The Bureau of Industry and Security and DOJ are investigating U.S. mobile phone parts producer Lumentum for potentially violating U.S. export controls on shipments to Huawei, according to corporate filings.
U.S. companies and trade groups applauded a recent Bureau of Industry and Security rule that expanded the agency’s export control exemption for certain standards-setting activities. They said the rule change will help remove licensing barriers that American officials face at international bodies while working on emerging technology standards. While the Technology Trade Regulation Alliance welcomed the rule changes, it said BIS should continue expanding the exemption to cover a wider set of technologies discussed in standards bodies involving the electronics, telecommunications and aviation industries. For example, the TTRA said BIS should harmonize its standards-setting-related controls with how it treats other information shared publicly, such as fundamental research. The rule “appears inconsistent with the BIS approach to other First Amendment protected commercial speech,” the alliance said. UL Standards & Engagement, a nonprofit standards development organization, and the Wi-Fi Alliance said the rule update will help their members more easily participate in standards bodies. The Wi-Fi Alliance specifically said the rule confirms that the type of standards-related activity its members are involved in “is not restricted by the Export Administration Regulations.” BIS issued rules in 2020 and 2022 that authorize releasing certain controlled technology for specific standards-setting activities, including when companies on the Entity List, such as Huawei, are participating in those bodies.
The Commerce Department should add ByteDance to its foreign trade restriction list to safeguard American data, Reps. Dan Crenshaw, R-Texas, and Josh Gottheimer, D-N.J., wrote Thursday. Commerce should add the TikTok parent company to the Bureau of Industry and Security’s entity list: “This step would be instrumental in applying licensing restrictions to the export of software from the U.S. to ByteDance for its applications. If American users aren't able to upgrade their app with software updates, which involves the export of U.S. software, then the operability of the applications of concern will be weakened.” They noted the department took similar action against Huawei and non-U.S. affiliates in 2019. The department didn’t comment.
Former NTIA acting Administrator Diane Rinaldo and other witnesses set to testify during a Wednesday House Communications Subcommittee hearing say in written testimony that smart, expedited use of funding from NTIA’s Public Wireless Supply Chain Innovation Fund (Wireless Innovation Fund), among other actions, will help supercharge innovation in U.S. open radio access networks. Several witnesses also urge accelerated development of ORAN standards, ensuring equipment interoperability. The hearing is set to begin at 2 p.m. in 2123 Rayburn, the House Commerce Committee said Tuesday.
Republicans asked the Biden administration to strengthen export controls against Huawei and Semiconductor Manufacturing International Corp., after Huawei unveiled a new smartphone this month that may have been made through means that violated U.S. export restrictions. In a letter sent to the Bureau of Industry and Security last week, 10 House Republicans, including Foreign Affairs Committee Chair Michael McCaul of Texas, said they're “extremely troubled and perplexed” about BIS’ “inability to effectively write and enforce export control rules against violators, especially China.” They said BIS has continued to grant licenses to SMIC and other Chinese companies despite “continued Congressional pressure to adopt stricter policies.” They said both technology companies should be subject to “full blocking sanctions” and their executives should face criminal investigations, and the Commerce Department should revoke all of their existing license applications, add all their subsidiaries to the Entity List and take other measures to cut off a broad range of shipments to both firms. The lawmakers asked for a briefing with BIS and other agencies that oversee export controls by Sept. 28 and listed several recommendations for the administration to further limit sensitive technology exports to China, including by creating a new sanctions authority under the International Emergency Economic Powers Act specifically focused on China. The new sanctions authority should be used to target companies that “flout” export controls and should be leveraged to “designate SMIC and Huawei with full blocking sanctions.”
The FCC released an NPRM Thursday on a voluntary cybersecurity labeling program for smart devices (see 2307180054). Commissioners approved the NPRM 4-0 last weekend. The NPRM poses dozens of questions about the scope and nature of the program. Chairwoman Jessica Rosenworcel and Commissioners Geoffrey Starks and Nathan Simington released statements. Comment deadlines will come in a Federal Register notice.
The House Rules Committee will decide Tuesday whether to allow floor votes on a slate of tech and telecom amendments to the chamber’s version of the FY 2024 National Defense Authorization Act (HR-2670), including several requiring the State Department to do more to address the security of international telecom infrastructure and internet freedom. House Rules’ meeting on HR-2670 amendments will begin at noon in H-313 in the Capitol. The House is expected to vote on the measure later this week.
Senate Intelligence Committee Vice Chairman Marco Rubio of Florida and four other Republicans urged President Joe Biden Monday to “take immediate action to halt” Huawei’s attempt to circumvent U.S. restrictions on semiconductor exports to the company by providing money for Chinese startup Pengxinwei (PXW) IC Manufacturing to build a chip manufacturing plant in Shenzhen. The GOP senators in a letter to Biden cited reports Huawei would likely buy most of the semiconductors made at the new factory, which would have capacity to produce chips of up to 14 nanometers. The first chips are expected to be available in the first half of next year. The other signers are: Marsha Blackburn of Tennessee, Tom Cotton of Arkansas, Ted Cruz of Texas and Bill Hagerty of Tennessee. “This would represent a dangerous leap in Chinese semiconductor manufacturing, as Chinese chipmakers have thus far only been able to produce 7-nanometer chips in limited quantities,” the senators wrote Biden. “With these new chips for its base stations, Huawei could resume its march towards 5G market dominance,” and the Chinese Communist Party “will advance its plan to control global telecommunications and extend its economic espionage and repression.” The lawmakers said they’re “deeply concerned that, despite the obvious threat that PXW poses, your administration has taken no official steps to delay the project’s progress, despite being aware of the project for some time.” The Bureau of Industry and Security’s “apparent inaction” in not already placing PXW on its entity list “is a dereliction of duty” given the company’s “clear connection with Huawei,” the Republicans said: “As far as we can tell, Commerce has not sent a single ‘informed’ letter to any entities potentially working with PXW, ordering them to halt all shipments to and transactions with the factory.” BIS and Huawei didn’t immediately comment.
The Bureau of Industry and Security released an interim final rule Thursday expanding an authorization for the release of some controlled software and technology to all entities on the agency’s Entity List if the release is for the purposes of standards-setting activities. Previously, the authorization had applied only for some Entity List entities, namely Huawei and its affiliates. The interim rule takes effect Friday. The long-anticipated interim final rule also amends definitions related to the authorization, including by setting a new definition for what is a standards-setting activity. It allows for the release of software and technology for cryptographic standards. The previously issued authorization had also mentioned only technology, and not software. Industry had called for the expansion of the authorization in recent years, saying that restricting the authorization to Huawei was causing uncertainty and chilling participation in standards bodies (see 2204130072). The national security threat from ceding U.S. participation “outweighs the risks related to the limited release of certain low-level technology and software to parties on the Entity List in the context of a ‘standards-related activity,’” BIS said in the new interim final rule.
ACA Connects says Senior Vice President-Government Affairs Ross Lieberman is resigning, effective Aug. 31, “to pursue new interests” … New Mexico Public Regulation Commission names Ed Rilkoff, from Smartflower Solar tech company, director-Utility Division … Qualcomm hires Izzy Santa, ex-One Concern, as senior director-public affairs and Katie Patala, formerly Mercury Public Affairs, as director-public affairs … Saga Communications appoints board member Warren Lada interim CEO following Friday’s death of founder and CEO Ed Christian.