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

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News