The Committee on Foreign Investment in the U.S. is focused on sectors including semiconductors, monitoring Chinese firms that could try to evade recent stricter U.S. license restrictions on sales of chips and other technology to China and Huawei, trade lawyers said on a Crowell & Moring panel. Another expert called for a balanced U.S. approach to China, speaking on a podcast also released Tuesday. Adelicia Cliffe of Crowell & Moring said CFIUS is increasing scrutiny in an attempt to catch Chinese investors that “may take advantage of vulnerable companies that have been affected by the pandemic.” Cliffe expects “a lot of scrutiny, particularly in the technology sector, for smaller emerging companies that may be desperate for capital during this time.” CFIUS also is taking a closer look at transactions involving personal information and customer data sets, said Caroline Brown, also of the law firm. “But semiconductors, as we know, are front and center,” she said. “It'd be surprising if any deal involving a semiconductor target would not receive scrutiny on the basis of its critical technology.” Increasingly stringent CFIUS reviews and tight export controls against China are expected to continue regardless of the outcome of the upcoming presidential election, said Maria Alejandra del-Cerro, also of Crowell & Moring. “We've seen bipartisan support for export controls on new commercial technology to China. We've seen Democratic leaders just as active and questioning the Commerce Department's decision to issue certain export licenses … for Huawei,” she said. “That pressure on China would continue.” CFIUS didn't comment Wednesday. In Samm Sacks' work on Chinese issues, she keeps in mind that there's a paradox, she told the newly released Technology Policy Institute podcast. "How do we maintain the openness of the U.S. system" while "knowing that that openness has been exploited," asked New America Cybersecurity Policy and China Digital Economy Fellow Sacks. "Are we putting those guardrails in the right places? And I would argue that we probably aren’t right now, but we need them." She mentioned U.S. actions involving Huawei, chips and CFIUS investigating TikTok. TPI President Scott Wallsten called the latter company "a particularly fascinating case." The Chinese platform, which didn't comment now, "falls into all of these debates," noted Wallsten, the podcast's co-emcee. "On the other hand, it is providing direct competition to Facebook and Instagram and all of these companies that so many of the same people who are critical of China, those same people also worry about competition among big tech companies."

Opposing comments to a Team Telecom recommendation to partially reject an application for a license for the Pacific Light Cable Network, for an undersea fiber cable connecting the U.S. to Hong Kong and elsewhere (see 2006170055), are due to the FCC Aug. 6. GU Holdings, Edge USA and Pacific Light Data may file, said Monday's FCC International Bureau Telecom and Analysis Division letter. Team Telecom's reply is due Sept. 8. An FCBA CLE discussed Team Telecom Monday (see 2006220043).

President Donald Trump was wrong in suggesting the U.S. could sever ties with China, said a Chinese Foreign Affairs Ministry spokesperson Friday. “In this era of globalization, the interests of all countries are closely intertwined,” he said. “Global industrial and supply chains are formed and developed in such ways as determined by market forces and business decisions. As such, it is unrealistic and insensible to try to sever them or wish political forces would override economic law. Such practices will not help solve America's domestic problems. Instead, they will only cause more harm to the ordinary American people.” The spokesperson sidestepped questions about whether Trump’s threats could endanger the U.S.-China phase one trade deal. “U.S. certainly does maintain a policy option, under various conditions, of a complete decoupling from China,” tweeted Trump Thursday. U.S. Trade Representative Robert Lighthizer told Congress a day earlier that decoupling wasn’t a “reasonable” trade policy.

The Commerce Department amended Export Administration regulations effective Thursday to allow U.S. companies to more easily participate in standards setting bodies in which Huawei is a member, says that day's Federal Register. Commerce, which recently announced the change (see 2006150062), seeks comments on the revision by Aug. 17.

