H.R. 3763 (116^th): Promoting United States International Leadership in 5G Act of 2019

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.

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.