Huawei and ZTE have been designated as national security threats by the FCC
What you need to know
- The FCC has now designated Huawei and ZTE as national security threats.
- This move prevents telecoms providers from using federal funds when purchasing equipment from either of the two.
- FCC Chair Ajit Pai pointed to close ties with the Chinese Communist Party and the Chinse military when explaining the body's decision.
Huawei and ZTE have now been designated as national security threats by the FCC in a move that will be perceived as an escalation in the trade conflicts between the U.S. and China. This designation bars all U.S. telecoms providers from using the FCC's Universal Service Fund to spend on any equipment purchased from either company, whether it relates to procurement or repairs.
In a statement, FCC Chairman Ajit Pai said:
Both ZTE and Huawei have been targets of the U.S. over the past few years. Huawei especially has seen trade bars decimate its smartphone business, once willing partners begin to back away on 5G, and the development of a fog of criminality over the company.
Both Huawei and ZTE have maintained their innocence throughout.
An international trade lawyer explains just how far reaching the Huawei ban really is
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