Fri, 06 Aug 2021

Chinese companies to be banned from selling telecom in U.S.

Robert Besser
20 Jun 2021, 09:35 GMT+10

WASHINGTON, D.C.: The U.S. Federal Communications Commission is moving forward in banning the purchase of equipment by U.S. telecommunications networks from Chinese companies deemed national security threats, including Huawei and ZTE.

The vote on the purchase, taken Thursday, was unanimous.

The proposal to ban such purchases also included the ability for the FCC to revoke prior approvals to purchase telecommunications equipment from Chinese companies.

In responding to the FCC decision, a Huawei spokesperson, in an email, called the FCC ruling "misguided and unnecessarily punitive."

In announcing the decision, acting FCC Chairwoman Jessica Rosenworcel said the new measures would "exclude untrustworthy equipment from our communications networks... We have left open opportunities for (Huawei and other Chinese equipment) use in the United States through our equipment authorization process. So here we propose to close that door."

FCC Commissioner Brendan Carr noted that more than 3000 applications to ship equipment to the United States from Huawei have been approved by the FCC since 2018.

The new FCC action would end the purchase of Huawei communications equipment when it is considered unacceptable risks to U.S. national security.

In March, the FCC classified five Chinese companies as posing threats to national security. They included Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology.

Huawei, in response to the Thursday decision, said "blocking the purchase of equipment, based on a 'predictive judgment,' related to country of origin or brand is without merit, discriminatory and will do nothing to protect the integrity of U.S. communications networks or supply chains."

The U.S. government had earlier barred federal agencies from purchasing goods or services from any of the banned Chinese companies.

Additionally, In 2019 the United States placed Huawei, Hikvision and other firms on its economic blacklist.

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