Security News > 2020 > July > Chinese Companies Huawei and ZTE Declared National Security Threats by FCC

The U.S. Federal Communications Commission on Tuesday designated Chinese telecommunications companies Huawei and ZTE as national security threats.

By declaring the Chinese companies national security threats, the FCC is banning U.S. organizations from acquiring equipment or services using money from the agency's Universal Service Fund.

Huawei and ZTE are now covered by the rule, with the FCC arguing that they have "Substantial ties to the Chinese government," they are required by Chinese laws to assist espionage operations, and their equipment is affected by vulnerabilities.

"With today's Orders, and based on the overwhelming weight of evidence, the Bureau has designated Huawei and ZTE as national security risks to America's communications networks-and to our 5G future," said FCC Chairman Ajit Pai.

"Both companies have close ties to the Chinese Communist Party and China's military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country's intelligence services. The Bureau also took into account the findings and actions of Congress, the Executive Branch, the intelligence community, our allies, and communications service providers in other countries. We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure," Pai added.

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