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U.S. bans Huawei, ZTE equipment sales citing national security risk

Nov 25 (Reuters) – The Biden administration has banned approvals of new telecommunications equipment from China’s Huawei Technologies (HWT.UL) and ZTE (000063.SZ) because they pose “an unacceptable risk” to U.S. national security.

The U.S. Federal Communications Commission said on Friday it had adopted the final rules, which also bar the sale or import of equipment made by China’s surveillance equipment maker Dahua Technology Co (002236.SZ), video surveillance firm Hangzhou Hikvision Digital Technology Co Ltd (002415.SZ) and telecoms firm Hytera Communications Corp Ltd (002583.SZ).

The move represents Washington’s latest crackdown on the Chinese tech giants amid fears that Beijing could use Chinese tech companies to spy on Americans.

“These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” FCC Chairwoman Jessica Rosenworcel said in a statement.

Huawei declined to comment. ZTE, Dahua, Hikvision and Hytera did not immediately respond to requests for comment.

Rosenworcel circulated the proposed measure, which effectively bars the firms from selling new equipment in the United States, to the other three commissioners for final approval last month.

The FCC said in June 2021 it was considering banning all equipment authorizations for all companies on the covered list.

That came after a March 2021 designation of five Chinese companies on the so-called “covered list” as posing a threat to national security under a 2019 law aimed at protecting U.S. communications networks: Huawei, ZTE, Hytera Communications Corp Hikvision and Dahua.

All four commissioners at the agency, including two Republicans and two Democrats, supported Friday’s move.

Reporting by Diane Bartz and Alexandra Alper in Washington and Ismail Shakil in Ottawa; Editing by Caitlin Webber, Alexandra Alper and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Focused on U.S. antitrust as well as corporate regulation and legislation, with experience involving covering war in Bosnia, elections in Mexico and Nicaragua, as well as stories from Brazil, Chile, Cuba, El Salvador, Nigeria and Peru.

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