EU governments generally back the European Commission's proposed AI act, said EU Council telecom officials Thursday after a virtual debate on the legislation. Everyone agreed there must be a systematic, unified approach to AI in the single market based on fundamental rights, said Bostjan Koritnik, public administration minister for Slovenia, which holds the current EU presidency. Officials want a horizontal regulatory framework that covers use of AI in all sectors. The vast majority of ministers support the EC's risk-based approach but said many issues need further discussion, such as the scope of the measure, law enforcement aspects and definitions of key terms, the Council said. The debate raised two key questions, said EC Internal Market Commissioner Thierry Breton: The need for a unified approach that generates trust and the necessity of balancing innovation against citizens' confidence in using AI. EU rules will also have to apply to AI producers outside the EU, he said. Rules must be proportionate, limited to what's necessary, adaptable to emerging risks and respectful of values, and must stimulate investment, he said. Governments must ensure access to the data on which AI depends, Breton added. Discussions will continue in the Council's telecom working party, with a compromise proposal expected in November.

The Commerce Department's Bureau of Industry and Security fined a U.S.-based telecom company $1.87 million for illegally exporting goods to Vietnam, BIS said in a Tuesday order. California-based VTA Telecom, a subsidiary of a Vietnamese state-owned telecom company, allegedly included false statements in its export applications to conceal defense end uses for the exports, BIS said. It said it will suspend about $200,000 of the penalty if VTA completes a two-year probationary period outlined in a settlement agreement with BIS, or if it dissolves its business. VTA agreed to spend $25,000 to improve its “ongoing” export compliance efforts and hire a trade compliance director for two years. If VTA doesn’t pay the fine or violates the agreement, BIS may deny the company export privileges. VTA Telecom couldn’t be reached for comment.

The “sophistication and safety” of Huawei’s 5G products “have been recognized by most operators around the globe,” said a Chinese Foreign Affairs Ministry spokesperson Tuesday when asked about a Nanos Research poll for the Globe and Mail that found 76% of Canadians support banning Huawei from participating in Canada’s 5G network buildout, following the lead of the U.S. and Australia. A similar Nanos poll in 2019 found 53% supporting a Huawei ban. Prime Minister Justin Trudeau hasn’t ruled out including Huawei in Canada’s 5G buildout and is expected to announce his decision soon. “The Canadian side should adopt an objective and unbiased attitude, independently make decisions that are in line with its interests, and provide a fair, just, open and non-discriminatory business environment for Chinese companies,” said the spokesperson.

A European Parliament vote opposing mass AI surveillance by police got cheers from civil society, jeers from the tech sector. Wednesday's nonbinding resolution backed a ban on private facial recognition databases, behavioral predictive policing and citizen scoring, and said automated recognition shouldn't be used in public places. Lawmakers worried AI surveillance could discriminate against various groups, especially in the context of law enforcement and courts, and said citizens should be monitored only when suspected of a crime. They said humans should supervise AI systems, algorithms should be open, and people subject to AI surveillance must have remedies. The report took "what many have seen as the most progressive steps of the Parliament so far in the AI debates -- and perhaps some of the most progressive in global AI policy," blogged European Digital Rights Wednesday. The Information Technology and Innovation Foundation, however, warned the ban on facial recognition would "undermine efforts to effectively respond to crime and terrorism in Europe." It urged the EU to focus on developing safeguards for appropriate use of the technology and effective enforcement of privacy laws.

The FCC released best practices for the disposal of Huawei and ZTE gear removed as part of the rip and replace program, in a notice listed in Friday’s Daily Digest. These include "procedures to effectuate equipment removal, data destruction, media sanitization, storage, transportation, physical destruction and recycling, and also cover the selection of certified data sanitization services, equipment destruction services, and electronic waste (e-waste) recycling services,” the Wireline Bureau public notice said: While voluntary, these practices will help companies meet their disposal obligations efficiently, while also ensuring the safe and secure removal and disposal of covered communications equipment and services that pose a national security threat.” Carriers “can employ alternative compliance measures, but risk the Commission subsequently finding that such measures are not in compliance with section 1.50004(j) of its rules,” the PN said. The Rural Wireless Association raised concerns some of its members are already in the process of disposing of gear, staff said. The FCC will keep in mind these providers “could not have known the best practices” in the PN and will “take this into account when evaluating compliance,” the bureau said. Choice of vendor is optional, but the notice recommends using a “U.S. disposal company” registered with the State Department’s Directorate of Defense Trade Controls.

