Stealing America’s Trade Secrets

Stealing America’s trade secrets The Defend Trade Secrets Act protects American innovation and jobs

The Defend Trade Secrets Act protects American innovation and jobs Read more of this post

US Swipes at China for Hacking Allegations

chinese

The U.S. has taken its first real swipe at China following accusations that the Beijing government is behind a widespread and systemic hacking campaign targeting U.S. businesses.

Buried in a spending bill signed by President Barack Obama on Tuesday is a provision that effectively bars much of the federal government from buying information technology made by companies linked to the Chinese government.

It’s unclear what impact the legislation will have, or whether it will turn out to be a symbolic gesture. The provision only affects certain non-defense government agency budgets between now and Sept. 30, when the fiscal year ends. It also allows for exceptions if an agency head determines that buying the technology is “in the national interest of the United States.”

Still, the rule could upset U.S. allies whose businesses rely on Chinese manufacturers for parts and pave the way for broader, more permanent changes in how the U.S. government buys technology.

“This is a change of direction,” said Stuart Baker, a former senior official at the Homeland Security Department now with the legal firm Steptoe and Johnson in Washington. “My guess is we’re going to keep going in this direction for a while.”

In March, the U.S. computer security firm Mandiant released details on what it said was an aggressive hacking campaign on American businesses by a Chinese military unit. Since then, Treasury Secretary Jacob Lew has used high-level meetings with Beijing officials to press the matter. Beijing has denied the allegations.

Congressional leaders have promised to push comprehensive legislation that would make it easier for industry to share threat data with the government. But those efforts have been bogged down amid concerns that too much of U.S. citizens’ private information could end up in the hands of the federal government.

As Congress and privacy advocates debate a way ahead, lawmakers tucked “section 516” into the latest budget resolution, which enables the government to pay for day-to day operations for the rest of the fiscal year. The provision specifically prohibits the Commerce and Justice departments, NASA and the National Science Foundation from buying an information technology system that is “produced, manufactured or assembled” by any entity that is “owned, operated or subsidized” by the People’s Republic of China.

The agencies can only acquire the technology if, in consulting with the FBI, they determine that there is no risk of “cyberespionage or sabotage associated with the acquisition of the system,” according to the legislation.

The move might sound like a no-brainer. If U.S. industry and intelligence officials are right, and China is stealing America’s corporate secrets at a breathtaking pace, why reward Beijing with lucrative U.S. contracts? Furthermore, why install technical equipment that could potentially give China a secret backdoor into federal systems?

But a blanket prohibition on technology made by the Chinese government may be easier said than done. Information systems are often a complicated assembly of parts manufactured by different companies around the globe. And investigating where each part came from, and if that part is made by a company that could have ties to the Chinese government could be difficult.

Depending on how the Obama administration interprets the law, Baker said it could cause problems for the U.S. with the World Trade Organization, whose members include U.S. allies like Germany and Britain that might rely on Chinese technology to build computers or handsets.

But in the end, Baker says it could make the U.S. government safer and wiser.

“We do have to worry about buying equipment from companies that may not have our best interests at heart,” he said.

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Follow Anne Flaherty on Twitter at https://twitter.com/AnneKFlaherty.

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Source: http://news.yahoo.com/us-swipes-china-hacking-allegations-193407762.html

More Trade Actions – Wind Turbine Towers, Washing Machines

More Trade Actions – Wind Turbine Towers, Washing Machines

Dave Johnson  |  July 31, 2012  |  Campaign for America’s Future

The game is to underprice your product until your competitors go out of business (like Solyndra & other solar companies). Then you own the market. This is about a lot more than just jobs. Our government is finally doing something about leveling the playing field!

This week, in separate actions, our Commerce Department imposed “anti-dumping” tariffs on wind turbine towers and washing machines. The wind turbine towers were coming in from China and Vietnam, the washing machines from Mexico and South Korea.

Why Sell Under Cost?

Dumping is when a product is sold for less than it costs to evenmake the product. The idea is that your competitors will go out of business and the manufacturing ecosystem of suppliers, knowledge and infrastructure moves to you, so you’ll come out ahead in the long run.

It takes enormous investment to open up a manufacturing operation because you need the proper facilities, the right local utilities, the tools and machines, the skilled workforce, the suppliers, the local infrastructure, the channels to markets, and all the rest of the ecosystem that supports manufacturing. When that is lost to another country it is very, very difficult to get it back. Especially in a country with a Congress that refuses to understand the need for a national industrial policy.

This is the game that countries like China have been playing with their national industrial policies designed to capture strategic industries like solar and wind energy. By selling lower than cost for several years you gain market share and shed competitors. The suppliers, knowledge base, and jobs move their way. Eventually they build or strengthen an entire ecosystem and it is just too costly for others to try to compete.

At first it is attractive to take advantage of the lower prices, later the jobs, factories, companies and entire industries are gone along with the jobs and economic power they bring. Or, in other words, look around at what has happened to us.

Read more of this post

State Of The Union Speech Text 2012

Below, Obama’s prepared remarks as released by the White House.

As Prepared for Delivery –Mr. Speaker, Mr. Vice President, members of Congress, distinguished guests, and fellow Americans:

Last month, I went to Andrews Air Force Base and welcomed home some of our last troops to serve in Iraq. Together, we offered a final, proud salute to the colors under which more than a million of our fellow citizens fought — and several thousand gave their lives.

We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world. For the first time in nine years, there are no Americans fighting in Iraq. For the first time in two decades, Osama bin Laden is not a threat to this country. Most of al Qaeda’s top lieutenants have been defeated. The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home. Read more of this post

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