Daily Management Review

USA declares Chinese Huawei and ZTE a threat to national security


The US Federal Communications Commission (FCC) has officially declared Chinese telecommunications companies Huawei and ZTE a national security threat.

Marco Verch via flickr
Marco Verch via flickr
“The FCC Public and Homeland Security Bureau formally announced that Huawei Technologies Company (Huawei) and ZTE Corporation (ZTE), as well as their parent and subsidiary companies and divisions, are subject to a ban on support for common services announced by the FCC in November 2019 for acquiring equipment or services from companies that pose a threat to national security,” the authority said in a statement.

“As a result, the $8.3 billion FCC General Services Fund money can no longer be used to purchase, maintain, improve, modify and support any equipment or services provided or produced by these suppliers,” the statement said.

Head of the FCC, Ajit Pai, said that both companies are associated with the Communist Party and the military of China, and are also obliged under Chinese laws to cooperate with the PRC intelligence services.

“By today’s orders, which are based on a large evidence base, the FCC bureau has placed Huawei and ZTE in the list of security risks for America’s telecommunications networks and for our future 5G... The current solution will protect the FCC common services fund, which is paid by fees to US consumers and companies in their telephone bills. The fund will not be used to support these suppliers, which threaten our national security,” said Pai.

source: cnbc.com