The Commerce Department is set to publish a proposed rule giving the Commerce Secretary “case-by-case” authority to enforce an executive order banning transactions with suspect foreign telecommunications companies.
An executive order signed in May by President Trump restricts U.S. companies from purchasing any telecommunications equipment produced by companies “owned by, controlled by or subject to the jurisdiction or direction of a foreign adversary.”
Specifically, the order prohibits telecom equipment purchases that “poses an undue risk of sabotage to or subversion of the design, integrity, manufacturing, production, distribution, installation, operation or maintenance of information and communications technology or services in the United States; poses an undue risk of catastrophic effects on the security or resiliency of United States critical infrastructure or the digital economy of the United States; otherwise poses an unacceptable risk to the national security of the United States or the security and safety of United States persons.”
While the order does not name specific countries, officials have linked it to provisions passed by Congress prohibiting federal contractors and contracts from including technologies from Chinese companies Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology and Dahua Technology.
The Commerce Department was given 150 days to propose a rule and procedures for reviewing such transactions and determining whether they should be prohibited. Rather than ..
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