Lenovo's 2005 and 2015 purchase of IBM and Motorola assets would be unthinkable today as CFIUS now screens such deals for personal data risk.
The Entity List update highlights the dangerous connection – Lenovo is an outgrowth of a Chinese organization now on the Entity List – the Chinese Academy of Sciences’ Institute of Computing Technology which seeded Lenovo. CAS is not a normal research institute producing knowledge for civilian application. According to the congressional U.S.-China Economic and Security Review Commission, CAS has “connections to Chinese military, nuclear, and cyberespionage programs.
The Commerce Department included CAS’ computing division on the Entity List for “a variety of activities related to acquiring and attempting to acquire U.S.- origin items in support of the PRC’s military modernization.” It raises the question: Why should a known security threat like Lenovo, in which CAS has a significant ownership stake via a subsidiary company, be allowed to operate freely inside the U.S.
With bipartisan Congressional momentum to confront Chinese tech threats, the Commerce Department should close the loop on CAS and its military-aligned daughter companies. US policy which restricts some Chinese government-owned IT firms but not others is needlessly complex, invites exploitation, and endangers Americans. Lenovo is a textbook example of China’s techno-nationalist strategy to leverage its global companies for military gain.
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