US government tech faces increased scrutiny as lawmakers target CCP influence.

Rep Pat Fallon claims that the 'gray market' provides 'our enemies with an opportunity to infiltrate US government systems.'

US government tech faces increased scrutiny as lawmakers target CCP influence.
US government tech faces increased scrutiny as lawmakers target CCP influence.

A new bipartisan initiative in Congress aims to tackle the increasing danger of cyberattacks from China and other U.S. rivals.

The bill proposed by Rep. Pat Fallon, R-Texas, aims to set new restrictions on the technology the U.S. government can purchase by mandating that federal agencies and offices buy it only from "original equipment manufacturers" or "authorized resellers," as stated in the obtained bill text.

To prevent U.S. technology from being sourced from untrusted third parties, Fallon emphasized the importance of buying from "trusted sources."

Hacker behind the Chinese flag
China's technology "gray market" is a growing issue there and abroad. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)

"The U.S. government is being targeted by adversaries through the sale of counterfeit products by gray market sellers, according to Fallon. These products, although appearing to be authentic hardware, provide access to U.S. government systems, making it easier for enemies to conduct cyberattacks."

The Texas Republican stated that the U.S. was facing "millions of attacks daily" due to the increasing complexity of AI technology, which made cyberattacks more achievable.

The SAFE Supply Chains Act, supported by a bipartisan Senate companion bill, is a House bill.

Rep. Pat Fallon questions U.S. Secret Service Director Kimberly Cheatle
Rep. Pat Fallon, R-Texas, is moving to shield the U.S. from the effects of foreign tech gray markets. (AP Photo/Rod Lamkey, Jr.)

The push is being led by Sen. John Cornyn, R-Texas, and Senate Homeland Security Committee Chair Gary Peters, D-Mich.

An unauthorized market for authentic products is known as a "gray market."

The technology gray market is estimated to have cost manufacturers billions of dollars in losses, despite its prevalence in the high-tech industry, as the lack of transparency makes it difficult to quantify its full extent, according to AGMA Global.

The prevalent gray market for technology in China includes the acquisition of high-end American AI chips by Chinese firms, despite U.S. export controls. (Report from Asia Times, Hong Kong, earlier this year)

The new bill aims to prevent China from using intermediaries to conceal illicit sources and inundate the U.S. market with them.

Fallon stated that the legislation aimed to safeguard the federal government from being deceived into purchasing hazardous products.

Our enemy is at its peak of danger and the world is at risk of instability. We must take immediate action to safeguard our systems from cyber threats and attacks.

by Elizabeth Elkind

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