Gallego & Gallagher Introduce Bipartisan Bill to Impose Denial Orders on Chinese Telecommunications Companies That Violate US Sanctions
WASHINGTON, D.C. – Today Representatives Mike Gallagher (R-WI) and Ruben Gallego (D-AZ) introduced the bipartisan Telecommunications Denial Order Enforcement Act (H.R. 7255) to direct the President to impose denial orders banning the export of U.S. parts and components to Chinese telecommunications companies that are in violation of U.S. export control or sanctions laws. The legislation follows news that Meng Wanzhou, Huawei's chief financial officer, was arrested in Canada at the request of U.S. prosecutors on charges of violating U.S. sanctions. Click here for text of the bill.
"Chinese telecommunications firms like Huawei represent a growing threat to American national security. As state-directed enterprises, they ultimately report to the Chinese Communist Party and will be employed where and whenever possible to undermine American interests and those of our allies. This bipartisan legislation sets a simple standard: if a Chinese telecommunications firm is found to have violated U.S. sanctions moving forward, it will be subject to the same severe punishment originally imposed on ZTE," said Rep. Gallagher.
"Huawei and ZTE's every action is dictated by the Chinese Communist Party. For years, they have conducted complex and systematic attacks on U.S. telecommunications, compromising the information security of our government, our allies, and private companies around the world. Meng Wanzhou's recent arrest and the resulting outrage in Beijing shows how Chinese oligarchs think that laws are for the little people. This bill is designed to ensure that if Chinese government officials choose to use the companies they operate as weapons against the United States or the world's rules based system, there will be severe consequences for those choices," said Rep. Gallego.
Measures included in the Telecommunications Denial Order Enforcement Act include:
- Establishing that it is U.S. policy to enforce denial orders banning the export of U.S. parts and components to Chinese telecommunications companies that have violated U.S. export control laws or sanctions.
- Directing the President to impose the same strict penalties originally faced by ZTE on any Chinese telecommunications firm found to be in violation of U.S. export control laws or sanctions.
- Ensuring that penalties for violating U.S. export control laws or sanctions are not withdrawn until a pattern of compliance and cooperation over the course of a year proves that policies surrounding systematic lawbreaking by Chinese telecommunications firms have been changed.
- Prohibiting any executive agency official from modifying any penalty imposed on Chinese telecommunications companies, their agents, or affiliates until the President certifies that the company has not violated US laws for one year and is cooperating fully with U.S. investigations.
- Highlighting the Congressional role in overseeing Executive Branch export control and sanctions determinations regarding Chinese telecommunications companies.