US proposes rules to vet all telecoms-related purchases

The Department of Commerce has proposed requiring case-by-case approvals of all purchases of telecommunications equipment in a move likely to hit major Chinese suppliers like Huawei.

The proposal issued Tuesday follows President Donald Trump's order in May declaring a national emergency and restricting purchases by US companies of telecoms equipment that might be considered a security threat.

That order did not name specific countries or companies but was thought to target Chinese suppliers such as Huawei Technologies and ZTE Corp.

The May 15 order by Trump said foreign adversaries were exploiting information and communications technology and services, or ICTS, for espionage and other cybercrimes.

It gave the commerce secretary the authority to prohibit or mitigate any purchases of telecommunications equipment and services made after that date, if such transactions pose: an undue risk of sabotage or subversion of ICTS in the United States; an undue risk of catastrophic effects on the security and resiliency of critical infrastructure or the digital economy... or an unacceptable risk to national security or to the security or safety of US persons."
Commerce Secretary Wilbur Ross said in a statement that the proposed rules "demonstrate our commitment to securing the digital economy, while also delivering on President Trump's commitment to our digital infrastructure."