A senior Trump administration official told Axios on Tuesday that the Office of Trade and Economic Security has compiled a 15-page advisory warning of data theft risks sponsored by the Chinese government.
The advisory reportedly details the way in which Chinese companies are compelled by the government to hand over data and aid law enforcement and security agencies.
The advisory advises that U.S. businesses who engage with Chinese companies should reduce the amount of sensitive data store in China. It further recommends that U.S. companies take more robust actions to protect their proprietary information, scrutinize business relationships, and strengthen terms of service agreements.
Acting Secretary of Homeland Security Chad F. Wolf said China’s practice of demanding that businesses hand over sensitive data puts “the U.S. economy and businesses at direct risk for exploitation.”
“We urge businesses to exercise caution before entering into any agreement with a PRC-linked firm,” he said in a statement.