The State Department should provide evidence justifying creating a new bureau focused on cybersecurity and emerging technology, GAO recommended Thursday. State informed Congress of its plans in 2019, and Secretary Antony Blinken approved the new bureau this month. Briefing slides didn’t “show that State used evidence to justify its proposal or explain how it would address any challenges,” the auditor said. The slides and a memo didn’t “sufficiently demonstrate that it used data and evidence in developing its proposal,” the report said. The department instead “presented four options for the organizational placement of the new bureau, with ‘pros’ and ‘cons’ listed for each option,” the report said. The department said it disagreed with the characterization. It said it provided appropriate material detailing options the department has for establishing the Cyberspace Security and Emerging Technologies Bureau, options the report didn’t closely examine. State said a draft report noted only one potential downside to the proposal: separating cyber and digital policy between different undersecretaries, which could pose coordination challenges. The department agreed that evaluating relevant data and evidence, “when available,” could be useful in determining program effectiveness.

Intel invested $475 million in its Vietnamese subsidiary, in addition to the $1 billion it spent more than a decade ago to build a chip assembly and test manufacturing facility in Ho Chi Minh City, it blogged Tuesday. Intel Products Vietnam shipped more than 2 billion units of components to customers globally through the end of 2020, it said. It’s the largest U.S. tech investment in Vietnam, it said. The Office of the U.S. Trade Representative under the Trump administration found Vietnam’s allegedly improper devaluation of the dong against the dollar actionable under the Trade Act Section 301, leaving it to the next USTR to decide whether to impose tariffs on Hanoi (see 2101150052).

Katherine Tai, President Joe Biden’s nominee for U.S. trade representative, built a reputation as being tough on China’s intellectual property abuses when she was House Ways and Means lead trade counsel, said trade expert John Brew of Crowell & Moring. Her confirmation hearings in “a few weeks” likely will provide the first tangible insight into how the new administration will address existing tariffs on China and possible imposition of duties on Vietnam, he told a Sports & Fitness Industry Association webinar Tuesday. Tech groups oppose such levies.

Ethos Capital's buying control of Donuts isn't a plot for back door control of .org, a Donuts representative told us Monday. The venture capital firm announced Friday it's taking a controlling interest in the domain name giant, which recently bought top-level domain registry Afilias. ICANN shot down Ethos Capital's attempt last year to buy the Public Interest Registry (PIR), which operates .org, after an outcry from public interest advocates and some lawmakers (see 2005010003). It's unclear whether the private equity firm's buy of Afilias, which runs .org's technical operations, could signal another try for PIR, emailed Jothan Frakes, CEO of registrar Plisk.com. "No," emailed Donuts founder and board member Paul Stahura. The technical registry fees Afilias receives for operating .org are small in proportion to Afilias' revenue, and when combined with Donuts, even smaller, he said. Moreover, PIR and the Internet Society, which owns it, have the option to move their back-end provider to whoever offers the best service for the lowest price, Stahura added. The combined shows "really noteworthy" domain name industry consolidation, Frakes said: Centralnic made numerous acquisitions in 2020, as did mmx.co, which acquired ICM Registry, while GoDaddy bought Neustar's registry business. The industry "saw some consistency" in the shifts that working during the pandemic caused, he said. Not only did registrations continue, but the secondary market also had growth. There were record domain name sales, such as $20 million for money.com. It's important to keep an eye on how these vertically integrated businesses operate and whether competition remains, Frakes said. Ethos Capital didn't comment.

“Good cause exists” for an expedited hearing of its case against the FCC’s decision to revoke its Communications Act Section 214 authorizations, China Telecom told the U.S. Court of Appeals for the 4th Circuit in case 20-2365. “Time is of the essence” said a filing posted Friday. The court ordered the FCC to respond by Feb. 1.

The Chinese Foreign Affairs Ministry was unfazed Thursday by White House criticism of China’s sanctions against 28 former Trump administration officials, including ex-Secretary of State Mike Pompeo, prohibiting them and their immediate families from visiting China, Hong Kong and Macao, and restricting companies they work for from doing business with the Chinese (see 2101200027). A National Security Council spokesperson called the sanctions “unproductive and cynical,” but a ministry spokesperson defended them as “a legitimate and necessary response.” China has warned “multiple times that these anti-China politicians will pay for their crazy acts,” she said. “We hope the new U.S. administration will view China and China-U.S. relations in an objective and rational manner” and help bring those relations “back onto the track of sound and stable development,” she said.

The U.S. should boost efforts to counter China’s unfair trading practices and work closer with allies on trade restrictions, said Janet Yellen, President Joe Biden’s nominee for treasury secretary. The new administration will increase pressure and work multilaterally against China’s unfair subsidies, illegal technology transfers and other trade issues, Yellen told the Senate Finance Committee virtually in her confirmation hearing Tuesday. “China is clearly our most important strategic competitor,” she said, and the U.S. needs to “take on" China's "abusive, unfair and illegal practices,” including illegal dumping, trade barriers, lopsided subsidies and forced technology transfers, which are giving it an “unfair technological advantage.” If confirmed, Yellen said, Treasury will cooperate more with allies but will impose unilateral restrictions if they are warranted. “These practices, including China's global labor and environmental standards, are practices that we’re prepared to use the full array of tools to address,” she said.

Comments are due March 22 in docket 2019-0005 on the Commerce Department’s interim final rule for “securing" the information tech supply chain against threats from foreign adversaries, said Tuesday’s Federal Register. Though the interim rule will take effect the day comments are due, Commerce “continues to welcome public input.” Once it evaluates additional comments, it’s “committed to issuing a final rule,” the agency said. “Some foreign adversaries are known to exploit the sale of software and hardware to introduce vulnerabilities that can allow them to steal critical intellectual property” or data, the department said: "Unrestricted acquisition or use" of IT supply chains that were designed by people “subject to the jurisdiction or direction of a foreign adversary constitutes an unusual and extraordinary threat to the national security.”

The FCC “has the legal authority to revoke and terminate” China Telecom Americas’ Communications Act Section 214 authorizations,” NTIA said in a filing posted Friday in FCC docket 20-109, responding to a June redacted filing from the company. “China Telecom Americas argues that revocation ‘requires’ a showing by clear and convincing evidence of egregious misconduct. China Telecom Americas misreads the law in multiple ways.” Precedent “does not limit revocation to egregious misconduct,” NTIA said. The company didn't comment.

Commerce Department rules for reviewing transactions involving some foreign telecom and IT products and services would cost all 4.5 million firms possibly affected as much as $20 billion, the department says in Tuesday's Federal Register. The rule allows Commerce to step in to review any proposed, ongoing or pending ITCS goods or services transaction. The rule provides for an optional "licensing" process whereby companies can request a review of their transaction and, if approved, get safe harbor. Procedures for the licenses will be published by Commerce in 60 days, the rule said. Included in the new supply chain rules are information or communications technology used in a critical infrastructure; software, hardware and services integral to wireless local area networks, mobile networks, satellite payloads and operations and control; software or hardware that has sensitive personal data on more than 1 million U.S. customers; and software designed for communicating via the Internet used by more than that number.