The Commerce Department’s plan for implementing the pending U.S. Innovation and Competition Act (S-1260) was one of the few tech and telecom policy matters that drew Senate Appropriations Commerce Subcommittee members’ attention during a Wednesday hearing on President Joe Biden’s proposed FY 2022 Commerce Department budget. The administration in April proposed Commerce get $11.4 billion, up almost 28% from FY 2021 (see 2104090041). The administration is expected to release its full budget proposal Friday. Commerce is “hard at work putting together” its plans for implementing S-1260 if it’s enacted, Raimondo told Senate Appropriations Commerce Chairwoman Jeanne Shaheen, D-N.H.: The measure would mean further expansion of Commerce’s scope on semiconductor and open radio access network matters, and the department has “expertise” in expanding to meet its mission. S-1260, previously known as the Endless Frontier Act, includes $52 billion to boost U.S. chipmaking and $1.5 billion to implement the Utilizing Strategic Allied Telecom Act. The semiconductor money includes $49.5 billion to implement the Creating Helpful Incentives to Produce Semiconductors for America Act (see 2105210056). The Senate was expected to continue considering amendments to S-1260 into Thursday, before a potential final vote that day on the measure. Senate Majority Leader Chuck Schumer, D-N.Y., said Wednesday “there’s no reason we can’t finish this bill by the end of the week. That’s my intention.” Senate Appropriations Financial Services Subcommittee Chairman Chris Van Hollen, D-Md., noted his desire for S-1260 to direct Commerce to enter into a National Academies of Science contract to provide updates on emerging tech, saying the U.S. “got caught behind on 5G.” Senate Appropriations Commerce ranking member Jerry Moran, R-Kan., raised concerns about the department’s cybersecurity “shortcomings” given it was a federal agency affected by the Russia-linked SolarWinds hack (see 2012170050). He believes the budget needs to make the department’s “role in closing the digital divide” a priority given the increased importance of telework and remote learning during the pandemic. Sen. Jack Reed, D-R.I., noted his concerns about the entire federal government’s “disjointed” cybersecurity apparatus.
Russia export controls and sanctions
The use of export controls and sanctions on Russia has surged since the country's invasion of Crimea in 2014, and especially its invasion of Ukraine in in February 2022. Similar export controls and sanctions have been imposed by U.S. allies, including the EU, U.K. and Japan. The following is a listing of recent articles in Export Compliance Daily on export controls and sanctions imposed on Russia:
The Chips for America Act will help the U.S. develop manufacturing needed to compete with China and other adversaries, Sen. Joni Ernst, R-Iowa, said Monday. Debate within Congress is growing about appropriating $50 billion for domestic chip manufacturing incentives and research initiatives (see 2105110065) related to the Endless Frontier Act (S-1260). The legislation goes as far as possible now in pushing semiconductor development, but Congress is still incrementally educating its leaders, Ernst told a Brookings virtual event.
Despite changes to patent, copyright and criminal law, China remains one of the top countries the U.S. is targeting for weak intellectual property protections, said the Office of the U.S. Trade Representative Friday in its annual special 301 report (see 2004290059). China needs to strengthen such protection and enforcement, fully implement IP measures, stop forcing technology transfers to Chinese companies, open its market to foreign investment, and “allow the market a decisive role in allocating resources,” USTR said. “Severe challenges persist because of excessive regulatory requirements and informal pressure and coercion to transfer technology to Chinese companies, continued gaps in the scope of IP protection, incomplete legal reforms, weak enforcement channels, and lack of administrative and judicial transparency and independence.”
Arianespace is to launch 36 OneWeb low earth orbit broadband satellites Monday from Russia's Vostochny Cosmodrome, OneWeb said Thursday. The launch will bring OneWeb's total in-orbit constellation to 182 satellites and is the fifth of its "Five to 50" program to deliver connectivity to regions north of 50 degrees latitude by June, it said. Global service will be available in 2022, it said.
The U.S. and EU are aligning more closely on a range of digital issues, speakers said Monday at a webcast interview with European Commission Vice President Margrethe Vestager and Senate Intelligence Committee Chairman Mark Warner, D-Va. Asked what their priorities are for the U.S.-EU digital relationship, Vestager said some key issues, such as secure supply chains, the approach to AI and the stance on regulating the technology sector, are obvious. Warner called for collaboration on values-based tech development that includes standards and rules on transparency and other issues. His key concern is the failure to create joint cybersecurity norms and policies, an omission he warned could be devastating. Cybersecurity must be part of every EU and U.S. discussion, Vestager said. Tech won't be successful if it's unsafe and people don't trust it, she said. Barriers to online manipulation of democracies must be integrated into everything stakeholders do and into digital skills people need as the first line of defense. When China or Russia sends hackers against a private entity or government, it will succeed without shared concepts of security services in Europe and the U.S., Warner said. On AI, Vestager noted that upcoming EC rules aim to be balanced and that their ban on certain uses of the tech will affect a limited number of cases. Warner hoped the U.S. embraces AI without subjecting people to discrimination, but this technology hasn't penetrated the U.S. policy world much yet. On content moderation on platforms, Vestager said the Digital Services Act sets up a systemic redress mechanism that balances the need to take down illegal content while preserving freedom of expression and imposes accountability on companies to ensure operations don't create risks. Platforms aren't doing enough to address disinformation, Warner said: Content moderation in the U.S. will come about in bits and pieces because the country has been so slow in addressing it.
