Chinese desk phone maker hires Mercury

From: POLITICO Influence - Tuesday May 10,2022 09:42 pm

May 10, 2022

With Daniel Lippman

MERCURY SIGNS CHINESE PHONE MAKER: A Chinese phone maker whose security practices have attracted the scrutiny of at least one member of Congress has hired its first lobbyists in the U.S., a team from Mercury Public Affairs that includes two former members of Congress as well as a former aide to the senator who raised concerns about the company, Yealink, last fall.

— In a September letter obtained by Defense One’s Patrick Tucker, Sen. Chris Van Hollen (D-Md.) asked Commerce Secretary Gina Raimondo whether the department was aware of a report from cybersecurity consultancy Chain Security that, Van Hollen wrote, “raises serious concerns about the security of audio-visual equipment produced and sold into the U.S. by Chinese firms such as Yealink.”

— The report focused on one model of Yealink’s business desk phones in particular, and split potential red flags into two categories: findings that are common industry practices but “create a heightened opportunity for threat actors because of Yealink’s ties” to the Chinese government, and findings that are not common industry practices “and generally create heightened device or network vulnerabilities.”

— The report details the company’s “historic and current deep ties” to the Chinese government, while noting that Yealink’s service agreement requires users to accept China’s laws and “allows the active monitoring of users when required by the ‘national interest’ (this means the national interest of China).”

— Chain Security also found that users’ “information and behavior can be surveilled” from the phones’ device management platform, “including communications of a PC that is attached to the T54W where the phone is also acting as an Ethernet switch,” and that the phone is “highly susceptible to unauthorized remote access, from which a device or general network attack can be initiated.”

— The Commerce Department responded to Van Hollen’s letter in December, according to Defense One, assuring Van Hollen that “we take these matters seriously” and that the department is reviewing threats from technology firms under the same executive order that led to the blacklisting of Chinese telecom giant Huawei.

— Less than four months later, according to newly filed lobbying disclosures, Yealink hired former Rep. Toby Moffett; former Sen. David Vitter ; Peter Kucik, a former U.S. sanctions official and a former caseworker in Van Hollen’s House office; former Trump transition official Bryan Lanza; and former GOP strategist John Lonergan to make introductions on the company’s behalf to elected officials and policymakers, according to the filing.

— Yealink isn’t Mercury’s first telecom client facing scrutiny for potential misuse of its technology. Up until last year, Mercury lobbied on behalf of Q Cybersecurity, a majority stakeholder in the Israeli surveillance firm NSO Group that was added to Commerce’s entity list and accused of developing and providing spyware to foreign governments that “used these tools to maliciously target government officials, journalists, businesspeople, activists, academics, and embassy workers.”

— Vitter, Kucik and several other Mercury lobbyists continue to represent Hikvision USA , the American subsidiary of a Chinese tech company accused of helping the Chinese government surveil detention camps holding Uyghur Muslims in China’s Xinjiang region, filings with the Justice Department show. The Financial Times reported last week that the Biden administration is weighing moving forward with sanctions against the company.

Good afternoon and welcome to PI. Send tips: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

INTRODUCING DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today.

SEVERAL OTHERS JUMP FROM SQUIRE TO DENTONS: Three other Squire Patton Boggs lobbyists have joined Dentons’ public policy practice in the wake of former Rep. Joe Crowley’s move to the new firm last month. Callie Fuselier, Patrick Kirby and Elaine Hillgrove have joined Dentons as a principal, senior managing associate and managing associate, respectively, as the firm looks to bulk up its lobbying practice.

CASH DASH DON’TS: Rep. Raja Krishnamoorthi (D-Ill.) has canceled a fundraiser that was set to take place today after Daniel raised questions about the advisability of the lobbyist brothers who are hosting the event linking it with a probe into the owner of the Washington Commanders football team that Krishnamoorthi is overseeing.

— “The Congressman is grateful that his efforts to stand up to some of the most powerful interests in Washington, from Big Tobacco to organizations like the Commanders, has generated enthusiasm from the public and some of his supporters,” a spokesperson for his campaign told Daniel. “However, we did not authorize any correspondence or outreach conducted for this general meet and greet event for Raja’s re-election campaign.” The spokesperson added that the fundraiser had been canceled “out of an abundance of caution.”

— The lobbyists, Mike and Tom Manatos, “grew up in Washington and are longtime adversaries of [owner Dan] Snyder,” Daniel reports. “In mid-April, they sent an email to friends inviting them to the fundraiser , along with this message: ‘The one person in Washington who may have found a path to getting rid of Snyder [as the team’s owner] is my good friend and Chairman of the House Oversight Subcommittee, Congressman Raja Krishnamoorthi.’”

— “‘Tom and I hope you can join us on May 10 as a small group of us meets with Raja to discuss his efforts,’ Mike Manatos wrote in the email. … They also mentioned how the congressman had sent a 20-page letter to the Federal Trade Commission accusing the team of engaging in ‘a troubling, long-running, and potentially unlawful pattern of financial conduct that victimized thousands of team fans and the National Football League (NFL).’”

— “Mike Manatos, who is president of the lobbying firm Manatos & Manatos , said in a statement that outreach for the event, which was going to include supporters representing various Washington interests, was done entirely on his own and not coordinated with Krishnamoorthi or his staff.” Tom Manatos is head of federal affairs at Block and the founder of Tom Manatos Jobs, a top political jobs list. Five years ago he launched the website FireDanSnyder.org, among other efforts targeting the team and its owner.

