The ICANN board approved for another 90 days a temporary generic top-level domain specification for handling the personal data of domain name registrants under the EU's general data protection regulation, the organization said. The gTLD temporary spec was approved in May and reaffirmed about every three months after. It sets interim requirements for complying "with existing ICANN contractual requirements and community-developed policies" for GDPR, noted an ICANN email. The board can continue renewals for a year. Earlier Wednesday, a Brussels conference heard about non-domain name GDPR challenges and hopes (see 1901300007). An ICANN committee developing policy for GDPR compliance expects its final report in early February (see 1901250003).
CTA agrees with the Congressional Budget Office “assessment” that tariffs on Chinese imports are taxes on U.S. consumers and businesses, but CBO underestimated damage the higher duties will inflict on the tech sector and U.S. economy, emailed Sage Chandler, vice president-international trade policy. CBO estimated the higher import tariffs will reduce U.S. GDP by roughly 0.1 percent yearly through 2029 (see 1901290001). “The U.S. tech industry alone is paying $1 billion a month on tariffs,” said Chandler Tuesday. “Potential short- and mid-term impact of tariffs could be more destabilizing than indicated by CBO’s analysis. Not only do tariffs increase costs for American business and slow U.S. economic growth, real potential exists -- and warning signs are already evident -- that destabilizing global supply chains may have detrimental effects that spill in to global equity markets.” CBO didn’t comment Wednesday.
China is “highly concerned” about DOJ’s 13-count indictment against Huawei and Chief Financial Officer Meng Wanzhou on bank fraud, obstruction of justice and other allegations (see 1901280052), said a Foreign Ministry spokesperson Tuesday. Meanwhile, legislators ramped up scrutiny. The U.S. uses its “national power” to “tarnish and crack down on specific Chinese companies in an attempt to strangle their lawful and legitimate operations,” said China's spokesperson. “Behind such practices are deep political intentions and manipulations.” In detaining Meng in Vancouver in early December, the U.S. and Canada “abused their bilateral extradition agreement and took compulsory measures against a Chinese citizen for no reason,” the spokesperson said. The U.S. should “immediately withdraw” Meng’s arrest warrant, “refrain from making a formal extradition request, and stop going further down the wrong path,” he said. Senate Commerce Committee Chairman Roger Wicker, R-Miss., pressed national security officials during Tuesday's Senate Armed Services Committee hearing about Huawei and ZTE's national security threat. Wicker earlier praised the indictments. Commerce is “taking a hard look" at Huawei given its “activities and impact on developing technologies, such as 5G and autonomous vehicles, as well as network security and consumer data protection,” he said. Intelligence Committee Chairman Richard Burr, R-N.C., welcomed the indictments, “which detail the company’s brazen efforts to steal corporate trade secrets, commit fraud, and obstruct justice.” Vice Chairman Mark Warner, D-Va., said it's a “reminder that we need to take seriously the risks of doing business with companies like Huawei and allowing them access to our markets, and I will continue to strongly urge our ally Canada to reconsider Huawei’s inclusion in any aspect of its 5G infrastructure.” Commerce Security Subcommittee Chairman Dan Sullivan, R-Alaska, tweeted the indictments show "just one more example of Chinese businesses unwilling to play by the rules." The panel "will be conducting serious oversight of these Chinese threats to the U.S. economy," he said.
China’s 2018 “digital protectionism and mercantilist” policies ranked among the worst for the sixth straight year, “undermining trade and competition in key tech sectors,” warned an Information Technology and Innovation Foundation annual report Monday. “While these forms of protectionism typically rely on behind-the-border regulations rather than tariffs to protect local firms, the objective and impact remain the same -- either to replace foreign goods and services with local ones, or to unfairly promote exports, or both.” Among China’s worst 2018 infractions was a new “standardization law” that shuns international principles and best practices and “could be used to favor local tech firms,” ITIF said. New rules could “potentially force firms to store data only in China if it is related to privately funded, commercially focused research,” it said. China’s refusal to reference its World Trade Organization commitments in the standardization law “raised further concerns about potential discriminatory intentions,” said ITIF. “Unique levels of standards,” combined with lack of transparency about implementation and enforcement “adds further uncertainty for foreign firms” there, it said. “Such nontransparent and discriminatory standards can act as a significant barrier to trade, especially for high-tech.”
