The FCC is poised to block the sale of new telecommunications equipment from Huawei and ZTE in the United States. That’s according to three people with knowledge of the plans, reports The New York Times. A law signed into law by President Biden last November required the agency to pass the rules within a year.
The agency is expected to vote on rules that would forbid the sale of new electronics produced by companies on the so-called covered list, a list of firms that pose a security threat to the U.S. The FCC, on the advice of several national defense agencies, named wireless network gear-maker Huawei and ZTE as security threats in 2020.
It’s unlikely that the ban would stop the sale of equipment the Commission has already approved, according to the sources.
The action would be the latest step by the United States to cut off Chinese tech companies from American consumers, contracts and suppliers over concerns the firms could leak sensitive data to Beijing. The FCC has already said federal subsidies cannot be used to buy equipment from the companies.
The Commission has tried to help reimburse small telecoms to remove the gear from their networks, but the agency has said more money — $3.08 billion — is necessary to replace all the equipment that is installed. A bill to release more funds is stuck in Congress, Inside Towers reported.
FCC Chairwoman Jessica Rosenworcel last week circulated the proposal for a vote by the other three commissioners. The companies would not be able to sell new equipment in the United States without equipment authorizations, according to Reuters.
Huawei declined to comment. ZTE did not respond to a request for comment.
The move to cut off Huawei and ZTE from the American market comes as tensions between the United States and China grow. Last week, the administration said it would restrict the sale of certain chip technology to Chinese companies, a move meant to slow the nation’s progress in supercomputing, Inside Towers reported. The White House has also been considering an executive order that could restrict American investors’ ability to put money into Chinese companies and another that would apply more scrutiny to mobile apps with ties to foreign powers, according to the NYT.
“The FCC has determined that Huawei, ZTE and similar gear pose an unacceptable risk to our national security. That is why I have called for the FCC to stop reviewing and approving that equipment for use in the U.S.,” said FCC Commissioner Brendan Carr. “I look forward to achieving that result.”
By Leslie Stimson, Inside Towers Washington Bureau Chief
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