CIVITAS NAMES SOLOMON PARTNER: Marc Solomon, one of the key strategists behind the marriage equality movement, has been named a partner at Civitas Public Affairs Group. Solomon joined the firm as principal and national director in 2015 after serving as national campaign director for Freedom to Marry, and during the 2020 cycle focused on voting rights and election administration. He’ll join managing partner Katherine Grainger and founding partners Patrick Guerriero and Bill Smith in the firm’s leadership.

MANUFACTURERS PRESS TO KEEP SUPPLY CHAIN PROVISIONS IN CHINA BILL: More than 130 trade groups led by the National Association of Manufacturers and the Consumer Brands Association today called on lawmakers negotiating compromise China competitiveness legislation to maintain a program in the final package that would offer grants, loans and loan guarantees to help manufacturers invest in bringing supply chains back to the U.S.

— The groups expressed support for language in the House version of the bill that the trade associations wrote: “empowers the [Commerce] Department to conduct comprehensive supply chain mapping and monitoring, provide $45 billion of financial assistance to strengthen supply chains and manufacturing, and equip the private sector with the tools and best practices needed to address supply chain weaknesses before they become full blown crises.”

— The language in the House bill, which passed earlier this year, incorporates “lessons learned from the supply chain disruptions experienced in the timeframe” since the Senate passed its bill last summer, the groups wrote.

FLYING IN (VIRTUALLY): Citizens for Responsible Energy Solutions and the Conservative Energy Network are kicking off a virtual fly-in today with more than three dozen business leaders, farmers, state officials scheduled to take part in over 60 meetings with GOP lawmakers over the next three days. The groups will press lawmakers on four areas of clean energy investment: America’s critical minerals supply, hydrogen innovation, sustainable farming and advanced nuclear energy.

— The groups are set to meet with Sens. Chuck Grassley (R-Iowa), Joni Ernst (R-Iowa), Rob Portman (R-Ohio), Mike Braun (R-Ind.), Todd Young (R-Ind.), Thom Tillis (R-N.C.), Mike Crapo (R-Idaho.) and John Cornyn (R-Texas), and Reps. John Curtis (R-Utah), Mariannette Miller-Meeks (R-Iowa), David Joyce (R-Ohio), Buddy Carter (R-Ga.), Jim Baird (R-Ind.) and Debbie Lesko (R-Ariz.).

CLARK STRIKES BACK AT DEMS’ INFLATION BLAME GAME: “ US Chamber of Commerce CEO Suzanne Clark is pushing back against Senator Elizabeth Warren and others who blame high inflation on dominant corporations” in an interview with CNN’s Matt Egan.

— “They're just plain wrong,” she told the network, arguing that "we've had decades of low inflation. There wasn't some magic burst of consolidation in the last month or the last quarter. That's not what's going on.” Clark pointed to issues the Chamber has raised before as potential ways to mitigate rising consumer prices, including “lifting tariffs, boosting legal immigration and focusing on domestic energy production. ‘There's real work we could do, or we could keep politicizing it,’ Clark said.”

— “Warren, a Massachusetts Democrat, has repeatedly warned that concentrated corporate power has helped create conditions for price gouging. Warren responded to the Chamber of Commerce CEO's comments by pointing out that more than 75% of US industries, from agriculture to healthcare, have less competition than 20 years ago. ‘Giant corporations are taking advantage of supply chain challenges to jack up prices and pad their profits,’ Warren told CNN through a spokesperson.”

— Clark also opened up in the interview about the Chamber’s relationship with the Biden administration, calling it a “respectful” one. “They call us, we call them. We meet with them a great deal," she told CNN. "When we disagree, we don't surprise each other. We're pretty upfront about what's working and what isn't."

— “Clark singled out Commerce Secretary Gina Raimondo, Labor Secretary Marty Walsh and National Economic Council director Brian Deese as Biden officials who have been very open to conversations, even when they don't agree.”

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

Jobs Report

— Sean Perryman was hired as Uber’s head of public policy for algorithmic fairness. He was previously the executive director of the N. Joyce Payne Center for Social Justice.

— The Wireless Infrastructure Association has promoted Stephen Keegan to counsel for government affairs. He was previously associate counsel for government affairs at the trade group.

— Littler’s Workplace Policy Institute has added Jake Baker as senior manager working to advocate for pro-employer federal and state policies. He previously served as professional staff on the Senate HELP Committee for ranking member Richard Burr (R-N.C.) and former chair Lamar Alexander (R-Tenn.) handling the education and workforce development portfolio of issues.

— Ben Grumbles will be the executive director of the Environmental Council of the States effective June 1. He is currently ECOS president and Maryland’s environment secretary.

— Andrew Forman was appointed as a deputy assistant attorney general for the Justice Department. He was previously a partner at the Paul, Weiss, Rifkind, Wharton & Garrison law firm.

— Rachel Weisel has been promoted to be associate director of communications at Pew Research Center.

— Rebecca Buck has joined Hamilton Place Strategies as a senior director. She most recently was a political reporter for CNN.

— Corey Brooks Pace will be director of legal affairs at the American Cleaning Institute. He was previously director of the custom paralegal program and faculty director at Georgetown University.

— Kate Cusick is joining Brunswick Group as a partner and global head of marketing. She was most recently senior partner and global chief marketing officer at Porter Novelli.

— Jeff Gary has joined Monument Advocacy’s technology practice. He previously was a policy analyst on contract at Microsoft and is a Georgetown University Law Center, Ron Wyden (D-Ore.), FTC and Maria Cantwell(D-Wash.) alum.