US President Joe Biden on Thursday signed a law prohibiting both Huawei Technologies and ZTE Corp, which are considered security threats, from obtaining licenses for new equipment from US regulators.
The Secure Equipment Act, the latest move by the US government to crack down on Chinese telecommunications and technology companies, was unanimously approved by the US Senate on October 28 and earlier in the same month by the US House of Representatives. The signing will take place days before Biden and Chinese leader Xi Jinping are expected to hold a virtual summit. Reuters said the meeting is expected on Monday amid tensions over trade, human rights and military activities.
The new law requires the Federal Communications Commission (FCC) to no longer review or approve any approval applications for equipment that presents an unacceptable risk to national security. FCC Commissioner Brendan Carr said the commission has approved more than 3,000 applications from Huawei since 2018. The law “will help ensure that unsafe equipment from companies such as Huawei and ZTE can no longer be connected to US communications networks.”
In March, the FCC identified five Chinese companies as national security threats under a 2019 law aimed at protecting U.S. communications networks. The companies include the previously designated Huawei and ZTE, as well as Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co and Zhejiang Dahua Technology Co.
In June, the FCC voted unanimously to move ahead with a plan to ban equipment permits on US telecommunications networks from these Chinese companies. The FCC vote in June met with opposition from Beijing.
Under the proposed regulations, the FCC may also revoke previous equipment approvals issued to Chinese companies. Huawei called the decision “flawed and unnecessarily punitive.”
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