U.S. Urges American Firms to Shun Chinese Data Service Companies
The Department of Homeland Security issued a warning on Tuesday night advising US companies to steer clear of data services and equipment from firms linked to China, citing cybersecurity and national security risks. The advisory states that US networks become vulnerable to Chinese cyber threats when implementing Chinese equipment. According to the DHS, this gives China an unfair advantage in the global marketplace.
The DHS claims that using Chinese hardware and software in US organizations’ systems allows the People’s Republic of China administration to access sensitive data without authorization, putting the US at direct risk for exploitation. The DHS states that data the Chinese government may have access to includes both personal and proprietary information. Businesses should be wary before entering into agreements with Chinese tech companies linked to the government. The advisory comes amid increased penalties on Chinese companies and escalating tensions between the two countries.