U.S. Department of Commerce Issues Subpoena to a Chinese Company for Supply Chain Consideration

The U.S. Department of Commerce said Tuesday (April 13) that it has issued a subpoena to an undisclosed name of a Chinese company. This is part of the Biden administration’s audit of the supply chain to assess any risk it poses to U.S. national security.

President Biden’s administration has taken a relatively tough stance on Chinese companies, similar to that of his predecessor, the Trump administration. The Biden administration cited national security as a reason for action and underscored the president’s view that China is the United States’ most serious competitor.

“The subpoena served today allows the Commerce Department to gather information that will help make a determination about the potential risks posed to the security of the United States and its citizens,” the Commerce Department said. It added that it “hopes to work with the company and complete a thorough review.”

In March, the Commerce Department said it had served similar subpoenas on a number of Chinese companies providing information and communications technology services in the United States to determine whether they posed a threat to national security.

Despite opposition from the U.S. business community, the Biden administration has signaled plans to allow Trump-era regulations to take effect against Chinese technology companies deemed to pose a threat to the United States.

Last week, the Commerce Department announced that it had placed seven Chinese supercomputer companies on its “Entity List” for engaging in “conduct that would harm the national security of the United States or the foreign policy interests of the United States.