Gallagher, Colleagues Introduce Bill to Require CFIUS to Reexamine UK Status After 5G Decision

March 9, 2020
Press Release

Rep. Mike Gallagher (R-WI), alongside Reps. Cheney (R-WY), Turner (R-OH), McCaul (R-TX), Banks (R-IN), Timmons (R-SC), and Perry (R-PA), today introduced the Protecting America from Foreign Investors Compromised by the CCP Act, a bill that would require the Committee on Foreign Investment in the United States (CFIUS) to review a country’s place on the foreign investment “whitelist” if the country allows China’s Huawei to build portions of its 5G infrastructure. The bill comes as the United Kingdom, which currently receives “whitelist” status, plans to vote tomorrow on whether to allow Huawei into their 5G network. Senator Tom Cotton (R-AR) introduced companion legislation in the Senate last week. Click here for bill text.

“Huawei is a fundamental threat to the values that define the special relationship. The United States cannot stand idly by while its closest ally stands on the verge of making a disastrous mistake that would empower the enemies of the free world while undermining western-aligned market options. As our friends in the United Kingdom consider proposals about the future of their 5G networks, they should understand the world is watching,” said Rep. Gallagher. “The CFIUS whitelist is a critical tool to expand economic collaboration with our closest allies, and at a minimum, we need to re-evaluate the inclusion of countries that show a disregard for our mutual security interests when it comes to 5G.”

“The U.K. government’s decision to allow Huawei into its 5G network will embed the Chinese Communist Party into the United Kingdom’s telecommunications infrastructure. That reality poses a clear national security risk to not only the U.K., but its closest allies such as the U.S., and could affect the United Kingdom’s CFIUS whitelist status. I hope our ally’s misguided decision is reversed,” said Rep. Cheney.

 “Huawei is a manifest threat to the United States’ national security and I am deeply concerned that the United Kingdom will potentially allow this CCP-backed company into their critical 5G networks. The CFIUS whitelist is reserved for countries with robust national security protections, as it should be. If the UK or any country moves forward with Huawei in their networks, the U.S. must re-evaluate whether it deserves preferred treatment under our investment screenings,” said Rep. McCaul.

“By adopting Huawei as part of their 5G network, the U.K. has put both of our national securities at risk. Intelligence we share with the U.K. may fall into the Chinese Communist Party’s hands. Even our closest allies must understand that putting us in this position will have consequences,” said Rep. Banks.

“The United States must take the necessary steps to ensure that our national security is protected from the risks that China’s 5G technologies pose. With Chinese companies such as Huawei effectively operating as part of the Chinese Communist Party, U.S. foreign policy must respond. Given recent efforts to expand their 5G footprint in countries such as the United Kingdom, it is imperative that we take this threat seriously. We should reassess any countries’ status on the CFIUS whitelist should they choose to use Huawei 5G technologies,” said Rep. Timmons.

The Protecting America from Foreign Investors Compromised by the CCP Act would:

  • Amend the Foreign Investment Risk Review Modernization Act’s “whitelist” requirements to include consideration of a nation’s 5G infrastructure
  • Require the administration to report on how the United States government is coordinating with economic partners to develop alternatives to Chinese-owned 5G vendors

ICYMI:

Last month, Rep. Gallagher penned an op-ed in the Wall Street Journal that argued the U.K.’s decision on 5G could threaten not only our security relationship, but more broadly our economic relationship and chance to reach a gold standard trade agreement.

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