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US-China tech war
ChinaDiplomacy

US Senate panel advances bill to restrict sale of Chinese telecommunications equipment

  • Huawei, ZTE, Hytera, Hikvision and Dahua are targets of ‘Secure Equipment Act of 2021’
  • Legislation is intended to close a loophole that had let the companies continue to sell to the US market despite a prohibition that went into effect last year

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A US Senate committee advanced a bill on Wednesday to further restrict the sale of Chinese telecommunications equipment in the US. Image: Shutterstock
Jodi Xu Klein

A US Senate panel approved a bill Wednesday to restrict the sale of telecommunications equipment by Chinese companies considered threats to national security.

Passed by the Senate Committee on Commerce, Science, and Transportation, the Secure Equipment Act of 2021 now moves to the full chamber for consideration.

The legislation is intended to close a loophole that had allowed Chinese companies including Huawei Technologies, ZTE, Hytera Communications, Hikvision and Dahua Technology to continue to sell to the US market.

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Under rules adopted by the Federal Communications Commission (FCC) last year, only equipment purchased with US federal funding was prohibited. That allowed American companies to acquire the Chinese-made equipment using private or non-federal government money.

The Chinese telecommunications giant Huawei Technologies remains a target of legislation in the US Congress. Photo: Reuters
The Chinese telecommunications giant Huawei Technologies remains a target of legislation in the US Congress. Photo: Reuters
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The legislation directs the FCC to clarify that it will no longer review or issue new equipment licenses to businesses on its “Covered Equipment or Services List” that named the five Chinese companies.

That list was compiled under a law that went into effect last year preventing US networks from using communications equipment that Washington had determined could pose a national security risk.

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