,i  #aae? ,,congress  #b;d ,session  ,h4
 ,r4 #dgdg  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #i1 #bjah,mr4 
,conaway 7= himself & ,ms4 ,*5ey7       
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ov]sight & ,gov]nm5t  
,re=m  ,a ,,bill  ,to prohibit !        
,gov]nm5t f us+ or contract+ ) an entity
 t uses c]ta9 telecommunications s]vices
 or equipm5t1 & = o!r purposes4  #a4    
,%ort title ,?is ,act may be cit$ z !   
,def5d+ ,u4,s4 ,gov]nm5t ,communications
 ,act4  #b4 ,f9d+s ,! ,congress f9ds !  
foll[+3  7#a7 ,9 its #bjaa ,annual      
,report to ,congress on ,milit>y &      
,security ,developm5ts ,involv+ ! ,p's  
,republic ( ,*9a1 ! ,dep>tm5t ( ,def5se 
/at$ t1 ,*9a's def5se indu/ry has       
b5efit$ f integration ) a rapidly exp&+ 
civilian economy & sci5ce & te*nology   
sector1 p>ticul>ly elem5ts t h access to
 =eign te*nology4 ,progress )9          
individual def5se sectors appe>s l9k$ to
 ! relative integration ( ea*1 ?r\gh    
,*9a's civilian economy1 into ! global  

production & ,r,d *a9 ''' ,in=mation    
te*nology companies 9 p>ticul>1 includ+ 
,huawei1 ,datang1 & ,zhongx+1 ma9ta9    
close ties to ! ,,pla44  7#b7 ,9 a #bjaa
 report titl$ ,! ,national ,security    
,implications ( ,inve/m5ts & ,products f
 ! ,p's ,republic ( ,*9a 9 !            
,telecommunications ,sector1 ! ,unit$   
,/ates ,*9a ,commission /at$ t national 
security conc]ns h accompani$ ! dramatic
 gr[? ( ,*9a's telecom sector4 '''      
,additionally1 l>ge ,*9ese companies -  
p>ticul>ly ^? national *ampions prom95t 
9 ,*9a's go+ out /rategy ( ov]seas      
expansion - are directly subject to     
direction by ! ,*9ese ,communi/ ,p>ty1  
to include support = ,,prc /ate policies
 & goals44  7#c7 ,! ,commission fur!r   
/at$ 9 its report t from ?is po9t (     
view1 ! cle> economic b5efits ( =eign   
inve/m5t 9 ! ,u4,s4 mu/ be weigh$ aga9/ 
! pot5tial security conc]ns relat$ to   
infra/ructure compon5ts com+ "u !       
control ( =eign entities4 ,?is seems    
p>ticul>ly applicable 9 !               

telecommunications indu/ry1 z ,*9ese    
companies cont9ue sy/ematically to      
acquire significant hold+s 9 prom95t    
global & ,u4,s4 telecommunications &    
in=mation te*nology companies44  7#d7 ,9
 its #bjaa ,annual ,report to ,congress1
 ! ,unit$ ,/ates ,*9a ,commission /at$ t
 the ext5t ( ! /ate's control ( ! ,*9ese
 economy is difficult to quantify '''   
,!re is also a category ( companies t1  
?\gh claim+ to be private1 are subject  
to /ate influ5ce4 ,su* companies are (t5
 9 new m>kets ) no e/abli%$ ,,soe lead]s
 & enjoy favorable gov]nm5t policies t  
support _! developm5t :ile pos+ ob/acles
 to =eign competition4 ,examples include
 ,*9ese telecoms giant ,huawei & su*    
automotive companies z batt]y mak] ,,byd
 & vehicle manufactur]s ,geely & ,*]y44 
7#e7 ,g5]al ,mi*ael ,hayd51 :o s]v$ z   
,director ( ! ,c5tral ,intellig5ce      
,ag5cy & ,director ( ! ,national        
,security ,ag5cy1 /at$ 9 ,july #bjac t  
,huawei _h %>$ ) ! ,*9ese /ate intimate 
& ext5sive k ( =eign telecommunications 

sy/ems x is involv$ )44  7#f7 ,! ,f$]al 
,bureau ( ,inve/igation1 9 a ,febru>y   
#bjae ,c\nt]9tellig5ce ,/rategy         
,p>tn]%ip ,intellig5ce ,note /at$ t1 wi?
 ! exp&$ use ( ,huawei ,te*nologies     
,inc4 equipm5t & s]vices 9 ,u4,s4       
telecommunications s]vice provid]       
networks1 ! ,*9ese ,gov]nm5t's pot5tial 
access to ,u4,s4 bus9ess communications 
is dramatically increas+4 ,*9ese        
,gov]nm5t-support$ telecommunications   
equipm5t on ,u4,s4 networks may be      
exploit$ ?r\gh ,*9ese cyb] activity1 )  
,*9a's intellig5ce s]vices op]at+ z an  
advanc$ p]si/5t ?reat to ,u4,s4         
networks44  7#g7 ,! ,,fbi fur!r /at$ 9  
its ,febru>y #bjae c\nt]9tellig5ce note 
t1 ,*9a makes no secret t its cyb] w>f>e
 /rategy is pr$icat$ on controll+ global
 communications network infra/ructure44 
7#h7 ,at a he>+ be=e ! ,committee on    
,arm$ ,s]vices ( ! ,h\se (              
,repres5tatives on ,septemb] #cj1 #bjae1
 ,deputy ,secret>y ( ,def5se ,rob]t ,"w1
 respond+ to a "q ab\t ! use ( ,huawei  

