news

As we’ve seen time and again – in this Committee and in national headlines –cybersecurity affects every facet of our lives.  

To this day, many of us remain deeply troubled about how an adversarial foreign power influenced our nation’s 2016 election results – and whether we will be prepared to prevent similar actions in the future.  

We’ve also heard in this Committee, time and again, that small businesses are uniquely vulnerable to cyberattacks -- whether it be from small time cyber criminals or foreign powers intent on industrial sabotage.   

As one of the world’s largest telecommunications equipment manufacturers, ZTE occupies a unique and dangerous space when it comes to many of these issues.

An increasing number of consumer and business devices, like cars, appliances, communication networks, utilities, and phones rely on smaller components manufactured by ZTE and other, similar Chinese companies. 

The prevalence of ZTE’s products is disturbing when we realize that the company has a history of being a national security threat to American interests.  Concerns about ZTE date back to 2012 and those issues continue today.

That is why this administration must take the threat posed by ZTE and other Chinese companies seriously.  Unfortunately, it appears the President seems intent on weakening our security posture when it comes to responding to this threat.  

The government has previously taken some steps to protect itself in this area. In April, the Commerce Department banned U.S. companies from selling parts or providing services to ZTE, virtually shutting down the company. 

In May, the Pentagon pulled ZTE phones from stores on US military bases because they consider them a security threat. 

However, on June 7th, the President largely reversed these moves, agreeing to lift sanctions, reportedly ignoring the advice of the U.S. intelligence community and many American economic advisers. 

Our national security cannot be imperiled by lax policy toward these hostile actors.  Where the Administration is taking unacceptable risks, Congress must step forward to contend with these illicit, Chinese-government backed enterprises. 

Fortunately, the first legislative steps have been taken to correct the administration’s careless approach. The Senate recently approved an amendment to the National Defense Authorization Act that, if enacted, would reinstate sanctions eliminating ZTE and Huawei’s access to U.S. suppliers. 

Sadly, President Trump is working with Senate Republicans to undermine this effort. Without such restrictions, these Chinese companies can have major and costly implications for small businesses and their ability to operate. And, it is irresponsible to ignore this threat and undermine the very interests Congress is here to protect. 

Clearly, cybersecurity is central to protecting both our national and economic security.  During today’s hearing we will explore the critical issues facing small businesses in cyberspace and the dangers they face when actors with ill-intent are afforded unfettered access to U.S. markets.  

It is my hope that today’s discussion helps shed light on how Congress can work to protect our small businesses and our country’s secrets from bad actors operating in cyberspace.