Proposed new 25 percent tariffs on products from China will be put "on hold" while the Trump administration tries to "execute the framework" of a trade deal with China, Treasury Secretary Steven Mnuchin said in an interview on Fox News Sunday. "I'm pleased to report that we've made very meaningful progress and we've agreed on a framework, which is important to understand, and the framework includes their agreement to substantially reduce the trade deficit by increasing their purchasing of goods," he said of the talks with the Chinese. China and the U.S. released a joint statement Saturday saying both sides are aligned on the "importance of intellectual property protections, and agreed to strengthen cooperation," among other terms. Comments are due Tuesday in docket USTR-2018-0005 to rebut statements made in three days of hearings the U.S. Trade Representative's office held last week on the proposed tariffs (see 1805160067 or 1805160020). USTR Robert Lighthizer wants "real work" for "changes in a Chinese system that facilitates forced technology transfers in order to do business in China and the theft of our companies’ intellectual property and business know how," he said in a statement his office emailed us Monday. "Getting China to open its market to more U.S. exports is significant, but the far more important issues revolve around forced technology transfers, cyber theft and the protection of our innovation. As this process continues the U.S. may use all of its legal tools to protect our technology through tariffs, investment restrictions and export regulations. Real structural change is necessary." Despite the Trump administration's pause in adding tariffs on goods from China, it's too early to end efforts on product exemptions, Baker McKenzie lawyer Ted Murphy blogged. "While this is a positive development, it is also subject to change," he said. "For now, we are recommending that companies continue to pursue exclusions just in case."

Ericsson, Qualcomm Technologies and Russian provider MTS said they jointly deployed licensed assisted access technology in Ufa City, Russia. “LAA is an important technology in the LTE network evolution to 5G, providing access to new unlicensed frequencies,” Ericsson said. “With this milestone, MTS has surpassed its previous 700 Mbps speed record, enabling the service provider to take the next step in turning its mobile infrastructure into gigabit-capable.” Ericsson is upgrading MTS’ network for 5G and the growing IoT. "Delivering Gigabit LTE speeds, this is the first commercial LAA rollout in the region and is part of the agreement entered by MTS and Ericsson in 2017 to upgrade the MTS network with Ericsson Radio System and core network solutions," Ericsson said.

A federal jury convicted a Latvian resident of three counts of cybercrime involving his “Scan4You” program, an online counter-antivirus service targeting U.S. businesses, DOJ announced Wednesday evening. It said Ruslans Bondars, 37, a citizen of the former USSR and therefore a Latvian "non-citizen," was convicted of one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of conspiracy to commit wire fraud and one count of computer intrusion with intent to cause damage and aiding and abetting. Sentencing is set for Sept. 21.

CTA "remains opposed" to the use of tariffs to address the "imbalance" in the U.S.-China trade "because of the high likelihood of short- and long-term negative consequences," said Sage Chandler, vice president-international trade, in written testimony sent to us Wednesday on the second day of hearings (see 1805150074) before the U.S. Trade Representative’s office on proposed 25 percent tariffs. Some members, "including innovative startups," fear this would "put them at a disadvantage relative to their competitors in other nations," she said. Prices will rise an average of 23 percent on TVs and other consumer products if the proposed tariffs for Chinese intellectual property issues are imposed, said David French, National Retail Federation senior vice president-government affairs, in written testimony Wednesday. The Internet Association appreciates the administration “is trying to address” the “trade barriers” that block U.S. internet services from penetrating China, depriving them of “billions of dollars in potential business,” testified Jordan Haas, director-trade and international policy, Wednesday. “Tariffs, however, are the wrong solution.” Internet companies “understand that tariffs are hidden, regressive taxes that will be paid by the U.S. consumer in the form of higher product prices and by hurting companies’ ability to invest in future technology,” he said. Many of the products on the proposed tariff list are consumer goods, including TVs, and tariffs on them would be “problematic for internet companies,” so they should be removed, said Haas. The National Electrical Manufacturers Association agrees the levies "will not help support and could materially injure the global competitiveness of our industries," said Kyle Pitsor, vice president-government relations, in written testimony Wednesday.

