BEIJING (AP) – China on Tuesday accused US of "economic bullying" after US regulators cited security threats as they suggested to cut funding for Chinese equipment in US telecommunications networks.
China would "resolutely oppose the United States abusing state power to suppress certain Chinese enterprises with unwarranted charges in the absence of evidence," Foreign Ministry spokesman Geng Shuang told reporters at a daily briefing.
"US economic bullying behavior is a denial of the market economic principle that the United States has always announced," Geng said, adding that US actions would "undermine the interests" of American businesses and consumers, especially in rural areas.
EXEMPTION FROM $ 34B CHINESE IMPORTS MAY BE EXTENDED
"We will urge the United States … again to stop abusing the concept of national security," Geng said.
The Federal Communications Commission votes next month to prevent telecommunications companies from using state subsidies to pay for network equipment from Huawei and ZTE.
move mainly affects small, rural companies, since major US wireless companies do not use equipment from the two Chinese companies.
The agency is also exploring the impact of requiring companies to roll out their current Huawei and ZTE equipment, demanding a trade group for small, wireless carriers in the countryside has said will cost up to $ 1[ads1] billion.
The government is seeking comment on how it can help companies financially if they are required to do so. Bills in Congress have proposed putting $ 700 million to a billion dollars aside for telecommunications companies to replace their networks.
The US government says that Huawei, the world's largest telecommunications equipment supplier and smartphone manufacturer # 2, poses a spy threat. It has not presented any evidence that their equipment was used to spy on the Chinese government, and both Huawei and ZTE have denied that their equipment was used for such purposes.
The US government has also pushed the Allies to ban Huawei from their networks and has restricted the export of US technology to Huawei.