Groups representing U.S. technology companies signaled their disappointment in letters...
Groups representing U.S. technology companies signaled their disappointment in letters sent last week over a provision in the continuing resolution funding bill passed last month that would restrict U.S. federal acquisitions of Chinese manufactured technologies. The law, P.L. 113-6, forbids…
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the U.S. departments of Commerce and Justice, NASA and the National Science Foundation from using federal money to buy Chinese IT products unless a risk assessment has been done to evaluate each item’s potential for cyberespionage or sabotage. Eleven business groups including the Chamber of Commerce said the provision sets a “troubling and counterproductive precedent” and urged lawmakers to consider a “more constructive approach.” The concerns were expressed in letters sent to Senate Majority Leader Harry Reid, D-Nev.; Senate Minority Leader Mitch McConnell, R-Ky.; House Speaker John Boehner, R-Ohio; and House Minority Leader Nancy Pelosi, D-Calif. The provision could slow the federal acquisition process, bring retaliation from the Chinese government, and encourage other countries to adopt similar laws that would hurt U.S. IT vendors, the letters said. “Given the expedited manner in which this provision was enacted, we ask the Congress to review the security implications and competitive impact of this requirement, and consider a more constructive approach to this issue,” the letter said. “We also seek your support to ensure similar language is not included in other legislative vehicles.” The letter was signed by BSA, the Emergency Committee for American Trade, the Information Technology Industry Council, the Semiconductor Industry Association, the Software and Information Industry Association, TechAmerica, the Technology CEO Council, the Telecommunications Industry Association, the U.S. Chamber of Commerce, the U.S. Council for International Business, and the U.S. Information Technology Office.