A 5G logo is seen at a Huawei Authorized Experience Store on May 29, 2020 in Beijing, China.
Qin Luyao | VCG | fake pictures
The United States Federal Communications Commission (FCC) has officially designated Huawei and ZTE’s national security threats.
That means companies cannot use a $ 8.3 billion government subsidy program, known as the Universal Service Fund, to buy, maintain or endorse any equipment or service from the two Chinese telecommunications giants.
“With today’s orders, and based on the overwhelming weight of evidence, the FCC’s Office of Public Safety and Homeland Security has designated Huawei and ZTE as national security risks to America’s communications networks. and for our future 5G, “said FCC President Ajit Pai. in a sentence.
The ruling formalizes a unanimous FCC vote in November in which the regulator declared both Chinese companies as national security risks.
Huawei and ZTE did not respond to a request for comment when contacted by CNBC.
Washington’s latest move is another blow to Huawei and ZTE, based on the country’s largest campaign in the past 18 months against both Chinese companies. Last year, Huawei was blacklisted in the US called the Entity List and a new rule in May aimed to cut the tech giant from key semiconductor supplies.
The Trump administration has also been trying to convince other countries to block Huawei from rolling out its 5G networks. Countries like Australia and Japan have followed suit. India is also reportedly weighing whether to ban Huawei amid broader geopolitical tensions with China. However, other nations like the United Kingdom have challenged the United States, giving Huawei a limited role in its 5G launch.
5G refers to next-generation mobile networks that promise super-fast data speeds. But they are considered even more important than previous generations of networks because of their potential ability to shore up critical infrastructure.
Critics of Huawei and ZTE have claimed that their network equipment could be used by Beijing for espionage.
“Both companies have close ties to the Chinese Communist Party and the Chinese military apparatus, and both companies are widely subject to Chinese law that requires them to cooperate with the country’s intelligence services,” Pai said.
The FCC president was referring to a national security law in China that appears to compel companies to turn over data to the government if they request it.
Huawei has repeatedly said that it will never release data to Beijing.
“We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure,” added Pai.
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