The US Federal Communications Commission (FCC) has officially recognized Huawei Technologies Company (Huawei) and ZTE Corporation (ZTE) and their subsidiaries as a threat to national security. The government agency announced this in a relevant press release published on Tuesday June 30th. The document has already entered into force.
Financial resources from the FCC Universal Service Fund in the amount of $ 8.3 billion in the future can not and will not be used to purchase, service, improve, modify or otherwise support any equipment manufactured by Huawei and ZTE. Beginning June 30, American companies are also finally prohibited from buying network equipment from Chinese technology giants and cooperating with them.
According to the Federal Communications Commission, the decision is based on a wealth of evidence from the US government. Agency Chairman Ajit Pai commented on the situation, noting that Huawei and ZTE "pose a threat to the development of America's communications networks and the future 5G standard."
U.S. President Donald Trump’s administration is convinced that Huawei and ZTE have close ties with the Chinese Communist Party and the military apparatus of China, and that both companies are subject to Chinese law, which requires them to cooperate with the country's intelligence services. This week, the Pentagon sent a document to Congress containing a list of 20 Chinese organizations in the United States supported by the Chinese military.
A large-scale investigation against Huawei and ZTE has been conducted since November 2019. Now the Federal Communications Commission has indicated its final position.
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