The U.S. Federal Communication Commission (FCC) has officially stated that the two major Chinese telecommunications companies, Huawei and ZTE are “threats to national security”. In this way, the ban started in 2019 and extended on May 15, 2020, will be even more restrictive.
From now on, American companies will no longer be able to use federal funds, totalling about 8.3 billion dollars, to buy and install equipment for the two giants of Shenzhen.
This decision was supported by the president of the board of directors Ajit Pai. According to him, the evidence was sufficient to reach these conclusions. As also reported by TechCrunch, some members of the FCC then reiterated in a separate venue that “(The United States) will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our infrastructure.”
The order given by the FCC was officially published today, Tuesday 30 June 2020, in addition to further statements by Ajit Pai: “Both companies have a close relationship with the CCP and the Chinese military apparatus, also because Chinese law requires their cooperation with the country’s intelligence”.
FCC commissioner Geoffrey Starks added that this is a critical first step, but that a lot of additional work is still needed to identify and replace all Huawei and ZTE equipment already installed on the territory. Only in this way can an effective transition be guaranteed and the citizens of the United States of America safeguarded.
Huawei and ZTE have not responded to publications such as TechCrunch and The Verge, but both have reiterated that they do not pose a threat to U.S. national security. This measure will certainly further deteriorate the reputation of Huawei, currently the number one smartphone seller in the world.