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President Joe Biden’s administration plans to allow a Trump administration law to combat threats to Chinese technology to take effect next month, the Wall Street Journal reported.
Despite objections from US companies, the newspaper says officials are concerned that the ban or easing of the law will give a false impression about the new administration’s approach to China, which is fueling criticism that it is taking a weaker approach, according to people familiar with it. with the matter.
The law, proposed in November, would allow the United States Department of Commerce to prohibit business transactions related to technology that it identifies as a threat to national security.
Companies in technology, telecommunications, finance and other industries say the law could limit innovation and damage competitiveness, and they expected its implementation to be postponed. Because the new administration is conducting a comprehensive review of US policy on Chinese technology.
Last month, Gina Raymondo, nominated by US President Joe Biden for the post of Secretary of Commerce during a Senate hearing, vowed to be tough on China for its “anti-competitive” business practices.
But another person familiar with the matter told the US newspaper that the administration had not said it would back down from implementing the law.
The Biden administration reversed several decisions of the previous administration in the first weeks of his work in the White House.
Under the Donald Trump administration, the US Department of Commerce launched an offensive against Chinese technology companies that it suspected of spying on an industrialist or endangering US national security.
Former Commerce Secretary Wilbur Ross expanded the list of companies that could not do business with US companies without prior authorization to include giant groups such as Huawei and ZTE.
The law could affect up to 4.5 million US businesses, according to the Commerce Department estimate, requiring them to obtain government authorization for purchases and deals involving advanced technology with what the regulations call a “foreign adversary.”
The new government oversight will apply to technical transactions involving critical infrastructure in the United States, satellite networks and operations, big data hosting operations, widely used internet connectivity software, technology used in advanced computing, drones, autonomous systems or advanced robotics. bill.
The telecommunications and financial services industries are considered to be particularly affected by the law; Because they are essential users of IT services and deal with sensitive customer data.
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