US President Donald Trump officially designates Huawei and ZTE as threats to national security.
BREAKING NEWS: The @FCC has designated #Huawei and #ZTE as companies posing a national security threat to the United States. As a result, telecom companies cannot use money from our $8.3B Universal Service Fund on equipment or services produced or provided by these suppliers. 1/5 pic.twitter.com/dH6QK4jbd4
— Ajit Pai (@AjitPai) June 30, 2020
The American government has also blocked American companies from spending federal subsidies on Huawei and ZTE equipment(s).
Yesterday, while announcing the designations, Ajit Pai, chairman of the Federal Communications Commission, cited the repeated claims that the companies have close ties to the Chinese Communist Party and China’s military, hence, pose a risk to America.
Mr Pai stressed that both companies were subject to China’s National Intelligence Law of 2017, which could oblige them “to co-operate with the country’s intelligence services”
“We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure,” Mr Pai added.
US companies have been prohibited from spending money received from her $8.3bn (£6.7bn) universal service fund.
Colorado Senator Cory Gardner applauded the decision and warned US allies that Huawei and ZTE cannot be trusted.
US Intelligence officials have made it abundantly clear that Huawei and ZTE cannot be trusted and this announcement from @FCC Chairman @AjitPaiFCC is welcome news. https://t.co/1pWqS79ZWn
— Cory Gardner (@SenCoryGardner) June 30, 2020
For starters, the US Universal Service Fund is designed to subsidise internet access for under-connected areas, on equipment produced by either company.
On their response, Huawei and ZTE have denied covertly operating on behalf of the Chinese state and point out that no evidence has been presented that they have done so.
The designation follows new sanctions in the US targeting Huawei.
Huawei warned the move might put it out of business. Almost all semiconductors on the market – which are essential across the whole of Huawei’s product line, from radio base stations to servers and smartphones – contain US intellectual property.
The sanctions have forced the UK to reassess its decision to allow Huawei equipment a limited role within the country’s 5G network.
Boris Johnson had in January this year made the decision to allow the company’s equipment a limited role, of no greater share than 35%, within the non-core parts of the UK’s network.
“Following the US announcement of additional sanctions against Huawei, the NCSC is looking carefully at any impact they could have to the UK’s networks,” a spokesperson confirmed to Sky News.
Foreign Secretary Dominic Raab said on Wednesday this review was ongoing.
Both Huawei and ZTE have been scrutinised by Western government agencies for many years due to the potential cyber security risks which their equipment might introduce into telecoms networks.
Chinese company Huawei, which is backed by the Chinese military & known for spying on other countries, gave Rs 7 cr to the PM CARES fund.
Is this why PM Modi gifted the Galwan Valley to China? PM Modi should give us an answer on #MannKiBaat today!
— Dr. Shama Mohamed (@drshamamohd) June 28, 2020
A congressional report investigating the companies, published in 2012, recommended that the US “view with suspicion the continued penetration of the US telecommunications marker by Chinese companies” due to fears that Beijing could use their equipment for espionage or to conduct cyber attacks against America.
President Trump’s administration has had multiple arguments with Beijing, imposing tariffs on trade in 2018 before signing a trade deal in January 2020.
Great reviews on our handling of Covid 19, sometimes referred to as the China Virus. Ventilators, Testing, Medical Supply Distribution, we made a lot of Governors look very good – And got no credit for so doing. Most importantly, we helped a lot of great people!
— Donald J. Trump (@realDonaldTrump) May 25, 2020
Trump has been constantly blaming China for the coronavirus outbreak.
