Dealing with Cybersecurity Threats Posed by Globalized Information Technology Suppliers

by Theodore H. Moran, Peterson Institute for International Economics

May 2013

Theodore H. Moran cites recent instances of the US government intervening to block foreign producers of information technology (IT) from selling goods and services to US firms and argues that such actions based on the nationality of the foreign firm is ineffective, discriminatory, and unfair. The dangers and risks of compromise of US national security are real. But in a world where supply chains of IT companies of every nationality are thoroughly globalized, a better way to protect national security would be to establish a multilateral nondiscriminatory system to ensure the integrity of equipment, software, patches, and upgrades from all sources. Much remains to be done to establish an appropriate regime to protect national security and also the rights of investors and companies doing business with foreign firms. The goal should be to strike a balance between protecting national security without discouraging foreigners from investing in and doing business with US firms. 


View full document [pdf]


Book: Foreign Direct Investment in the United States: Benefits, Suspicions, and Risks with Special Attention to FDI from China August 2013

Book: Outward Foreign Direct Investment and US Exports, Jobs, and R&D: Implications for US Policy August 2013

Policy Brief 13-1: The World Needs a Multilateral Investment Agreement January 2013

Working Paper 12-16: Transactions: A New Look at Services Sector Foreign Direct Investment in Asia October 2012

Working Paper 08-7: Policy Liberalization and FDI Growth, 1982 to 2006 August 2008

Op-ed: Avoiding Another Dubai February 28, 2006

Book: Does Foreign Direct Investment Promote Development? May 2005

© 2016 Peter G. Peterson Institute for International Economics. 1750 Massachusetts Avenue, NW.
Washington, DC 20036. Tel: 202-328-9000 Fax: 202-659-3225 / 202-328-5432
Site development and hosting by Digital Division