US FCC votes to advance proposed ban on Huawei, ZTE equipment approvals

WASHINGTON (REUTERS) - The US Federal Communications Commission voted unanimously on Thursday (June 17) to advance a plan to ban approvals for equipment in US telecommunications networks from Chinese companies deemed national security threats like Huawei and ZTE.

Under proposed rules that won initial approval, the FCC could also revoke prior equipment authorisations issued to Chinese companies.

A Huawei spokesman, in an email, called the FCC revision "misguided and unnecessarily punitive."

Acting FCC chairwoman Jessica Rosenworcel said the new measures would "exclude untrustworthy equipment from our communications networks... We have left open opportunities for (Huawei and other Chinese equipment) use in the United States through our equipment authorisation process. So here we propose to close that door."

FCC commissioner Brendan Carr said the FCC has approved more than 3,000 applications from Huawei since 2018.

The FCC action would prohibit all future authorisations for communications equipment deemed to pose an unacceptable risk to national security.

In March, the FCC designated five Chinese companies as posing a threat to national security under a 2019 law aimed at protecting US communications networks.

The affected companies included the previously designated Huawei and ZTE, as well as Hytera Communications, Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology.

Huawei said "blocking the purchase of equipment, based on a 'predictive judgment,' related to country of origin or brand is without merit, discriminatory and will do nothing to protect the integrity of US communications networks or supply chains."

In August 2020, the US government barred federal agencies from buying goods or services from any of the five Chinese companies.

In 2019, the United States placed Huawei, Hikvision and other firms on its economic blacklist.

Last year, the FCC designated Huawei and ZTE as national security threats to communications networks - a declaration that barred US firms from tapping an US$8.3 billion (S$11 billion) government fund to purchase equipment from the companies.

The FCC in December finalised rules requiring carriers with ZTE or Huawei equipment to "rip and replace" that equipment. It created a reimbursement programme for that effort, and US lawmakers in December approved US$1.9 billion to fund it.