US prohibits sales of Huawei and ZTE equipment due to national security concern

In response to worries that Beijing would employ Chinese tech companies to spy on Americans, Washington has increased its pressure on China’s tech giants.

As a result of the Chinese companies Huawei Technologies and ZTE posing “an unacceptable risk” to US national security, the Biden administration has prohibited certification of new communications equipment from both companies.

The final rules, which also prohibit the sale or import of equipment made by Chinese surveillance equipment manufacturers Dahua Technology Co, video surveillance firm Hangzhou Hikvision Digital Technology Co Ltd, and telecoms firm Hytera Communications Corp Ltd, were adopted by the US Federal Communications Commission on Friday, the agency announced.

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With concerns that Beijing may employ Chinese tech firms to spy on Americans, the action constitutes Washington’s most recent crackdown on the country’s largest tech businesses.

“These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” FCC Chairwoman Jessica Rosenworcel said in a statement.

Huawei opted not to respond. Requests for comment from ZTE, Dahua, Hikvision, and Hytera were not promptly fulfilled.

Last month, Rosenworcel circulated the proposed rule to the other three commissioners for final approval. This rule effectively prevents the companies from selling new equipment in the US.

In June 2021, the FCC declared that it was thinking of outlawing all equipment authorizations for all businesses on the covered list.

That came after a 2019 law intended to safeguard U.S. communications networks designated five Chinese companies on the so-called “covered list” as posing a threat to national security in March 2021: Huawei, ZTE, Hytera Communications Corp., Hikvision, and Dahua.

The decision made on Friday was backed by all four agency commissioners, including two Republicans and two Democrats.