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Politico | Federal Communications Commission votes to edge Huawei and ZTE out of US networks

  • US telecoms regulator will block broadband subsidies from going to companies that do not rip out gear made by the two controversial Chinese telecoms giants
  • Multiple FCC officials caution that failing to remove Chinese equipment could pose direct risk to US military operations

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A man outside a Huawei store in Beijing in December 2018. Photo: AP
POLITICO

This story is published in a content partnership with POLITICO. It was originally reported by John Hendel on politico.com on November 22, 2019.

The US Federal Communications Commission on Friday unanimously voted to help push Huawei and ZTE out of American telecommunications networks by blocking broadband subsidies from going to companies that do not rip out gear made by the two controversial Chinese telecoms giants.

The commission's vote marks the latest bid by the federal government to curb the influence of these companies, which many US policymakers say threatens national security and American dominance in the global race to roll out 5G networks.

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The FCC’s move comes with the explicit backing of Attorney General William Barr, who said Huawei and ZTE’s record of alleged bank fraud, obstruction of justice and intellectual property theft was proof they are “a threat to our collective security”.

“Both companies have close ties to China’s communist government and military apparatus,” FCC Chairman Ajit Pai said ahead of the vote.

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“Both companies are subject to Chinese laws broadly obligating them to cooperate with any request from the country’s intelligence services and to keep those requests secret. Both companies have engaged in conduct like intellectual property theft, bribery and corruption.”

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