Gallagher Report: China IoT, Meh to EO, CODEL for the other Barbie

Asks for FCC data, nod to investment E.O., junket Down Under

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Chairman Mike Gallagher (R-WI) of the House Select Committee on the Chinese Communist Party continued his quest with a letter calling for the Federal Communications Commisssion to answer questions about the role of the Chinese in the market for "Cellular IoT Modules," the radio devices which connect industrial equipment and home appliances to each other and central stations through the internet.

The Chairman and and ranking Democrat Raja Krishnamoorthi (Ill) raised concerns about the possibility that US devices like live-saving medical equipment, vehicles and farm equipment could be accessed and controlled remotely from China if they are made with Chinese-made cellular modules.

"Serving as the link between the device and the internet, these modules have the capacity both to brick the device and to access the data flowing from the device to the web server that runs each device, writes Mr Gallagher.

"As a result, if the CCP can control the module, it may be able to effectively exfiltrate data or shut down the IoT device. This raises particularly grave concerns in the context of critical infrastructure and any type of sensitive data." 

The lawmakers requested the following information to assess how the FCC is addressing the threat:

  • Is the FCC, or other agencies with which it collaborates on national security issues, able to track the presence of Quectel, Fibocom, and other cellular IoT modules provided by PRC-based companies in the U.S.? Can the FCC provide further information about these modules in U.S. networks?
  • Does the FCC share our concerns about the presence of PRC cellular IoT modules in U.S. networks?
  • We understand that the FCC is considering whether to require measures to address individual component parts. Is the FCC considering using the Covered List to tackle PRC cellular IoT modules? Could requiring certification for modules used in communications equipment be an effective means of countering PRC cellular IoT modules in U.S. networks? What other potential solutions exist in the view of the FCC?
  • Does the FCC require or desire further statutory authorities to combat the threat that PRC cellular IoT modules pose?  

View a copy of the letter HERE or read below.        

Response to China Investment E.O

"President Biden's long-awaited executive order is a small step in the right direction but the loopholes are wide enough to sail the PLA Navy fleet through, and it doesn't address the passive flows of U.S. money into malign CCP-affiliated companies.
 
"Congress needs to step up now and ensure we stop funding the CCP's military buildup, techno-totalitarian surveillance state, and human rights abuses including the ongoing genocide in Xinjiang," wrote Mr. Gallagher.
 
In July the Gallagher Committe sent letters to four US venture capital firms demanding information about the firms' investments in Chinese artificial intelligence, semiconductor and quantum companies. [story]

In the Land Down Under...

On Thursday, August 10, Mr Gallagher arrived in Australia alongside Rep. Rob Wittman (R-VA) and Rep. Neal Dunn (R-FL). Among other activities, the members will participate in the Australian American Leadership Dialogue (AALD) and hold meetings with Australian government officials. 

Chairman Gallagher will deliver a keynote address at the dialogue, "commemorating the United States and Australia's rich history united by freedom, security imperatives, economic interests, and common values.'

Before embarking , Chairman Gallagher said"In the face of the Chinese Communist Party’s increasing aggression in the Indo-Pacific, it’s time to turbocharge AUKUS. We are already well within the window of maximum danger when it comes to the CCP threat to Taiwan, which means we don’t have time to sit back on our laurels and wait 10 years to deliver new capabilities. We need deterrence now."

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