Mr. President, the plan had been for me to join with the Senator from Florida, now the Presiding Officer, to address our concerns in two areas. One has to do with the Chinese telecommunications company ZTE and the threat that it poses to…
Mr. President, the plan had been for me to join with the Senator from Florida, now the Presiding Officer, to address our concerns in two areas. One has to do with the Chinese telecommunications company ZTE and the threat that it poses to the national security of the United States. The second is to discuss the urgent need for this Senate to take action to protect the integrity of our democracy by passing the bipartisan DETER Act, which Senator Rubio and I have introduced.
Since the Senator from Florida is now presiding in the Chair, I will do my best to cover this for both of us, and I know that he will have an opportunity at some other point to cover these important issues as well.
First, as for ZTE, it is a Chinese telecommunications company. It is a telecommunications company that has been exhibit A in the mix of Chinese companies that have stolen U.S. technology.
In fact, when Secretary Pompeo was before the Senate a while ago, talking about the relationships between the Chinese Government and Chinese companies and talking about how they were stealing U.S. intellectual property secrets for their own purposes, ZTE would be on the top of that list. It is one of the most notorious thieves of intellectual property anywhere in the world.
In the United States alone, they have been sued for patent infringement 126 times in the last 5 years. That is an astonishing figure, particularly as only a small subset of firms have the resources to even bring litigation before a Federal court. ZTE has reportedly been sued for patent infringement at least 100 times in other countries around the world. This is a company that has developed by stealing high technology from U.S. companies and other institutions around the world.
Second, ZTE poses an espionage threat to the United States-- translated: spying on Americans. This past February, FBI Director Wray testified before the Senate Intelligence Committee saying:
We are deeply concerned about the risks of allowing any
company or entity that is beholden to foreign governments
that don't share our values to gain positions of power inside
our telecommunications networks. That provides the capacity
to exert pressure or control over our telecommunications
infrastructure. It provides the capacity to maliciously
modify or steal information, and it provides the capacity to
conduct undetected espionage.
That answer was in response to questions from the Senator from Florida, who is now presiding.
ZTE has stolen American technology. According to our national security officials--not just the Director of the FBI but also the head of NSA, or the National Security Agency; and the DNI, or the Director of National Intelligence; and the head of the CIA--ZTA poses an espionage threat.
Now, on top of that--on top of that--ZTE was caught violating the U.S. sanctions against North Korea and Iran, and it is not just that they got caught, but when they got caught, they tried to cover it up.
They were warned not just once but twice, and, again, despite that, they engaged in what Secretary of Commerce Wilbur Ross called a ``multiyear conspiracy to violate U.S. sanctions against North Korea and Iran in an elaborate scheme of coverup.'' That is why, just a few months back--I think it was in June--Secretary Ross imposed very stiff sanctions on ZTE, including what is called the denial order, to stop them from getting advanced technology components from U.S. companies that ZTE could then use in their phones and their telecommunications systems and then use that to conduct espionage against the United States.
Secretary Ross did the exact right thing. Unfortunately, his decision to impose that denial order was reversed by the President of the United States.
When the President reversed that order, Senators here, on a bipartisan basis--the Senator from Florida, Mr. Rubio; the Senator from Arkansas, Mr. Cotton; and others, including Senator Warner--thought it was important to protect the national security of the United States by reimposing those important sanctions that the Secretary of Commerce had put in.
How did we do that? We added a provision to the National Defense Authorization Act that passed overwhelmingly in this body. That provision was first inserted in the Senate Banking Committee. It was then included in what is called the CFIUS bill, and then it was passed by this body.
We urged the conferees in the Senate and the House on the Defense bill to keep that provision in there and not let ZTE off the hook. During that short period of time while it was in conference, a couple months, ZTE spent over $1.3 million to hire Washington lobbyists to help them pull that provision out of the Defense authorization bill. The sad and really shameful story here is that ZTE and their lobbyists succeeded. They succeeded in lifting that penalty on ZTE.
We have just sent the worst of all signals to China--whether it is ZTE or Huawei or others--that we are not really serious when we say that if we catch you violating our sanctions, we will punish you, or that we are not serious in defending our country from espionage, or that we are not serious about defending our country from the theft of our intellectual property. That is a terrible and very weak message to send.
