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

WASHINGTON (Reuters) – The Federal Communications Commission (FCC) on Friday identified five Chinese companies as a threat to national security under a 2019 law aimed at protecting U.S. communications networks.

The FCC said the companies include Huawei Technologies Co., ZTE Corp., Hytera Communications Corp., Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co.

Under a 2019 law, the FCC must identify companies that manufacture telecommunications equipment and services “that pose an unacceptable risk to U.S. national security.”

Acting FCC President Jessica Rosenworcel said in a statement: “This list provides meaningful guidance that will ensure that the next generation of networks are built across the country, not repeating the mistakes of the past or using equipment or services that ‘ a threat will not pose to US national security or the safety and security of Americans. ”

The 2019 law uses criteria from a defense authorization bill previously identified by the five Chinese companies. In August 2020, the U.S. government issued regulations prohibiting agencies from purchasing goods or services from one of the five Chinese companies.

In 2019, America placed Huawei, Hikvision and other businesses on its economic blacklist.

Last year, the FCC designated Huawei and ZTE as a national security threat to communications networks – a statement preventing U.S. businesses from using a $ 8.3 billion state fund to buy equipment from the companies.

In February, Huawei disputed the statement in a petition filed with the Fifth U.S. Court of Appeals. Huawei declined to comment on the new FCC designation on Friday.

Hikvision said late Friday that it strongly opposes the FCC decision and is considering all options to best address this unfounded designation. Hikvision does not belong on a list for next generation networks. ”

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

The FCC finalized rules in December requiring carriers with ZTE or Huawei equipment to “tear and replace” that equipment. It created a compensation program for the effort, and U.S. lawmakers approved $ 1.9 billion in December to fund the program.