cybersecurity

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

Bipartisan Group of Senators Urges U.S. Intelligence Community to Investigate YMTC’s Risks to National Security

Posted on by China Tech Threat
Last week Senators John Cornyn, Marco Rubio, Charles Schumer, and Mark Warner sent a letter to Director of Intelligence Avril Hanes warning about the national security threat of Chinese memory chip maker YMTC and its impending partnership with Apple. Seizing on the growing awareness that Apple is preparing to put YMTC chips in the iPhone 14, the Senators noted that, “Such a decision would introduce significant privacy and security vulnerabilities to the global digital supply chain that Apple helps shape given YMTC’s extensive, but often opaque, ties to the Chinese Communist Party (CCP) and concerning PRC-backed entities.” This letter is especially timely in light of recent congressional efforts to support the American semiconductor industry through the CHIPS Act. Spending billions… Read More

Florida Adopts Toughest Rules yet to Protect People and Organizations from Chinese Government Intrusion.

Posted on by China Tech Threat
Yesterday Florida governor Ron DeSantis released Executive Order 22-216 to counter Chinese government intrusion in Florida’s computer networks. Noting the critical security threat detailed by national defense authorities and the actions taken to secure federal networks, Governor DeSantis took the step to secure Florida’s state and local government networks by preventing the exposure of government information and technology services and systems in Florida to the Chinese government. China Tech Threat (CTT) has detailed the important efforts to protect people and enterprises whose data is held within state government. Just last week, CTT was in Florida at a James Madison Institute tech summit discussing threats to Florida and actions that leaders intend to take to secure Florida’s residents, businesses and infrastructure.… Read More

New Heritage Foundation Report: Chinese Technology Infiltrating State Governments

Posted on by China Tech Threat
Michael Cunningham of the Heritage Foundation has written an excellent new report: “Why State Legislatures Must Confront Chinese Infiltration.” The report covers myriad Chinese influence and intrusion activities taking place inside the U.S. One of the reports key imperatives is, “Preventing companies linked to the Chinese government from obtaining contracts to build critical infrastructure or supply technology to state government organizations.” Cunningham elaborates on the dangers of state governments letting Chinese-owned companies into their systems: When Americans allow firms controlled by a geopolitical rival to build their critical infrastructure, they practically invite the Chinese to embed vulnerabilities they can exploit in times of conflict. When Americans procure technology from a geopolitical foe, they invite that foe inside the systems used… Read More