Actions Speak Louder Than Words – Willful Blindness Series Recap

With Labor Day around the corner, the unofficial end of summer is almost here. So, here’s our final plug for beach reading from CTT special advisor Steve Coonen.Coonen, who spent more than two decades in uniform as an Army artillery and foreign affairs officer and then nearly 14 years as an analyst at the Defense Technology and Security Administration (DTSA), wrote a nine-part summer series for CTT on America’s broken export control system. The need to expose the administration’s willful blindless as it relates to export controls could not be more timely. Multiple outlets are reporting that one outcome of Commerce Secretary Gina Raimondo’s visit to China is an agreement between the U.S. and China to begin a series… Read More

CHIPS Act Anniversary: Must Play Offense and Defense

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

Biden Administration Finally Acknowledges Legacy Chips; Will Action Follow Soon Enough?

Up to this point, the U.S. has been laser focused on squeezing China’s ability to acquire and manufacture advanced semiconductors. Legacy semiconductors were not in their purview. That seems to be changing as Bloomberg reports that the U.S. and Europe are now “growing alarmed by China’s rush into legacy chips.”This encouraging development comes on the heels of comments by Commerce Secretary Gina Raimondo at a recent AEI event, where she acknowledged China’s massive investment in legacy chips, called it a problem, and said the U.S. and its allies need to get ahead of it. We’ve written extensively on the value of legacy chips, which are critical to national security and many other purposes. To put it plainly, U.S. policy shouldn’t focus exclusively on one… Read More

China Select Committee Puts Tech Vulnerabilities on Full Display

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

Roslyn Layton Column: Don’t Make the Mistake of Ignoring China’s Legacy Chip Sector

“De-risking” has become the big buzzword to convey how Western democracies intend to manage their economic relationships with China. The concept is good. So why isn’t the threat of the Chinese legacy chip sector a greater part of the conversation?As Roslyn Layton writes for the Foundation for American Innovation, U.S. policymakers are ignoring a looming Chinese legacy chip monopoly at the expense of American national security and economic competitiveness:.wp-block-kadence-advancedheading.kt-adv-heading_37edb0-07, .wp-block-kadence-advancedheading.kt-adv-heading_37edb0-07[data-kb-block="kb-adv-heading_37edb0-07"]{padding-left:40px;font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_37edb0-07 mark, .wp-block-kadence-advancedheading.kt-adv-heading_37edb0-07[data-kb-block="kb-adv-heading_37edb0-07"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;} A Chinese-dominated legacy chip market would mean U.S. warfighters (and U.S. critical infrastructure) could become dependent on Chinese chips for their equipment. The world would once again be at the mercy of China-based semiconductor supply chains, whose unreliability bedeviled the world economy during the pandemic.… Read More

Indiana Is 4th State in 2023 to Enact a Law Prohibiting Dangerous Chinese Tech

On May 1, Indiana Governor Eric Holcomb signed a law to prohibit the purchase of dangerous Chinese technology that could put the state and its sensitive data at risk of intrusion by the People’s Republic of China (PRC). In doing so, Indiana joins the growing list of states that have enacted similar bills in recent weeks, including Idaho, South Dakota and Arkansas.Introduced by State Senator Justin Busch, Senate Bill 477 prohibits the “purchase of equipment or services produced or provided by certain prohibited persons determined to be a national security threat to communications networks or supply chains,” including China.The new law prohibits companies from bidding on contracts if the company:“would be able to directly or remotely access… Read More

Bill A5384 Will Protect New Jersey From Theft From China Tech

In January, New Jersey Governor Phil Murphy announced a cybersecurity directive to prohibit the use of technology vendors and software products and services that present an unacceptable level of cybersecurity risk to the state. Currently, Lexmark and Lenovo are not prohibited by this directive, but the $1,121,777 New Jersey has spent on dangerous technology from these Chinese-owned manufacturers serves as reason to also prohibit them under the directive. China Tech Threat discovered in recent research that between 2018 and 2023, New Jersey has spent $1,121,777 on Lexmark and Lenovo technologies already restricted by U.S. military and intelligence agencies due to their connections to the Chinese government and military. Our fact sheet reveals that the New Jersey agencies that purchased this… Read More

State Policy Update: Ending Contracts with PRC-Owned Manufacturers

Six weeks after publishing our landmark report (“States of Denial vs. States of Momentum”), we return to provide good news: Already in 2023 two states have enacted laws to end contracts with Chinese government-owned companies and ten more have considered the same.In just the past few weeks, South Dakota Governor Kristi Noem signed SB 189 on March 22 and Idaho Governor Brad Little signed HB 294 on April 3.Our state legislative update can be found here and details or our interactive state momentum map have been updated so that readers can learn more about each of the bills with links to their text, sponsors and status.We will closely follow the progress of six states that continue to… Read More

Idaho Bill To Restrict China Tech Advances to State Affairs Committee

In 2016, China was Idaho’s number two trade partner, and its rank has now dropped to number seven. At the same time, the Idaho State Legislature is also acting to restrict the use of dangerous China tech that opens the doors to intrusion as China Tech Threat’s recent report shows that the state of Idaho spent over $33 million on restricted Chinese technology. from Lexmark and Lenovo between 2015 and 2022. Introduced by Idaho Representatives Edward H. Hill and Sage G. Dixon, House Bill 294 adds to existing law to prohibit public entities from entering into certain contracts with companies owned or operated by the People’s Republic of China (PRC). The bill passed the House by a vote of 62-7-1… Read More

South Dakota Bill To Prohibit Dangerous China Tech Signed Into Law

On March 22, South Dakota Governor Kristi Noem signed into law SB 189 that prohibits purchasing agencies from contracting with companies owned or controlled by certain foreign entities or governments, including China. The bill received broad support, receiving only 2 votes against it in the Senate. At the bill signing ceremony, the bill’s original sponsor Senator Jim Stalzer cited China Tech Threat’s research that found that between 2016 and 2022, the state of South Dakota spent $29,808 on Chinese technology from Lexmark and Lenovo that is restricted or banned by the federal government. The research also revealed the technology is used by government agencies that hold sensitive information, including the National Guard Armory and the Division of Criminal Investigation. The… Read More