ALSO READ|By Banning Its 59 Apps, India Hits China Where It Hurts The Most
US FCC has classified Huawei and ZTE as security threats, and banned them as suppliers for projects under its Universal Service Fund, because of alleged ties to the Chinese military and intelligence services. The Federal Communications Commission is the US agency that regulates all communications technology.
The two companies have been banned as suppliers under the FCC's Universal Service Fund. The fund is a collection of subsidies through which the US government can promote access to telecom services.
In the release, the FCC stated: “As a result of today's action, money from the FCC's $8.3 billion (approximately Rs. 62,676 crore) a year Universal Service Fund may no longer be used to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by these suppliers.“
ALSO READ|India's Digital Strike On China! List Of 10 Most Popular Apps You Won't Be Able To Use
“With today's Orders, and based on the overwhelming weight of evidence, the Bureau has designated Huawei and ZTE as national security risks to America's communications networks—and to our 5G future,” FCC Chairman Ajit Pai said in the release. “Both companies have close ties to the Chinese Communist Party and China's military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country's intelligence services.”
Won't compromise with national security: FCC Chairman
“The Bureau also took into account the findings and actions of Congress, the Executive Branch, the intelligence community, our allies, and communications service providers in other countries. We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure,” he added.
According to reports by Cnet, last week, the Trump administration announced its finding that Huawei is backed by the Chinese military. The Pentagon sent a document to Congress containing the names of 20 Chinese companies that it found to be backed by the People's Liberation Army, including Huawei.
US taking hardline against Chinese firms
In May 2019, Trump signed an executive order declaring a national emergency and barring U.S. companies from using telecommunications equipment made by companies posing a national security risk. The Trump administration also added Huawei to its trade blacklist last year.
In April, the FCC said it may shut down U.S. operations of three state-controlled Chinese telecommunications companies.
ALSO WATCH|Trump says, 'As Covid crisis intensifies, so is my anger for China'