Printed from http://www.electronista.com

US funding bill slips in 'cyber-espionage' IT purchase check

updated 07:50 pm EDT, Wed March 27, 2013

Consultation required prior to purchases from Chinese firms

As part of the funding law signed this week by President Barack Obama, Congress has included a provision for a formal assessment of "cyber-espionage or sabotage" risk when considering buying information technology systems from a company "owned, directed, or subsidized" by China. The requirement mandates consultation with law enforcement and other assessors prior to purchase, during the evaluation process.

A congressional aide told Reuters that the provision's goal "is not to hurt American and European companies that have operations in China. It was really targeting entities that are directed by Beijing."

"It's a helpful reminder to look at the supply chain" of US firms, the aide said. "The cheap option may be artificially lowered because potentially there are ulterior motives."

The insertion likely is fallout from a Congressional report published in October that leading Chinese telecoms producers Huawei and ZTE should be locked out of the US market over security concerns, reports Reuters. The US House of Representatives' Intelligence Committee argued that the two companies are subject to the influence of the Chinese government. After 11 months of research, the committee reported that it is in the best interests of US. firms and the country to avoid purchasing products from either Huawei or ZTE.

According to a report last year from the Congressional Research Service, the US imports $129 billion annually of information technology products from China, but not all is purchased by branches of government.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As 802.11ac networking begins to makes its way into more and more devices, you may find yourself considering an upgrade for your home ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News