The Bureau of Public and Homeland Security, a division of the U.S. Federal Communications Commission, released a statement Friday (March 12) naming five Chinese companies, including huawei and ZTE, whose communications equipment and services pose a threat to U.S. national security. In addition, the U.S. Department of Commerce this week revised its license to sell products to Huawei, further restricting related companies from supplying products to Huawei.
The five Chinese companies listed by the FCC are Huawei, ZTE, Hynetech, Hikvision and Dahua, the statement said, adding that the telecommunications equipment and services produced by these companies pose an “unacceptable risk” to U.S. national security and the safety of citizens.
Rosenworcel, acting chairman of the FCC’s Public and Homeland Security Bureau, said in the statement that the list is “a major step toward restoring trust in U.S. communications networks. She said, “This list provides meaningful guidance that will ensure that as next-generation networks are established across the country, they do not repeat the same mistakes and do not use equipment or services that pose a threat to the national security of the United States or the safety of the American people.”
Separately, the U.S. Department of Commerce this week revised its license to sell products to China’s Huawei, further restricting the companies involved from supplying Huawei with products that could be used in 5G equipment, according to people familiar with the matter.
Bloomberg reported that the new measure may take effect this week, said the person familiar with the matter, who declined to be named.
The rules more explicitly prohibit the supply of components such as semiconductors, antennas and batteries to Huawei’s 5G equipment, making the export licenses obtained by suppliers more uniform in standard, the report added.
Some companies have previously been licensed to continue supplying components to Huawei, which will likely use them in its 5G equipment, while others have been subject to stricter restrictions.
A source told Reuters that while the new restrictions on licenses hurt some suppliers, they also level the playing field between companies, as some are licensed under less stringent policies.
A spokesman for the U.S. Department of Commerce was not available for comment, Reuters reported, adding that licensing information must remain confidential. A Huawei spokesman also declined to comment.
This latest action appears to indicate that the Biden administration is reinforcing its tough stance on Huawei exports. Back in May 2019, the Trump administration placed Huawei and its subsidiaries on a list of entities that restrict Huawei’s access to U.S. components and software on national security grounds. U.S. companies and individuals must obtain approval from the Commerce Department to export products to Huawei.
A Commerce Department document seen by Reuters shows that in January, the Trump Administration rejected 116 applications for licenses that involved transactions totaling about $119 billion, and he approved only four licenses involving about $20 million.
Responding to the new U.S. restrictions on Huawei, Chinese Foreign Ministry spokesman Zhao Lijian said Friday that the U.S. is generalizing the concept of national security and abusing state power to suppress Chinese high-tech companies “by any means necessary,” in serious violation of the principles of market economy and fair competition.
He added: “The U.S. side should immediately stop its unreasonable suppression of Chinese companies, treat them in a fair, just and non-discriminatory manner, and do more to benefit U.S.-China scientific and technological exchanges and economic and trade cooperation.”
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