technology

China Inches Closer to Legacy Chip Dominance – Will the U.S. Government Act Fast and Strong Enough? 

Posted on by China Tech Threat
A collection of recent headlines reinforces what China Tech Threat has been warning about for months – that the world is increasingly at risk of relying on China for its legacy semiconductor needs. The news tells the story of China’s march to obtain total self-sufficiency in semiconductors. This month the world saw Huawei unveil a phone with a 7nm chip made by SMIC – a technological breakthrough that caught many by surprise. CNBC reports that revenue from China’s top chip equipment makers surged in the first half of the year. And Arrian Ebrahmi notes in The Diplomat that China is boosting the country’s tax credit for investments in semiconductor research and development by 20% – further incentivizing Chinese firms to… Read More

Why BIS End-Use Checks in China Are Useless

Posted on by China Tech Threat
By Steve Coonen Quoting an old Russian proverb, President Ronald Reagan once remarked, “Trust, but verify.” Reagan’s words may have been appropriate as the U.S. negotiated an arms control agreement with the USSR. But when it comes to inspecting how China is using American technologies, the U.S. government should adapt his words to go a step further: “Distrust and verify.” At their root, the Bureau of Industry and Security’s (BIS) end-use checks in China are practically useless. Under the terms of the U.S.-China end-use check agreement, it is impossible for U.S. export control officers (ECOs) to verify the ultimate destinations or end-uses of U.S. technology. With other countries, U.S. export control officers can conduct post-shipment verifications (PSV) with few restrictions… Read More

Will Japan Go Beyond U.S. in Semiconductor Export Controls?

Posted on by China Tech Threat
.wp-block-kadence-advancedheading.kt-adv-heading_630bf4-2c, .wp-block-kadence-advancedheading.kt-adv-heading_630bf4-2c[data-kb-block="kb-adv-heading_630bf4-2c"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_630bf4-2c mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading_630bf4-2c[data-kb-block="kb-adv-heading_630bf4-2c"] mark.kt-highlight{font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;} Last October, the U.S. showed leadership on the global stage when the Bureau of Industry and Security (BIS) issued long-awaited export controls aimed to restrict the PRC’s semiconductor capabilities. Multilateral momentum followed with Japan and the Netherlands agreeing to limit exports of chip making equipment to China. More recently, The Financial Times reports that Japan is poised to levy export controls next month that go beyond U.S. action. This is notable because the U.S. focused on advanced chips while Japan is going broader and covering legacy chips as it would cover larger (45 nm) chips.  .wp-block-kadence-advancedheading.kt-adv-heading_8e2244-84, .wp-block-kadence-advancedheading.kt-adv-heading_8e2244-84[data-kb-block="kb-adv-heading_8e2244-84"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_8e2244-84 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading_8e2244-84[data-kb-block="kb-adv-heading_8e2244-84"] mark.kt-highlight{font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;} According to FT, a Chinese chip factory executive said,“Japan’s export controls will be more disturbing… Read More

China Tech Threat’s Exclusive Interview with Congresswoman Radewagen

Posted on by China Tech Threat
During a House Foreign Affairs Committee hearing on February 28, Rep. Aumua Amata Coleman Radewagen asked BIS Under Secretary Alan Estevez, “How many PRC chips are you comfortable having in DoD systems and critical infrastructure?”  We interviewed the Congresswoman afterwards to understand her perspective and what she hopes to achieve. Q1: What would you have liked to hear from BIS Under Secretary Estevez when you asked him “How many PRC chips are you comfortable having in DoD systems and critical infrastructure?”   “Ideally, zero. If that’s not the case, which it seems it’s not at all, it should be an active plan to move toward, not eventually but soon. We should develop clear goals and aggressive progress markers, including priorities… Read More

ME Bill To Prohibit Chinese Technology Comes As Research Reveals State Spending Millions on Dangerous Tech

