Trump officials look to neutralize cyber threats in supply chain
The Hill: Federal officials are ramping up efforts to crack down on threats to the U.S. supply chain amid growing fears about the risks from foreign-made technology.
The worry is that hackers can sabotage technology or software used in American products or computer systems for future cyber attacks or espionage.
The moves come amid increased tensions over trade and security with China, whose telecom companies are seen as a particular threat. The issue has the attention of the White House, which is said to be preparing two executive orders that could be unveiled in days to address that threat. One of President Trump’s expected directives will reportedly authorize the Commerce Department to block business transactions between U.S. and foreign telecom companies over national security concerns.
U.S. computer networks are “attractive targets for espionage, sabotage and foreign interference activity,” the order says, according to a draft reviewed by The Washington Post.
The second order, according to a Republican source familiar with the deliberations, will reform the Federal Communications Commission’s “Team Telecom” review process.
Team Telecom, established in 2016 by the FCC, brings officials from a number of agencies including the Justice Department, Pentagon and Homeland Security, to review foreign investments in the telecom industry for national security concerns.
But national security and telecom lawyers have long criticized the review process for delays and lax oversight.
Supply chain security is an issue that has also been on the FCC’s radar. In April, Republican FCC Commissioner Michael O’Rielly issued a notice of proposed rulemaking to crack down on security risks.
His proposal would prohibit the use of Universal Service Fund money to purchase telecom equipment or services “identified as posing a national security risk to communications networks or the communications supply chain.”
“[A]s the supply chain for our nation’s communications networks increasingly reaches far beyond U.S. borders, the need to address these threats has become more pressing,” his proposal warned.
The potential threat posed by foreign technology is also in the spotlight thanks to the controversy over ZTE and Huawei, two Chinese telecom firms that U.S. intelligence has flagged as security risks.
The 2019 National Defense Authorization Act, which lawmakers sent to President Trump’s desk this week, includes language that would ban the federal government from using those companies’ products.
Trump’s upcoming executive orders are expected to further “squeeze” such Chinese companies, according to the Republican source.
The source said the White House is expected to rely on the International Emergency Economic Powers Act (IEEPA), which gives the president authority to “deal with an unusual and extraordinary threat” in several ways, including by restricting economic transactions with a foreign nation.