telecommunications equipm5t1 /at$1 ,9 ! 
,(fice ( ! ,secret>y ( ,def5se1         
absolutely n4 ,& ,i "k ( no o!r--,i     
don't believe we op]ate 9 ! ,p5tagon1   
any ,huawei sy/ems 9 ! ,p5tagon44  7#i7 
,at su* he>+1 ! ,comm&] ( ! ,unit$      
,/ates ,cyb] ,comm&1 ,admiral ,mike     
,rog]s1 respond+ to a "q ab\t :y su*    
,huawei telecommunications equipm5t is n
 us$1 /at$1 z we look at supply *a9 & we
 look at pot5tial vuln]abilities )9 !   
sy/em1 t x is a risk we felt 0          
unacceptable44  7#aj7 ,9 ,m>* #bjag1    
,,zte ,corporation pl$ guilty to        
conspir+ to violate ! ,int]national     
,em]g5cy ,economic ,p[]s ,act by        
illegally %ipp+ ,u4,s4-orig9 items to   
,iran1 pay+ ! ,unit$ ,/ates ,gov]nm5t a 
p5alty ( #hib1cfj1jfd doll>s = activity 
betwe5 ,janu>y #bjaj & ,janu>y #bjaf4   
7#aa7 ,! ,treasury ,dep>tm5t's ,(fice ( 
,=eign ,assets ,control issu$ a subpo5a 
to ,huawei z "p ( a ,f$]al inve/igation 
( alleg$ violations ( trade re/rictions 
on ,cuba1 ,iran1 ,sudan1 & ,syria4      

7#ab7 ,9 ! bip>tisan ,h\se ,p]man5t     
,select ,committee on ,intellig5ce      
,inve/igative ,report on ! ,unit$ ,/ates
 ,national ,security ,issues ,pos$ by   
,*9ese ,telecommunication ,companies    
,huawei & ,,zte releas$ 9 #bjab1 x 0    
recomm5d$ t ,u4,s4 gov]nm5t sy/ems1     
p>ticul>ly s5sitive sy/ems1 %\ld n      
include ,huawei or ,,zte equipm5t1      
includ+ 9 compon5t p>ts4 ,simil>ly1     
gov]nm5t contractors - p>ticul>ly ^?    
work+ on contracts = s5sitive ,u4,s4    
programs - %\ld exclude ,,zte or ,huawei
 equipm5t 9 _! sy/ems44  #c4            
,prohibition on c]ta9 telecommunications
 s]vices or equipm5t  7a7 ,prohibition  
on ag5cy use or procurem5t ,! head ( an 
ag5cy may n procure or obta91 may n     
ext5d or r5ew a contract to procure or  
obta91 & may n ent] into a contract 7or 
ext5d or r5ew a contract7 ) an entity t 
uses any equipm5t1 sy/em1 or s]vice t   
uses cov]$ telecommunications equipm5t  
or s]vices z a sub/antial or ess5tial   
compon5t ( any sy/em1 or z critical     

te*nology z "p ( any sy/em4  7b7        
,def9itions ,9 ?is section3 7#a7 ,ag5cy 
,! t]m ag5cy has ! mean+ giv5 t t]m 9   
section #eea ( title #e1 ,unit$ ,/ates  
,code4  7#b7 ,cov]$ =eign c\ntry ,! t]m 
cov]$ =eign c\ntry means ! ,p's         
,republic ( ,*9a4  7#c7 ,cov]$          
telecommunications equipm5t or s]vices  
,! t]m cov]$ telecommunications equipm5t
 or s]vices means any ( ! foll[+3  7,a7 
,telecommunications equipm5t produc$ by 
,huawei ,te*nologies ,company or ,,zte  
,corporation 7or any subsidi>y or       
affiliate ( su* entities74  7,b7        
,telecommunications s]vices provid$ by  
su* entities or us+ su* equipm5t4  7,c7 
,telecommunications equipm5t or s]vices 
produc$ or provid$ by an entity t ! head
 ( ! relevant ag5cy reasonably believes 
to be an entity own$ or controll$ by1 or
 o!rwise connect$ to1 ! gov]nm5t ( a    
cov]$ =eign c\ntry4