In 2020, China Tech Threat authored an original report detailing how 40 state governments purchased millions of dollars worth of technology from two Chinese government-owned companies Lenovo and Lexmark, which are restricted by the Pentagon Inspector General.
While the federal government has taken steps to curtail spending on dangerous tech products and services, states have no collective security evaluation and continue to inadvertently expose their data through the purchase and deployment of tech products from these companies.
In February 2023, we released an update to the original 2020 report with spending data for 28 states which showed they have cumulatively spent more than $230 million on Lexmark and Lenovo technology. (See www.StatesStopChinaTech.com.)
We are pleased to announce that on May 17, we will finish the job by releasing spending analysis for the remaining states. While there are some positive recent developments, CTT does not tell an encouraging story for a vast majority of states.
The Threat
- 46 states have recently made purchases from one or both PRC-owned companies, with recent spending totaling over $285 million.
- Per-state spending ranges from a few thousand dollars to nearly $50 million.
- Scores of agencies charged with protecting sensitive data are using this dangerous technology, including six military-connected agencies, 10 state police forces, several departments with election oversight, and 13 state legislatures.
- Twelve states appear to have significantly increased spending on Lexmark and Lenovo equipment in the past few years, such as Arizona, Arkansas, Connecticut, Georgia, Florida, Hawaii, Idaho, Kentucky, Minnesota, Utah, Texas, Washington and Wisconsin.
Progress
The good news is that states are starting to act. When we released our 2020 paper, Vermont was the single state that had enacted a law to restrict suspect technology. However, in the past year, six more have passed laws (three in 2022 and four in 2023).
- Model policies enacted from Georgia and Florida in 2022 have already made an impact in 2023, with four states ratifying laws this spring – Arkansas, Idaho, Indiana and South Dakota.
- Nine additional states have or continue to consider legislation this year.
- While laws in two states were weakened through the legislative process, our report describes adjustments that can be made in 2024 to make them more effective, among a full set of recommendations for state policymakers.
Check www.StatesStopChinaTech.com on May 17 for the final 50-state report, including fact sheets, interactive maps, an updated briefing paper, and short videos.
Also be sure to check out the blog on Substack: https://chinatechthreat.substack.com/p/what-did-your-state-spend-on-restricted