China's Internet of Things   [open pdf - 3MB]

"The Internet of Things (IoT)--the interconnection of physical and virtual things via information and communication technologies--is emerging as the next front in global network infrastructure, with potentially transformative benefits across a range of applications and services. Due to its potential adoption in essentially all economic sectors, analysts expect the IoT to expand exponentially over the next few years, ultimately involving billions of connected devices and dozens or more vertical markets around the world. However, pressing questions about the IoT's operation, safety, and security have yet to be answered. What international standards will guide the development of IoT technologies and supporting infrastructure like 5G networks? How secure is the IoT and what are the risks of its vulnerabilities? How will U.S. consumer data be used and protected here and abroad? China features prominently in all of these issues, and its drive to become a leader in the IoT poses sobering challenges to U.S. economic and security interests. This report examines how China's development of the IoT--bolstered by the Chinese government's efforts to harness national resources for its promotion--has put China in a position to credibly compete against the United States and other leaders in the emerging IoT industry. China's pursuit of IoT dominance constitutes a significant challenge to U.S. economic and national security interests. Its robust participation in international standards committees has given Beijing greater opportunities to dictate the rules of the road. Its research into IoT security vulnerabilities and its growing civil-military cooperation raise concerns about gaining unauthorized access to IoT devices and sensitive data."

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U.S.-China Economic and Security Review Commission: https://www.uscc.gov/
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