairs on May 16th. Recognizing that adversaries like Russia and China advance their own interests at the expense of the United States, Axelrod previewed strengthened civil penalties from BIS designed to deter American firms from violating export control laws. The proposed new penalties include: BIS publicly disclosing which companies it investigates for export control violations when a case opens, not when it is resolved, often years later Forcing companies to admit wrongdoing if they are found to have violated export control laws Increasing financial penalties for violations These ideas are welcome… Read More

GA State Rep. Momtahan Explains State Solutions To Counter China Tech Threats  

China Tech Threat Co-Founder Dr. Roslyn Layton talked with Georgia State Representative Martin Momtahan just days after Governor Brian Kemp signed into law his bill, SB 346, that will prohibit the State of Georgia or any state agencies from contracting with any company owned or operated by the Chinese government.    During the conversation, Rep. Momtahan explains the impetus for his legislation to protect individuals, businesses and government infrastructure in Georgia from technology threats posed by China intrusion and influence. He shares how his experience working in technology security as far back as 2010 helped him recognize the need for stronger state-level restrictions to match similar technology security policies at the federal level, including the Department of Defense.   Rep. Momtahan also explains… Read More

Chinese Government Subsidies in the Semiconductor Industry: Bad for American Companies and Competitiveness

Last month, Stephen Ezell, Vice President for Global Innovation Policy at the Information Technology and Innovation Foundation, testified before the U.S.-China Economic and Security Review Commission. Much of his testimony addressed how Chinese government subsidies in its homegrown semiconductor industry has damaged American companies and the marketplace in general.  The problem, according to Ezell, is that “Chinese subsidies (and other mercantilist practices) are propping up inferior, less innovative Chinese semiconductor enterprises at the expense of U.S. and other foreign competitors.” He continues: “In the semiconductor sector, perhaps China’s most pernicious mercantilist practice has been aggressively industrial subsidization, largely channeled through the country’s $170 billion National Integrated Circuit (IC) Fund.” Writes Ezell, “Such subsidies are an important part of the explanation… Read More

Is BIS Edging Closer to Putting YMTC on the Entity List?

Is BIS Edging Closer to Putting YMTC on the Entity List? The Information reports that the U.S. Department of Commerce is weighing restrictions on the sale of semiconductor manufacturing equipment (SME) to YMTC, China’s national champion semiconductor manufacturer known to have close ties with the Chinese military. These restrictions, which would also reportedly apply to other state-backed firms such as Hua Hong Semiconductor and ChangXin Memory Technologies, would deal a blow to YMTC’s ability to produce chips, and secure a victory for American national security. The rules, which reportedly take months to develop, would echo the decision the Commerce Department’s Bureau of Industry and Security (BIS) made in 2020 to place China’s Semiconductor Manufacturing International Corporation on the Entity List… Read More

Lenovo to Benefit from the PRC’s Indigenous Tech Ultimatum. Will Democratic Countries Respond?  

Early this morning, Bloomberg reported, “China has ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives.” The directive, claims Bloomberg, is consistent with China’s “sweeping effort to reduce its dependence on geopolitical rivals such as the U.S. for everything from semiconductors to servers and phones.” Lenovo Consolidates Chinese Market and Continues to Sell to States – Despite Military Bans   Lenovo, the global PC manufacturer partly owned/controlled by the Chinese government, will profit most from the ban as the central government replaces 50+ million PCs, with many more sales to come from provincial governments. Ironically, the Bloomberg report speculated that Beijing is concerned about security, yet the State Department, Department of Homeland Security, and… Read More