H. R. 3763
IN THE HOUSE OF REPRESENTATIVES
July 15, 2019
Mr. McCaul (for himself and Mr. Cuellar) introduced the following bill; which was referred to the Committee on Foreign Affairs
To direct the Secretary of State to provide assistance and technical expertise to enhance the representation and leadership of the United States at international standards-setting bodies that set standards for 5th and future generations mobile telecommunications systems and infrastructure, and for other purposes.
This Act may be cited as the
Promoting United States International Leadership in 5G Act of 2019.
Congress finds the following:
Market analysts estimate that in the United States, 5G technologies could create up to 3,000,000 new jobs and add $500,000,000,000 to the country’s gross domestic product. Globally, analysts estimate that 5G technologies could generate $12,300,000,000,000 in sales activity across multiple industries and support 22,000,000 jobs by 2035.
China is the most active espionage power when it comes to industrial espionage, theft of intellectual property, and actions against groups or countries that the regime perceives as threatening. Its targets go well beyond the United States and include any country where China has interests and access. There are credible reports of China taking advantage of network equipment supplied by its companies for intelligence advantage that date back almost two decades.
In the last year, China has ignored agreements between China, the United States, and others not to engage in commercial espionage, and efforts to acquire American, European, and Asian technology have reached an unprecedented level.
A recent report by the Defense Innovation Board lists a number of difficulties facing the deployment of 5G technologies in the United States and concludes that
The country that owns 5G will own many of these innovations and set the standards for the rest of the world. ….
Standards adopted at international bodies, such as the International Telecommunication Union, the 3rd Generation Partnership Project, and the 5G Infrastructure Public Private Partnership, are critical to the global economy and to ensuring that networks and technology can connect globally.
The 2018 report to Congress by the U.S.-China Economic and Security Review Commission states that
International 5G standards will be set by 2019, facilitating large-scale commercial deployment expected by 2020. The Chinese government is encouraging its companies to play a greater role in international 5G standards organizations to ensure they set global standards; such leadership may result in higher revenues and exports from internationally accepted intellectual property and technology and more global influence over future wireless technology and standards development..
China’s Made in China 2025 initiative is driving support to Chinese companies to increasingly participate in and dominate international standards-setting bodies so that it can restructure the global marketplace and dominate economically strategic industries.
Chinese officials have assumed a greater number of leadership roles at the International Telecommunication Union, an intergovernmental public-private partnership under the United Nations that allocates global radio spectrum and satellite orbits and establishes international technical standards for information and communication technologies.
Patented technology is used in international standards and a company that owns the patent necessary to comply with international standards (also known as a standards-essential patent) gains global market share, licensing revenues, and a competitive edge in subsequent technology development. As such, the Chinese government, through its Made in China 2025 and Internet Plus initiatives, is seeking to dominate the international standards-setting bodies so as to create an unfair advantage for Chinese companies as the world adopts 5G technologies.
General Joseph Dunford, Chairman of the Joint Chiefs of Staff, testified before the House Committee on Appropriations on May 1, 2019, that
One of the things that underlines an alliance is the ability to share information, and when we share information with allies and partners we have to have common standards of information assurance. We have to be sure that our secrets are protected, whether it be intelligence or technology transfer..
On May 3, 2019, the Prague 5G Security Conference, which was widely attended by representatives from the European Union, and the North Atlantic Treaty Organization, including the United States, produced the Prague Proposals, which state that
communication networks and services should be designed with resilience and security in mind.
Sense of Congress
It is the sense of Congress that—
the United States and its allies and partners should maintain participation and leadership at international standards-setting bodies for 5th and future generations mobile telecommunications systems and infrastructure;
the United States should work with its allies and partners to encourage and facilitate the development of secure supply chains and networks for 5th and future generations mobile telecommunications systems and infrastructure; and
the maintenance of a standard of security in telecommunications and cyber between the United States and its allies and partners is a vital strategic and security interest of the United States.
Enhancing representation and leadership of United States at international standards-setting bodies
The Secretary of State shall provide assistance and technical expertise, using amounts made available pursuant to existing authorizations of appropriations, to enhance the representation and leadership of the United States at international standards-setting bodies that set standards for 5th and future generations mobile telecommunications systems and infrastructure, such as the International Telecommunication Union, and work with allies and partners as well as the private sector to also increase their engagement.
Not later than 90 days after the date of the enactment of this Act, the Secretary of State shall provide to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a briefing that shall include—
the strategy of the Department of State to promote United States leadership at international standards-setting bodies relevant to 5th and future generation mobile telecommunications systems and infrastructure;
a strategy for diplomatic engagement with allies and partners to share security risk information and findings pertaining to equipment that supports or is used in 5th and future generations mobile telecommunications systems and infrastructure and cooperation on mitigating such risks; and
a discussion of China’s presence and activities at international standards-setting bodies relevant to 5th and future generation mobile telecommunications systems and infrastructure, including information on the differences in the scope and scale of China’s engagement at such bodies compared to engagement by the United States or its allies and partners and the security risks raised by Chinese proposals in such standards-setting bodies.
Authorization To release data
The head of each Federal department or agency, including any independent agency, is authorized and directed to furnish to the Secretary of State, upon request, such data, reports, and other information the Secretary determines necessary to carry out the functions under this section.