The U.S. still led the world in orbital launch attempts in 2020, its 44 eclipsing China's 39, the Space Foundation said Thursday. Russia was third with 12. China eclipsed the U.S. in distinct vehicles, with 15. Of the U.S. launches, 32 were on SpaceX Falcon 9s or Rocket Lab Electrons. China National Space Operator was the world's busiest launch operator, with 37 launches, followed by SpaceX, with 25.
The U.S. and EU should forge a "pragmatic" digital alliance for data transfers because fully harmonized policies are unrealistic, the Information Technology and Innovation Foundation said Thursday. ITIF noted the "crisis" in digital relations and a "serious risk" of de facto data localization. It urged policymakers to create a successor to the Privacy Shield, annulled by the European Court of Justice in July 2020 (see 2007160002), as part of a broader framework that also includes new general data protection regulation-compliant personal data transfer mechanisms and better law enforcement cooperation on accessing electronic evidence. Such a cooperative agenda based on shared values would be a "strategic counterweight to authoritarian digital powers" like Russia and China, the group said: An alliance based on "digital realpolitik” is needed "now more than ever." The U.S. and EU are talking about PS (see 2103250023).
Colorado Senate President Pro Tempore Kerry Donovan (D) received threats on social media for her proposal to stop hate speech on those platforms, she told a Senate State Committee livestreamed hearing: "This bill is a new idea in an uncomfortable space.” The committee voted 3-2 Tuesday to adopt the bill with an amendment proposed by Donovan to order a study. The original bill (SB-132) would have created a digital communications division and commission to regulate social media platforms. "The division shall investigate and the commission may hold hearings on claims filed with the division alleging that a digital communications platform has allowed a person to engage in one or more unfair or discriminatory digital communications practices on the platform," including hate speech, intentional disinformation and conspiracy theories, it said. Social media companies have been "petulant children" for not acknowledging what happens on their platforms, said Donovan, author of Colorado's 2019 net neutrality law. Their business model is to keep people engaged online and gather their information, she said. "What we are seeing from these social media companies is not a bug." The Senate leader added, "Russia didn't hack Facebook. It just used the platform.” The Internet Association didn't comment Wednesday. Government should “step in and bring an ax down to start protecting consumers,” testified Joe Toscano, a former Google consultant. “We are not their customer. We are their product.” The Computer and Communications Industry Association worried "that Colorado is one of multiple states proposing a patchwork of contradictory regulations. Complying with these would be difficult and costly for all platforms, particularly so for smaller companies." CCIA supports "the decision to study consumer protection concerns related to digital communications platforms," said President Matt Schruers Wednesday. "We encourage the study committee to consult with industry and issue area experts.”
Senate Homeland Security Committee leaders said they’re interested in pursuing a major overhaul of the federal government’s cyberattack response process following the Russia-linked SolarWinds hack and other recent incidents, during a Thursday hearing. Panel Chairman Gary Peters, D-Mich., and ranking member Rob Portman, R-Ohio, also want a clearer sense of what federal official should ultimately be deemed responsible if hackers infiltrate government networks as happened in the SolarWinds incident.
The Cybersecurity and Infrastructure Security Agency in the Department of Homeland Security must fully complete Congress-mandated organizational planning to effectively “identify and respond to cybersecurity incidents” like the Russia-linked SolarWinds hack (see 2012170050), GAO reported Wednesday. Senate Intelligence Committee Chairman Mark Warner, D-Va., and others are drafting a cyber hack reporting measure (see 2103040066). CISA “completed the first two of three phases of its organizational transformation initiative” before Congress’ December deadline but had completed only “about a third of the tasks planned for the final phase” by then, GAO said. Tasks not completed include “finalizing the mission-essential functions of CISA's divisions and issuing a memorandum defining incident management roles and responsibilities across CISA. Tasks such as these appear to be critical to CISA's transformation initiative and accordingly its ability to effectively and efficiently carry out its cyber protection mission.” DHS agreed with GAO’s assessment of CISA’s progress but didn’t fully specify its plans for completing its organizational efforts, the office said.