(The Center Square) — Maine lawmakers are moving ahead with a plan that would ban companies owned by the Chinese government from bidding on state contracts amid increasing concerns about privacy and security risks.
The state Legislature’s Committee on Local Government recently voted 7-2 to advance a bill prohibiting the state government from doing business with Chinese companies with ties to the authoritarian government.
The Democratic-controlled panel was divided over the legislation, with seven lawmakers voting it “ought to pass” and another two recommending it “ought not to pass.” Committee members are expected to file joint reports outlining their positions.
The bill’s sponsor, Sen. Lisa Keim, R-Oxford, argues that the ban is needed to prevent China’s government from harvesting personal and financial information from U.S. consumers and businesses.
“The People’s Republic of China has always been a threat to national security, but there is renewed public interest in protecting against their interference,” she wrote in testimony supporting the bill. “Federal policy directs information security at the federal level, and states must also determine their own security standards.”
She pointed out that Maine has banned TikTok — a social media app owned by a Chinese company — from computers and other electronic devices that connect to the state government’s network.
“However, if Chinese technology is being used anywhere in our state government, the CCP has access to our private information upon request,” she wrote. “Maine is vulnerable in at least in one known way: Lenovo laptops which are used throughout state government.”
Under the bill, companies that falsify information to conceal any ties to the Chinese government would be subject to fines of $250,000 or twice the contract value.
The move is backed by the group, China Tech Threat, which cites a report showing Maine has spent more than $5 million on “dangerous Chinese technology” from the computer company Lenovo. The company has been restricted by the federal government and America’s military or intelligence agencies for years, the group notes.
“The fact is, Chinese companies that have been banned or restricted from U.S. military and national security networks like Lenovo, Lexmark, Hikvision, and DJI can still contract with state governments,” the group posted in a statement following the panel’s vote. “While federal policy directs information security at the federal level, states must determine their own security standards making them vulnerable to intrusion through the purchase of these risky Chinese technology products and services.”
At least nine other states have enacted similar restrictions on contracts with companies tied to the Chinese government, including Vermont, Texas, Florida and Georgia, according to the group. Others, including New Hampshire and New Jersey, are considering similar proposals.
The proposal, which still faces a long slog through the Democratic-controlled state Legislature, is backed by the Maine Manufacturers Association, which testified that the federal government “has already taken steps to address the Chinese tech threat.”
“We believe this bill addresses a concerning issue and it’s important that the state and state funded entities are not inadvertently procuring goods or services that could unknowingly put them at risk,” the group said in a statement in support of the legislation.