Insights on National Security

For the first time, the FCC will have formal rules governing the process for Team Telecom review of license applications involving foreign ownership.

In his last days, President Trump takes a swipe against companies identified by the Department of Defense (DoD) as Communist Chinese military companies by prohibiting US persons from investments.

The US Department of Commerce, Bureau of Industry and Security (BIS) has proposed a new Export Control Classification Number (ECCN), 2D352, to control “software” that is capable of being used to operate nucleic acid assemblers and synthesizers.

The US Department of Commerce, Bureau of Industry and Security (BIS) issued a final rule amending the license review policy for items on the Commerce Control List that are controlled for national security (NS) reasons and are destined to the People’s Republic of China (PRC), Venezuela, or Russia.

The Committee on Foreign Investment in the United States (CFIUS) is now following new rules on mandatory filings for certain foreign investments in critical technology companies.

Target areas are telecom, information security, and sensor items that can be used for censorship, surveillance, detention, and use of force.

On October 1, 2020, the US Department of Treasury’s Office of Foreign Assets Control (OFAC) issued an Advisory highlighting sanctions risks associated with facilitating ransomware payments on behalf of victims targeted by malicious cyber attacks.

BIS will be looking at items that are controlled only for anti-terrorism, crime control, short supply, United Nations embargoes, or designated as EAR99 in establishing new Foundational Technologies Controls.

Last week started and ended with big announcements in the privacy world. At the end of the week, on August 14th, the regulations implementing the California Consumer Privacy Act of 2018 (CCPA) were finally declared final - more than 8 months after CCPA became effective and 45 days after the Attorney

On August 17, 2020, the Department of Commerce, Bureau of Industry and Security (BIS) issued a final rule (the Final Rule) (1) adding additional Huawei non-US affiliates to the Entity List, (2) confirming the expiration of the Temporary General License (TGL).

The new regulations prohibit government agencies from entering into, extending, or renewing a contract with contractors if they use any equipment, system, or service that uses certain Chinese telecommunications equipment or services as a substantial or essential components of any system.

Driven by national security concerns, over the past three years the US Government has taken a much more aggressive position on an array of technology issues involving China.

President Trump signed an Executive Order (EO) (TikTok EO) August 6, 2020, banning “transactions” yet to be identified by the US Department of Commerce (Commerce) related to TikTok and its parent ByteDance Ltd.

As the US technology competition with China continues to intensify, the Trump Administration has taken another step to tighten the screws on China.

On July 14, the US Court of International Trade granted judgment in favor of an importer of steel from Turkey, ruling that there are limits on a president’s power to impose tariffs for national security purposes.

On Friday, May 15, 2020, the Department of Commerce and the Bureau of Industry and Security (BIS) revised an arcane export control rule that imposes US export controls on foreign-origin products (hardware, software, and technology) that are the “direct product” of certain US technology.

On April 4, 2020, President Trump issued Executive Order (EO) 13913, “Establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector.” 

In recent years, the US Government has grown increasingly concerned by China’s official policy of “military-civil fusion” (MCF), and multiple national security agencies have sounded the alarm bell.

On January 13, 2020, the Treasury Department, on behalf of the full Committee on Foreign Investment in the United States (CFIUS), released the comprehensive final regulations to implement the Foreign Investment Risk Review Modernization Act (FIRRMA). The final regulations take effect on February 13,

In FIRRMA and ECRA, Congress essentially gave Commerce authority to decide how narrowly or widely to set the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) over non-passive minority investments involving emerging and foundational technologies.

On September 17, 2019, the Treasury Department, on behalf of the full Committee on Foreign Investment in the United States, released the long-awaited comprehensive draft regulations to implement the Foreign Investment Risk Review Modernization Act (FIRRMA).

The Committee on Foreign Investment in the United States is an interagency federal body that screens inbound foreign investments for national security risks, and it is currently putting the finishing touches on its draft regulations to implement FIRRMA.

In recent years, the Committee on Foreign Investment in the United States (CFIUS) has taken a much stronger interest in the national security ramifications of sensitive data falling into the hands of foreign adversaries, including the sensitive personal data of American citizens.

The DoD, General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued an interim rule amending the Federal Acquisition Regulation (FAR) to implement a key provision of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (FY19 NDAA). 

The US Senate is poised to confirm Tom Feddo to run CFIUS as Assistant Secretary of the Treasury for Investment Security, increasing the bandwidth of CFIUS at a critical time in its history.