Chinese technology vendors Huawei and ZTE could soon be prevented from selling products to US companies and organizations that receive broadband funding from the Federal Communications Commission.
FCC Chairman Ajit Pai’s new proposal would prevent Universal Service Fund money from being used “to purchase equipment or services from any communications equipment or service providers identified as posing a national security risk to communications networks or the communications supply chain.”
Pai’s proposal comes as President Donald Trump imposes new tariffs and other penalties on Chinese goods. But the proposed FCC policy has its roots in a 2012 Congressional report, which said that Huawei and ZTE equipment should not be used by US government systems because of the companies’ alleged ties to the Chinese government. The report also encouraged private US companies to “consider the long-term security risks associated with doing business with either ZTE or Huawei for equipment or services” and to seek other vendors. ReadMore