U.S. Signals It Will Implement Rule Curbing China Tech Threats
- IBM opposes the rule, saying it will raise compliance costs
- Rule first proposed in January is based on a May 2019 order
The U.S. signaled it currently intends to go ahead with a Trump administration-proposed rule to secure the information-technology supply chain next month, a move that gives the Department of Commerce broad authority to prohibit transactions involving “foreign adversaries.”
The interim rule, which will allow Commerce to monitor transactions of governments including China’s, was first proposed by the previous administration in January -- days before Joe Biden’s inauguration -- and follows an executive order former President Donald Trump signed in 2019. The department said Friday it’s accepting public comments on the plan through March 22, the same day it becomes effective. A final rule that would implement the measure may be issued at some future date that’s not yet been determined, a Commerce spokesperson said.