The US Federal Communications Commission is fighting against Chinese companies, Huawei Technologies Co., and China Telecom. When news that a series of national security rulings were found to be beneficial to the two companies was released, the two companies were said to have ties to the Chinese government.
In the vote, the FCC voted 5-0 and ordered telecom operators to remove Huawei-made equipment from their systems. Similarly, according to a Bloomberg report, the agency also asked whether to terminate China Telecom’s license to operate in the United States. Currently, Huawei and China Telecom account for a small percentage of US revenue.
FCC Chairman Ajit Pai said: “The security agency believes that the company has not complied with cybersecurity and privacy laws and provided opportunities for economic espionage funded by the Chinese government and interruption of US communications.”
He further added: “The company is owned by the Chinese government. All.” As early as 2019, the FCC also banned the use of US subsidies to purchase telecommunications equipment from Huawei and ZTE. The decision was made in response to a security risk, which both companies denied.
Now, the FCC’s unanimous vote will allow the agency to establish a list of banned equipment, and even set up a fund to reimburse operators for the cost of replacing these inspected equipment.
This will begin once Congress proposes an appropriation estimated at $1.6 billion. According to FCC Commissioner Brendan Carr, “The record is clear.
The Chinese government intends to monitor people within our borders to ensure government security, espionage advantages, intellectual property rights, and industrial and commercial advantages.”
