Because Huawei Technologies and ZTE (HK:0763), both of which are based in China, pose “an intolerable risk” to American national security, the Biden administration has banned the clearance of their new communication equipment.
The final rules, which also prohibit the sale or import of equipment made by Chinese surveillance equipment manufacturer Dahua Technology Co., video surveillance firm Hangzhou Hikvision Digital Technology Co., Ltd., and telecoms firm Hytera Communications Corp., Ltd., were adopted on Friday, according to the U.S. Federal Communications Commission.
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As a result of concerns that Beijing would use these companies to snoop on Americans, Washington has recently stepped up its pressure on China’s internet giants.
In a statement, FCC Chairwoman Jessica Rosenworcel said, “These new rules are a key part of our ongoing work to protect the American people from telecommunications-related threats to national security.”
Huawei opted not to respond. Requests for responses from ZTE, Dahua, Hytera, and the Chinese embassy in Washington were not immediately fulfilled.
The security of the United States is not in danger, according to a statement from Hikvision.
Hikvision stated that the FCC’s decision “will do nothing to protect U.S. national security, but will significantly make it more harmful and expensive for U.S. small businesses, local governments, school districts, and individual consumers to protect themselves, their homes, businesses, and property.” Hikvision also said that it will keep working with U.S. clients “in full compliance” with U.S. laws.
Last month, Rosenworcel circulated 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 law intended to safeguard U.S. communications networks designated five Chinese businesses on the so-called “covered list” as posing a threat to national security in March 2021: Huawei, ZTE, Hytera Communications Corp., Hikvision, and Dahua.
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The decision made on Friday was backed by all four agency commissioners, including two Republicans and two Democrats. Although the agency said it had the power to do so, it chose not to.
