After many associations urged the Commerce Department to grant more time for comments on its next advance NPRM for foundational technologies, officials said it will consider the request but suggested industry has ample time. “There’s no surprise that it’s coming,” said Rich Ashooh, assistant secretary-export administration, at the Bureau of Industry and Security’s annual export controls conference this week. Nazak Nikakhtar, undersecretary-industry and security, said companies should have given “quite a bit of thought” to foundational technologies already. “That it’s been out there for a while, and everybody knows the foundational technology piece is coming, hopefully businesses have given thoughts to their comments.” Nikakhtar said BIS plans the notice “very, very soon.” BIS plans its first proposed set of rules for export controls on emerging technologies in “weeks, but not months,” Ashooh said. But Nikakhtar said Commerce is moving slowly to make sure it's fully “understanding the technologies, understanding the applications” and “going about this in the right way.” Ashooh said the upcoming controls won’t be a “categorical rule” on broad groups of technologies but instead will be applied slowly to individual components. He said BIS is working on controls on one “basket” of technologies and will continue to issue more controls as they're created. “This process will have no end,” he said. “It will continue as technologies continue.”
The House passed on voice votes Thursday four telecom-related amendments to its version of the FY 2020 National Defense Authorization Act (HR-2500), including three addressing concerns about Chinese telecom equipment manufacturers Huawei and ZTE (see 1907020060). The Senate passed its 2020 NDAA version (S-1790) in June without language from any of the three proposed anti-Huawei amendments (see 1906270051). The House also approved an amendment led by Rep. Norma Torres, D-Calif., that would attach language from the 911 Supporting Accurate Views of Emergency Services (Saves) Act (HR-1629/S-1015). It would change the federal government's classification of public safety call-takers and dispatchers to “protective service occupations" rather than administrative or clerical occupations (see 1904050054). AT&T “enthusiastically supports” the HR-1629 language, Executive Vice President-Federal Relations Tim McKone said. House Rules Committee cleared the Torres and anti-Huawei/ZTE amendments Tuesday. One, led by Rep. Mike Gallagher, R-Wis., would impose conditions for the Department of Commerce to lift Bureau of Industry and Security addition of Huawei to its entity list that would impose export restrictions on the company, including a finding that Huawei and its executives haven't violated U.S. or UN sanctions and haven't engaged in theft of U.S. intellectual property during the preceding five years (see 1906190054). Undersecretary-Industry and Security Nazak Nikakhtar said Tuesday the department is reviewing export license applications to sell to Huawei to “mitigate as much of the negative impacts of the entity listing as possible” and hopes to have decisions “soon” (see 1907100013). A second Gallagher-led proposal would direct the president to submit a report to Congress on ZTE's compliance with a 2018 agreement that lifted Commerce's ban on U.S. companies selling telecom software and equipment to ZTE (see 1807130048). Language from Rep. Ruben Gallego, D-Ariz., would restrict the use of telecom equipment made by companies originating in countries that are U.S. adversaries at Department of Defense installations in U.S. territories in the Pacific Ocean. Commerce plans multiple guidances on its blacklisting of Huawei due to the large number of questions from U.S. exporters, officials told a BIS conference Thursday, to address the most common questions from U.S. industries. “We've gotten a lot of questions and we’ve been funneling them up the chain for clearance,” said Hillary Hess, director of Commerce’s regulatory policy division. Sen. Tom Cotton, R-Ark., meanwhile, criticized Treasury Secretary Steven Mnuchin Thursday after a report Mnuchin is encouraging Huawei's U.S. suppliers to seek licenses that would resume their sales to the company. “I strongly 'discourage' any American company from seeking licenses to deal with Huawei,” Cotton tweeted. The company “is a threat to Americans’ security, privacy, & prosperity. Don’t be the proverbial capitalist who sells the rope the communists will hang us with.”
The Commerce Department is reviewing export license applications to sell to Huawei to “mitigate as much of the negative impacts of the entity listing as possible” and hopes to have decisions “soon,” said Nazak Nikakhtar, Commerce undersecretary-industry and security. Nikakhtar, speaking Tuesday at Commerce's Bureau of Industry and Security’s annual export controls conference, briefly discussed Huawei after Commerce Secretary Wilbur Ross told the conference Huawei won't be removed from BIS’ entity list, confirming July 3 comments from a spokesperson (see 1907050003). Commerce is planning to roll back some restrictions on export licenses to Huawei and evaluate applications based on their U.S. national security impacts. White House Chief Economic Adviser Larry Kudlow said at a Tuesday CNBC event that some Huawei “general merchandise” sales will be permitted. Commerce’s altered approach came from recent feedback from U.S. companies, said Nikakhtar. “We’re moving forward cautiously by recognizing that the right approach is one that allows U.S. businesses to grow while we don’t stifle innovation but importantly while we also protect national security,” she said. President Donald Trump initially made the announcement at the G-20 Summit in Japan, saying the U.S. and China had agreed to resume trade talks (see 1907020060). Nikakhtar said BIS “recognizes the impact our entity listing has on U.S. exporters” and urged companies to make use of the 90-day temporary general license the agency issued in May. She said BIS hopes U.S. industries “consider shifting towards other sources of equipment, software and technology.” Huawei’s inclusion on the entity list “was not taken lightly,” Nikakhtar said. “We should not, nor should we ever, fail to take action because of a company's size or our dependence on export sales.”
