As per a business advisory issued to all the US companies, the Department of Homeland Security warned about using the products and services of any Chinese firms. This is reasoned with the coercive security laws of China, where the PRC government can alter products to set backdoors and bugs to steal US proprietary data.
The US Warned About Using Chinese Products
Trump’s administration has long been pressing US agencies to stand against China in all ways possible. The US government has added many Chinese firms like Huawei, DJI, SMIC, etc into the Entity List, and imposed harsh sanctions on transactions.
All these actions were made claiming that China poses a threat both technologically and economically to the US. Christopher Wray, the FBI director has said that almost half of nearly 5,000 counter-intelligence cases they deal with are from China.
The advisory released today explains the relationship between the Chinese government and the Chinese companies as coercive, where the security laws were designed to let PRC alter the products of Chinese firms, and set backdoors, bugs, and other covert data collection mechanisms from users.
Also, local companies may be demanded by the Chinese government to surrender any data they collect to detour the rival nations, and at the same time, to excel in the Chinese economy. DHS called that for long, many US companies are exposing sensitive data with regularly surfacing vulnerabilities, which is stolen by the Chinese government eventually.
Calling the coercive practices of the Chinese government on its local companies as “PRC [People’s Republic of China] government-sponsored data theft“, it warned the US companies to consider transacting with Chinese players as a serious threat.
Also, it described that “Any person or entity that chooses to procure data services and equipment from PRC-linked firms, or store data on software or equipment developed by such firms, should be aware of the economic, reputational, and, in certain instances, legal, risks associated with doing business with these firms.”