The US Federal Communications Commission (FCC) has officially identified Chinese companies Huawei and ZTE as a “threat”
What does it mean
The restrictions will affect the government programUniversal Service Fund subsidies amounting to $8.3 billion: now American companies will not be able to use funds from this fund to purchase and install any equipment or services from Huawei and ZTE. And this is the main way the FCC purchases and subsidizes equipment and services to organize (and improve) communications throughout the country.
FCC Chairman Ajit Pai said thatTo make such a decision, the department has significant evidence. According to him, since Huawei and ZTE are subject to Chinese law, they may be required to cooperate with the country's intelligence services. Although Chinese manufacturers have repeatedly denied these accusations.
"Given today's orders and based onBased on a mountain of evidence, the FCC has identified Huawei and ZTE as national security threats to America's communications networks—and to our 5G future. We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our communications infrastructure,” the statement read.
In fact, the company has been called a threat to national security since November last year. It seems that only now all formal procedures have been completed.
Huawei and ZTE have not yet commented on the FCC decision.
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