ZTE’s Designation as Security Threat Affirmed by US FCC

The U.S. Federal Communications Commission affirmed its decision to designate ZTE as a national security threat over concerns telecommunications gear made by the Chinese company could be used for spying. From a report: The action shows that the FCC remains determined to drive ZTE and fellow Shenzhen-based manufacturer Huawei Technologies Co. from the U.S. market, where small rural carriers rely on their cheap network equipment. The agency at its Dec. 10 meeting is to consider rules for listing prohibited gear, FCC Chairman Ajit Pai said in a Nov. 18 blog post that identified Huawei as a threat. The FCC has said ZTE and Huawei pose a risk of espionage, an allegation each company denies. The agency has increasingly scrutinized Chinese companies amid tensions between Beijing and Washington over trade, the coronavirus and security issues. The FCC is considering banning three Chinese telephone companies, and last year barred China Mobile from entering the American market. The FCC on June 30 designated both companies national security threats, and ZTE asked the agency to reconsider its listing. The company said it supplies safe and secure equipment and is “clearly and fully dedicated to complying with all applicable laws in the United States.”