The United States Federal Communications Commission (FCC) designates Huawei Technologies Co. and ZTE Corp. as national security threats
The screws are really tightening for the Chinese companies. We had earlier reported that India is considering banning Huawei and ZTE from participating in the Indian 5G Infrastructure grid contracts. After the Galwan Valley clashes between the Indian Army and PLA, this is a done deal. Now the United States telecom watchdog, Federal Communications Commission (FCC) has deemed both Huawei and ZTE to be a serious national threat for America.
The Indian-origin Ajit Pai led FCC yesterday ruled that both Huawei and ZTE were national security threats. FCC ruling is binding on all telecom, mobile, and Internet operators in the United States and they will now have to stop collaboration with Huawei and ZTE in any venture. The FCC ruling also means that banks and the U.S. government would no longer provide loans or aid to telecom companies using Huawei or ZTE equipment.
BREAKING NEWS: The @FCC has designated #Huawei and #ZTE as companies posing a national security threat to the United States. As a result, telecom companies cannot use money from our $8.3B Universal Service Fund on equipment or services produced or provided by these suppliers. 1/5 pic.twitter.com/dH6QK4jbd4
— Ajit Pai (@AjitPaiFCC) June 30, 2020
“Both Huawei and ZTE have close ties to the Chinese Communist Party and China’s military apparatus,” FCC Chairman Ajit Pai said on Twitter. “We are sending a clear message: the U.S. government, and this @FCC in particular, cannot and will not allow the Chinese Communist Party to exploit vulnerabilities in U.S. communications networks.”
This is the latest blow to companies from China after the Indian government banned the use of 59 Chinese origin Apps including TikTok and UC Browser. United States lawmakers are also considering banning TikTok for violating data security and exfiltrating data from U.S. users.