A wide range of industries asked to be spared -- or protected -- in the first day of a U.S. Trade Representative office hearing on the proposed Chinese tariffs that to include more than 120 companies, a major union and many trade associations in sessions that run through Thursday. The agency will refine the list of products subject to 25 percent tariffs over China's alleged unfair trade practices. In testimony through Tuesday, Best Buy and Roku were among many opposing full-on IP tariffs. Mike Mohan, chief merchandise officer at Best Buy, dismissed the argument of General Counsel David Baer of TV maker Element Electronics, which supports keeping the proposed tariffs on finished TV sets from China. Tariffs could raise retail prices as much as 23 percent, Mohan said. Chas Smith of Roku, which employs 800 of its 900 worldwide employees in the U.S., said if fewer TVs are bought because of price increases from the tariffs, that will harm its ability to add more users. That won't just cut licensing fees from its Chinese manufacturing partners but also advertising and content distribution revenue, the hearing was told.

Broadcom is seeking a limited exclusion order banning imports of infotainment systems and cars containing them that allegedly infringe its patents, the company said in a Tariffs Act Section 337 complaint filed May 7. It alleged Panasonic, Toyota and others are importing and selling infringing merchandise, which includes head units, rear-seat entertainment units, units for displaying information or entertainment, cameras, controllers and processing components used in the systems such as Global Navigation Satellite System receivers and modules. Broadcom also seeks cease and desist orders. The International Trade Commission is seeking comment by May 21, said Friday's Federal Register. Panasonic didn't comment Monday and Toyota declined to comment.

The U.S. Trade Representative’s proposed 25 percent tariffs on Chinese goods over intellectual property issues and the Trump administration’s “escalating” threats to raise tariffs higher “will not effectively advance our shared goal” of changing China’s “harmful” trade practices “in a durable, verifiable, and enforceable manner,” commented CTA, the Information Technology Industry Council, Telecommunications Industry Association and many others. “The proposed tariffs will be counterproductive and undermine” the administration’s efforts “to change China’s policies and practices” through face-to-face negotiations, the groups filed Friday in docket USTR-2018-0005. “Tariffs are taxes.” CTA said it “categorically opposes the imposition of tariffs on the products identified in USTR’s proposed list.”

Customs and Border Protection will launch a two-to-four-week pilot program on blockchain technology this fall related to North American Free Trade Agreement and Central America Free Trade Agreement certificate of origin processes, a CBP spokesman said. CBP needs to reach further back into the supply chain than just the exporter and can "message multiple partners via blockchain at the same time," he said. The agency and the Department of Homeland Security's Science and Technology Directorate will examine how much the blockchain system reduces duplicative data and whether multiple blockchain programs can communicate simultaneously. The pilot also has a goal of evaluating "the usefulness of blockchain for a law enforcement agency," the spokesman said. Advisory committee members (see 1708250025) helped to choose this pilot subject.

Liberty Global will sell its German, Hungarian, Romanian and Czech Republic operations to Vodafone for $22.7 billion, Liberty said Wednesday. It expects the deal to close in mid-2019, pending European Commission approval. Liberty said it will continue its cable ISP operations in the U.K., Ireland, Belgium, Switzerland, Poland and Slovakia and still have its 50 percent stake in the VodafoneZiggo joint venture in the Netherlands. Liberty said its and Vodafone's cable networks don't overlap. In a note to investors, Citi said the deal is likely to get regulatory approval, though odds are good Germany will impose some conditions.

Customs and Border Protection is considering offering trusted trader benefits to those in the e-commerce world, to improve compliance, said John Leonard, CBP executive director-trade policy and programs, on a panel last week at the National Customs Brokers & Forwarders Association of America annual conference. The hope is to "incentivize all these new actors in this space to improve the platforms and marketplaces, etc., to be more compliant," he said in Rancho Mirage, California. The agency will need to act quickly on an e-commerce policy "because it's already overtaking us," said Jim Swanson, association director-cargo and conveyance security and controls.