cybersecurity

Utah Spent $34 Million on Risky Chinese Tech, Time For State To Take Action

Posted on by China Tech Threat
In February, Utah Sen. Mitt Romney, urged the Biden Administration to implement recently passed bipartisan legislation requiring the US to develop a comprehensive strategy addressing the China threat, stating, “it drives me nuts to watch us deal with China.” This is not just an issue to be dealt with in the halls of Congress.  Between 2018 and 2021, Sen. Romney’s home state of Utah has spent more than $34 million on risky Chinese technology from Lenovo, including for the Attorney General’s Office. (Read the Fact Sheet on Utah’s spending here.) Unfortunately, Utah’s $34 million expense triples the expense from just a few years ago, when our prior report indicated that the state spent $11 million between 2016-2020. (See our March… Read More

New China Tech Threat Paper Details Hundreds of Millions of Dollars in U.S. State Government Purchases of Lexmark and Lenovo Equipment

Posted on by China Tech Threat
On Thursday, China Tech Threat released a report rife with new research into how 28 U.S. states have created massive vulnerabilities for their citizens by purchasing at least $230 million worth of technology made by Chinese-owned and operated companies Lexmark and Lenovo since 2015.  While the Chinese Communist Party (CCP) is capable of exploiting many kinds of technology to spy on Americans, steal from them, or commit cyberattacks, Chinese companies are especially dangerous because of the CCP’s 2017 National Intelligence Law, which obligates Chinese companies to turn over any information Beijing demands. That puts Americans’ financial, personal, and health data at risk, in addition to sensitive organizational and government data. .kb-image_7275e7-74.kb-image-is-ratio-size, .kb-image_7275e7-74 .kb-image-is-ratio-size{max-width:400px;width:100%;}.kb-image_7275e7-74 figure{max-width:400px;}.kb-image_7275e7-74 .image-is-svg, .kb-image_7275e7-74 .image-is-svg img{width:100%;} The report’s… Read More

Biden’s SOTU Should Spur More Bipartisan Action on CCP-Backed Semiconductor Companies

Posted on by China Tech Threat
On the heels of the Chinese spy balloon incident, President Biden delivered his State of the Union (SOTU) address. Three welcome calls to action related to China came through: Energize American semiconductor production, research, and innovation. Check China’s dominance in semiconductor production and other technologies. Work with international partners aimed at protecting advanced technology. The first of the key points in President Biden’s address was the bipartisan passage of the CHIPS Act, a law designed to help increase domestic production, research, and innovation in the semiconductor industry. He clearly stated, “We’re going to make sure the supply chain for America begins in America,” and later pointed out that investing to make America stronger means “Investing in American innovation, in industries… Read More

New Study Confirms China’s Ability to Spy… Through the Fridge

Posted on by China Tech Threat
Chinese spy balloons have been dominating headlines over the past few days. As the New York Times reported, “Balloon Incident Reveals More Than Spying as Competition with China Intensifies.” While the U.S. recovers the balloon and takes a closer look at the findings, it will not only be interesting to know what may have been communicated to China, but also what technology was used to do it. For example, were there any chips from China’s bellwethers (SMIC, YMTC, and CXMT)? All that said, this is not the only news of China spying that should have us up in arms. Late last month, The Telegraph and others reported, “China Can Use People’s Fridges and Laptops to Spy on Them, UK Warned.”… Read More

Biden Administration on China and Export Controls: Economic Cold War or Reflection of Reality?

