U.S. Sanctions on China -- The Backdrop to Raimondo Confirmation

U.S. Sanctions on China -- The Backdrop to Raimondo Confirmation

The Biden administration plans to allow a sweeping Trump-era rule aimed at combating Chinese technology threats to take effect in March.

This U.S. - China stress is the backdrop to the delay in Governor Gina Raimondo’s confirmation in the United States Senate. U.S. Senator Ted Cruz (R-TX) has had a hold on Raimondo’s confirmation — voicing concern that the Biden administration will go soft on Chinese tech companies like Huawei that may be collecting data and sharing with the Chinese government.

Raimondo could come before the full U.S. Senate for confirmation as early as Tuesday.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

The Wall Street Journal reports, “The rule, initially proposed in November, enables the Commerce Department to ban technology-related business transactions that it determines pose a national security threat, part of an effort to secure U.S. supply chains. Companies in technology, telecommunications, finance and other industries say the rule could stifle innovation and hurt competitiveness, and had expected it to be delayed as the administration undertakes a broad review of U.S. policy on Chinese technology.”

Now, the Biden administration is planning to go forward with the rule. “Administration officials are concerned that blocking or diluting the rule would send the wrong message about the new administration’s approach to China, potentially fueling criticism that it is taking a weaker approach, according to the people,” according to the WSJ.

Biden named Raimondo to the Commerce post on January 10. Raimondo has refused to resign and has held state government, de facto, hostage. Much of her staff have resigned and Lt. Governor Dan McKee has been unable to take control of the response to the pandemic of the vaccination program.

“Huawei, whose business has been crimped by previous U.S. restrictions and which could be hit again by the new rule, questioned the regulation’s legality in its comment, and urged the government to adopt a “holistic risk-management” approach instead of a “bar on specific participants," according to WSJ.