Van Hollen, Cotton Praise Huawei Charges, Urge Further Action

Following reports that the U.S. Department of Justice brought charges of racketeering and stealing trade secrets against the Chinese telecommunications company Huawei, U.S. Senators Chris Van Hollen (D-Md.) and Tom Cotton (R-Ark.) released the following statement:

“The Huawei indictment exposes its plot to undermine America’s economy and security on behalf of the Chinese Communist Party. We commend the Justice Department for bringing these charges, but more should be done to stop Huawei’s relentless campaign to infect 5G networks worldwide. Congress ought to pass our bill to bring the hammer down on Huawei and any other Chinese company that violates our sanctions or export-control laws.”

Background:

In January of 2019, Senators Van Hollen and Cotton, along with Representatives Mike Gallagher (R-Wis.) and Ruben Gallego (D-Ariz.), introduced the bipartisan Telecommunications Denial Order Enforcement Act to direct the president to impose denial orders banning the export of U.S. parts and components to Chinese telecommunications companies that are in violation of U.S. export control or sanctions laws. Measures included in the Telecommunications Denial Order Enforcement Act include:

·        Establishing that it is U.S. policy to enforce denial orders banning the export of U.S. parts and components to Chinese telecommunications companies that have violated U.S. export control laws or sanctions.

·        Directing the President to impose the same strict penalties originally faced by ZTE on any Chinese telecommunications firm found to be in violation of U.S. export control laws or sanctions.

·        Ensuring that penalties for violating U.S. export control laws or sanctions are not withdrawn until a pattern of compliance and cooperation over the course of a year proves that policies surrounding systematic lawbreaking by Chinese telecommunications firms have been changed.

·        Prohibiting any executive agency official from modifying any penalty imposed on Chinese telecommunications companies, their agents, or affiliates until the President certifies that the company has not violated U.S. laws for one year and is cooperating fully with U.S. investigations.

·        Highlighting the Congressional role in overseeing Executive Branch export control and sanctions determinations regarding Chinese telecommunications companies.