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NewsPoster Mar 27, 2013 07:50 PM
US funding bill slips in 'cyber-espionage' IT purchase check
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" <a href=" f.huawei.zte/" rel='nofollow'>by China</a>. The requirement mandates consultation with law enforcement and other assessors prior to purchase, during the evaluation process.<br />
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A congressional aide told <a href="" rel='nofollow'><em>Reuters</em></a> 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."<br />
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"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."<br />
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The insertion likely is fallout from a Congressional report published in <a href=" f.huawei.zte/" rel='nofollow'>October</a> that leading Chinese telecoms producers Huawei and ZTE should <a href="" rel='nofollow'>be locked out</a> of the US market over security concerns, reports <em>Reuters</em>. The US House of Representatives' Intelligence Committee argued that the two companies are subject to the <a href=" tober.8/" rel='nofollow'>influence of the Chinese government</a>. 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.<br />
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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.
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