I am going to keep fighting along with our colleagues, on a bipartisan basis, to keep the pressure on these issues, on ZTE and Huawei, because if we do not get serious about confronting these threats, they will continue to come back to bite us.
I am very disappointed that the conferees did not include that provision, and it does raise serious questions about a bill that provides for our national defense: Why would it have a big loophole in it that creates an opportunity for China to harm our national security?
Now, there is another way that our adversaries can harm our national security, and that is to interfere in our elections to try to undermine our democracy. We know from the heads of all the intelligence agencies that this is exactly what happened in 2016. Our focus in this body should be on making sure that no country interferes in our elections again.
We all know that suspect No. 1 has been Russia. Russia was the country that interfered in 2016, and we know that Russia is planning to interfere in the 2018 midterm elections and beyond.
How do we know that? Well, first of all, the Director of National Intelligence, Dan Coats, a former Member of this body, has said that all of the lights are flashing red--a big warning that Russia plans to interfere in our midterm elections, which are 98 days away.
We also learned just today that Facebook uncovered an ongoing effort by foreign social media entities to disrupt our 2018 elections. This is an ongoing process right now. This was the headline today in the Washington Post: ``Facebook says it has uncovered a coordinated disinformation operation ahead of the 2018 midterm elections.'' They document what they are doing to try to prevent that disinformation campaign.
We have the testimony of Dan Coats, the Director of National Intelligence, and other intelligence agency heads. We have Facebook. We also know that the Russians--and, specifically, the same operation, GRU, that interfered in the 2016 elections--have already attempted to interfere in three elections for 2018.
We know one that has been made public, the Senator from Missouri, Mrs. McCaskill, where the Russians attempted to get into their system ahead of the 2018 elections. We know all of this is happening, and it would be surrendering our obligation as Members of the Senate, both Republicans and Democrats, for us not to take action to defend the integrity of our elections. The clock is ticking--98 days to go to the elections.
We know from our intelligence agencies, we know from the evidence that surfaced today from Facebook, and we know from the fact that they have already interfered or attempted to interfere in three elections for 2018 that this Russian effort is coming. So for goodness' sake, don't we have an obligation to do everything we can to stop it?
That is exactly why Senator Rubio, who is presiding now, and I joined together to introduce the DETER Act. It is a very straight forward, simple idea. You need to send a signal in advance to Vladimir Putin that if Russia gets caught again, if it gets caught this time interfering in the 2018 elections, there will be automatic and harsh penalties imposed on Russia and it will hurt Russia's economy. It will hit them where it hurts. That is what the DETER Act does.
Everything we have heard about Russian conduct and behavior is that it is important to try to send these signals early if you want to influence their behavior. So what we need to do is to establish a very credible threat that if they interfere and they get caught again, they will face the penalty.
So what the DETER Act does is it says that the Director of National Intelligence, on behalf of the intelligence community, will make an assessment about whether or not Russia interfered in the 2018 election. This assessment would take place shortly after the 2018 elections, and if their finding is yes, then very harsh penalties take place.
Now, we can talk about the details in the coming days and make sure that we get this exactly right, but where there should be no debate-- there should be no debate--is about the need to do something along the lines of the DETER Act and to do it urgently.
As I said, the clock is ticking. We know how the Senate operates. There is not really that much time between now and the elections, given all the other things that we have to do, but I hope the Senate would prioritize defending our democracy. I hope the Senate would prioritize making sure that we have an election that the people of this country can have confidence in and that we would prioritize making sure that we protect the integrity of our democratic system. What Putin wants to do is to undermine the confidence in the democratic system. He wants to do that in the United States of America. He wants to do that to our allies around the world, and we can't let that happen.
So this is not a moment where the Senate should just have hearings or just talk about it. This is a moment for action, and I join the Presiding Officer--and I am sorry he wasn't able to join me here because of his duty in the Chair--but I want to join him not as Republicans or Democrats but as Americans who want to defend our democracy. Let's get this job done now. Let's protect the integrity of our democratic process.
I yield the floor.