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FCC Designates Huawei and ZTE as National Security Risks to US Communications Networks

Strategic Insights

— 1 min read

The US Federal Communications Commission (FCC) has taken a significant step to protect the country's communications networks from national security threats by designating Chinese telecom companies Huawei and ZTE as national security risks. As part of this move, the FCC's Public Safety and Homeland Security Bureau formally designated the two companies, along with their parents, affiliates, and subsidiaries, as covered companies for purposes of the agency's November 2019 ban on the use of universal service support to purchase equipment or services from companies posing a national security threat. This action aims to prevent the Chinese Communist Party from exploiting network vulnerabilities and compromising critical communications infrastructure.

Key Takeaways:

  • The FCC has formally designated Huawei and ZTE as national security risks to America's communications networks, citing their close ties to the Chinese Communist Party and China's military apparatus.
  • The designation is based on the overwhelming weight of evidence, including findings and actions of Congress, the Executive Branch, the intelligence community, our allies, and communications service providers in other countries.
  • The FCC's action will protect the Universal Service Fund, which receives $8.3 billion in annual funding, from being used to underwrite suppliers that threaten national security.
  • The February 28, 2019, and June 30, 2020, Executive Orders, specifically the Executive Order on Securing the Information and Communications Technology and Services Supply Chain, provided the authorization for this designations.
  • The FCC's Public Safety and Homeland Security Bureau has also designated the parents, affiliates, and subsidiaries of Huawei and ZTE as covered companies for purposes of the agency's ban on the use of universal service support.

Statistics:

  • $8.3 billion: The annual funding of the FCC's Universal Service Fund.
  • 2019: The year the FCC ban on the use of universal service support to purchase equipment or services from companies posing a national security threat was implemented.
  • 2: The number of Chinese telecom companies, Huawei and ZTE, designated as national security risks to America's communications networks.
  • 5G: The next-generation wireless network technology that Huawei and ZTE threaten with their involvement in the supply chain.

Sources:

  • "FCC Designates Huawei and ZTE as National Security Risks to US Communications Networks" (The South Asian Times, July 2023)
  • February 28, 2019, and June 30, 2020, Executive Orders (Executive Order on Securing the Information and Communications Technology and Services Supply Chain)

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