China again found itself in US crosshairs after Secretary of Commerce Wilbur Ross issued an interim rule restricting purchases of network technology and software from several countries, citing concerns about supply chain security.
The rule is set to take effect in 60 days and will limit ICT transactions with “adversaries” including China, Russia, Iran, North Korea, Cuba and Venezuela while it remains under the control of Nicolas Maduro.
A licensing process to authorise deals will be implemented within 120 days.
Ross stated the move would “protect American citizens and businesses from vulnerabilities that could undermine the confidentiality, integrity and availability of their personal information or sensitive data”.
In May 2019, US President Donald Trump issued an executive order declaring threats to the country’s ICT supply chain a national emergency and granting the Secretary of Commerce authority to prohibit certain transactions on security grounds.
Procedures the Secretary would use to identify threats were later detailed by the Department of Commerce.
The latest move continues a US campaign against China: earlier this month, the Trump administration issued an order banning transactions with eight Chinese apps, and the New York Stock Exchange delisted China Mobile, China Telecom and China Unicom.
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