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SMALL BUSINESS NEWS

May 2019

 

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Executive Order Limits Foreign Telecom Equipment Use

On Wednesday, 15 May 2019 President Trump signed an Executive Order that prevents the purchase and use of telecommunications equipment from foreign adversaries.

 

The president used cited his powers under the constitution including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code to make the declaration.

 

The President stated that the order is intended to stop foreign adversaries from increasingly creating and exploiting vulnerabilities in information and communications technology and services, which store and communicate vast amounts of sensitive information, facilitate the digital economy, and support critical infrastructure and vital emergency services, in order to commit malicious cyber-enabled actions, including economic and industrial espionage against the United States and its people.

 

The order affects all United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States.

 

Foreign adversary means any foreign government or foreign non-government person engaged in a long‑term pattern or serious instances of conduct significantly adverse to the national security of the United States or security and safety of United States persons.

 

The administration is trying to strike a delicate balance between maintaining an open environment in information technology and protecting against critical national security threats.

 

 

The order prevents the following actions: 

 

any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service (transaction) by any person, or with respect to any property, subject to the jurisdiction of the United States,

 

 

(i)   the transaction involves information and communications technology or services designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary; and

 

(ii)  the transaction:

 

(A)  poses an undue risk of sabotage to or subversion of the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of information and communications technology or services in the United States;

 

(B)  poses an undue risk of catastrophic effects on the security or resiliency of United States critical infrastructure or the digital economy of the United States; or

 

(C)  otherwise poses an unacceptable risk to the national security of the United States or the security and safety of United States persons.

 

 

What’s next.  Within 150 days of the date of this order, the Secretary of Commerce, in consultation with other Department heads will publish rules or regulations implementing this order.

 

Protect your small business by using equipment and services from trusted sources.

 

Sources:
Executive Order on Securing the Information and Communications Technology and Services Supply Chain

By Wendy Stewart

 

 

 

 

 

 

 

 

 

 
 

 

  
 

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