New regulations tighten review of ICT transactions involving selected countries
14 Jan 2021
On 14 January 2021, the Department of Commerce promulgated interim final regulations to implement provisions of Executive Order 13873, “Executive Order on Securing the Information and Communications Technology and Services Supply Chain” (15 May 2019). The regulations assign the Commerce Secretary broad discretion to block or mitigate transactions with designated “foreign adversaries" in the field of Information and Communications Technology and Services (“ICTS”), which would constitute an “unacceptable risk" in terms of national security, economic security, and public health and safety concerns related to Information.
The list of foreign adversaries includes six foreign governments or non-government persons from the People's Republic of China, including the Hong Kong Special Administrative Region (China); Cuba; the Islamic Republic of Iran; North Korea; the Russian Federation and the Venezuelan president Nicolás Maduro. Any transaction dealing in ICTS developed, manufactured or supplied by persons covered by the Executive Order is subject to a discretionary review process and potential termination. The regulations will be effective as of 22 March 2021.
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Type:
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Treatment and operation (Operational conditions)
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Industry:
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Services (Telecommunications, Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities, Public administration and defence; compulsory social security)
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Sources:
