U.S. bans sales of telecommunications equipment from five Chinese companies

U.S. bans sales of telecommunications equipment from five Chinese companies

The U.S. has banned the sales and import of Chinese telecommunications equipment manufactured by several companies. U.S. regulators imposed a ban on electronic equipment from Huawei Technologies Co, ZTE Corp, Dahua Technology, Hangzhou Hikvision Digital Technology and Hytera Communications, continuing a years-long effort to limit the reach of Chinese telecommunications companies into U.S. networks. The move is Washington’s latest crackdown on the Chinese tech companies amid fears that Chinese authorities could use the tech companies to spy on Americans. It is the first time U.S. regulators have taken such a move on security grounds.

“The FCC is committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorized for use within our borders, and we are continuing that work here,” Chairwoman Jessica Rosenworcel said in a news release. “These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications.” In the 4-0 vote, the two Democrat and two Republican Commissioners on the Federal Communications Commission (FCC) concluded the products pose a risk to data security.

Because the ban is not retroactive, the firms listed can continue to sell products previously approved for sale in the U.S. But the FCC said it is seeking comment on future revisions to the rules regarding equipment already authorized to be imported or sold, meaning it is possible existing authorizations could also be revoked in the future. Under former U.S. President Barack Obama's administration, actions designed to limit Chinese telecoms firms' access to the U.S. market first took root. They were then accelerated during the presidency of Donald Trump and have continued under President Joe Biden.

Hikvision said that its products present no security threat to the U.S. It added that the decision “will do nothing to protect U.S. national security, but will do a great deal to make it more difficult and more expensive for U.S. small businesses, local authorities, school districts, and individual consumers to protect themselves, their homes, businesses and property.” The firm would continue to serve U.S. customers “in full compliance” with U.S. regulations, it said. Huawei and others have previously denied supplying data to the Chinese government.

Past efforts to curb Chinese access included export controls to cut off key sophisticated equipment and software. Recently U.S. officials have weighed restrictions on TikTok over fears Chinese authorities could access U.S. user data via the video sharing app. In 2018, Congress voted to stop federal agencies from buying equipment from the five companies named by the FCC. The agency said earlier that the companies are not eligible to receive federal subsidies, an it has also barred Chinese phone companies from doing business in the U.S. The latest order was required under a bill President Joe Biden signed in November 2021.

This overview is based on reports by the South China Morning Post, The Guardian, the BBC and CNN.