The US Department of Homeland Security (DHS) warns the US Companies do not use equipment hardware and digital services created by Chinese companies. DHS reports that technological equipment and products made in China may contain: backdoors, bugdoors or hidden data theft mechanisms, which could be used by the Chinese authorities to steal data from Western companies and pass information to local competitors, in order to serve China's economic interests to the detriment of other countries.
All equipment and services associated with Chinese companies should be considered cyber risks as well as business risks, according to the US DHS. In addition, DHS argues that Chinese national security laws allow the government to force any local company and citizen to change products and engage in espionage or theft of intellectual property.
The US DHS describes the practice as "data theft funded by the PRC government".
The Deputy Secretary of Homeland Security, Chad F. Wolf, stated: "For a long time, US networks and data have been exposed to cyber threats linked to China, as this data is used to give Chinese companies an unfair competitive advantage in the global market. Practices that give the Chinese government unauthorized access in sensitive data, endanger both the US economy and businesses of the country. We urge businesses to exercise caution before entering into any agreement with a company affiliated with China. ". According to ZDNet, Wolf described China in a separate speech on December 21 as a "clear and present threat" to US democracy.
The US DHS warning comes about a month before the new US President, Joe Biden, appoint the head of DHS. Under the government Trump, US officials had focused on suppressing Chinese theft by American companies.
It is worth noting that the director of the FBI, Christopher Wray, said in July in Fox News that half of the FBI's approximately 5.000 counter-intelligence cases involved theft technology of the USA from China.