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

U.S. Signals It Will Implement Rule Curbing China Tech Threats

Stock MarketsFeb 26, 2021 03:27PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. The Chinese flag stands on display outside the China Consulate General building in Houston, Texas, U.S., on Wednesday, July 22, 2020. China vowed retaliation after the U.S. forced the closure of its Houston consulate, prompting stocks to fall in one of the biggest blows to diplomatic ties between the two countries in decades. Photographer: Scott Dalton/Bloomberg

(Bloomberg) -- The U.S. signaled it currently intends to go ahead with a Trump administration-proposed rule to secure the information-technology supply chain next month, a move that gives the Department of Commerce broad authority to prohibit transactions involving “foreign adversaries.”

The interim rule, which will allow Commerce to monitor transactions of governments including China’s, was first proposed by the previous administration in January -- days before Joe Biden’s inauguration -- and follows an executive order former President Donald Trump signed in 2019. The department said Friday it’s accepting public comments on the plan through March 22, the same day it becomes effective.

Former Commerce Secretary Wilbur Ross in the interim rule listed the governments of China, Russia, Iran, North Korea and Cuba as adversaries.

The rule is “intended to prevent foreign adversaries from exploiting vulnerabilities” in the information and communications technology-services supply chain, Commerce said in an emailed statement Friday. “Trustworthy information and communications technology and services are essential to our national and economic security and remains a top priority for the Biden-Harris administration.”

Technology companies including International Business Machines (NYSE:IBM) Corp. say the rule, if implemented in its current form, would damage the economy.

“By the Commerce Department’s own estimate, this rule would impose many billions of dollars in new compliance costs on millions of U.S. firms, including countless small businesses,” IBM Regulatory Affairs Vice President Christopher Padilla said. “Such a massive, overbroad, and economically damaging Trump-administration rule should not be on autopilot.”

There is widespread concern in the business community about the breadth of the rule and the precedent it would set in giving the agency blanket authority to interfere in transactions.

Earlier this month, the biggest trade associations, including the U.S. Chamber of Commerce, warned the Biden administration of the negative impact the rule could have on the economy and asked it to halt its implementation.

“The net impact of these negative consequences could undermine the much-needed economic recovery from the pandemic that is a priority of the administration and a central feature of the Biden-Harris American rescue plan,” the groups wrote in a Feb. 4 letter.

©2021 Bloomberg L.P.

U.S. Signals It Will Implement Rule Curbing China Tech Threats
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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.
Comments (4)
Bill Melton
Bill Melton Feb 27, 2021 8:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hunter said hello.
YC Teng
YC Teng Feb 27, 2021 1:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not much though...
YC Teng
YC Teng Feb 27, 2021 1:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biggest change is America has got rid of an incapable Joker who impoverished Americans and blocked out the world...
milena villa escobar
milena villa escobar Feb 26, 2021 3:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So aside from hiring all of Obama's ex people and letting illegal immigrants run a muk in America nothing has changed since Trump
 
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