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Prohibiting IT Contracts with China-Linked Entities for US Defense

New regulations aim to enhance national security by restricting the Department of Defense from entering into IT contracts with companies linked to China, especially in AI, military software, or data centers. This means these companies cannot provide services to US defense, protecting sensitive data and technology. It impacts the government technology supplier market, favoring companies not associated with Chinese entities.
Key points
The Department of Defense cannot contract with IT companies owning AI research facilities in mainland China.
Prohibition extends to companies providing government software source code access to Chinese entities.
Companies supplying military or dual-use software to China are also excluded.
The ban includes entities operating data centers in mainland China, safeguarding sensitive information.
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Additional Information
Print number: 118_HR_10453
Sponsor: Rep. Fallon, Pat [R-TX-4]
Process start date: 2024-12-17