United States bans sales of Huawei and ZTE equipment due to national security risk

United States bans sales of Huawei and ZTE equipment

Because they represent "an intolerable danger" to American national security, the Biden administration has prohibited the certification of new communications equipment from China's Huawei Technologies (HWT.UL) and ZTE (000063.SZ).

The final rules, which also prohibit the sale or import of equipment produced by China's Dahua Technology Co (002236.SZ), Hangzhou Hikvision Digital Technology Co Ltd (002415.SZ), and telecom provider Hytera Communications Corp Ltd, were announced by the U.S. Federal Communications Commission on Friday (002583.SZ).

The action signals Washington's most recent ban on China's digital behemoths in response to worries that Beijing would utilize these firms to spy on Americans.

FCC Chairwoman Jessica Rosenworcel stated in a statement that "these new regulations are a critical component of our continuing efforts to safeguard the American people from national security risks affecting telecommunications."

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

Last month, Rosenworcel forwarded the proposed rule to the other three commissioners for final approval. This rule effectively prevents 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 happened after a 2019 legislation intended to safeguard U.S. communications networks designated five Chinese businesses on the so-called "covered list" as posing a danger 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.

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