The U.S. Federal Communications Commission has officially declared two Chinese companies, Huawei Technologies Company (Huawei) and ZTE Corporation (ZTE), as well as any subsidiaries, parent and affiliated companies, to be national security threats. This was reported on Tuesday, June 30, the commission’s website reported.
Huawei Technologies Company and ZTE Corporation are subject to a ban announced by the commission in November 2019 on supporting services to purchase equipment or services from companies that pose a threat to national security.
“As a result, $8.3 billion from the FCC’s general service fund can no longer be used to purchase, maintain, improve, modify or support any equipment or service provided or produced by these suppliers,” the commission explained.
Companies are threatening U.S. communications networks and 5G networks, said Commission Chairman Ajit Pai.
“Both companies have close ties with the Communist Party of China and the Chinese military apparatus, and both companies are generally subject to Chinese law requiring them to cooperate with the country’s intelligence services,” the agency said in a statement.
In its conclusions, the commission took into account the actions of the U.S. Congress, the country’s allies and communication service providers in other countries. The U.S. can not allow the Communist Party of China to exploit the country’s network vulnerabilities and threaten communications, the commission concluded.
In February, U.S. Secretary of State Mike Pompeo called Huawei and other Chinese companies with state support “Trojan horses of Chinese intelligence. Before that, he stated that the communications infrastructure of the techno giant was no less dangerous than the software of the USSR times.
In May 2019, the U.S. Department of Commerce blacklisted Huawei for activities allegedly threatening national security. The companies were banned from buying technology and components from U.S. manufacturers and from doing business with U.S. businesses without permission from Washington.