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Axios recently reported that the US government plans to ban the purchase of new telecommunications equipment from Huawei and ZTE.
The two tech giants are under investigation in an expanding crackdown on alleged national security threats emanating from China.
The order
The reports stem from restrictions established in a Federal Communications Commission (FCC) draft order.
It focuses on selling video surveillance equipment by three other companies: Hytera, Hikvision and Dahua.
Chinese companies are also developing all three.
The draft decision states that the ban applies only to new products that have not yet received authorization for FCC equipment.
An FCC official confirmed that the proposal is more than just rumors.
They also said it would update the agency’s rules regarding the list of suppliers deemed unacceptable national risks if approved.
The proposal would also meet the agency’s congressional mandate under the Secure Equipment Act of 2021.
The ban
The proposed ban on Huawei and ZTE would go beyond the previous steps the FCC took toward the companies.
According to US officials, the network equipment could be used to intercept or track US communications.
In the past, the FCC has barred US telecom carriers from using federal funding from Huawei and ZTE, along with other carriers on the agency’s so-called “covered list.”
The FCC has also created a program to help carriers “rip and replace” Huawei and ZTE equipment from their networks.
However, the program’s estimated cost has risen to $ 5.6 billion, surpassing initial estimates of around $ 2 billion.
Many of the major wireless operators in the US have already said they don’t use Chinese-made equipment.
Telecoms policy experts said Chinese-made phones are found almost exclusively on smaller carrier networks to keep costs down.
Read also: Tech giants Nvidia and AMD ordered to halt exports to China
Huawei
In 2019, the Trump administration put Huawei on the so-called Commerce Department list.
The list restricts experts to individuals and organizations appointed without a license from the US government.
A year later, the US government expanded the restrictions by devising a plan to remove Huawei from its suppliers using US manufacturing technology.
The policy has led to sharp drops in Huawei’s telephony and telecommunications business, prompting the company to shift focus.
From there, Huawei began developing automobiles, cloud computing, and its own mobile operating system.
Huawei’s founder and CEO previously said the company would never share data with the Chinese government.
Meanwhile, Western security experts said the country’s national security and intelligence laws compel Chinese companies to comply with information requirements.
Reference:
FCC could ban all new purchases of Huawei and ZTE telecom gear
