The Department of Homeland Security said: Chinese products may include back doors or hidden data-gathering mechanisms that Chinese authorities can use to collect data from Western companies and send information to domestic competitors to further China’s economic goals at the expense of other countries.
The agency said: All devices and services linked remotely to Chinese companies should be considered cybersecurity and business risks.
The Ministry of Homeland Security explains that China’s national security laws allow the government to coerce any local company and citizen to change products and engage in espionage or theft of intellectual property.
The Ministry of Homeland Security described this practice as data theft sponsored by the government of the People’s Republic of China.
Acting Homeland Security Secretary Chad F. Wolf said: US networks and data have been exposed for too long to cyber threats in China, which are using that data to give Chinese companies an unfair competitive advantage in the global market.
He added: The practices that grant the government of the People’s Republic of China unauthorized access to sensitive data – personal and owned – expose the US economy and companies to the risk of direct exploitation, and we urge companies to exercise caution before entering into any agreement with a company linked to the People’s Republic of China.
And in Separate speechWolff described China as a clear threat to American democracy.
The Department of Homeland Security issued the commercial advisory less than a month before the change in administration, with President Biden expected to appoint the head of the US Department of Homeland Security next month.
US officials under the Trump administration have focused on cracking down on Chinese thefts from US companies.
And in Interview In July 2020, FBI Director Christopher Wray said that half of the 5,000 FBI counter-espionage cases were related to China’s theft of American technology.
The Department of Homeland Security warns US companies that Chinese theft can sometimes occur not only through business partnerships and insider threats but also through digital devices and services.
The ministry said: Any entity that chooses to purchase services and equipment from Chinese companies must be aware of the economic risks, reputation risks, and in some cases the legal risks associated with doing business with these companies.