U.S. & Europe increasingly concerned about national security implications of China business -- China Boss update 11.19.21
Update
China Boss says…
Foreign firms with China business beware: Governments in the U.S. and Europe are increasingly concerned about the national security implications of investing in and/or working with Chinese companies. Companies who operate in “critical sectors” - artificial intelligence, quantum computing, biotechnology, semiconductors and autonomous systems - are the most likely to pop up with greater frequency on official radars - some in ways easy to imagine and others less so. Check out this week’s recommended reads for recent reports that reveal deepening fears over risks of technology transfer, influence by the Chinese government, links to military entities and unfair competition on both sides of the pond.
Meetings with companies.
US intelligence officials warn companies in critical sectors on China (Demetri Sevastopulo, Financial Times)
Read for details on a U.S. intelligence campaign "to warn American companies about the risks of interacting with China in critical industries." Wouldn’t surprise me if some of these “meetings” were also fishing expeditions.
Financial Times:
Michael Orlando, acting director of the NCSC, a branch of the US intelligence community that focuses on threats from China, said Beijing was “using an array of legal, illegal and quasi-legal” methods to obtain intellectual property and data on American citizens that it would use to try to dominate critical industries. If you are going to do business and collaborate, be smart about it Michael Orlando, acting director of the National Counterintelligence and Security Center As part of the push,
Orlando and his team are contacting US companies about the risks, saying that many businesses were not aware of the direct and hidden links between Chinese companies and universities and state security, or that Beijing was using a “whole of government approach” to obtain technology.
… The veteran counter-intelligence official, who previously served in the FBI and CIA, declined to name any companies he was meeting but said he would soon hold discussions with US financial institutions.
Blocked business plans.
White House Spurns Intel Plan to Boost Chip Production in China (Jenny Leonard and Ian King, Bloomberg)
Read for an update on how the Biden administration recently "spurned a plan by Intel Corp. to increase production in China over security concerns," despite executives' pitch that it would ease U.S. chip shortages.
Steel.
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