The Pentagon in Arlington, VA
On the campaign trail, President Trump pledged to get tough on China. However, despite his lofty rhetoric, President Trump has allowed a state-sponsored, Chinese telecommunications company to infiltrate the Pentagon and Department of Homeland Security.
Numerous U.S. government officials have said that ZTE, a Chinese telecommunications giant with links to the Beijing government, has been selling equipment to U.S. government security agencies. The U.S. has historically upheld an unofficial ban on the use of Chinese telecommunications equipment, but by subcontracting their equipment, ZTE has found a way to circumvent these restrictions. This is starting to cause alarm among security officials and oversight committees, who rightly fear that our national security is at risk.
ZTE’s sale of equipment to U.S. defense agencies is especially troubling due to a private security firm’s disclosure that “Chinese phones contain software that uses a backdoor feature to send all data on handheld and other devices to Beijing every 72 hours.” There is now a very real possibility that China’s malicious software could be used to disrupt U.S. weapons systems. We cannot allow a company with close ties to the People’s Liberation Army (China’s military) into our most sensitive government agencies. This isn’t a partisan issue - a bipartisan 2012 report put out by the House Intelligence Committee identified ZTE as a potential security threat due to its ties to the Chinese government. A Pentagon Defense Science Board report recently warned that foreign states will use vulnerabilities in the supply chain to conduct cyber sabotage against U.S. weapons and equipment, and it appears that their prediction has come true.
This isn’t the first time ZTE has represented a threat to our national security. They’re repeat offenders. Earlier this year, ZTE was hit with a $1.19 billion dollar fine for violating U.S. sanctions by selling goods to Iran and North Korea. “ZTE Corporation not only violated export controls that keep sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts,” said Attorney General Jeff Sessions. They’re also widely believed be responsible for the data breach that occurred at the Office of Personnel Management which targeted the records of an estimated 21.5 million Americans.
Of course, there are other problems with allowing ZTE to serve as a U.S. equipment contractor. For one, they don’t play by the rules. Chinese tech firms consistently violate U.S. patents. ZTE has been hit by lawsuits from AVC, DataQuill, and InfoGation Corp, and a Bloomberg Law search shows that ZTE has been a defendant in U.S. patent cases at least 170 times. A study from the Center for Strategic and International Studies estimated that 500,000 U.S. jobs are lost each year from costs associated with cyber espionage, and Chinese firms are some of the worst offenders.
So, what should the Trump Administration do? Previous administrations have tried and failed to deal with China’s hacking. 64% of all complaints the Obama Administration lodged with the World Trade Organization were against the Chinese – however, it’s obviously had negligible impact on China’s predatory tactics.
First and foremost, President Trump must not allow U.S. government security agencies to utilize equipment from state-sponsored companies that are intent on disrupting our defense systems. There are currently no official rules that ban Chinese companies from selling goods to the Pentagon or DHS, and this needs to change immediately. President Trump should restrict government agencies from using Chinese equipment that could allow them to spy on our officials and hack our defense systems. It’s a no-brainer.
Also, it’s clear that the U.S. is a lucrative market for Chinese businesses, who sell the U.S. almost $700 billion dollars worth of goods and services. The current Administration should use access to the American market as leverage in future negotiations. If China wants access to our market, then they must play by the rules, and that means not violating our patents or selling our government hacked equipment.
Trump would have Republican support if he were to crack down on ZTE. In 2016, five Republican lawmakers wrote to Secretary of State John Kerry and then-Commerce Secretary Penny Pritzker to voice concerns about ZTE, noting that they are “at minimum…influenced by the Chinese government.” Fighting back against ZTE would fulfill President Trump’s campaign pledge to get tough on China, and to “Make America Safe Again.”
Allowing a foreign government to supply our defense agencies’ equipment does not make America safe. It is a reckless move that threatens U.S. national security, and President Trump should take decisive action to end ZTE’s actions immediately.
Representative Klink was first elected to the United States Congress in 1992 and served four consecutive terms representing the 4th Congressional District of Pennsylvania.