The International Bureau sought comment on Thursday by Oct. 14 on draft recommendations approved this week by the FCC 2023 World Radiocommunication Conference Advisory Committee (see 2109280063), in docket 16-185.

China slammed the FCC Wednesday for moving on the rip-and-replace program for Chinese gear (see 2109270023). “Considering the grave pandemic and economic situations in the U.S., the $1.9 billion could be used better in areas in urgent need,” said a Foreign Affairs Ministry spokesperson. “The U.S. has kept smearing and slandering Huawei and other Chinese companies, but is unable to present any solid evidence to support its accusations. The so-called ‘national security’ is only a clumsy excuse of the U.S. to impose ‘national bullying’ and practice trade protectionism.”

The U.S. semiconductor industry maintained global leadership, with 47% revenue share, and “kept steady” its high R&D investment at $44 billion spent through 2020, reported the Semiconductor Industry Association Monday. But the industry “and its position as a global innovation leader face myriad challenges,” it said. “The industry continues to grapple with a widespread global semiconductor shortage brought on by unpredictable and increased demand resulting from the COVID-19 pandemic,” said SIA. It suffers from “decreasing share of global front-end fab capacity fueled by incentives and subsidies provided by foreign governments that far outstrip similar incentives in the U.S.,” it said. “America’s economy, national security, tech leadership, and response to COVID-19 are built on semiconductors,” said SIA CEO John Neuffer. “To remain competitive on the global economic stage” and promote more R&D and production “on U.S. shores,” Congress and the White House should “act swiftly” to fund the semiconductor provisions in the Chips Act, he said. The Senate has passed legislation that provides $52 billion in funding, and the House needs to “follow suit,” said SIA.

Leaders of Quad countries Australia, India, Japan and the U.S. ended their summit in Washington with the commitment to “fostering an open, accessible, and secure technology ecosystem, based on mutual trust and confidence,” said the White House Friday. Design, development, governance and use of technology “should be an equitable and inclusive process that neither involves nor results in unfair discriminatory action,” it said. “Technology should not be misused or abused for malicious activities such as authoritarian surveillance and oppression, for terrorist purposes, or to disseminate disinformation.” The countries agree that “resilient, diverse, and secure technology supply chains” for hardware, software and services “are vital to our shared national interests,” it said. “Close cooperation on supply chains with allies and partners who share our values will enhance our security and prosperity, and strengthen our capacity to respond to international disasters and emergencies,” said the statement. “We welcome all nations to join us in pursuit of this shared vision for technologies.” China gave strong indications Monday it won't accept the invitation anytime soon. "Relevant countries should abandon the outdated Cold War zero-sum mentality and ideological bias, stop forming closed and exclusive cliques and do more to promote solidarity and cooperation," said a Foreign Affairs Ministry spokesperson.

FCC-proposed questions on whether foreign entities seeking to buy a U.S. FCC licensee have ever been subject to legal penalties are overbroad, said USTelecom in a call Thursday with an aide to Commissioner Brendan Carr, per a filing in docket 16-155. Queries should be limited to a “timeframe of relevance,” USTelecom said. “Some USTelecom members are amalgamations of companies that date back 100 years, working with many different state and local regulatory entities.” That makes it difficult to report on penalties with certainty, and it isn’t clear why older information would be useful, the filing said. USTelecom wants a 10-year time frame. The draft order sided with the Committee for the Assessment of Foreign Participation in the U.S. Telecom Services Sectors stance that the information was relevant when considering whether prospective buyers are security threats to the U.S. (see 2109200059)