Fearing Chinese infiltration, Trump administration considers publishing blacklist of companies using risky supply chains

WASHINGTON — Amid intensifying warnings about foreign spies and criminals infiltrating new 5G networks and the military supply chain, the Pentagon has been considering publicly releasing a “blacklist” of companies it believes could pose risks to its weapons based on using risky suppliers.

Trying to guard the supply chain is no easy task. At Lockheed Martin, one of the Pentagon’s largest contractors, there are over 20,000 different companies in the supply chain, according to James Connelly, the company’s vice president and chief information security officer, speaking at the same event.

But blacklisting a company because of its supply-chain risks may prove to be difficult to implement. Although such a blacklist might be helpful for counterintelligence, naming and shaming U.S. companies will open up the government to lawsuits. An alleged offender determined to make a sale could disappear and reappear under a slightly different name months later, said one senior national security official.

Both efforts have required a broad — but still undefined — strategy beyond bans and blacklists, say officials, who acknowledge there are few easy solutions. Upal Basu, of NGP Capital, the investing arm backed by Nokia that has invested in companies in the United States and China, says the focus should be on the United States working to maintain its own advantage in 5G “instead of focusing on Huawei.”

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