The FCC International Bureau seeks comment by July 6 on plans to share annual 2018-19 circuit capacity data for U.S.-international submarine cable systems with the Department of Homeland Security and other federal agencies, said a public notice for docket 20-194 in Friday's Daily Digest.

The U.S. shouldn't address U.S. and Chinese trade tensions through decoupling, experts told the U.S.-China Economic and Security Review Commission. Instead, they recommended investing more heavily in technology research while pursuing more involvement at international standards bodies. “We need to accept that this is going to go on for the long term,” said David Finkelstein, director of the China and Indo-Pacific security affairs division at CNA, a nonprofit research group. “It's just not enough to [only] confront. We have to be positioned to compete.” The panel is preparing a report on U.S.-China competition to present to Congress in November. Kristine Lee, U.S.-China relations expert at the Center for a New American Security, said “there are a number of important elections coming up” for international bodies. The Commerce Department recently issued a rule to allow U.S. companies to more easily participate in standards setting bodies in which Huawei is a member (see 2006170031). Others advocated Wednesday for more technology investment, especially as China continues to pursue advancements in 5G and artificial intelligence. “Let's put some money into experimental, high-quality AI network-driven infrastructure,” said Barry Naughton, chair of Chinese international affairs at the University of California-San Diego. The White House didn't comment Thursday,

The FTC approved a proposed rule this week 4-1 to boost authority to impose penalties for “Made in USA” labeling violations and apply those rules to online advertising and marketing materials. The proposal would prohibit any Made in USA claims on products unless their "final assembly or processing" occurs in the U.S. It would stipulate all "significant processing that goes into the product" must happen domestically and that all its components must be produced in the U.S. The regulations would supersede state Made in USA laws, unless those rules are more stringent than the proposed federal standard. The FTC has never issued Made in USA regulations, instead directly enforcing provisions of the FTC Act that prohibit false labeling claims. Commissioner Noah Phillips' dissent said the move exceeds the agency's authority. Commissioner Rohit Chopra said he "would have preferred a broader prohibition on Made in USA fraud," but "the proposed rule strikes a reasonable compromise." Commissioner Christine Wilson said the "NPRM seeking comment does not prejudge the outcome of the process, which must observe the boundaries of our statutory authority."

The Committee on Foreign Investment in the U.S. is focused on sectors including semiconductors, monitoring Chinese firms that could try to evade recent stricter U.S. license restrictions on sales of chips and other technology to China and Huawei, trade lawyers said on a Crowell & Moring panel. Another expert called for a balanced U.S. approach to China, speaking on a podcast also released Tuesday. Adelicia Cliffe of Crowell & Moring said CFIUS is increasing scrutiny in an attempt to catch Chinese investors that “may take advantage of vulnerable companies that have been affected by the pandemic.” Cliffe expects “a lot of scrutiny, particularly in the technology sector, for smaller emerging companies that may be desperate for capital during this time.” CFIUS also is taking a closer look at transactions involving personal information and customer data sets, said Caroline Brown, also of the law firm. “But semiconductors, as we know, are front and center,” she said. “It'd be surprising if any deal involving a semiconductor target would not receive scrutiny on the basis of its critical technology.” Increasingly stringent CFIUS reviews and tight export controls against China are expected to continue regardless of the outcome of the upcoming presidential election, said Maria Alejandra del-Cerro, also of Crowell & Moring. “We've seen bipartisan support for export controls on new commercial technology to China. We've seen Democratic leaders just as active and questioning the Commerce Department's decision to issue certain export licenses … for Huawei,” she said. “That pressure on China would continue.” CFIUS didn't comment Wednesday. In Samm Sacks' work on Chinese issues, she keeps in mind that there's a paradox, she told the newly released Technology Policy Institute podcast. "How do we maintain the openness of the U.S. system" while "knowing that that openness has been exploited," asked New America Cybersecurity Policy and China Digital Economy Fellow Sacks. "Are we putting those guardrails in the right places? And I would argue that we probably aren’t right now, but we need them." She mentioned U.S. actions involving Huawei, chips and CFIUS investigating TikTok. TPI President Scott Wallsten called the latter company "a particularly fascinating case." The Chinese platform, which didn't comment now, "falls into all of these debates," noted Wallsten, the podcast's co-emcee. "On the other hand, it is providing direct competition to Facebook and Instagram and all of these companies that so many of the same people who are critical of China, those same people also worry about competition among big tech companies."

