Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. unveils procedure to shield telecom networks from national security threats

Stock MarketsNov 26, 2019 03:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. IFA consumer tech fair in Berlin

By David Shepardson

WASHINGTON (Reuters) - The United States on Tuesday set out a procedure to protect its telecommunications networks and their supply chains from national security threats, saying it would consider whether to bar transactions on a case-by-case basis.

U.S. President Donald Trump issued an executive order in May declaring a national emergency and barring U.S. companies from using telecommunications equipment made by firms posing national security risks. The order was widely seen as being aimed at Chinese firms such as telecoms equipment market leader Huawei Technologies [HWT.UL] and ZTE Corp (HK:0763).

The Trump administration added Huawei to its trade blacklist in May, citing national security concerns, but has issued licenses to allow some U.S. companies to continue to do business with the world's second-largest smartphone maker, a leader in next-generation 5G network technology.

The Commerce Department said Tuesday that Secretary Wilbur Ross had chosen to adopt a "case-by-case, fact-specific approach to determine which transactions must be prohibited, or which can be mitigated."

The outlined approach, in a proposed rule, does not mention either Huawei or ZTE.

"These actions will safeguard the Information and Communications Technology Supply Chain," said Ross said in a statement. "These rules demonstrate our commitment to securing the digital economy, while also delivering on President Trump’s commitment to our digital infrastructure.

Trump's May order invoked the International Emergency Economic Powers Act, which gives the president authority to regulate commerce in response to a threat to the United States.

It directed the Commerce Department, working with other government agencies, to draw up an enforcement plan by October.

Trump's order said Ross, in consultation with other U.S. agencies, can bar transactions from firms connected to "a foreign adversary" that pose a national security risk, including those that "pose an undue risk of sabotage or subversion."

The Commerce Department said the procedure unveiled Tuesday is open to public comment before it becomes final, but that the determination of "foreign adversaries" is solely at Ross's discretion. It also gives Ross the power to immediately prohibit or revise transactions that pose national security risks.

On Friday, the U.S. Federal Communications Commission voted unanimously to designate Huawei and ZTE as national security risks, barring their U.S. rural carrier customers from tapping an $8.5 billion government fund to purchase Huawei or ZTE equipment.

Huawei argued the FCC's decision was based on "nothing more than irrational speculation and innuendo." China said on Monday the United States should stop abusing the concept of national security and abusing Chinese companies.

U.S. unveils procedure to shield telecom networks from national security threats
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email