U.S. seeks input on licensing rules for information tech security
26/03/2021 17:23
By David Shepardson and Karen Freifeld
WASHINGTON, March 26 (Reuters) - The Biden administration
said Friday it wants new public input on establishing licensing
or other procedures to help companies comply with a sweeping new
rule targeting Chinese technology firms.
On Monday, the U.S. Commerce Department allowed a regulation
issued under then President Donald Trump in January to take
effect over objections from U.S. business groups.
Days before Trump left office in January, the Commerce
Department issued interim final rules aimed at addressing
information and communications technology supply (ICTS) chain
concerns posed by China, Russia, Iran, North Korea, Cuba and
Venezuela
The regulation said Commerce would adopt licensing or other
pre-clearance procedures by May 19.
"It has become apparent additional public input is needed,"
the Commerce Department said Friday, adding it "is seeking input
into several aspects of a potential voluntary licensing or
pre-clearance process."
The rule stemmed from a 2019 Trump executive order that said
foreign adversaries were "creating and exploiting
vulnerabilities in information and communications technology and
services … in order to commit malicious cyber-enabled actions,
including economic and industrial espionage."
"It gives me some comfort they’re going to take their time
and do it in a very thoughtful and methodical way," said
Washington-based lawyer Judith Lee, who specializes in
international trade. "It’s extremely broad and that’s what makes
it very scary for any type of internet or communications
technology company."
The U.S. Chamber of Commerce and other business groups said
the regulation gives the U.S. government "nearly unlimited
authority to intervene in virtually any commercial transaction
between U.S. companies and their foreign counterparts that
involves technology, with little to no due process."
In a letter Monday, the U.S. Chamber had urged the Biden
administration to suspend the rule, calling it "highly
problematic" and added it impose "enormous costs."
The Chamber said licensing was a good idea but "the enormous
number of transactions each year... will limit the ability of
this program to review transactions in a timely manner."
Last week, the Commerce Department disclosed it served
subpoenas on multiple Chinese companies that provide ICTS
services in the United States to see if they pose national
security risks.
(Editing by David Gregorio)
((David.Shepardson@thomsonreuters.com; 2028988324;))