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Secure Equipment Act of 2021: Blocking Chinese Communist Party's Access to US Networks

Strategic Insights

— 1 min read

US House Representative Steve Scalise discussed his Secure Equipment Act of 2021, legislation aimed at blocking the Federal Communications Commission (FCC) from reviewing or issuing equipment licenses to companies backed by the Chinese Communist Party (CCP) identified as national security threats. Scalise's bill seeks to improve on the 2019 Secure and Trusted Communications Networks Act, which instructed the FCC to publish a list of telecommunication equipment deemed a national security threat. This list, published earlier this year, includes five companies with ties to the CCP.

Key Takeaways:

  • The Secure Equipment Act of 2021 aims to block the FCC from reviewing or issuing equipment licenses to companies backed by the Chinese Communist Party (CCP) identified as national security threats.
  • The bill seeks to improve on the 2019 Secure and Trusted Communications Networks Act, which instructed the FCC to publish a list of telecommunication equipment deemed a national security threat.
  • The list, published earlier this year, includes five companies with ties to the CCP.
  • The CCP has ownership in many of these companies, posing a concern for US national security.
  • US carriers can still privately purchase equipment from these listed companies on the open market.
  • These companies are subject to Chinese national security laws, allowing the Chinese government to exploit them for espionage.
  • The existence of compromised technology poses a grave threat to US national security, particularly with the expansion of 5G networks and critical technologies.
  • The bill adds an extra layer of security by prohibiting the FCC from issuing equipment licenses to these companies, putting a full stop to Chinese equipment from threatening US networks.

Statistics:

  • 5 companies have been identified as national security threats by the FCC and have ties to the Chinese Communist Party.
  • These companies have ties to the CCP, with the Chinese government having ownership in many of them.
  • The fraud risk from using Chinese-based equipment has been estimated at $143 billion (£100 billion) by the Washington-based think tank, Foundation for Defense of Democracies.
  • In 2019, the Secure and Trusted Communications Networks Act instructed the FCC to do a few things to address the threat of China.

Sources:

  • "Secure Equipment Act of 2021" by Congressman Steve Scalise, June 30, 2021
  • "Secure and Trusted Communications Networks Act of 2019" by the United States House of Representatives
  • "Federal Communications Commission (FCC)" by the Government Publishing Office
  • "Foundation for Defense of Democracies" by the Foundation for Defense of Democracies
  • "Washington-based think tank"

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