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

WASHINGTON (Reuters) – The Federal Communications Commission (FCC) on Friday classified five Chinese companies as a threat to national security under a 2019 law that aims to protect U.S. communications networks.

The FCC said the companies included 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 produce telecommunications equipment and services “that pose an unacceptable risk to the national security of the United States”.

FCC President-in-Office Jessica Rosenworcel said in a statement: “This list provides meaningful guidance that will ensure that as next generation networks are built across the country, they do not repeat past mistakes or use equipment or services that pose a threat to US national security or the security and protection of Americans. ”

The 2019 law used criteria from a defense authorization bill that previously identified the five Chinese companies. In August 2020, the U.S. government issued regulations preventing 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 designated Huawei and ZTE as a national security threat to communications networks – a statement that forbids American companies from using a $ 8.3 billion government fund to buy equipment from companies.

In February, Huawei contested the statement in a petition filed with the United States Circuit’s Fifth Court of Appeals. Huawei declined to comment on Friday about the new FCC designation.

Hikvision said late on Friday that he strongly opposes the FCC decision “and is weighing all options on how best to address this unfounded designation. Hikvision does not belong to a list of next generation networks. “

The other three companies did not comment or could not be reached for comment.

In December, the FCC finalized the rules by requiring operators with ZTE or Huawei equipment to “remove and replace” that equipment. He created a reimbursement program for this effort, and US lawmakers in December approved $ 1.9 billion to finance the program.