House of Representatives Set to Vote on Bill to Restrict Chinese Telecom Companies

The House of Representatives is scheduled to vote next week on the Countering Untrusted Telecommunications Abroad Act, a bipartisan bill aimed at cracking down on Chinese telecommunications companies Huawei and ZTE Corp. The legislation would require the State Department to report on US NATO allies and others using telecommunications equipment or services from these companies in their 5G networks. The bill also mandates a report on telecommunications vulnerabilities in US embassies overseas and directs the State Department to identify key telecommunications infrastructure projects to promote US national security.

Key Takeaways:

• The House of Representatives will vote next week on the Countering Untrusted Telecommunications Abroad Act, a bipartisan bill aimed at restricting Huawei and ZTE Corp.
• The bill requires the State Department to report on US NATO allies and others using telecommunications equipment or services from Huawei and ZTE in their 5G networks.
• The legislation also mandates a report on telecommunications vulnerabilities in US embassies overseas and directs the State Department to identify key telecommunications infrastructure projects to promote US national security.
• Representative Susan Wild, the Democratic sponsor of the measure, stated that the bill is necessary to "redouble efforts" to protect national security and interests.
• The Federal Communications Commission (FCC) banned approvals of new telecommunications equipment from Huawei and ZTE in November, citing an "unacceptable risk" to US national security.
• Huawei and ZTE have denied allegations of wrongdoing and accused the US government of targeting them without factual basis.
• Washington's efforts to counter the Chinese tech giants come amid US fears that Beijing could use them to spy on Americans.
• The FCC designated Huawei and ZTE as national security threats, requiring US companies to remove their gear or be frozen out of an $8.3 billion government fund.
• To fund the "rip and replace" effort, Congress only appropriated $1.9 billion, leaving a funding deficit of $3 billion to remove Huawei and ZTE equipment from US networks.

Statistics:

• $8.3 billion: The total value of the government fund to purchase new equipment, from which US companies can be frozen out if they have Huawei and ZTE equipment.
• $1.9 billion: The amount of funding Congress appropriated for the "rip and replace" effort.
• $3 billion: The estimated additional funding needed to remove Huawei and ZTE equipment from US networks, bringing the total estimated cost to $4.98 billion.
• November: The month in which the FCC banned approvals of new telecommunications equipment from Huawei and ZTE.

Sources:

• "The House said on Tuesday it will take up a bipartisan bill called the Countering Untrusted Telecommunications Abroad Act." [1]
• "Representative Susan Wild, the Democratic sponsor of the measure, said 'We need to redouble our efforts to protect our national security and interests, help our allies take vital measures for their own security, and stand firmly in defense of fundamental rights.'" [1]
• "The Federal Communications Commission in November banned approvals of new telecommunications equipment from Huawei and ZTE, saying they pose 'an unacceptable risk' to U.S. national security." [1]
• "Last year, the Chinese embassy in Washington said the FCC 'abused state power and maliciously attacked Chinese telecom operators again without factual basis.'" [1]
• "Huawei has repeatedly denied allegations of wrongdoing and said the U.S. government has 'unlawfully and irrationally' targeted the company." [1]
• "Washington's efforts to counter the Chinese tech giants come amid U.S. fears that Beijing could use them to spy on Americans." [1]

References:

[1] The Hill, "House to vote on bill to crack down on Huawei, ZTE", February 2023.