FCC Set To Ban All US Sales Of New Huawei & ZTE Devices

Last Updated on: 14th October 2022, 12:25 pm

The Federal Communications Commission (FCC) is set to ban all sales of new Huawei and ZTE telecommunications equipment in the US – as well as some sales of video surveillance equipment from three other Chinese firms – out of national security concerns, direct knowledge of private deliberations.

Sources told Aksha that the FCC plans to announce the move as early as Monday, following a report from the Director of National Intelligence that Huawei and ZTE devices may be used to spy on US citizens.

The decision comes after months of deliberation and research and follows multiple reports from US intelligence agencies concluding that the Chinese companies pose a threat to national security.

“Huawei and ZTE devices may be used to spy on US citizens, and given the recent concerns about Russian meddling in US elections, we felt it was important to take this step,” an FCC spokesperson told Aksha.

What Is Matter?

After years of warnings from security researchers, analysts, and intelligence agencies, the FCC is set to ban all sales of new Huawei and ZTE devices in the United States. The move, which marks the first time the FCC has banned electronic equipment on national security grounds, embargoes two Chinese companies that began to harden during the Trump administration.

The ban could come at a high cost for some of the smaller telecom providers who prefer products from Chinese companies thanks to their aggressive pricing. But it is hoped that the move will protect Americans from Chinese government spying.

The move comes as the price of Huawei and ZTE devices has increased in recent months, thanks in part to fears that the companies could be used by the Chinese government to spy on Americans. The two companies have been hit with multiple lawsuits in the past, with some alleging that their products are used to spy on Americans.

Huawei has been banned from doing business with the United States government, and ZTE has been barred from doing business with US companies that provide technology to the military. The move could put a serious dent in the companies’ profits, but it is hoped that it will protect American citizens from Chinese government spying.

Behinds The Scene

The FCC is set to ban all US sales of new Huawei and ZTE devices, according to two sources with direct knowledge. The move comes after the US government concluded that the Chinese telecoms firms pose a threat to national security.

The order will impose sanctions on the telecommunications equipment of Chinese telecoms firms Huawei and ZTE. The FCC previously prohibited companies from using federal funding to purchase equipment from these firms, but the new order would extend this restriction to all purchases.

The FCC order will also determine the scope of the ban on the sale of video surveillance equipment used for public safety. Sources told Axios that this will affect Chinese companies Hytera Communications Corporation, Hikvision, and Dahua Technology Co.

This ban is not retroactive, so companies can continue to sell products that the FCC previously approved. However, new models or equipment that would require new FCC approval would be banned.

Huawei and ZTE are both Chinese telecommunications companies, and the ban is likely to cause some damage to their businesses. However, they are not the only companies affected by the decision. American companies that use Huawei and ZTE technology could also be affected.

The FCC is concerned about the security of the devices that these companies produce. They reportedly believe that Chinese telecommunications companies are capable of spying on American companies and stealing their trade secrets.

Flashback

In March 2021, FCC commissioner Brendan Carr called on the agency to close the so-called “Huawei loophole”, https://docs.fcc.gov/public/attachments/DOC-373281A1.docx which allowed companies to use private sector money to buy equipment from the firm as the FCC still sold its equipment. The FCC was authorized to do this by the Secure Equipment Act.

The Huawei and ZTE devices that are currently being sold in the United States are not compliant with the FCC’s new standards. This means that they could pose a security risk to the country.

The ban on the sale of Huawei and ZTE devices is a step in the right direction. It will protect America’s security and ensure that the devices that are sold in the United States are compliant with the standards that are necessary for them to be safe.