New Trade Sanctions Coming to Protect U.S. Technology; Export Screening Urged

New restrictions on exports to Chinese telecom giant Huawei and 70 affiliates will be effective soon and other trade involving information and communications technology and services could be limited as well after President Trump issued May 15 an executive order declaring a national emergency due to the threat of foreign adversaries using ICT for economic and industrial espionage.

Broad Trade Sanctions Authorized

The EO authorizes the Department of Commerce to prohibit imports and other transactions that involve information and communications technology (or services) designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary and:

  • pose an undue risk of sabotage to or subversion of ICT in the U.S.;
  • pose an undue risk of catastrophic effects on the security or resiliency of U.S. critical infrastructure or the digital economy of the U.S.; or
  • otherwise pose an unacceptable risk to U.S. national security.

Foreign adversaries are defined as any foreign government or non-government entity engaged in a long-term pattern or serious instances of conduct significantly adverse to U.S. national security.

source: Sandler, Travis & Rosenberg

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