supply chain security concerns

 We are seeing 

Change in global supply chains — from resilience to security Proposed U.S. rules on Chinese connected car tech and Israel’s pager attacks

Global supply chains are at an inflection point

While the COVID-19 pandemic shifted the focus from efficiency (just in time) to resilience (just in case)

Moves by the U.S. and Israel’s pager attack

Law that Ban on imports or sale 

1 On September 23, the United States Department of Commerce proposed rules which, if accepted “would prohibit the import or sale of certain connected vehicle systems designed, developed, manufactured, or supplied by entities with a sufficient nexus / related to the PRC or Russia”. 

2 Software and hardware 

The proposed rules target both the software and hardware associated with vehicle connectivity systems as well as automated driving systems. 

3 पहले किस प्रकार के प्रतिबंध लगाए गए थे अमेरिका के द्वारा 

While the 100% tariffs on Chinese EVs aimed at reducing their sale in the domestic market, the newly proposed rules, which stem from national security concerns, would effectively ban their sale in the U.S.

अमेरिका को किस बात की चिंता है ?

both hardware and software components in cars employing some form of external communication capabilities can be potentially misused. 

The idea is that cars with connected car tech are essentially mobile listening posts, and that malicious actors can use their cameras and sensors for espionage purposes. 

Worse, these cars may even be disabled or hijacked — especially those level 3 and above on the Society of Automotive Engineers’ levels of driving automation..

Example of Israeli supply chain attack, on September 17-18

targeting pagers and walkie-talkies used by Hezbollah in Lebanon. 

More than 30 people including children were killed while thousands were injured..

इतिहास में क्या पहले कभी ऐसा हुआ है ?

U.S., Australia, Japan and even India effectively banned Huawei and other Chinese telecom players from participating in the 5G rollout for security considerations. 

The motivating fear was that China could install backdoors in the telecom infrastructure giving it the capability to surveil or sabotage the same. 

Since then, supply chain security concerns have spread to other tech industries such as semiconductors.

From efficiency to resilience to security

globalisation, especially from the 1980s till the 2010s

components were procured and assembled at various locations across the world based on cost and other considerations. 

. China established itself as a central supply node in this arrangement. 

late 2010s and early 2020s 

such as the U.S.-China rivalry and resultant technology decoupling and the COVID-19 pandemic shifted the focus away from “just in time” to “just in case”.

That is, there was a recognition in the U.S., Europe, India and elsewhere that supply chains had become too dependent on Chinese exports. 

, security considerations around Chinese involvement in telecom infrastructure also led to another shift — from resilience to security.

 This shift has only solidified in the wake of Israel’s supply chain attack.

India and supply chain security

How can India ensure that its supply chains are secure? 

Extreme measures such as outright banning import of a range of tech products and services would not work.

What can work is a two-pronged approach 

involving both “just to be secure” and “just in case” strategies. 

The “just to be secure” strategy can be put in motion through “trust but verify” and “zero trust.” 

Certain tech products and services 

(say those used in communications, transport or critical infrastructure broadly defined) can be subjected to trust but verify entailing methods such as 

1. periodic audits, 
2. on-site inspections, 
3. and establishment of a mechanism that ensures compliance with national and international security standards. 

for most critical items

(say those used by Indian military, intelligence agencies, or for cutting edge research and development) should be subjected to zero trust. 

 For all the rest less critical technologies, the “just in case” 

strategy involving diversification of vendors and friendshoring would suffice in taking care of larger supply chain concerns about cascading fallouts due to single points of vulnerabilities and failures.

source the hindu