U.S. FCC set to ban approvals of new Huawei, ZTE equipment -document

WASHINGTON, Oct 13 (Reuters) – The U.S. Federal Communications Commission is set to ban the approval of new telecommunications equipment by Chinese companies Huawei Technologies and ZTE (000063.SZ) in the United States for national security reasons, according to an agency document.

FCC President Jessica Rosenworcel last week circulated the draft ban to the other three Commissioners for final approval. Companies could not sell new equipment in the United States without equipment authorizations.

“The FCC remains committed to protecting our national security by ensuring that the use of unreliable communications equipment is not permitted within our borders, and we are continuing that work here,” Rosenworcel said in a statement. statement Thursday.

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The FCC faces a congressional deadline of mid-November to act.

In June 2021, the FCC voted to advance the plan to ban equipment approvals in U.S. telecommunications networks from Chinese companies deemed national security threats, including Huawei and ZTE.

This follows the March 2021 designation of five Chinese companies on the so-called “covered list” as posing a national security threat under a 2019 law to protect US communications networks: Huawei, ZTE , Hytera Communications Corp. (002583.SZ)Hangzhou Hikvision Digital Technology Co. (002415.SZ) and Zhejiang Dahua Technology Co (002236.SZ).

Senate Intelligence Committee Chairman Mark Warner said he was pleased to see the FCC “finally taking this action to protect our networks and national security.”

The FCC said in June 2021 that it was considering banning all equipment authorizations for all companies on the covered list.

This year, the FCC added Russian AO Kaspersky Lab, China Telecom (Americas) Corp (0728.HK)China Mobile International United States (0941.HK)Pacific Networks Corp and China Unicom (Americas) to the covered list.

FCC Commissioner Brendan Carr said that in 2021, the FCC had approved more than 3,000 applications from Huawei since 2018.

In 2019, the United States placed Huawei, Hikvision and other companies on its economic blacklist.

Also in 2020, the FCC designated Huawei and ZTE as threats to the national security of communications networks – a statement that barred US companies from tapping into an $8.3 billion government fund to purchase equipment. to businesses.

Earlier this year, the Chinese Embassy in Washington said the FCC “abused state power and again maliciously attacked Chinese telecom operators without a factual basis.”

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Reporting by David Shepardson in Washington and Jyoti Narayan in Bengaluru; Editing by John Stonestreet, Jonathan Oatis and Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

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