China’s supply chain role may pose cybersecurity risks

Significance Washington has since 2018 placed increasing restrictions on Chinese technology, intended to limit its own vulnerability and to curb China’s development. China’s share of certain US tech-good markets has fallen, but its export of inputs to the countries displacing it in the US market have risen. Impacts China’s network infrastructure projects in developing countries may create a gateway for cyberattacks launched indirectly via these nations. High-tech foreign firms stand to benefit from China’s strong demand for advanced capital equipment and components to boost its cyber tech. Chinese IT firms may advance their technology through mergers and acquisitions of foreign companies with high-tech expertise. Chinese semiconductor firms once recruited talent from Taiwan and may continue advancing by hiring experts from foreign firms or countries.