China’s 2018 “digital protectionism and mercantilist” policies ranked among the worst for the sixth straight year, “undermining trade and competition in key tech sectors,” warned an Information Technology and Innovation Foundation annual report Monday. “While these forms of protectionism typically rely on behind-the-border regulations rather than tariffs to protect local firms, the objective and impact remain the same -- either to replace foreign goods and services with local ones, or to unfairly promote exports, or both.” Among China’s worst 2018 infractions was a new “standardization law” that shuns international principles and best practices and “could be used to favor local tech firms,” ITIF said. New rules could “potentially force firms to store data only in China if it is related to privately funded, commercially focused research,” it said. China’s refusal to reference its World Trade Organization commitments in the standardization law “raised further concerns about potential discriminatory intentions,” said ITIF. “Unique levels of standards,” combined with lack of transparency about implementation and enforcement “adds further uncertainty for foreign firms” there, it said. “Such nontransparent and discriminatory standards can act as a significant barrier to trade, especially for high-tech.”

Dozens of global tech groups want “rapid action” on the World Trade Organization’s “ambitious” trade-related e-commerce “framework,” they said in an open letter Friday to WTO trade ministers. Seventy-six ministers signed a statement Friday vowing to start WTO negotiations on trade-related aspects of e-commerce aimed at achieving “a high standard outcome that builds on existing WTO agreements,” with participation of as many members as possible. “The ability of businesses and individuals to participate effectively in the global economy today requires a modern e-commerce framework that facilitates customs clearance, digital transactions, transparency, trust, movement of information, and access to a variety of e-commerce platforms, payments technologies, communications, social media and marketing tools, productivity software, and shipping and logistics services,” said the letter, whose signers included BSA|The Software Alliance, CTA, CompTIA, the Information Technology Industry Council and Internet Association. “Improving the enabling environment for digital trade and global e-commerce is particularly critical for micro, small and early-stage businesses.”

The EU general data protection regulation is showing good results in the eight months it has been in effect, the European Commission said Friday. People "have become more conscious of the importance of data protection and of their rights" and are now exercising those rights, it said. National privacy authorities have received over 95,000 complaints, the most common of which involve telemarketing, promotional emails and video surveillance/closed caption TV. High-level cases could lead to fines up to 4 percent of the annual revenue of a company, the EC said. Three fines have been issued, the largest by France against Google for 50 million euros (about $57 million) for lack of consent to Google Ads (see 1901220030). The EC urged the five countries that haven't adopted the GDPR into national law to do so quickly.

U.S. efforts on Privacy Shield are welcome, but the EU still has concerns, the European Data Protection Board said Thursday after EDPB's Tuesday-Wednesday meeting. Among positive steps are changes to the initial certification process, own-initiative oversight and enforcement actions, publication of key documents such as decisions by the Foreign Intelligence Surveillance Act Court, appointment of new members to the Privacy and Civil Liberties Oversight Board and the appointment of a permanent ombudsman. President Donald Trump Jan. 18 nominated Keith Krach undersecretary of state for growth, energy and the environment (see 1901230051). EDPB said remaining issues include a "lack of concrete assurances" about indiscriminate collection and access of personal data for national security purposes, and questions whether the ombudsman has sufficient powers to remedy noncompliance with the trans-Atlantic data transfer regime. EDPB said checks for compliance with PS principles aren't strong enough. A December European Commission review found many improvements but warned the agreement could be shut down if no permanent ombudsman is in place by Feb. 28 (see 1812190002). The Computer & Communications Industry Association on Thursday urged the Senate to "expedite confirming the ombudsman."

Digital trade-related businesses make up more than $460 billion in U.S. exports and add 1.5 million jobs to the economy annually, the Internet Association said Wednesday.

Policy “mistakes,” especially the Trump administration’s Section 301 tariffs on Chinese imports, “continue to be the biggest threats” to global economic growth in 2019, IHS Markit said in a study released Monday at the World Economic Forum in Davos, Switzerland. A “perfect storm” of economic developments “shook markets in late 2018,” including U.S.- China trade frictions, and the U.S. government shutdown, it said. “However, it’s important to note that the stock market is not a reliable predictor of recessions, and the probability of a recession in 2019 remains low.” IHS expects the global economy to grow at a rate of 3 percent in 2019 and 2.8 percent in 2020, “below the rates seen in 2017 and 2018,” it said.

Sen. Tom Cotton, R-Ark., and Rep. Mike Gallagher, R-Wis., filed the Telecommunications Denial Order Enforcement Act Wednesday to require the president to bar export of U.S. telecom equipment to any China-based telecom company that violates U.S. export control laws. Sen. Chris Van Hollen of Maryland and Rep. Ruben Gallego of Arizona were lead Democratic sponsors. The bill cites Huawei and ZTE, which have drawn lawmaker ire over spying allegations, as potential violators of U.S. sanctions. The legislation would bar any “official of an executive agency” from modifying an export denial order against a violating Chinese telecom company unless the president certifies to Congress the company hasn't violated U.S. laws for at least a year and is cooperating in U.S.-led investigations into its activities. President Donald Trump in 2018 instigated a settlement that lifted the Commerce Department ban on U.S. companies selling telecom software and equipment to ZTE (see 1807130048), which also drew congressional pique. “Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People’s Liberation Army,” Cotton said. “If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the [corporate] death penalty.”

Two Ukrainian men were charged with computer-related conspiracy for allegedly hacking into SEC computer systems and profiting from stolen data, DOJ said Tuesday. The 16-count indictment against Artem Radchenko, 27, and Oleksandr Ieremenko, 26, included securities fraud conspiracy, wire fraud conspiracy, computer fraud conspiracy, wire fraud and computer fraud charges.

Norway could unseat South Korea as the nation most prone to deliberate GPS signal jamming by a neighboring country, the Resilient Navigation and Timing Foundation blogged Friday. It said since 2017, five major GPS/Global Navigation Satellite System jamming incidents have been reported in northern Norway, and Russia has been the cause whenever the source was tracked down.

Continued economic "prosperity" is no "foregone conclusion” amid the broadly held concern about the impact to the U.S. economy of the tariffs on Chinese imports on steel and aluminum imports and “corresponding retaliation against U.S. exports," said Americans for Free Trade in a “welcome” letter Wednesday to newly elected and returning members of Congress. “We agree that China must be held to account for its violations of our trade laws and the international trade obligations all nations share,” said the coalition, whose 150 members include CTA, the Information Technology Industry Council and other tech groups. “Imposition of a tariff of up to 25 percent on $250 billion worth of China products -- and the threat to impose a similar duty on $267 billion more of such products -- will not remedy the situation. We continue to see stories on a daily basis about companies, both large and small, who are being harmed.” The coalition urged Congress to “exercise its oversight role on trade policy matters to prevent further harm ... from both the existing and proposed tariffs.”