In recent months, a series of U.S. government reports have documented U.S. policymakers’ growing concerns over Chinese government policies and programs designed to advance China’s competitive edge in a range of technologies and industries. In turn, the findings of these reports are shaping U.S. economic and national security laws and policies, as illustrated by the recent Section 301 tariff actions, national security reviews of investment by Chinese firms under the Committee on Foreign Investment in the United States (CFIUS) process, and provisions of the recently-passed John McCain National Defense Authorization Act that restrict exports of “emerging and foundational technologies” and U.S. government use of certain Chinese-made telecommunications equipment. Against this background, a report released on October 26, 2018, is likely to further increase U.S. government scrutiny of China-manufactured devices with internet connectivity features – so-called “Internet of Things” or “IoT” devices.
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