US lawmakers vote to tighten restrictions on Huawei and ZTE

(Reuters) – The US Senate on Thursday unanimously approved legislation to prevent companies such as Huawei Technologies Co Ltd or ZTE Corp, which are seen as security threats, from obtaining new equipment licenses from US regulators.

The Secure Equipment Act, the US government’s latest effort to crack down on Chinese telecom and technology companies, was passed by the US House by a 420-4 vote last week and now goes to President Joe Biden for his signature.

“Chinese state-run companies like Huawei and ZTE are known for national security threats and have no place in our telecommunications network,” Republican Senator Marco Rubio said. Said. The action will prohibit the Federal Communications Commission (FCC) from reviewing or issuing new equipment licenses to companies on the FCC’s “Equipment or Services Covered List.”

In March, the FCC determined that five Chinese companies pose a threat to national security under a 2019 law aimed at protecting US communications networks.

Affected companies include the previously identified Huawei and ZTE, as well as Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co, and Zhejiang Dahua Technology Co.

In June, the FCC unanimously unanimously advanced its plan to ban equipment approvals from these Chinese companies in U.S. telecommunications networks, even if legislators followed the law to mandate it.

The FCC vote in June drew opposition from Beijing.

“The United States, without any evidence, is still abusing its state power to suppress national security and Chinese companies,” Chinese foreign ministry spokesman Zhao Lijian said in June.

Under the proposed rules, which received initial approval in June, the FCC may also revoke previous equipment permits granted to Chinese companies.

A spokesperson for Huawei, which has repeatedly denied being controlled by the Chinese government, declined to comment on Thursday, but called the proposed FCC revision in June “misguided and needlessly punitive”.

FCC Commissioner Brendan Carr said the commission has approved more than 3,000 applications from Huawei since 2018. Carr said Thursday that the bill “will help ensure that insecure equipment from companies like Huawei and ZTE can no longer be added to America’s communications networks.”

On Tuesday, the FCC voted to revoke China Telecom’s US subsidiary’s authorization to operate in the US, citing national security concerns. (Reporting by David Shepardson; Editing by Lincoln Feast.)

source: Reuters