China syndromeBigger than Huawei: U.S. broadens scrutiny of Chinese technology

A flurry of seemingly disconnected actions by the U.S. government to curb the involvement of Chinese technology firms in the U.S. economy over the past year reflects the Trump administration’s intensifying concern that those firms could — now or in the future — abet espionage by Beijing’s intelligence services.

The actions include tightening scrutiny of foreign investors in a broad range of industries, publicly warning allies about looming vulnerabilities, and blocking China-linked companies from buying American companies involves in key industries, like semiconductor design.

For now, experts say it has largely been a patchwork approach to protecting industries seen as critical to U.S. national security. But there is also evidence that, behind the scenes, policymakers are racing to develop a more coherent approach to balancing commerce with China and national security interests.

At the Department of Defense and the Department of Homeland Security, for example, efforts are underway to create secure supply chains for equipment either deemed essential to national security or that supports critical infrastructure within the U.S.

“I think they’ll get their act together, it’s just that it’s such a new problem that it hasn’t happened yet,” said James Lewis, the director of the Technology Policy Program at the Center for Strategic and International Studies in Washington.

At the moment, though, it can be difficult to discern a strategy or locus of control.

US regulator exercises new powers
Last year, Congress passed measures expanding the authority of a Treasury Department committee (CFIUS) that investigates foreign investments in American industries. The new measures expand the power of the Committee on Foreign Investment in the United States to scrutinize investment deals that would give foreign partners access to nonpublic technical information.

Last week, CFIUS decided that it would order the Chinese gaming firm Beijing Kunlun Tech Co. to divest its ownership stake in the popular gay dating app Grindr. The reason, according to reports, was concern that the information captured by the app could be used to blackmail U.S. officials and contractors.

In January, members of Congress began pressuring the District of Columbia to reconsider allowing a Chinese firm to manufacture new cars for its Metro system. Among the concerns they raised was the possibility that surveillance equipment or malicious software might be embedded within them.