Dozens of global tech groups want “rapid action” on the World Trade Organization’s “ambitious” trade-related e-commerce “framework,” they said in an open letter Friday to WTO trade ministers. Seventy-six ministers signed a statement Friday vowing to start WTO negotiations on trade-related aspects of e-commerce aimed at achieving “a high standard outcome that builds on existing WTO agreements,” with participation of as many members as possible. “The ability of businesses and individuals to participate effectively in the global economy today requires a modern e-commerce framework that facilitates customs clearance, digital transactions, transparency, trust, movement of information, and access to a variety of e-commerce platforms, payments technologies, communications, social media and marketing tools, productivity software, and shipping and logistics services,” said the letter, whose signers included BSA|The Software Alliance, CTA, CompTIA, the Information Technology Industry Council and Internet Association. “Improving the enabling environment for digital trade and global e-commerce is particularly critical for micro, small and early-stage businesses.”
The EU general data protection regulation is showing good results in the eight months it has been in effect, the European Commission said Friday. People "have become more conscious of the importance of data protection and of their rights" and are now exercising those rights, it said. National privacy authorities have received over 95,000 complaints, the most common of which involve telemarketing, promotional emails and video surveillance/closed caption TV. High-level cases could lead to fines up to 4 percent of the annual revenue of a company, the EC said. Three fines have been issued, the largest by France against Google for 50 million euros (about $57 million) for lack of consent to Google Ads (see 1901220030). The EC urged the five countries that haven't adopted the GDPR into national law to do so quickly.
U.S. efforts on Privacy Shield are welcome, but the EU still has concerns, the European Data Protection Board said Thursday after EDPB's Tuesday-Wednesday meeting. Among positive steps are changes to the initial certification process, own-initiative oversight and enforcement actions, publication of key documents such as decisions by the Foreign Intelligence Surveillance Act Court, appointment of new members to the Privacy and Civil Liberties Oversight Board and the appointment of a permanent ombudsman. President Donald Trump Jan. 18 nominated Keith Krach undersecretary of state for growth, energy and the environment (see 1901230051). EDPB said remaining issues include a "lack of concrete assurances" about indiscriminate collection and access of personal data for national security purposes, and questions whether the ombudsman has sufficient powers to remedy noncompliance with the trans-Atlantic data transfer regime. EDPB said checks for compliance with PS principles aren't strong enough. A December European Commission review found many improvements but warned the agreement could be shut down if no permanent ombudsman is in place by Feb. 28 (see 1812190002). The Computer & Communications Industry Association on Thursday urged the Senate to "expedite confirming the ombudsman."
Digital trade-related businesses make up more than $460 billion in U.S. exports and add 1.5 million jobs to the economy annually, the Internet Association said Wednesday.
Policy “mistakes,” especially the Trump administration’s Section 301 tariffs on Chinese imports, “continue to be the biggest threats” to global economic growth in 2019, IHS Markit said in a study released Monday at the World Economic Forum in Davos, Switzerland. A “perfect storm” of economic developments “shook markets in late 2018,” including U.S.- China trade frictions, and the U.S. government shutdown, it said. “However, it’s important to note that the stock market is not a reliable predictor of recessions, and the probability of a recession in 2019 remains low.” IHS expects the global economy to grow at a rate of 3 percent in 2019 and 2.8 percent in 2020, “below the rates seen in 2017 and 2018,” it said.
Sen. Tom Cotton, R-Ark., and Rep. Mike Gallagher, R-Wis., filed the Telecommunications Denial Order Enforcement Act Wednesday to require the president to bar export of U.S. telecom equipment to any China-based telecom company that violates U.S. export control laws. Sen. Chris Van Hollen of Maryland and Rep. Ruben Gallego of Arizona were lead Democratic sponsors. The bill cites Huawei and ZTE, which have drawn lawmaker ire over spying allegations, as potential violators of U.S. sanctions. The legislation would bar any “official of an executive agency” from modifying an export denial order against a violating Chinese telecom company unless the president certifies to Congress the company hasn't violated U.S. laws for at least a year and is cooperating in U.S.-led investigations into its activities. President Donald Trump in 2018 instigated a settlement that lifted the Commerce Department ban on U.S. companies selling telecom software and equipment to ZTE (see 1807130048), which also drew congressional pique. “Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People’s Liberation Army,” Cotton said. “If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the [corporate] death penalty.”