Sending Office: Honorable Alcee L. Hastings
Sent By:
Clyde.Wright@mail.house.gov

        Request for Signature(s)

Request to the Government Accountability Office to review Trump trade policies affecting rollout of nationwide 5G celluar services

 

Dear Colleague:

Please join me in sending a letter to Comptroller General of the United States, Gene Dodaro, requesting that the Government Accountability Office conduct a review of all Trump trade policies including, but not limited to, tariffs that effect the trade in
foundational telecommunications equipment.  At a critical time in the rollout of 5G infrastructure that will enable and empower the next generation of mobile innovation, US smart cities, autonomous vehicles, and a smart power grid, President Trump’s trade
policies with China threaten to eliminate whatever advantage we have in the race to deploy 5G technology nationwide.  His tariffs are raising the cost of the microelectronics that are crucial in the fabrication of 5G infrastructure, raising the costs to consumers
as carriers begin to roll out this technology.

The information gained through the response to this letter will allow us to better assess the economic impact of these tariffs and allow us to take steps to assist, and bring relief to, this important sector of our economy.  To sign on, please contact Lindsey
Garber (lindsey.garber@mail.house.gov) in Rep. Hastings’ office.

 

_____________________________

The Honorable Gene L. Dodaro

Comptroller General of the United States

Government Accountability Office

441 G St., NW

Washington, DC 20548

 

Dear Mr. Dodaro:

As you know, 5G will be the unifying fabric that connects billions of devices in our homes, cars, offices and communities.  Using what are known as “small cells,” this technology will provide ultra-fast, low-latency connections to the internet and all other
devices on the 5G network, unleashing whole new families of innovative applications and devices.  Getting us to this future, however, does come with a cost, mostly in the form of upgrades to hundreds of thousands of pieces of infrastructure and ever-shrinking
circuitry that goes into our mobile devices.  Telecommunications experts estimate that the number of small cell deployments will quadruple over Long-Term Evolution (LTE) deployments, and the number of devices connecting to this new infrastructure could be
ten times more than current numbers. It is estimated that approximately $250 billion dollars of new infrastructure will be needed for a nation-wide 5G deployment over the next few years.  At the same time, while 5G has an up-front cost, it has the potential
to unleash huge economic benefits as well.  I am told the deployment of these new networks could yield as many as three million new jobs and provide a $500 billion boost to the United States economy. It is clear that we cannot delay the rollout of this new
technology.

Furthermore, the United States must lead the rest of the world when it comes to this rollout.  The United States and Europe face an existential challenge from China over 5G’s intellectual property, standards, and patents. Huawei, for example, has research
programs to develop alternatives to American suppliers, and U.S. trade restrictions have accelerated China’s efforts to develop its own 5G industry. While American companies lead in making essential 5G technologies, the United States no longer manufacturers
any of the core telecommunications network equipment related to 5G.  Only four companies produce 5G hardware in any meaningful capacity and none are United States-based: Ericsson and Nokia from Sweden and Finland respectively, and two China-based hardware
manufacturers, Huawei and ZTE.  Given their track records in security, consumer privacy, and reliability, we must not allow Chinese manufacturers to dictate 5G infrastructure to the United States.

President Trump has said that his administration is committed to continued leadership in wireless technology and that the rollout of secure, ubiquitous 5G is a top priority for this nation, but his trade policies do not reflect this priority, and in many
cases, actively harm this nation’s attempts to stay ahead of the game in 5G.  Buried deep inside of the schedule of goods subject to taxes on Chinese imports include “machines for the reception, conversion and transmission or regeneration of voice, images
or other data, including switching and routing apparatus” and “apparatus for transmission or reception of voice, images, or other data, including apparatus for communication in a wired or wireless network.”  These will serve as the raw materials that technology
companies in the United States could forge into 5G hardware.  I believe these tariffs are coming at the exact wrong time for us if our goal is to win the race to a 5G future.

Given our concerns, we request that the Government Accountability Office conduct a review of all Trump trade policies including, but not limited to, tariffs that effect the trade in foundational telecommunications equipment.  We ask that your evaluation
address the following:

  1. If the tariffs are kept in place up through 2020, what additional costs will the United States incur when deploying 5G infrastructure?
  2. How do these tariffs affect the competition among 5G hardware manufacturers?
  3. What are the national security implications of our entire supply chain of 5G infrastructure being dependent on foreign hardware manufacturers?
  4. What are the possible conflicts of interest between Hauwei and the Trump Administration?

Please give this request your full and fair consideration. Thank you in advance for your attention to this request.

 

Sincerely,

__________________________

Alcee L. Hastings

Member of Congress

Related Legislative Issues

Selected legislative information:Consumer Affairs, Economy, Technology, Trade

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