The Federal Communications Commission (FCC) of the United States declared Huawei and ZTE “threats to national security,” officially banning US corporations from using federal funds to purchase and install equipment from the Chinese telecommunications giants.
Chairman of the American independent government agency Ajit Pai (Ajit Pai) said that the basis of this decision formed “Strong evidence”. Federal agencies and lawmakers have long claimed that since Huawei and ZTE are subject to Chinese law, they may be required to “Cooperate with the country’s special services.” Chinese technology companies have repeatedly rejected these claims.
“We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure.” – noted in a separate statement from the regulator. An order issued by the FCC on Tuesday said the definition would take effect immediately.
In November last year, the US agency announced that companies deemed a threat to national security would not be eligible to receive any money from the US Special Service Fund (Universal Service Fund). A $ 8.5 billion fund is the primary way to acquire and subsidize FCC equipment and services to organize (and improve) communications across the country.
Previously, Huawei and ZTE were already identified as security threats, but the formal process of assigning them this status took several months, which ultimately led to the FCC statement above. This declaration is the last step of the commission to combat Chinese technology suppliers. This puts many telecommunications companies working to expand their 5G coverage in a hopeless situation: Huawei and ZTE are leaders in this field, far ahead of their US competitors.
Representatives of Huawei and ZTE did not comment on this situation.
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