Washington, D.C. – Today, Representatives Chrissy Houlahan (PA-06) and Dale Strong (AL-05) reintroduced the Neutralizing Emerging Threats from Wireless OEMs Receiving Direction from Kleptocracies and Surveillance States (NETWORKS) Act. This bill was first introduced when the U.S. Justice Department issued an indictment against Huawei and two U.S. subsidiaries, charging them with conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO). The superseding indictment included a charge of conspiracy to steal trade secrets stemming from Huawei’s practice of using fraud and deception to misappropriate sophisticated technology from U.S. counterparts. 

For Huawei and other foreign companies attempting to steal American intellectual property to develop their own 5th generation telecom technology, this bill requires their addition to the U.S. Treasury Department’s Specially Designated Nationals (SDN) List. The SDN list is the Treasury’s highest level of sanction and would effectively freeze these companies out of the American financial system. The legislation adds companies to the SDN list should they violate American sanctions, which have been used effectively against terrorist groups and narcotics traffickers.  

The NETWORKS ACT sends a strong signal to foreign Internet Service Providers that China-based companies engaging in economic or industrial espionage cannot be trusted. Furthermore, it may incent Internet Service Providers in Europe and other foreign markets to explore safer Europe or U.S.-based vendors.  

“Since we first introduced the NETWORKS Act, China’s cyber capabilities have only grown – and become more threatening,” said Houlahan. “We welcome those who want to do businesses with America and Americans, but if our adversaries want to continue to access our banking system, they have to play by the rules. This legislation will hold foreign companies trying to steal American 5G technology accountable.” 

"China has a long history of espionage and stealing American intellectual property. The NETWORKS Act is a critical step in protecting our telecommunications infrastructure from foreign adversaries that threaten our national security and economic future. I am proud to co-sponsor this legislation to ensure American innovation is protected," added Strong.