Five Chinese companies threaten U.S. national security: FCC

WASHINGTON (Reuters) – The Federal Communications Commission (FCC) on Friday designated five Chinese companies as a threat to national security under a 2019 law aimed at protecting U.S. communications networks.

The FCC said the companies included Huawei Technologies Co., ZTE Corp., Hytera Communications Corp., Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co.

A 2019 law requires the FCC to identify companies that produce telecommunications equipment and services “that have been shown to pose an unacceptable risk to U.S. national security.”

Acting FCC President Jessica Rosenworcel said in a statement: “This list provides significant guidance that will ensure that, as new generation networks are built across the country, they do not repeat past mistakes or use equipment. or services that pose a threat to U.S. national security or to the security of Americans. “

The 2019 law used the criteria of a draft defense authorization that previously identified the five Chinese companies. In August 2020, the U.S. government enacted rules prohibiting agencies from buying goods or services from any of the five Chinese companies.

In 2019, the United States placed Huawei, Hikvision and other companies on its economic blacklist.

Last year, the FCC designated Huawei and ZTE as a national security threat to communications networks, a statement banning U.S. companies from taking advantage of a $ 8.3 billion government fund to buy equipment from businesses. .

In February, Huawei challenged the statement in a petition filed with the Fifth Circuit Court of Appeals of the United States. Huawei declined to comment Friday on the new FCC designation.

Hikvision said Friday afternoon that it strongly opposed the FCC’s decision “and is weighing all options on how best to address this unfounded designation. Hikvision does not belong on a list of next-generation networks.”

The other three companies did not comment or could not be reached for comment.

In December, the FCC finalized rules that required operators with ZTE or Huawei equipment to “boot and replace” that equipment. He created a reimbursement program for that effort, and U.S. lawmakers approved $ 1.9 billion in December to fund the program.