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New U S Rules On Securing The Information And Communications Technology And Services Supply Chain Mean Increased Scrutiny Of ICTS Transactions - Government, Public Sector
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Government Contracts Legal Round-Up | 2021 Issue 6 - Government, Public Sector
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Biden Directs Broad Review of Supply Chains GOVERNMENT CONTRACTING INSIGHTS DEFENSE DEPARTMENT
Biden Directs Broad Review of Supply Chains
4/5/2021
Photo: iStock
President Joe Biden on Feb. 24 signed a far-reaching “Executive Order on America’s Supply Chains.” The directive is an initial step toward accomplishing the Biden administration’s goal of building more resilient U.S. supply chains that avoid shortages of critical products, facilitate investments to maintain the country’s competitive edge, and strengthen national security.
The directive imposes no new regulatory obligations on industry but rather outlines a process for federal departments and agencies to assess risks to supply chains.
April 2, 2021
This commentary is a lightly edited version of a comment submitted to the U.S. Department of Commerce.
We have entered the age of digital distrust. The United States is now in a conflict with China because of decisions by Xi Jinping’s government. It is not primarily a competition in weapons building or arms races but for ascendancy and control in the economic and technological spheres. It is also a political contest between two very different systems, and this is China’s greatest weakness given that its one-party state depends on a blend of Chinese nationalism and Leninist political techniques that make it unattractive. Espionage and intelligence collection are a major part of this conflict, crucial for China’s plans for achieving technological supremacy, and a major national security threat to the United States.
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There’s been a non-stop bombardment of recent export amendments involving China and other “countries of concern” within the last six months. The main driver behind these has been the U.S. Government’s concern about the Chinese national strategy of “military-civil fusion” – using civilian companies to help support Chinese military and intelligence activities. It is believed that U.S. companies that have historically sold products to China’s commercial sector may be drawn unwittingly into supporting the Chinese military. While these amendments are principally targeted at China, many also apply to Russia, Venezuela, Hong Kong (now part of China under U.S. export laws), Burma and other countries for similar reasons.
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