China Tech Threat’s (CTT) initial reporting on state spending on risky Lexmark and Lenovo technology revealed that New York spent more than $28 million on technology from these manufacturers. The concerns with New York – home to the world’s financial markets, a leader in modern optics and electronics, a hub for biotech innovation, and soon the home to a $100 billion semiconductor manufacturing plant – deploying so much PRC technology have been well-documented by CTT. Read more here.
However, CTT’s updated state report released in May 2023 found New York has significantly reduced purchases of this dangerous technology already restricted by the U.S. military and intelligence agencies due to its connection to the Chinese government and military. The New York fact sheet shows that between 2018 and 2023 the state spent $2,440,090 on Lexmark and Lenovo technology that it is being used in various departments that are now at risk of sensitive data leaks, including the Office of the Attorney General, the Legislative Bill Drafting Committee, and the Division of State Police.
While the significant decline in spending is an encouraging sign that New York’s leaders recognize the risk of purchasing dangerous Chinese-owned technology that makes the sensitive data held by these agencies vulnerable, the prohibition of any future purchases should be the end goal.
The fact is, any use of Lexmark and Lenovo technology requires the two companies to provide information to the Chinese government as required by China’s 2017 National Intelligence Law. (Read more about Lenovo and three other dangerous Chinese government-owned tech manufacturers in our May briefing paper.)
New York legislators should look to the 17 states taking action to ban state agencies from purchasing and deploying Chinese technology to prevent the exposure of government and citizens’ confidential information to the Chinese government. These efforts include South Dakota Governor Kristi Noem signing SB 189 into law in March, Idaho Governor Brad Little signing HB 294 and Arkansas Governor Sarah Huckabee Sanders signing HB 1789 in April, and, most recently, on May 1 Indiana Governor Eric Holcomb signing SB 477.
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