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The U.S. has come down hard on Huawei -- again. DOD supply chain is filled with Chinese companies. And the takeaways from DHS's biannual cyberattack drill. This is CyberScoop for Monday, August 17.

US squeezing Huawei

The U.S. Department of Commerce announced Monday it was taking several steps to further restrict Huawei’s ability to acquire electronic components developed using U.S. technology. As part of its actions, the department is adding 38 Huawei affiliates around the world to the U.S. government’s economic black list, which will make it difficult for Huawei to obtain semiconductors — even those produced outside of the U.S. — without a U.S. stamp of approval. The U.S. State Department Monday also accused Huawei of not abiding by earlier restrictions issued in May, claiming “Huawei has continuously tried to evade” them. Shannon Vavra has more.

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It's not just Huawei and TikTok

A report from data analytics firm Govini shows that the Department of Defense‘s IT supply chains has dozens of Chinese companies in it. It is unclear how much work, products or services come from these companies and in what way, but it still is a significant risk, according to Govini’s CEO. “The volume alone is important because it just amplifies the risk,” Tara Murphy Dougherty, a former DOD official and CEO of Govini, said in an interview. The report found several dozen Chinese suppliers from the IT, software and telecommunications equipment industries in a sample of more than 1,000 prime defense contractors’ supply chains. Govini’s findings come as the federal government, including the DOD, has been required by law to remove certain Chinese-owned technology firms from its supply chains as of last week. FedScoop's Jackson Barnett has more.

In the eye of the ‘Cyber Storm’

COVID-19 delayed, but didn’t prevent, DHS’s biannual drill from taking place. Some 2,000 participants — including companies from the health care and manufacturing sectors — convened virtually for the biannual Cyber Storm exercise held by the Department of Homeland Security last week. The takeaway? Some companies didn’t have a good grip on the security of third-party IT services they depend on. The hypothetical hacking campaigns participants had to withstand saw key IT infrastructure, from DNS records to software certificates, compromised. Sean Lyngaas has more.

US and Israel play defense on energy cybersecurity

The U.S. and Israel reportedly collaborated on Stuxnet, one of the most potent hacking tools to target an energy facility on record. But they’ve also increasingly invested in capabilities to defend against that kind of digital sabotage. The latest example came Friday, when the countries’ energy departments announced up to $10 million in funding for private-sector and academic projects to bolster the security of industrial control systems. Among the topics the two governments are interested in is securing PLCs, the category of industrial computers that Stuxnet exploited. Read the announcement here.

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