Why are we buying from China?

It’s no secret the U.S. and China are increasingly at odds with each other.  China fully recognizes — even embraces — this development, pouring effort into projects like the Confucious Institutes and developing spies among the key staff of important members of Congress.  China holds a significant fraction of the U.S. public debt — a potential lever in any showdown, given our nation’s reliance on deficit-spending.  While we’ve heard nothing but “Russia, Russia, Russia” since the 2016 presidential election, it’s China that poses the most long-term threat to U.S. national security.

And yet, we continue to enable them:

There are two ways for spies to alter the guts of computer equipment. One, known as interdiction, consists of manipulating devices as they’re in transit from manufacturer to customer. This approach is favored by U.S. spy agencies, according to documents leaked by former National Security Agency contractor Edward Snowden. The other method involves seeding changes from the very beginning.

One country in particular has an advantage executing this kind of attack: China, which by some estimates makes 75 percent of the world’s mobile phones and 90 percent of its PCs

Supermicro had been an obvious choice to build Elemental’s servers. Headquartered north of San Jose’s airport, up a smoggy stretch of Interstate 880, the company was founded by Charles Liang, a Taiwanese engineer who attended graduate school in Texas and then moved west to start Supermicro with his wife in 1993. Silicon Valley was then embracing outsourcing, forging a pathway from Taiwanese, and later Chinese, factories to American consumers, and Liang added a comforting advantage: Supermicro’s motherboards would be engineered mostly in San Jose, close to the company’s biggest clients, even if the products were manufactured overseas.

Today, Supermicro sells more server motherboards than almost anyone else. It also dominates the $1 billion market for boards used in special-purpose computers, from MRI machines to weapons systems. Its motherboards can be found in made-to-order server setups at banks, hedge funds, cloud computing providers, and web-hosting services, among other places. Supermicro has assembly facilities in California, the Netherlands, and Taiwan, but its motherboards—its core product—are nearly all manufactured by contractors in China…

“Think of Supermicro as the Microsoft of the hardware world,” says a former U.S. intelligence official who’s studied Supermicro and its business model. “Attacking Supermicro motherboards is like attacking Windows. It’s like attacking the whole world.”

The entire, detailed article, is worth reading. As you do, consider that our government increasingly uses server-enabled cloud computing, even for the most sensitive of information. Does it make sense for our government and military to use hardware produced by our all-but-in-name adversary? What carefully implanted surprises now await us in an actual showdown with this emerging power? Shouldn’t our policy be to encourage cost-effective manufacturers here at home?

Over the past 30 years the world became obsessed with obtaining cheap products from China. We’re finding out now they may have cost more than we ever suspected.

Make America great again — make America self-reliant, manufacturing its own goods again.

Advertisements

A scary situation

Since it’s Halloween, everyone’s focused on spooky things.  Here’s a spooky thought: the U.S. national security strategy is “insolvent:”

Too few resources are chasing too many ongoing operations, forward presence commitments, and potential conflicts. U.S. military leaders have been unanimous in warning that they do not have enough troops, equipment, or funding to execute the national defense strategy. … There aren’t enough available dollars to sustain the current U.S. military strategy, which aims to simultaneously keep American global posture intact, conduct an ongoing military campaign against ISIL, sustain a global counterterrorism effort in its 16th year, and be ready for multiple contingencies against highly capable regional challengers.

Much like Maverick from the movie Top Gun, whose ego was accused of “writing checks your body can’t cash,” the United States after World War Two extended its umbrella of protection across the world, underwriting the security of what became known as the “free world.”  While that may have been appropriate (debatable) at a time when our economy represented nearly half of the world’s Gross Domestic Product, it is untenable now that our government borrows 10 to 20 percent of its annual budget, and rising interest rates make servicing the debt one of the fastest-growing Federal expenditures.

Russia.  China.  Iran.  North Korea.  Islamic terrorism.  Border security.  It’s essential the U.S. prioritize the threats (and in the case of Russia, perhaps take action to live less in conflict with other great powers).  Trump was right on the campaign trail to say that many of our allies (*cough* Europe *cough*) need to shoulder a greater portion of the burden of their own defense.  When we’re playing Twister with our national power to try to cover U.S. interests, it makes no sense to be subsidizing others at the same time.

Our current global posture is in many ways a bluff… and our potential adversaries know it.  That creates both uncertainty and potential adventurism.  It’s time our stated objectives and our commitment to maintaining them were brought back into balance.

But instead of just spending more on the military, maybe we should stop writing so many checks.

“[America} goes not abroad, in search of monsters to destroy.  She is the well-wisher to the freedom and independence of all.  She is the champion and vindicator only of her own.” – John Quincy Adams. 1821