In a significant move for national security, Texas Republican Rep. Pat Fallon has proposed a new piece of legislation aimed at safeguarding American interests by preventing the Department of Defense from engaging in any information technology-related contracts with Chinese entities. This development was shared with Breaking Defense, highlighting the urgency of the matter amidst growing concerns over cybersecurity.
The legislation, known as the “Safeguard American Innovation Act,” seeks to impose strict restrictions on the Secretary of Defense, explicitly prohibiting them from “entering, renewing, or extending any IT contract” with companies that have discernible links to the People’s Republic of China. This proactive measure is designed to bolster national security against potential foreign threats.
Rep. Fallon emphasized the critical nature of the “Protecting American Innovation Act,” stating its role in fortifying the country’s technological defenses and deterring foreign adversaries, particularly from China. He pointed to alarming incidents such as the SolarWinds and Salt Typhoon cyberattacks as stark reminders of the vulnerabilities that exist within our defense and IT frameworks, which are susceptible to foreign interference. This legislation aims to address these issues directly, ensuring robust protections for American innovation.
“This bill will take decisive action to prevent any Department of Defense (DOD) contracts with companies connected to China that could compromise our national security,” Fallon asserted, reinforcing the urgency of the proposed legislation in light of recent cyber threats.
As the current 118th Congress approaches its conclusion, this version of the bill faces challenges and may not progress. However, Fallon is taking steps to ensure that it remains a priority for the next Congress, with plans to reintroduce the legislation once the 119th Congress convenes and is operational. This forward-thinking approach demonstrates a commitment to safeguarding national interests.
“With the anticipated return of President Trump’s leadership, Rep. Fallon is focused on protecting US equities from the influence of the PRC. This is crucial to prevent incidents similar to what occurred with Salt Typhoon and Solar Winds. Innovation is our nation’s primary asymmetric advantage, and Congress must take every measure to protect it,” the spokesperson elaborated via email.
The language of the proposed bill outlines specific criteria that would bar the Secretary of Defense from doing business with IT companies that meet any of the following conditions:
- “Owns or operates research and development in mainland China
- Substantially funded by the PRC
- Has enabled the PRC access to source code in software
- Provided software for DOD or law enforcement application (dual use) to PRC
- Operates or is affiliated to data centers in mainland China”
As a member of the House Armed Services Committee’s subcommittee on Cyber, Innovative Technologies, and Information Systems, Fallon expressed deep concern regarding the implications of the DoD engaging in IT contracts with Chinese firms. He pointed out that “China’s laws compel companies to share sensitive technology, including software source code,” which poses a severe risk to national security and technological integrity.
“By prohibiting contracts with companies that operate in China, are backed by the People’s Republic of China (PRC), or grant China access to vital code, this bill fortifies our IT infrastructure. It ensures that American technological advancements remain secure and out of the hands of adversaries. This legislation is essential for protecting American innovation, ensuring the safety of our military, and maintaining the technological leadership of the United States,” he concluded, underscoring the bill’s significance.
Fallon’s initiative to address IT security concerns comes in response to increasing apprehension within the Pentagon and among lawmakers regarding the entanglement of the US supply chain with Chinese entities. Over the years, there have been concerted efforts to tackle this issue. For instance, in 2020, the Defense Innovation Unit launched the Blue UAS program, which takes a holistic approach to rapidly vet and scale commercial unmanned aerial system (UAS) technology for the Department of Defense (DoD). This program aims to ensure that components do not originate from adversaries. Furthermore, the 2024 National Defense Authorization Act stipulates that beginning on October 1, 2027, no funds appropriated for the DoD may be utilized to procure batteries produced by specified Chinese-owned and -operated companies.
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