United States: Trump Administration Creates Framework to Target Chinese Connected Software Applications – GlobalComplianceNews

Washington, DC at the White House and Lafayette Square.

On January 5, 2021, President Trump issued Executive Order 13971 “Addressing the Threat Posed By Applications and Other Software Developed or Controlled By Chinese Companies” (“EO 13971”), which targets certain Chinese connected software applications. Specifically, EO 13971 prohibits transactions by any person, or with respect to any property, subject to the jurisdiction of the United States, with persons that develop or control the following Chinese connected software applications, or with their subsidiaries: Alipay, CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate, WeChat Pay, and WPS Office. The prohibition will take effect 45 days after the date of the Executive Order (i.e., on February 19, 2021). EO 13971 does not identify which transactions will be prohibited, but rather requires the Secretary of Commerce to identify the transactions and persons that will be covered by the prohibition not earlier than 45 days after January 5, 2021 (i.e., February 19, 2021).

EO 13971 was issued pursuant to the national emergency declared in Executive Order 13873 “Securing the Information and Communications Technology and Services Supply Chain” (the “Supply Chain EO”), which granted the Secretary of Commerce the authority to prohibit or modify certain transactions involving information and communications technology and services designed, developed, manufactured, or supplied by persons owned, controlled, or directed by