China's Huawei and ZTE officially designated 'national security threats' by the FCC
Published Tue, Jun 30 202011:53 PM EDT
Arjun Kharpal
Key Points
- The U.S. Federal Communications Commission (FCC) has officially designated Huawei and ZTE national security threats.
- U.S. carriers cannot use an $8.3 billion government subsidy program, known as the Universal Service Fund, to purchase, maintain or support any equipment or services from both vendors.
- Critics of Huawei and ZTE have claimed that their networking equipment could be used by China for espionage.
The U.S. Federal Communications Commission (FCC) has officially designated Huawei and
ZTE national security threats.
That means that companies cannot use an $8.3 billion government subsidy program, known as the Universal Service Fund, to purchase, maintain or support any equipment or services from the two Chinese telecommunications giants.
"With today's Orders, and based on the overwhelming weight of evidence, the (FCC's Public Safety and Homeland Security) Bureau has designated Huawei and ZTE as national security risks to America's communications networks—and to our 5G future," FCC Chairman Ajit Pai said in a statement.