{"id":26749,"date":"2018-07-26T20:02:29","date_gmt":"2018-07-26T20:02:29","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2018\/07\/26\/why-congress-may-have-just-boosted-chinas-cybersecurity\/"},"modified":"2026-08-08T18:30:48","modified_gmt":"2026-08-08T18:30:48","slug":"why-congress-may-have-just-boosted-chinas-cybersecurity","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/2018\/07\/26\/why-congress-may-have-just-boosted-chinas-cybersecurity\/","title":{"rendered":"Why Congress may have just boosted China\u2019s cybersecurity"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Congressional negotiators reconciling the annual defense authorization act decided not to reinstate penalties on Chinese cellphone company ZTE, despite criticism that the company is a potential conduit for cyber espionage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is a victory for the Trump administration, who urged Congress not to impose harsh penalties on ZTE that would have crippled the company amid trade negotiations with Beijing. But the decision could also <a href=\"https:\/\/www.fifthdomain.com\/congress\/capitol-hill\/2018\/06\/19\/are-trump-and-republicans-headed-for-a-cybersecurity-showdown\/\">endanger national security<\/a>, according to intelligence officials and lawmakers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A 2012 House intelligence report warned that Chinese telecommunications products like ZTE should be viewed with suspicion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cHuawei and ZTE cannot be trusted to be free of foreign-state influence and thus pose a security threat to the United States and to our systems,\u201d the report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cNo nation steals American intellectual property or spies on America more than China, and Chinese telecommunication companies are among the most powerful tools they use to do this,\u201d said Sen. Marco Rubio, R-Fla., in a statement after the recent defense act was released July 23. \u201cI am so shocked that some of my colleagues decided to let ZTE continue to do business.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The decision to spare ZTE is a boon for the Chinese government, which has embarked on a strategy of homegrown technological development. At the center of Chinese leader Xi Jinping\u2019s global ambitious is a desire to build a domestic digital empire that serves as a cybersecurity safeguard.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWithout cybersecurity there is no national security,\u201d read a 2017 report by the <a href=\"http:\/\/www.qstheory.cn\/dukan\/qs\/2017-09\/15\/c_1121647633.htm\">Cyberspace Administration of China<\/a>, <a href=\"https:\/\/www.newamerica.org\/cybersecurity-initiative\/blog\/chinas-strategic-thinking-building-power-cyberspace\/\">according<\/a> to a translation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The saga between ZTE and American lawmakers has further convinced Chinese officials that homegrown technological innovation is a centerpiece of the country\u2019s cybersecurity strategy, <a href=\"https:\/\/www.newamerica.org\/cybersecurity-initiative\/digichina\/blog\/progress-pauses-power-shifts-chinas-cybersecurity-law-regime\/\">according<\/a> to the DigiChina project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIndigenous innovation\u201d can help to \u201cmove forward the construction of China as a cyber superpower,\u201d Xi said during an April 20 speech in Beijing, <a href=\"https:\/\/www.newamerica.org\/cybersecurity-initiative\/digichina\/blog\/translation-xi-jinpings-april-20-speech-national-cybersecurity-and-informatization-work-conference\/\">according<\/a> to a translation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The push for homegrown technological innovation through companies like ZTE may be a reaction to what China perceived as America\u2019s cyber dominance, according to experts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It was in a bland room at the Mira Hotel in Hong Kong where, in 2013, former National Security Agency contractor Edward Snowden exposed some of America\u2019s closely guarded secrets and cyber capabilities. Snowden revealed that America was <a href=\"https:\/\/theintercept.com\/2014\/09\/14\/nsa-stellar\/\">mapping<\/a> the internet, <a href=\"https:\/\/www.wired.com\/2014\/08\/edward-snowden\">autonomously<\/a> responding to cyberattacks, and had broken into the <a href=\"http:\/\/www.washingtonpost.com\/business\/technology\/by-cracking-cellphone-code-nsa-has-capacity-for-decoding-private-conversations\/2013\/12\/13\/e119b598-612f-11e3-bf45-61f69f54fc5f_story.html\">encryption<\/a> of many cellphones worldwide.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;From China&#8217;s perspective, the U.S. was the first mover in the cyber domain with the establishment of Cyber Command, and then the Snowden leaks allegedly revealed the extent of American network penetration in China,\u201d said Elsa Kania, an adjunct fellow at the Center for New American Security. Chinese leaders \u201cwere really reacting to concerns that China was a very big country in cyberspace and a very vulnerable one.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. businesses and government officials have for years accused the Chinese of stealing American intellectual property, including designs for the F-35 fighter jet. But Congress\u2019 decision not to impose the harsh sanctions on ZTE comes as China is slowly moving away from its corporate espionage activity, according to Kania. &#8220;China is achieving a stage of its development where it wants to move beyond IP theft to pursue truly original innovation.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Already, ZTE has benefited from U.S. lawmakers&#8217; decision. The company\u2019s stock has increased more than 26 percent since June 11, after it became clear that Congress would not cripple the company. This provides the Chinese company a new reserve of cash to boost investments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lawmakers&#8217; decision to spare ZTE is a boon for the Chinese government, which has embarked on a strategy of homegrown technological development that could bolster Beijing&#8217;s cyber 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