Posted on by China Tech Threat
On March 21, the Maine State Legislature will hold a hearing on a bill to ban the purchase of risky Chinese technology from manufacturers in the Pine Tree state. Introduced by Senator Lisa Keim, An Act to Prohibit State Contracts with Companies Owned or Operated by the Government of the People’s Republic of China (LD877) comes as new research reveals that Maine has spent more than $5 million on risky Chinese technology from Lenovo, which has already been restricted by the federal government. These $5 million in Lenovo purchases were made by the Bureau of Information Services, but the technology has likely been distributed throughout state agencies (unlike other states, Maine does not disclose where purchased technology is being used).… Read More

West Virginia Must Protect State Data In Addition To Land When It Comes To PRC Threats

Posted on by China Tech Threat
West Virginia State Auditor JB McCuskey recently introduced legislation to protect West Virginians and their property from the People’s Republic of China (PRC). As reported by the WTRF, this legislation proposes adding the PRC to a growing list of countries banned from buying natural resources, farmland, and property from the state of West Virginia. While this bill serves as a productive start to limiting threats from the PRC, the state of West Virginia’s data remains at risk.  China Tech Threat revealed the state of West Virginia spent $482,606 on restricted Chinese technology from Lexmark, Inc and Lenovo, Inc between 2016 and 2023. Technology products by these two Chinese government-owned technology manufacturers have been banned by U.S. military and intelligence agencies… Read More

Advanced! Advanced! Advanced! What About Legacy Chips?

Posted on by China Tech Threat
If you watch what comes out of the Commerce Department on semiconductors – especially as it relates to CHIPS and export controls – you’ll notice an emphasis on advanced and leading edge chips. The U.S. aims to be the “premier destination” for leading edge chips and has “been intentional” about limiting China’s access to advanced chipmaking equipment. But what seems like an almost exclusive concentration on leading edge chips highlights two problems: First, all chips matter. Advanced and leading edge chips are no doubt important, but we can’t forget about legacy chips. These critical chips are in automobiles, planes, home appliances, medical devices, military systems, and more. A new report from CSIS underscores their strategic importance:  “Despite the name, legacy… 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%;}.wp-block-kadence-column .kt-inside-inner-col .kb-image_7275e7-74.kb-image-is-ratio-size, .wp-block-kadence-column .kt-inside-inner-col .kb-image_7275e7-74 .kb-image-is-ratio-size{align-self:unset;}.kb-image_7275e7-74 figure{max-width:400px;}.kb-image_7275e7-74… Read More

U.S. Ready to Double Down on Huawei, Why Not SMIC?

Posted on by China Tech Threat
The Biden administration is reportedly considering cutting Huawei, a well-known Chinese telecom giant with “inextricable ties to the Chinese Communist Party (CCP),” off from American suppliers, including the likes of Intel and Qualcomm. As a precursor, the Commerce Department is said to have told some American companies it will no longer issue licenses for U.S. tech exports to the CCP-backed company. At the end of last year, Huawei declared “business as usual” despite U.S. export controls and is believed to be backing projects in China for an “import-independent semiconductor supply chain.” Martijn Rasser, a technology expert at CNAS, described the Biden administration’s action on Huawei as a “really significant move.” He added, “The actions by the Commerce Department are partly… Read More

Georgia State Rep Calls on Department to Implement Law That Restricts Use of Risky Chinese Tech

Posted on by China Tech Threat
Georgia has emerged as an early leader in passing policies restricting Chinese tech infiltration. In the latest action, Georgia State Rep. Martin Momtahan who authored Georgia’s law that prohibits enterprises owned or operated by the People’s Republic of China from submitting bids for state contracts (SB 346) this week issued a letter to Georgia’s Department of Administrative Services urging the law to be enforced. Since Governor Kemp signed the bill into law in May 2022, other states have followed and have taken action. In September, Florida Governor Ron DeSantis released Executive Order 22-216 directing his state’s Department of Management Services to counter Chinese tech threats. In addition, several other states are also currently considering legislation to prohibit the use of restricted Chinese technology.… Read More