The net effect of U.S. concessions on Huawei is murky, much like U.S. trade policy at present, experts said in interviews this week. President Donald Trump and Chinese President Xi Jinping agreed at the G20 conference in Osaka, Japan, to delay discussion of such U.S. sanctions “until the end” of trade talks (see 1907010070). Such penalties were seen as one of the best U.S. bargaining chips with China (see 1905240038). It’s unclear whether Congress will be able to channel into action bipartisan outcry over President Donald Trump’s move to ease federal restrictions on the Chinese telecom equipment manufacturer, experts said.
The Senate voted 86-8 Thursday to pass the FY 2020 National Defense Authorization Act (S-1790) with a manager's amendment that included some 5G, spectrum and emergency alerts-related proposal. Senate leaders didn't include any proposed language in the manager's amendment targeting Chinese telecom equipment manufacturer Huawei (see 1906190054). There had been separate proposals by three senators -- Ted Cruz, R-Texas; Mitt Romney, R-Utah; and Marco Rubio, R-Fla. -- amid the debate over the Commerce Department Bureau of Industry and Security notice adding Huawei and its affiliates to a list of entities subject to export administration regulations (see 1905160081). Romney was among those concerned President Donald Trump would seek to end BIS' restrictions against Huawei as part of the administration's ongoing trade talks with China (see 1905240038). The S-1790 language outlined in the manager's amendment would call for DOD to work with the FCC and NTIA to establish a spectrum sharing R&D program aimed at sharing between 5G technologies, federal and non-federal incumbent systems. The language says DOD, the FCC and NTIA officials should, by May 2020, propose an “integrated spectrum automation enterprise strategy” that will allow Defense to “address management of [spectrum], including Federal and non-Federal spectrum” shared by DOD “that could be used for national security missions in the future, including on a shared basis.” There's also language saying the secretary of defense should begin by March 15, 2020, to brief Hill committees with jurisdiction over DOD on how the department is using 5G technology and is working with other federal agencies to “develop common policies and approaches.” The manager's amendment includes a proposal from Senate Intelligence Committee Chairman Richard Burr, R-N.C., and Vice Chairman Mark Warner, D-Va., to would require the director of national intelligence to report on the extent to which “global and regional adoption” of foreign-made 5G technology affects U.S. national security. The study should in part look at how the nation's “strategy to reduce foreign influence and political pressure in international standard-setting bodies” could help mitigate the threat. Senate Communications Subcommittee ranking member Brian Schatz, D-Hawaii, secured the addition of language from his Authenticating Local Emergencies and Real Threats (Alert) Act, which he first filed in response to the January 2018 false missile emergency alert in Hawaii (see 1801160054). The Alert Act would give the federal government sole authority to issue missile threat alerts and pre-empt state and local governments' role (see 1802070052). The Senate cleared the Alert Act last year by unanimous consent (see 1806270001).
An internal “review” at Micron Technology found the memory-chip supplier could “lawfully resume shipping a subset of current products” to Huawei because they aren't subject to Commerce Department export administration regulations and entity list restrictions, said CEO Sanjay Mehrotra on a fiscal Q3 earnings call. Micron reinstated those shipments about two weeks ago, he said Tuesday.
Senators are aiming to attach amendments this week to the FY 2020 National Defense Authorization Act targeting Chinese telecom equipment manufacturer Huawei, 5G security and changes to the emergency alerts apparatus, among other telecom policy issues, as the chamber begins floor consideration of the measure. The Senate voted 88-11 Wednesday to invoke cloture on the motion to proceed to S-1790, a precursor to consideration of amendments.
Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., and Sen. Marco Rubio, R-Fla., urged President Donald Trump's administration Thursday not to use U.S. restrictions on Huawei as a “bargaining chip in trade negotiations” with China. Trump's May executive order bars some foreign companies' technology from U.S. networks and the Commerce Department's Bureau of Industry and Security filed a notice adding Huawei and affiliates to a list of entities subject to export administration regulations (see 1905160081). BIS issued a general license temporarily allowing certain transactions by Huawei and the affected affiliates through Aug. 19 (see 1905210013). Trump later said sanctions against Huawei could be part of trade negotiations with China (see 1905240038). OMB acting Director Russel Vought later requested a two-year delay in implementing government contracting and procurement-related restrictions on Huawei included in the FY 2019 National Defense Authorization Act (see 1808130064). “Europeans have publicly expressed fears that the Administration will soften its position on Huawei,” especially given Trump's instigation of a settlement that lifted the Commerce Department ban on U.S. companies selling telecom software and equipment to Chinese firm ZTE (see 1807130048), Rubio and Warner wrote Secretary of State Mike Pompeo and U.S. Trade Representative Robert Lighthizer. “Instead, the U.S. should redouble our efforts to present our allies with compelling data on why the long-term network security and maintenance costs on Chinese telecommunications equipment offset any short-term cost savings.” Any modifications to BIS' temporary general license for Huawei “must be pursued in a risk-based way, separate from any trade negotiations, and consistent with national security considerations,” the senators said. “Conflating national security considerations with levers in trade negotiations undermines” U.S. work with Europe, India and other “international partners.” The House Armed Services Committee, meanwhile, Thursday advanced its version of the FY 2020 NDAA with language directing the defense secretary to conduct a comprehensive assessment of DOD policies on telecom and video surveillance services and equipment from foreign contractors and subcontractors, including identifying ways to mitigate threats via the debarment and suspension process. The bill would direct the defense secretary to implement a strategy for 5G technologies. It recommends giving DOD $175 million to ensure effective Joint Force operations in 5G spectrum.
Sens. Marsha Blackburn, R-Tenn., Richard Blumenthal, D-Conn., and five other senators expressed concern to the FCC and DOD Wednesday about Huawei's involvement in developing the spectrum access system (SAS) and environmental sensing capability (ESC) technologies for sharing the 3.5 GHz band. They wrote acting Defense Secretary Patrick Shanahan and FCC Chairman Ajit Pai that they're "alarmed" Huawei is a member of the Wireless Innovation Forum's Spectrum Sharing Committee. The company is under scrutiny from lawmakers concerned about how it could affect security of 5G technology given its role in deployments in other countries (see 1905230066). President Donald Trump's executive order last month bars some foreign companies' technology from U.S. networks and the Commerce Department's Bureau of Industry and Security filed a notice adding Huawei and affiliates to a list of entities subject to export administration regulations (see 1905160081). BIS issued a general license temporarily allowing certain transactions by Huawei and the affected affiliates through Aug. 19 (see 1905210013). Trump later said sanctions against Huawei could be part of trade negotiations with China (see 1905240038). The senators asked DOD and the FCC about the "long-term implications" of Huawei's WinnForum involvement "for use of SAS and ESC technology specifically and spectrum sharing generally" and whether the WinnForum work gives the company "unique knowledge" about current Navy use of the 3.5 GHz band. They want to know what the agencies are doing to "fully assess Huawei’s involvement in SAS and ESC development" and "what steps are being taken to mitigate Huawei’s further involvement" in the WinnForum work. The other senators signing the letter included: Susan Collins, R-Maine; John Cornyn, R-Texas; Tom Cotton, R-Ark.; Ed Markey, D-Mass.; and Dan Sullivan, R-Alaska. The FCC and DOD didn't comment Thursday.
The Commerce Department plans to issue an advance NPRM for export controls on foundational technologies in coming weeks, said Rich Ashooh, assistant secretary-export administration, at a Bureau of Industry and Security Regulations and Procedures Technical Advisory Committee meeting. Hillary Hess, director of Commerce’s regulatory policy division, said only “it is in the process now.” BIS recently updated the commerce control list (CCL) with five new emerging technologies (see 1905230018). Hess and others previously said BIS was behind in publishing controls on emerging and foundational technologies due to the partial federal government shutdown and the large volume of comments. Tuesday, Ashooh said BIS plans to stagger notices about emerging and foundational technologies, and Hess said it plans to release the ANPRM before any more emerging technologies are added to the CCL. Ashooh said he will try to give “a little more” time for comments on the foundational technology notice but it may not be possible. When Ashooh last asked Commerce Secretary Wilbur Ross for a public comment extension, Ross “very grudgingly” agreed, Ashooh said. “It’s a fast-moving administration,” he said, “and I’m sure that will still apply.” Ashooh said the ANPRM for foundational technologies will be a “very different thought process” from the previous notice for emerging technologies, but will offer another opportunity to communicate with BIS: “Those of you who provided comments on emerging, whatever you didn’t get to say in emerging, you can say in foundational.” Hess said BIS must wait for OMB to OK the ANPRM, which can take up to 90 days. But Hess said usually the OMB “doesn’t take that whole time.” Commerce won't provide straightforward definitions of foundational or emerging technologies in an upcoming notice, said both speakers. “Emerging technologies defies a specific definition,” Ashooh said. The technologies that fit under the emerging technologies category will be defined “on a rolling basis” as they’re proposed. Hess said BIS won’t try to place rigid definitions on any technology category but instead try to “identify the technical parameters.” Commerce looks for a common thread when identifying emerging or foundational technology exports that may be candidates for the CCL, Hess said.