FCC Declares Huawei, ZTE ‘National Security Threats’

The Federal Communication Commission has declared Chinese telecom giants Huawei and ZTE “national security threats,” a move that will formally ban U.S. telecom companies from using federal funds to buy and install Huawei and ZTE equipment. From a report: FCC chairman Ajit Pai said that the “weight of evidence” supported the decision to ban the technology giants. Federal agencies and lawmakers have long claimed that the tech giants are subject to Chinese law, which “obligates them to cooperate with the country’s intelligence services,” Pai said. “We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure,” the FCC said in a separate statement. Huawei and ZTE have repeatedly rejected the claims. The order, published by the FCC on Tuesday, said the designation takes immediate effect, but it’s not immediately clear how the designation changes the status quo. In November of last year, the FCC announced that companies deemed a national security threat would be ineligible to receive any money from the Universal Service Fund. The $8.5B USF is the FCC’s main way of purchasing and subsidizing equipment and services to improve connectivity across the country.