Senator Tom Cotton (R-AR) introduced a bill with Sens. Chris Van Hollen (D-MD), Chuck Schumer (D-NY) and Rick Scott (R-FL) to “severely” sanction Huawei and other Chinese 5G manufacturers who “engage in economic espionage against the United States,” according to the lawmakers.
The NETWORKS Act would add these entities to the Treasury Department’s Specially Designated Nationals List, which would effectively prevent them from accessing the U.S. financial system. The Senate legislation is a companion bill to one introduced in the House in October by Rep. Mike Gallagher (R-WI).
In October, the Department of Justice charged two Chinese intelligence officials for collaborating with Huawei to obstruct the federal government’s investigation of the company. The FBI also revealed that Huawei gear was found in cell towers near several U.S. nuclear missile bases and that signals from these towers could interfere with the U.S. nuclear arsenal, Inside Towers reported.
“We’ve made great strides in recent years at home and abroad in combating Huawei’s malign attempts to dominate 5G and steal Americans’ data. However, Huawei is an arm of Chinese intelligence. We cannot allow Huawei and the Chinese Communist Party to have access to Americans’ personal data and our country’s most sensitive defense systems. We must address the dire threat these Chinese companies pose to our national security,” said Cotton.
Van Hollen characterized Huawei as a “repeat offender.” He said: “Foreign companies that spy on the U.S. and violate our laws should face severe consequences. This bipartisan bill will bolster our national defenses by further sanctioning Huawei and other similar bad actors seeking to undermine our security.”
Huawei did not immediately respond to Reuters’ request for comment. China’s Foreign Ministry said, “China firmly opposes the U.S.’s generalization of the concept of national security, [and its] abuse of state power to suppress Chinese enterprises.” Wang Wenbin, China’s foreign ministry spokesperson, said at a regular press briefing that China would “firmly safeguard” the legitimate rights and interests of Chinese companies after U.S. lawmakers introduced the bipartisan bill.
U.S. lawmakers have tried to curb Huawei’s access to U.S. banks in the past, proposing a similar bill in 2020. Also, last month the FCC adopted rules banning new telecom equipment from Huawei, Inside Towers reported.
By Leslie Stimson, Inside Towers Washington Bureau Chief
Reader Interactions