The U.S. Department of Homeland Security issued a lengthy advisory Tuesday evening (Dec. 22) warning U.S. businesses of the data security risks associated with the use of communications equipment and services from companies linked to China.
The advisory says China poses a serious threat to the data security of the U.S. government and businesses because it has the intent and ability to obtain data directly and secretly through entities affected by or subject to Chinese law, without the consent of the non-Chinese companies or institutions that hold the rights to the data.
Acting Secretary Chad Wolf said, “For a long time, U.S. networks and data have been under threat from China, and in doing so have allowed Chinese companies to gain an unfair competitive advantage in the global marketplace.”
Wolf added, “Any move to give the Chinese government the opportunity to gain unauthorized access to personal or confidential business data would put the U.S. economy and businesses at risk of exploitation. We urge businesses to exercise caution before entering into any agreements with companies associated with China.”
The DHS recommendations also state that U.S. companies doing business with Chinese companies should reduce data storage in China and take steps to protect intellectual property, as well as review business relationships and strengthen terms of service agreements.
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