US labels Huawei, ZTE as National Security Threats

Tuesday, 30. June 2020 18:42

ZTE Corp. and Huawei Technologies Co. were labeled on Tuesday as a national security threat by the United States' Federal Communications Commission (FCC).

The move implies that the FCC's Universal Service Fund, worth $8.3 billion, can't be used to support in any way services or equipment made by ZTE, Huawei, or any of their "parents, affiliates, and subsidiaries," the announcement read.

The commission has forbidden the use of universal service support for transactions with any company that poses a "national security threat" in November 2019. Huawei and ZTE were put on the list "because of their substantial ties to the Chinese government."

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