National Security Implications of Investments and Products from the Peoples Republic of China in the Telecommunications Sector

摘要

The increased presence of Chinese telecommunications products and services in the American marketplace is the result of bilateral investment between the United States and China. Chinese companies have offered U.S. investors (investment banks, venture firms, business investors, and others) opportunities to balance risk and gain potentially higher rates of return by participating in the world's fastest-growing emerging market. By outsourcing some aspects of operations, U.S. businesses and multinational corporations have been able to increase the amount of value built into products compared to the same dollars expended domestically and have further been able to diversify market holdings in Asia after reaching saturation points in U.S. and European markets. In a similar way, Chinese companies are increasingly looking to the American market to open up new opportunities. U.S. companies have offered Chinese firms and investment funds access to established business models and advanced research and development processes, increased efficiencies in select areas of business, and opportunities in the world's wealthiest market. Aside from raising their own levels of technical and management expertise, they are also able to affiliate their products with the excellent reputation of U.S. brands in global markets. China's technology industry now appears to be a de facto part of the American communications industry landscape. Based on current market realities, the presence and continued growth of products with at least partial manufacturing and development origins in China will continue to increase and pervade most areas of American life, business, and government. This paper presents an open source analysis of the impact on U.S. national security interests of China's extensive engagement in the U.S. telecommunications sector.