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The US bans the sale of equipment from Huawei and ZTE citing national security risks




Nov 25 (Reuters) – The Biden administration has banned approval of new telecommunications equipment from China’s Huawei Technologies ( HWT.UL ) and ZTE ( 000063.SZ ) because they pose “an unacceptable risk” to U.S. national security.

The U.S. Federal Communications Commission said on Friday it had adopted the final rules, which also bar the sale or import of equipment made by China̵[ads1]7;s surveillance equipment maker Dahua Technology Co (002236.SZ), video surveillance firm Hangzhou Hikvision Digital Technology Co Ltd (002415). SZ) and the telecom company Hytera Communications Corp Ltd (002583.SZ).

The move represents Washington’s latest crackdown on the Chinese tech giants amid fears that Beijing could use Chinese technology companies to spy on Americans.

“These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” FCC Chair Jessica Rosenworcel said in a statement.

Huawei declined to comment. ZTE, Dahua, Hikvision and Hytera did not immediately respond to requests for comment.

Rosenworcel sent the proposed measure, which effectively bars the firms from selling new equipment in the United States, to the other three commissioners for final approval last month.

The FCC said in June 2021 that it was considering banning all equipment approvals for all companies on the covered list.

It came after five Chinese companies were named in March 2021 on the so-called “covered list” as a threat to national security under a 2019 law aimed at protecting US communications networks: Huawei, ZTE, Hytera Communications Corp Hikvision and Dahua.

All four commissioners at the agency, including two Republicans and two Democrats, supported Friday’s move.

Reporting by Diane Bartz and Alexandra Alper in Washington and Ismail Shakil in Ottawa; Editing by Caitlin Webber, Alexandra Alper and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.

Diane Bartz

Thomson Reuters

Focused on US antitrust as well as corporate regulation and legislation, with experience covering war in Bosnia, elections in Mexico and Nicaragua, as well as stories from Brazil, Chile, Cuba, El Salvador, Nigeria and Peru.



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