US FCC Votes To Proceed With Huawei, ZTE Bans: Reuters

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  • The U.S. Federal Communications Commission (FCC) voted unanimously to advance a plan to ban U.S. telecommunication network equipment approval from Chinese companies like Huawei Technologies Co., Ltd and ZTE Corporation over national security concerns, Reuters reports.
  • The FCC could also revoke prior equipment authorizations issued to Chinese companies.
  • The FCC had approved over 3,000 applications from Huawei since 2018.
  • The affected companies included the previously designated Huawei and ZTE, Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co, and Zhejiang Dahua Technology Co.
  • In Aug. 2020, the U.S. government banned federal agencies from buying goods or services from the five Chinese companies.
  • In 2019, the U.S. economically blocked Huawei, Hikvision, and other firms.
  • Last year, the FCC designated Huawei and ZTE as national security threats bearers to communications networks. The designation barred U.S. firms from tapping an $8.3 billion government fund to purchase equipment from the companies.
  • The FCC in Dec. finalized rules requiring carriers with ZTE or Huawei equipment to replace the equipment. The U.S. lawmakers approved $1.9 billion to assist the companies in the replacements. The FCC will vote in July to finalize the reimbursement fund rules.
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