Commerce Nominee Noncommittal on Huawei, Criticizes 'Hurtful' Chinese Trade Practices

Gina Raimondo, President Joe Biden’s nominee for commerce secretary, declined to say whether she plans to keep Huawei and other Chinese technology companies on the Entity List but made clear that Commerce will aggressively tackle illegal Chinese trade practices and human rights abuses. Speaking before the Senate Commerce Committee Jan. 26, Raimondo told lawmakers that the agency won’t make decisions on Chinese trade restrictions until completing a sweeping review of the measures and assessing their impact on U.S. national security (see 2101250049). “The President has been clear that we need to step back and review broadly our trade policies as it relates to China,” Raimondo said.

Sen. Ted Cruz, R-Texas, warned Raimondo about lifting restrictions on Huawei, saying he has heard “chatter” about upcoming revisions to the Entity List. “I certainly hope that does not happen,” Cruz said, “because I think that would be profoundly contrary to the national security interest of the United States.” Raimondo said that any decision will be made with input from Congress. “I certainly agree with you that the Entity List is a powerful tool,” she said. “I will commit that should I be confirmed, I will review the policy, consult with you, consult with industry, consult with our allies and make an assessment as to what's best for American national and economic security.”

Although noncommittal on Huawei, Raimondo didn’t hesitate to criticize what she called “anti-competitive” and “hurtful” Chinese trade practices. She said China is “culpable for atrocious human rights abuses” for its mass detention of Uighurs in the Xinjiang region, and said Commerce will continue to pursue export controls for sensitive items destined for China, an issue with strong bipartisan support (see 2012160017). The Trump administration added a range of Chinese companies to the Entity List for their involvement in human rights violations in Xinjiang (see 2007200026, 2006030032 and 1910070076). The Chinese Embassy didn’t comment.

“Whether it’s the Entity List or tariffs or countervailing duties,” Raimondo said, “I intend to use all those tools to the fullest extent possible to level the playing field.”

Raimondo also said the U.S. needs to be more competitive at international standards-setting bodies, adding that the agency’s National Institute of Standards and Technology has a “huge role to play.” Technology experts have called on the U.S. to create a clearer strategy for emerging technology standards-setting to counter China’s growing tech leadership (see 2005080040). Commerce last year issued a rule to allow companies to more easily participate in standards-setting bodies in which Huawei is a member (see 2006160035), but industry called for the U.S. to expand the rule to capture all companies on the Entity List.

“I believe America needs to lead in standards setting, especially as it relates to new technology,” Raimondo said, specifically mentioning artificial intelligence. “I feel that's one way in particular that we could help Americans to compete and lead and win.”

And while Raimondo didn’t say whether she supports the bipartisan CHIPS for America Act, which would incentivize U.S. semiconductor manufacturing and provide more federal support for research and development (see 2007240010), she said the semiconductor industry is an important part of a “resilient” supply chain. “The semiconductor industry is vital to American economic and national security,” Raimondo said. “We will have a whole-of-government approach to semiconductors.”