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US senators want Tencent-backed Internet of Things firm Tuya sanctioned, calling the Chinese platform a security threat

  • Three Republican senators say Tuya is required by law to turn Americans’ data over to Beijing, a frequently cited concern in the US
  • Tuya denied the claims, saying its user data is regionally isolated and has never been requested by foreign governments

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Tuya employee Ella Yuan demonstrates the company’s facial recognition system at the Consumer Electronics Show in Las Vegas on January 9, 2019. Three US senators are calling for the Chinese Internet of Things platform operator to be added to a list of sanctioned Chinese companies, citing national security concerns. Photo: AFP

Three US senators are urging Treasury Secretary Janet Yellen to sanction Chinese Internet of Things (IoT) company Tuya Smart, calling the New York-listed company a national security threat that undermines Americans’ privacy.

Republican senators Marco Rubio, Rick Scott and Tom Cotton said the Chinese company is required to share user data with its government under the country’s Data Security Law, which went into effect this month, in a public letter published on the US Senate’s website on Friday. China’s legal data-sharing requirements have been an oft-cited national security concern in the US.

“Cyber and national security experts have already raised significant concerns about Tuya’s lack of protections over users’ data,” the senators wrote. “However, there is also a more basic reality that, as a [People’s Republic of China] company, Tuya is obligated to comply with [Communist Party] orders, including requests to share American and other users’ data with the Chinese government.”

To do nothing, the senators argued, would mean “continuing to provide Beijing a direct line to Americans’ private data”, helping the country’s exploitation of IoT vulnerabilities.

Tuya said the senators’ claims were “without merit” because the company isolates all user data regionally, including in the US. “Tuya has never received a request from one country’s government to share user data from another country,” Tuya told the Post on Saturday.

“We take compliance with all security and privacy laws seriously and strive to abide by the laws in all markets where we operate – including the United States and China. Tuya is prepared to aggressively defend itself against any claims to the contrary.”

The senators want Tuya added to a list of Non-SDN Chinese Military-Industrial Complex Companies, expanding an executive order US President Joe Biden issued in June that bans Americans from investing in Chinese companies believed to have ties to the Chinese military.
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