US Senators Introduce Bill to Restrict Huawei’s Access to American Banks

A bipartisan group of U.S. lawmakers have introduced a bill to ban Chinese tech company Huawei and CCP owned 5G companies from accessing the American banking system to prevent espionage.

The bill, co-sponsored by Sen. Tom Cotton (R-Ark.) and Sen. Chris Van Hollen (D-Md.) with the backing of fellow senators like Senate Majority Leader Chuck Schumer, (D-N.Y.), would “severely sanction” Huawei and other “untrustworthy” China-based 5G producers who have been accused of conducting acts of economic espionage in the United States.

Rep. Mike Gallagher (R-Wis.) has introduced companion legislation in the House.

Under the legislation, all American companies would also be forbidden from participating in any significant transactions with foreign firms accused of economic espionage, like Huawei.

This comes as Sen. Cotton told Fox News that TikTok, which is owned by the China-based company ByteDance subject to Chinese law, is targeting American minors with “violent, degrading” content.

The Federal Bureau of Investigation has warned that TikTok has the ability to access or control millions of users’ phones, steal information, hack into electronics, or conduct influence operations worldwide if and when it desires.

A member of the Senate Judiciary Committee, Cotton told Fox News’ “America Reports” that he was concerned about the “lasting threat” that China-based 5G firms and social media companies pose to Americans’ privacy and security.

“We’ve made great strides in recent years at home and abroad in combating Huawei’s malign attempts to dominate 5G and steal Americans’ data,” he said in a statement on Dec. 13.

“We cannot allow Huawei and the Chinese Communist Party to have access to Americans’ personal data and our country’s most sensitive defense systems,” he added.

Huawei’s Reach Around The World

Huawei is one of the world’s largest maker of smartphones and a major player in the tech industry, producing a range of telecommunications equipment and other electronic consumer goods.

However, various governments around the world have accused the China-based company of conducting espionage for the Chinese communist government in Beijing.

“Foreign companies that spy on the U.S. and violate our laws should face severe consequences. Huawei is a repeat offender. This bipartisan bill will bolster our national defenses by further sanctioning Huawei and other similar bad actors seeking to undermine our security,” Sen. Van Hollen stated.

The proposed bill will add the accused companies to the Treasury Department’s Specially Designated Nationals (SDN) list, which will effectively freeze them out of the U.S. financial system.

This comes after lawmakers on Capitol Hill and former President Donald Trump failed to push through a similar bill in 2020 to curb Huawei’s access to American financial services.

CCP Objects to Pushback Over Alleged Espionage

The CCP has denounced any action by the U.S. government to restrict the growth of its technology sector, including sanctions that limit its access to advanced chipmaking equipment.

“China firmly opposes the U.S.’s generalization of the concept of national security, (and its) abuse of state power to suppress Chinese enterprises,” said the CCP’s Foreign Ministry in Beijing.

“The U.S. is ruining international rules,” said Chinese Foreign Ministry spokesman Wang Wenbin at press briefing, after the American lawmakers introduced the bill, reported Bloomberg.

“China will take measures to uphold the legitimate and legal rights and interests of Chinese companies.”

Federal prosecutors charged two Chinese intelligence officials in October over a failed attempt to tamper with the government’s Huawei investigation.

The Chinese spies had allegedly tried to recruit a U.S. law enforcement agent to work for the CCP, but the defector was in fact a double agent for federal authorities, stated prosecutors.

Meanwhile, the Federal Communications Commission also adopted rules in November banning the use of telecommunications equipment from Huawei and ZTE Corp. in the United States on grounds that they pose risks to data security.