Five Chinese companies are a threat to US national security: FCC

WASHINGTON (Reuters) – The Federal Communications Commission (FCC) on Friday designated five Chinese companies as a threat to national security under a 2019 law aimed at protecting U.S. communications networks.

The FCC said the companies Huawei Technologies Co, ZTE Corp, Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co, and Zhejiang Dahua Technology Co.

A 2019 law requires the FCC to identify companies that manufacture telecommunications equipment and services “that have been identified as posing an unacceptable risk to US national security.”

Acting FCC Chair Jessica Rosenworcel said in a statement, “ This list provides meaningful guidance that ensures that as next-generation networks are being built across the country, they do not repeat the mistakes of the past or use equipment or services that pose a threat. to US national security or the safety and security of Americans. “

The 2019 law used criteria from a defense licensing bill that previously identified the five Chinese companies. In August 2020, the US government enacted regulations prohibiting agencies from buying goods or services from any of the five Chinese companies.

In 2019, the United States put Huawei, Hikvision and other companies on its economic blacklist.

Last year, the FCC identified Huawei and ZTE as a threat to the national security of communications networks – a statement prohibiting US companies from tapping into a $ 8.3 billion government fund to purchase equipment from the companies.

In February, Huawei challenged the statement in a petition filed in the Fifth US Circuit Court of Appeals. Huawei declined to comment on the new FCC designation on Friday.

Hikvision said late Friday that it was vehemently opposed to the FCC’s decision “and is weighing all options on how best to address this baseless designation. Hikvision does not belong on a list for next generation networks. “

The other three companies did not comment or were not available for comment.

The FCC set rules in December that require carriers with ZTE or Huawei equipment to “rip and replace” that equipment. It created a payback program for that effort, and US lawmakers approved $ 1.9 billion in December to fund the program.