May Newsletter

State Policy Proposals 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 that puts states at risk of intrusion by the People’s Republic of China. In a Forbes column, CTT Co-Founder Dr. Roslyn Layton explains one of the risks: “While some post-purchase measures can secure systems from software hacks, hardware-based hacks are essentially impossible to thwart because backchannels and backdoors are built into hardware. . .  The threat prevails for Lenovo laptops and YMTC chips so it’s better not to acquire the equipment in the first place.”

Video: New GA Law Prohibits State Contracts With Chinese-Owned Companies.

Tune in here to watch Dr. Layton’s interview 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. Rep. Momtahan explains why Georgia is just the beginning and how he is working to have versions of his bill adopted in other states: “This is just the beginning. And I think we’re either the first or one of the very first states that have adopted this policy. And I think this is going to spread like wildfire.”

Chinese State-Owned YMTC Could Be Next On Entity List.

Following CTT’s siren about Apple potentially doing business with YMTC, a Chinese state-owned semiconductor manufacturer with deep ties to the Chinese military, The Information reports that the U.S. Department of Commerce is weighing restrictions on the sale of semiconductor manufacturing equipment (SME) to the company. The Financial Times also reported that the U.S. government is examining YMTC for violations of U.S. export control law. In a blog, CTT notes how the restrictions would prevent companies like Applied Materials, Lam Research, and KLA Corporation, which collectively reported $14.5 billion in sales to China last year, from exporting semiconductor manufacturing equipment to YMTC.

BIS Under Secretary On How To Stop China From Using Our Tech Against Us.

During an interview at the Global Tech Security Commission launch event, BIS Under Secretary Alan Estevez described his job as “chief technology protection officer” while making clear that his major focus is “China, China, China,” and how to “stop them from using our technology against us.” With recent news reports that the U.S. government is examining YMTC, which may be next on the Entity List, Estevez also discussed the types of companies that belong on the “bad boy list.”

How BIS Can Help Stop China’s Quest For AI Dominance.

CTT recently released a paper on how the Commerce Department’s Bureau of Industry and Security (BIS) can help America remain the world’s artificial intelligence leader as China races to use AI to gain a competitive military advantage. The report details how new BIS Undersecretary Alan Estevez should leverage Pentagon relationships and military expertise to fast-track a BIS strategy for AI. Warning how China is already deploying AI, Dr. Layton wrote in a Forbes column, “While the Soviets gave away AK-47s to get new members of its bloc, the PRC sells AI-enabled tech to build police states in emerging countries.”