Opposing comments to a Team Telecom recommendation to partially reject an application for a license for the Pacific Light Cable Network, for an undersea fiber cable connecting the U.S. to Hong Kong and elsewhere (see 2006170055), are due to the FCC Aug. 6. GU Holdings, Edge USA and Pacific Light Data may file, said Monday's FCC International Bureau Telecom and Analysis Division letter. Team Telecom's reply is due Sept. 8. An FCBA CLE discussed Team Telecom Monday (see 2006220043).

President Donald Trump was wrong in suggesting the U.S. could sever ties with China, said a Chinese Foreign Affairs Ministry spokesperson Friday. “In this era of globalization, the interests of all countries are closely intertwined,” he said. “Global industrial and supply chains are formed and developed in such ways as determined by market forces and business decisions. As such, it is unrealistic and insensible to try to sever them or wish political forces would override economic law. Such practices will not help solve America's domestic problems. Instead, they will only cause more harm to the ordinary American people.” The spokesperson sidestepped questions about whether Trump’s threats could endanger the U.S.-China phase one trade deal. “U.S. certainly does maintain a policy option, under various conditions, of a complete decoupling from China,” tweeted Trump Thursday. U.S. Trade Representative Robert Lighthizer told Congress a day earlier that decoupling wasn’t a “reasonable” trade policy.

The Commerce Department amended Export Administration regulations effective Thursday to allow U.S. companies to more easily participate in standards setting bodies in which Huawei is a member, says that day's Federal Register. Commerce, which recently announced the change (see 2006150062), seeks comments on the revision by Aug. 17.

Apple may have breached EU competition law by requiring app developers to use its proprietary in-app purchase (IAP) system and restricting them from telling iPhone and iPad users about other, cheaper purchasing possibilities outside of apps, the European Commission said Tuesday. The antitrust probe concerns the application of the rules to all apps that compete with Apple's apps and services. The investigation follows complaints by Spotify and an e-book/audiobook distributor on the impact of App Store rules on competition in music streaming and e-books/audiobooks. Apple appears to have a "gatekeeper" role in the distribution of apps and content to users of its devices, said EC Executive Vice President Margrethe Vestager, who handles competition policy. The EC wants to ensure the rules don't distort competition in markets where Apple competes with other app developers, such as with its music streaming service or Apple Books. The commission is also looking into whether the tech giant's conduct on Apple Pay violates competition rules. The opening of a formal investigation doesn't prejudge its outcome, the EC noted. Apple didn't comment. The App Store makes it possible for thousands of small European developers to create and distribute their products and services worldwide, emailed ACT|The App Association Chairperson Mike Sax. ACT wants to ensure the EC "hears the voice of small app makers." An EC decision shouldn't affect the U.S. unless presumptive presidential candidate Joe Biden wins, emailed Cowen's Paul Gallant. Apple "appears to have forged the best relationship with Trump among Big Tech CEOs," but if Biden wins, all four tech platforms will face more Democratic scrutiny, the analyst said: If the EC forces Apple to allow non-IAP payments next year, a Biden DOJ is likely to ask, "Why not for US consumers too?"

The Commerce Department said it's easing U.S. industry participation in telecom standards development even amid the administration's crackdown on Huawei. The department said a Bureau of Industry and Security rule says technology that wouldn't have needed a license to be disclosed to the Chinese company before its placement on the entity list "can be disclosed for the purpose of standards development in a standards development body without need for an export license." It noted U.S. work on standards setting "influences the future of 5G, autonomous vehicles, artificial intelligence" and other new tech. The general advisory opinion posted by BIS Aug. 19 is no longer in effect, Commerce said Monday. “Confusion stemming from the May 2019 entity list update had inadvertently sidelined U.S. companies from some technical standards conversations," said Information Technology Industry Council Senior Director-Policy, Asia Naomi Wilson. "We hope this measure will provide much-needed clarification and allow companies to once again compete and lead in these foundational activities that help enable the rollout of advanced technologies." Huawei didn't immediately comment.

Zoom won’t allow requests from the Chinese government to affect users outside mainland China, the company said Thursday. It responded to House Republicans’ criticism about coordination with Chinese authorities for removing certain users and activity (see 2006110074). The company acknowledged removing host accounts at the Chinese government’s request due to behavior violating Chinese law. Three accounts have been reinstated, the company said: The videoconferencing platform is developing technology to remove or block participants based on geographical location, allowing it to comply with local laws not at the expense of international users.