Posted on by China Tech Threat
As China Tech Threat readers very well know, the Biden administration issued long-awaited export controls in October designed to restrict the People’s Republic of China’s (PRC) ability to purchase or manufacture high-end chips. Some have criticized the move as “a declaration of an economic cold war.” Daleep Singh, a former Biden administration Deputy National Security Adviser, is weighing in. Singh recently wrote in The Economist that “America is simply adapting to intensified competition for pre-eminence in the foundational technologies of our time.” We agree. From both national security and economic standpoints, Chinese dominance and superiority in the semiconductor space is dangerous, and the Biden administration has taken actions to prevent that from happening. Singh also calls for the Biden administration… Read More

More Dangerous Than TikTok: State Legislators Make Prohibiting Risky Chinese Tech A Priority in 2023

Posted on by China Tech Threat
There has been growing awareness over that past few years that states are vulnerable to intrusion by the Chinese government, starting with China Tech Threat’s 2020 report, Stealing From the States: China’s Power Play in IT Contracts.  A March 2022 report by cybersecurity firm Mandiant exposed that at least six states were hacked by the Chinese government – six that we know of. And this past July, the U.S. National Counterintelligence and Security Center issued a notice warning of China’s aggressive campaign to exert influence at the state and local levels. The notice provided specific detail on China’s strategy to collect personal information on state and local leaders and their associates. Fortunately, 2022 was a pivotal year as several states… Read More

BIS is on the Clock: Experts Assess Export Controls, Effectiveness with Regard to China

Posted on by China Tech Threat
We have 7 DAYS left in the BIS Countdown that started on October 7 when the Bureau issued long-awaited export controls targeting Chinese chipmakers. Will YMTC, a national champion chipmaker, and others on the Unverified List (UVL) allow for and pass end-use checks, or will they get put on the Entity List? That’s one of our big questions. Earlier this month, Roslyn Layton hosted a virtual event to dive into the new export controls and related issues with Nazak Nikakhtar (Partner and National Security Co-Chair, Wiley; former Department of Commerce Lead on CFIUS) and Dustin Carmack (Research Fellow, Heritage Foundation). They discussed the impact of the controls on China’s semiconductor capabilities, the Apple-YMTC relationship, and how the new Congress should… Read More

CTT Quick Cut Wrap Up: Experts Assess Implications of Export Controls for YMTC, Apple

Posted on by China Tech Threat
The U.S. is at a key moment with its China-focused export control policy. On October 7, the Commerce Department issued a slew of new regulations targeting China’s semiconductor industry, triggering a crucial 60-day period when Commerce Department will decide whether to add firms like YMTC and CXMT to the Entity List. Meanwhile, a new Congress looks poised to exert pressure on Commerce to maintain a tough stance, with the potential new chairman of the House Foreign Affairs Committee, Michael McCaul, saying he will be “focused like a laser on export control issues.” And the New York Times wants to know if Apple will permanently step back from a dangerous Apple-YMTC deal, but Apple hasn’t yet commented. On November 15, CTT’s… Read More

Georgetown’s CSET Scrutinizes State Spending on Banned Foreign Tech Threats

Posted on by China Tech Threat
CSET Joins Heritage and China Tech Threat in Calling for State Procurement Restrictions In July 2019, the Department of Defense Inspector General published a report exposing $30+ million in military spending on commercial over-the-shelf products such as Lexmark printers and Lenovo computers. These companies are dangerous, among other reasons, because they give the Chinese government a potential access point to sensitive data. Early the next year, China Tech Threat conducted a thorough review of state contracts and spending on both companies, confirming that about 40 states purchased products from Lenovo and Lexmark. Today Georgetown University’s Center for Security and Emerging Technology (CSET) published a new study that extends and expands on China Tech Threat’s earlier work. “Banned in D.C.: Examining… Read More

New U.S. Export Controls Complicate Xi’s Tech Ambitions

Posted on by China Tech Threat
Chinese Communist Party General Secretary Xi Jinping’s two-hour speech to the 20th CCP Party Congress on October 16th didn’t contain too many surprises. If anything, it’s clear Xi remains committed to stiff competition with the West for control of the commanding heights of modern technologies. That control will be harder to obtain in light of the new export controls the Commerce Department issued on October 7th. Held every five years, the Party Congress gives CCP leaders a chance to set priorities for the Party. In one key passage, Xi stated, “To meet China’s strategic needs, we will concentrate resources on original and pioneering scientific and technological research to achieve breakthroughs in core technologies in key fields.” Presumably, semiconductors would be… Read More