Chinese-Made Grid Equipment: A Major National Security Concern

The Scope of the Problem

• 💡 Chinese-made grid equipment poses a significant national security risk, extending beyond just electrical and telecom infrastructure.
• ⚠️ Any device with a computer likely has a major Chinese dependency, making it a broad societal issue.

Identifying and Mitigating Risks

• 🎯 A risk and consequence prioritization framework is needed to identify which electrical equipment poses the greatest threat.
• 🔍 Focus should be on equipment with systemic impact and the most digital exposure.
• 🔬 National labs are assisting by identifying potential backdoors and vulnerabilities in Chinese-made grid equipment.

Manufacturing and Supply Chain Security

• 🏭 70% of power electronics manufacturers and 90% of critical components have at least one critical component from China.
• 🛠️ A 20-year strategy by PRC manufacturers has led to this systemic dependency.
• 📈 Reshoring manufacturing for key energy supply chain components is crucial, with incentives in the Inflation Reduction Act aimed at boosting US production.
• 📉 Concerns exist that derailing US manufacturing efforts could worsen dependence on competitors like China.

Addressing Cyber Threats to Local Distribution Systems

• ⚡ The local distribution system, delivering power to homes and businesses, is vulnerable to cyber attacks and receives less attention.
• 📊 Only an estimated 10-20% of the bulk power system is under direct federal oversight, highlighting the need for broader efforts.
• 🤝 Channeling information in actionable ways to local companies managing distribution systems is essential, recognizing state involvement.