FCC Blocks Huawei, ZTE From Lucrative American Markets Tyler Durden Tue, 06/30/2020 - 13:30 In a move that will essentially cut Huawei off from a critical US market: the smaller, more rural-focused telecoms providers who rely on cheap Huawei components to maintain its wireless infrastructure. According to Bloomberg, the FCC has designated Huawei and ZTE, two Chinese telecoms giants, as national security threats. The renewed pressure on both Huawei and ZTE from the FCC comes as the Commerce Department, State Department and the White House engage in a multilayered strategy to encourage US allies to block Huawei from providing components to their new 5G wireless networks, warning that the company creates vulnerabilities that can be exploited by the CCP. Previously, the Trump Administration has tried to block both companies from either buying chips produced in the US and/or made with US technology. Here's more on the decision from FCC Chairman Ajit Pai. BREAKING NEWS: The https://twitter.com/FCC?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); has designated https://twitter.com/hashtag/Huawei?src=hash&ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); and https://twitter.com/hashtag/ZTE?src=hash&ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); as companies posing a national security threat to the United States. As a result, telecom companies cannot use money from our $8.3B Universal Service Fund on equipment or services produced or provided by these suppliers. 1/5 pic.twitter.com/dH6QK4jbd4 — Ajit Pai (@AjitPaiFCC) https://twitter.com/AjitPaiFCC/status/1278003564162449417?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); In making this decision, https://twitter.com/FCC?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); took into account input from Congress, Executive Branch, intelligence community, allies, and communications service providers. Overwhelming weight of evidence supported designation of Huawei and ZTE as national security risks to U.S. networks. 2/4 — Ajit Pai (@AjitPaiFCC) https://twitter.com/AjitPaiFCC/status/1278003625114075136?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Both Huawei and ZTE have close ties to the Chinese Communist Party and China’s military apparatus. And both companies are broadly subject to Chinese law, which obligates them to cooperate with the country’s intelligence services. 3/4 — Ajit Pai (@AjitPaiFCC) https://twitter.com/AjitPaiFCC/status/1278003685700898818?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); With this decision, we are sending a clear message: the U.S. Government, and this https://twitter.com/FCC?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); in particular, cannot and will not allow the Chinese Communist Party to exploit vulnerabilities in U.S. communications networks and compromise our critical communications infrastructure. 4/4 — Ajit Pai (@AjitPaiFCC) https://twitter.com/AjitPaiFCC/status/1278003742214848517?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); We imagine more threats of corporate retaliation from Beijing should be landing any minute now.