Congress Curtails Government IT Purchases From China

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Thanks J. Nicholas Hoover for putting out this article, it talks about how the federal government plan to eliminate buying IT and mobile products from China.

The continuing resolution funding the federal government through the end of September, which is now sitting on the President’s desk and ready for his signature, bars government purchases of IT equipment produced by Chinese government-owned or -subsidized companies without prior consultation with the FBI.

The bill reflects continued and rising concerns about Chinese hacking and other risks of Chinese technology. The Obama Administration recently has picked up rhetoric about Chinese hacking as reports continue to pour in about the Chinese government’s connection to cyber espionage.

Specifically, the bill prohibits a short list of specific government agencies, including the Departments of Commerce and Justice, NASA and the National Science Foundation, from using funds made available as part of the continuing resolution to buy any IT unless the FBI “or other appropriate federal entity” has assessed the risk of “cyber-espionage or sabotage” that derives from the equipment being produced in connection with the Chinese government.

In addition, the law prohibits those agencies from using funds to buy IT systems produced, manufactured or assembled by companies or other entities owned, directed or subsidized by the Chinese government unless the head of the FBI or whatever agency is doing the assessment has both determined and reported to Congress that the acquisition is “in the national interest of the United States.”

The provision could affect government purchases of technology from Chinese companies such as Huawei, ZTE and Lenovo. The House Intelligence Committee last year warned in a report about national security threats posed by Huawei and ZTE. However, the bill could also affect components built by smaller Chinese companies.

It’s unclear from the text of the provision why the White House asked these particular agencies to be cautious. Other big users of IT include the Department of Defense, Department of Homeland Security, General Services Administration, Department of Health and Human Services, and Department of Energy, among others.

If it is signed, the bill wouldn’t even represent the first time Congress has made its opinion known about U.S. government IT operations vis-à-vis China in the last two weeks. Last Monday, Rep. Frank Wolf, R-Va., announced that a contractor who had been working at NASA Langley was arrested with what federal agents believe to be sensitive government information. During a press conference announcing the arrest, Wolf urged NASA to temporarily shut down online sources of technical data to remove controlled documents from widely available systems.

Other tech-related provisions in the continuing resolution include specific funding and attached requirements for the Department of Homeland Security’s National Protection and Programs Directorate; requirements that any tech bought under the law block pornography; funding for Department of Agriculture IT; and requirements that the CIO of USDA approve significant IT spending.