End of Year Newsletter 2021

China Tech Threat Launches Policy Recommendation Series For BIS

While awaiting Senate confirmation of Alan Estevez as the new Under Secretary for Commerce of the Bureau of Industry and Security (BIS) and Thea Kendler as Assistant Secretary of Commerce for Export Administration, China Tech Threat (CTT) has launched the first in a series of recommendations to help the new BIS leadership pursue an aggressive agenda in 2022 and use the agency’s full range of tools to protect America’s security and prosperity. The first recommendation is for BIS to strengthen enforcement to detect, identify, prosecute, penalize, and deter export control violation. The recommendation comes from the resource-constrained level of enforcement compared to the total value of export of dual-use technologies, which exceeds tens if not hundreds of billions of dollars annually. For more visit www.FutureofBIS.com.

Enactment Of Secure Equipment Act Brings Whole Of Government Approach To Restrict Dangerous Devices

In November, President Biden signed into law the Secure Equipment Act following near unanimous support in the House and Senate. CTT has been a leading advocate to ensure the “Covered List” of vulnerable equipment vendors is current and relevant. We launched a resource page on the history, impact, and role of the law to protect Americans from unacceptable national security risk in equipment which uses radio frequencies. In a Forbes column, Dr. Roslyn Layton writes that the law “reflects a key tenet in US communications law: deploying equipment to use radio frequencies is a privilege, not a right.”

New York Congressional Leaders Call On Governor To Bolster State Cyber Protections

Members of New York’s Congressional Delegation issued a December 15 letter to New York Governor Kathy Hochul requesting details about the state’s “lax practices relating to IT cybersecurity and espionage protections” and purchases of restricted information technology equipment. It was sent as the state looks to allocate new federal funding for IT systems after already spending tens of millions of dollars on technology products from Chinese state-owned and directed companies Lenovo and Lexmark, which have been restricted by federal agencies. The leadership demonstrated by these New York members should be replicated by all states, especially the 38 states already found to have state contracts with risky manufacturers. With a surge in new federal spending in recent COVID-19 legislation and more potential funding in the Build Back Better plan, the time to clarify state IT safeguards and policies is now.

Biden Administration Year End Push To Crack Down On China Tech Threats

As 2021 draws to a close, the Biden has made a push to crack down on U.S. trade with Chinese tech companies that only support the People’s Republic of China (PRC) and its enhancement of military capabilities that directly threaten our national and economic security. These actions include a National Security Council (NSC) meeting to review a proposal to toughen restrictions on China’s largest chipmaker, Semiconductor Manufacturing International Corp (SMIC), U.S. Department of Treasury adding the world’s largest drone maker DJI to the investment blacklist and Senate confirmation of Matthew Axelrod to serve as Assistant Secretary for Export Enforcement at the U.S. Commerce Department, a position that has remained unfilled for five years until now.