Cotton, Gallagher Bill Would Require Export Ban for Chinese Telecom Firms Violating US Laws

Sen. Tom Cotton, R-Ark., and Rep. Mike Gallagher, R-Wis., filed the Telecommunications Denial Order Enforcement Act Wednesday to require the president to bar export of U.S. telecom equipment to any China-based telecom company that violates U.S. export control laws. Sen. Chris Van Hollen of Maryland and Rep. Ruben Gallego of Arizona were lead Democratic sponsors. The bill cites Huawei and ZTE, which have drawn lawmaker ire over spying allegations, as potential violators of U.S. sanctions. The legislation would bar any “official of an executive agency” from modifying an export denial order against a violating Chinese telecom company unless the president certifies to Congress the company hasn't violated U.S. laws for at least a year and is cooperating in U.S.-led investigations into its activities. President Donald Trump in 2018 instigated a settlement that lifted the Commerce Department ban on U.S. companies selling telecom software and equipment to ZTE (see 1807130048), which also drew congressional pique. “Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People’s Liberation Army,” Cotton said. “If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the [corporate] death penalty.”