Apple may have breached EU competition law by requiring app developers to use its proprietary in-app purchase (IAP) system and restricting them from telling iPhone and iPad users about other, cheaper purchasing possibilities outside of apps, the European Commission said Tuesday. The antitrust probe concerns the application of the rules to all apps that compete with Apple's apps and services. The investigation follows complaints by Spotify and an e-book/audiobook distributor on the impact of App Store rules on competition in music streaming and e-books/audiobooks. Apple appears to have a "gatekeeper" role in the distribution of apps and content to users of its devices, said EC Executive Vice President Margrethe Vestager, who handles competition policy. The EC wants to ensure the rules don't distort competition in markets where Apple competes with other app developers, such as with its music streaming service or Apple Books. The commission is also looking into whether the tech giant's conduct on Apple Pay violates competition rules. The opening of a formal investigation doesn't prejudge its outcome, the EC noted. Apple didn't comment. The App Store makes it possible for thousands of small European developers to create and distribute their products and services worldwide, emailed ACT|The App Association Chairperson Mike Sax. ACT wants to ensure the EC "hears the voice of small app makers." An EC decision shouldn't affect the U.S. unless presumptive presidential candidate Joe Biden wins, emailed Cowen's Paul Gallant. Apple "appears to have forged the best relationship with Trump among Big Tech CEOs," but if Biden wins, all four tech platforms will face more Democratic scrutiny, the analyst said: If the EC forces Apple to allow non-IAP payments next year, a Biden DOJ is likely to ask, "Why not for US consumers too?"

The Commerce Department said it's easing U.S. industry participation in telecom standards development even amid the administration's crackdown on Huawei. The department said a Bureau of Industry and Security rule says technology that wouldn't have needed a license to be disclosed to the Chinese company before its placement on the entity list "can be disclosed for the purpose of standards development in a standards development body without need for an export license." It noted U.S. work on standards setting "influences the future of 5G, autonomous vehicles, artificial intelligence" and other new tech. The general advisory opinion posted by BIS Aug. 19 is no longer in effect, Commerce said Monday. “Confusion stemming from the May 2019 entity list update had inadvertently sidelined U.S. companies from some technical standards conversations," said Information Technology Industry Council Senior Director-Policy, Asia Naomi Wilson. "We hope this measure will provide much-needed clarification and allow companies to once again compete and lead in these foundational activities that help enable the rollout of advanced technologies." Huawei didn't immediately comment.

Huawei asked for a seven-day extension to respond to an FCC Public Safety Bureau notice seeking comment on an NTIA network security letter (see 2006090057). Comments are due June 19 in docket 19-351. The comment period is “wholly insufficient to allow Huawei to digest, investigate and respond to the substantive and legal issues raised,” the company said in a filing posted Friday. Because of the pandemic, “many of the persons who will be involved in preparing responses to the NTIA Letter (including Huawei employees and outside counsel) are working from home,” Huawei said.

Zoom won’t allow requests from the Chinese government to affect users outside mainland China, the company said Thursday. It responded to House Republicans’ criticism about coordination with Chinese authorities for removing certain users and activity (see 2006110074). The company acknowledged removing host accounts at the Chinese government’s request due to behavior violating Chinese law. Three accounts have been reinstated, the company said: The videoconferencing platform is developing technology to remove or block participants based on geographical location, allowing it to comply with local laws not at the expense of international users.

Brazil added 12 items to its list of IT and telecom goods subject to duty-free treatment, the Hong Kong Trade Development Council reported. Duty-free treatment is through 2021, the group said Tuesday. Brazil's Washington embassy didn't comment Thursday.

Israel-based Tower Semiconductor licensed Invensas ZiBond and DBI 3D semiconductor interconnect technologies, said Tower and Invensas parent Xperi Wednesday. The license supports manufacturing of time of flight and advanced sensors for CE, machine vision, autonomous vehicles and smart devices. Tower will also explore the use of Invensas 3D integration technologies for memories and micro-electromechanical system devices. Xperi and TiVo completed their merger June 1 and will operate under Xperi (see personals section, June 9).