Press Release, Strategic Materials Advisory Council

Washington, DC – The Strategic Materials Advisory Council today endorsed legislation from the House Appropriations Subcommittee on Commerce, Justice, and Science to protect information technology systems against Chinese cyber espionage or sabotage. Supported by subcommittee Chairman Frank Wolf (R-VA), section 515 would require the Federal Bureau of Investigation to assess the cyber espionage or sabotage risk posed by the purchase of any information technology “produced, manufactured or assembled by one or more entities that are owned, directed, or subsidized by the People’s Republic of China”. This requirement would affect purchases by the Commerce Department, Justice Department, NASA, and the National Science Foundation, which fall under the purview of the sub-committee.

The Strategic Materials Advisory Council strongly supports advancement of this language at today’s Appropriations Committee mark up of the bill. “This provision defends key government networks from China’s established strategy of placing Chinese products in crucial sectors of U.S. Government systems,” said Council Executive Director Jeff Green. “It is clear that the high-level diplomatic talks on cyber security will not bring the needed results anytime soon. Rep. Wolf’s provision protects sensitive U.S. agencies against potential Chinese espionage and sabotage and demonstrates that Congress is beginning to truly recognize a threat and to act accordingly.”

Both chambers of Congress are attempting to curtail Chinese cybercrime. In May, Sen. Carl Levin (D-MI), Chairman of the Senate Armed Services Committee, introduced the Deter Cyber Theft Act to require the creation of watch lists of foreign countries that engage in cyber espionage; this language may appear in the Senate version of the 2014 National Defense Authorization Act. More specifically, the House Armed Services Committee report for the 2014 National Defense Authorization Act addressed IT equipment manufactured by firms linked to the Chinese government. An October House Intelligence Committee report warned federal agencies about systems with parts from Chinese firms Huawei and ZTE.

About the Council

The Strategic Materials Advisory Council is a Washington, DC based non-profit organization comprised of former U.S. Government leaders and industry experts with significant experience with strategic and critical materials through decades of service in the public and private sector. The Council was formed with the clear objective to promote policy solutions that ensure continued access of both U.S. industry and military to those materials needed to support a robust 21st century economy and military.

For more information, contact:
Jeffery Green
Executive Director, Strategic Materials Advisory Council
info@strategicmaterials.org
(202) 412-7478