U.S. FCC issues final orders declaring Huawei, ZTE national security threats

In May 2019, the FCC voted to deny another state-owned Chinese telecommunications company, China Mobile Ltd, the right to provide U.S. services, citing risks that the Chinese government could use the company to conduct espionage against the U.S. g...

US FCC designates Chinese companies 'Huawei' and 'ZTE' as national security threats to America
WASHINGTON: The Federal Communications Commission on Tuesday formally designated Chinese's Huawei Technologies Co and ZTE Corp as posing threats to U.S. national security, a declaration that bars U.S. firms from tapping an $8.3 billion government fund to purchase equipment from the companies.

The U.S. telecommunications regulator voted in November 5-0 to issue the declaration and proposed requiring rural carriers to remove and replace equipment from the two Chinese companies from existing U.S. networks. "We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure," FCC Chairman Ajit Pai said in a statement Tuesday.

Huawei and ZTE did not immediately respond to requests for comment but have previously sharply criticized the FCC's actions.


FCC Commissioner Geoffrey Starks said on Tuesday that "untrustworthy equipment" remains in place in U.S. networks and said the U.S. Congress must allocate funding for replacements.

In May 2019, Trump signed an executive order declaring a national emergency and barring U.S. companies from using telecommunications equipment made by companies posing a national security risk. The Trump administration also added Huawei to its trade blacklist last year.

The FCC has taken an increasingly hard line against Chinese firms.
ADVERTISEMENT

In April, the FCC said it may shut down U.S. operations of three state-controlled Chinese telecommunications companies.

The FCC required China Telecom Americas, China Unicom Americas, Pacific Networks Corp and its wholly owned subsidiary ComNet (USA) LLC to explain why it should not start the process of revoking authorizations enabling their U.S. operations.

The FCC granted its approvals to the firms more than a decade ago.

In May 2019, the FCC voted to deny another state-owned Chinese telecommunications company, China Mobile Ltd, the right to provide U.S. services, citing risks that the Chinese government could use the company to conduct espionage against the U.S. government.
ADVERTISEMENT
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+