GAO: Agencies are addressing risks of equipment linked to China

A 2018 law generally prohibits executive agencies from procuring telecommunications and video surveillance equipment produced by certain companies, or their subsidiaries and affiliates, linked to the People’s Republic of China (referred to as “covered equipment”). Agencies are not prohibited from using covered equipment procured prior to this prohibition. Officials from four of six selected agencies—the Departments of Homeland Security, Justice, State, and Treasury—told GAO they did not identify any covered equipment connected to their IT networks. The Departments of Defense (DOD) and Energy reported finding little covered equipment in recent searches and having efforts underway to address potential risks. For example, DOD officials identified three instances of covered equipment connected to its network and confirmed the devices have been blocked from external access while DOD acts to remove them.

All six selected agencies have used a combination of methods to search for covered equipment since 2019. Each method has benefits and limitations. For example, IT network scans may not scan agencies’ entire IT networks, including classified networks.

Officials at some of the selected agencies cited limited visibility into product supply chains as a challenge in identifying covered equipment. For example, one agency official noted that manufacturers were reluctant to share proprietary information about their supply chains, thereby limiting the agency’s ability to determine whether devices in its inventory contained components produced by covered entities. Some officials said the lack of comprehensive, authoritative information on companies’ subsidiaries and affiliates also posed a challenge. However, officials noted that such information would be accurate only at the time it was developed, because companies may change their names or acquire or divest subsidiaries and affiliates.

Read more at Government Accountability Office