Remotely Exploding Pagers Highlight Supply Chain Risks

Some action has been taken in the software sector, including by Australia and other countries prohibiting the involvement of Chinese suppliers in 5G networks due to concerns about disruption of critical telecommunications infrastructure. But securing one sector or one piece of software must be replicated in all sensitive areas and across both software and hardware.

Electronic devices such as routers, phones and even cars could be compromised at any stage in their journey from the manufacturer to the end user. Interdiction attacks, where hardware is tampered with during transport, are not difficult to execute, especially along complex shipping routes.

The consequences of such breaches extend beyond malfunctioning devices. Compromised electronics can open the door to espionage, sabotage and cyber-attacks, with potentially catastrophic implications for national security. If malicious actors, especially those backed by states, tamper with hardware on a large scale, they could gain access to sensitive data, disrupt critical infrastructure or even disable essential services.

Given these growing threats, Australia must take urgent action to safeguard its supply chains. One critical step is reducing dependence on Chinese manufacturing by investing in local production. For years, Australia has relied on foreign factories, particularly in China, for vital goods. While this reliance has driven down costs, it has exposed the country to risks of foreign tampering. Diversifying supply chains and building capabilities domestically and with close friends will reduce China’s leverage and improve Australia and the regions’ security.

But domestic production alone won’t solve the problem. Australia must also implement more rigorous inspection and testing protocols for imported goods. Currently, shipments pass through multiple jurisdictions, leaving opportunities for tampering along the way. Such advanced technologies as blockchain-based tracking systems can ensure shipments remain untampered with during transport, while hardware integrity testing can catch compromised devices before they reach critical infrastructure.

While no single measure will eliminate the risk of supply chain attacks, a combination of strategies can significantly reduce the danger. This will include strengthening domestic manufacturing, enhancing import inspection protocols, collaborating with trusted allies and adopting cutting-edge security technologies. The threat posed by compromised supply chains, particularly from China, is real. These vulnerabilities only become more urgent as the geopolitical situation becomes more volatile.

The recent events in Lebanon shouldn’t be seen only as distant and against a terrorist organization but rather a stark reminder of what can happen when supply chains are compromised. For Australia, the stakes are too high to ignore. By taking proactive steps now to secure our supply chains from potential threats the country can protect our critical infrastructure, safeguard our national security, and ensure our future remains in our own hands, not China’s.

Jason Van der Schyff is a consulting technologist with a focus on supply chain surety and sovereign manufacturing in the three AUKUS countries. This article is published courtesy of the Australian Strategic Policy Institute (ASPI).