States Starting 2024 with Legislative Focus on Restricting China Tech

Building on strong momentum in 2023, lawmakers in a growing number of states are starting their 2024 legislative sessions with bills to prohibit the purchase of technology by companies owned or operated by the Chinese government.

Below is a roundup of legislative activity by state lawmakers leading the fight to help protect residents, businesses, government offices, infrastructure, and personal and sensitive data from threats posed by the Chinese government. Additional action in other states will only build on this momentum.

Arizona: The Protection Procurement Act (House Bill 2436) has been introduced by Representative Lupe Diaz. The bill follows a comprehensive hearing by the Senate Military Affairs, Public Safety, and Border Security (MAPS) Committee on policies to address threats posed by China. Read more about the hearing and legislation in CTT’s blog.  

Nebraska: The Adopt the Pacific Conflict Stress Test Act and the Foreign Adversary Contracting Prohibition Act (LB 1300), introduced by Senator Eliot Bostar.

Tennessee: The Procurement Protection Act (HB 1841),introduced by House Government Operations Committee Chairman Representative John Ragan.

Maine: On January 25, the Joint Committee on State and Local Government will hold a work session to consider an Act to Prohibit State Contracts with Companies Owned or Operated by the Government of the People’s Republic of China (carried out) (LD877, SP0374), introduced by Senator Lisa Keim.

The fact is, Chinese companies that have been banned or restricted from U.S. military and national security networks like Lenovo, Lexmark, Hikvision, and DJI can still contract with state governments. While federal policy directs information security at the federal level, states must determine their own security standards making them vulnerable to intrusion through the purchase of these risky Chinese technology products and services. A report by CTT found that 28 states have cumulatively bought a total of at least $230 million worth of Lexmark or Lenovo equipment since 2015, with individual states spending up to $47 million.

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