At the end of last week, U.S. Sen. Rick Scott, R-Fla., brought out a proposal to keep American tech companies from selling to Huawei due to its ties to the Chinese regime.
Noting that the federal government “has determined” Huawei “to be a national security threat and continues to be a bad actor across the globe,” Scott pointed out American “exports to Huawei have been banned, but some U.S. companies are finding ways around the blacklisting, including supplying Huawei through subsidiaries or partners in foreign countries.” His bill would close that loophole.
“We know Huawei is supported and controlled by the communist regime in Beijing, which continues to violate human rights and steal our data, technology, and intellectual property,” Scott said when he introduced the bill. “Companies in the United States should not be allowed to sell to Huawei, and my legislation will further restrict their ability. I look forward to all of my colleagues and the administration joining in support of my proposal to crack down on U.S. exports to Huawei, protect our national security and the security and growth of the U.S. technology industry.”
Scott’s office also offered some of the details of the proposal.
“Currently, a foreign-produced good that contains 25 percent U.S.-origin content can be exported to a blacklisted company. Senator Scott’s bill would permanently cut that threshold down to 10 percent for any goods exported to Huawei or its in-house semiconductor business. This proposal is currently under consideration for rulemaking by the Department of Commerce,” Scott’s office noted.
Scott’s bill was sent to the U.S. Senate Banking, Housing, and Urban Affairs Committee last week. So far, he has not been able to reel in any cosponsors. So far, there is no companion measure over in the U.S. House.
Reach Kevin Derby at [email protected].
