The US regulators voted to impose new rulings that will constrain Chinese companies, including Huawei and ZTE.
On Friday, the FCC made a decision to prevent US companies from using federal funds to purchase equipment from untrusted companies like China’s Huawei and ZTE-two of the world’s largest telecom equipment and phone manufacturers. The country maintains that trusting Chinese companies to build their nation’s wireless networks could be a deadly mistake.
It is based on obvious reason. For starters, China is Washington’s strongest geopolitical enemy which is awkwardly eager to sell them new Huawei and ZTE 5G technology. These companies are world class, known to offer the world’s most advanced wireless services, but are willing and happy to sell this service so cheaply, heavily subsidized by the Beijing government.
The US thinks the companies and Beijing are in cohort to spy on the US. Chinese law requires all corporations to support, assist and cooperate with national intelligence efforts, which could mean that Beijing can force the companies to build backdoors which would help them spy on Americans or steal intellectual property.
The US expects the FCC to keep both companies in check.
The US policy makers accuse the technology firms of threatening national security, but both firms deny the claims. The Trump led administration insists that installing the company’s equipment in the US poses a huge risk to the national security. The Chinese tech firm could easily commit military espionage, the policy makers argue.
Huawei has always denied this claim, insisting that it has no ties with Beijing and that it works as a private enterprise.
Many communities and mostly smaller, rural wireless carriers rely on Huawei and ZTE equipment in their 4G LTE networks. However, a bigger tussle is taking place over Huawei’s potential role in the next generation networks which are expected to power the next level of Internet of Things which is include driverless cars and aircraft, remote medicine and many others.
Huawei responded by opposing the new rules which it refers to as unconstitutional and a violation to the company’s due process rights. Its stance on the new policy foreshadows a possible lawsuit.
The Chinese tech has been on a US trade blacklist for more than six months on the premise that the company poses a threat on security, just before it was about to overtake Samsung as the world’s largest smartphone seller. The entire saga erupted and stole Huawei’s shine.