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Study Reveals US Vulnerable From Tech Reliance on China

Study Reveals US Vulnerable From Tech Reliance on China
(Ahn Youn-joon/AP)

Thursday, 19 April 2018 04:38 PM EDT

A new study warns the U.S. government is dangerously vulnerable to Chinese espionage or a cyberattack because of its dependence on electronics and software made in China.

The risk will only grow as China seeks global technological dominance, according to the report for the U.S.-China Economic and Security Review Commission.

The U.S. government's annual $90 billion in spending on information technology is devoted to Chinese products — providing back doors that could be exploited for cyberattacks, Jennifer Bisceglie, chief executive of Interos Solutions, which conducted the study, told The Washington Post.

"They are doing it," she told the Post. "We're not even making it difficult right now."

Under its "Made in China 2025" program, the Chinese government is funneling $300 billion into 10 strategic industries including artificial intelligence, semiconductors and robotics, the Post reported.

The aim, the Post reported, is for China to become the global leader in the technologies needed for commercial and military dominance.

The U.S.-China commission report describes a fragmented acquisition system and lack of clear rules about the assessment of foreign risks, the Post reported.

"The conflicting and confusing laws and regulations result in loopholes, duplication of effort and inconsistently applied policies," concluded the report by Interos, an Alexandria, Virginia-based supply chain consultant, the Post reported.

Top federal suppliers of computers, routers, software, and printers such as Hewlett-Packard Enterprise/HP Inc., IBM, Dell, Cisco, Unisys, Microsoft, and Intel rely on Chinese factories for many of their components.

The report said 51 percent of parts shipped to those companies originated in China. Microsoft had the largest share of Chinese components at 73 percent, the report said.

Although the report focuses on China, it says other countries, such as Israel and Russia, also pose supply-chain risks, the Post reported.

Last September, the Department of Homeland Security ordered federal agencies to stop using anti-virus software from Russia's Kaspersky Lab, citing "ties between certain Kaspersky officials and Russian intelligence," the Post noted.

According to the Post, the introduction of 5G wireless networks, the next generation of Internet systems, also might increase supply-chain risks, because China is seeking a greater role in setting international technical standards for such systems.

"The problem is growing in magnitude," Michael Wessel, a member of the U.S.-China commission, told the Post. "We don't have a plan to address China's increasing role on the world stage and its plan to dominate ICT."

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According to the report for the U.S.-China Economic and Security Review Commission, the U.S. government is dangerously vulnerable to Chinese espionage or a cyberattack because of its dependence on electronics and software made in China.
china, technology, national security, trade war, tariffs
393
2018-38-19
Thursday, 19 April 2018 04:38 PM
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