Chinese smartphone manufacturers Huawei Technologies and ZTE have suffered a major sales setback following the U.S. Government’s decision to ban the approvals of new telecommunications equipment from the two companies. According to the Biden administration, this equipment poses “an unacceptable risk” to U.S. national security.
The U.S. Federal Communications Commission confirmed on Friday that it adopted the final solution on Friday, consequently bringing the ban into effect. “These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” FCC Chairwoman Jessica Rosenworcel confirmed following the announcement.
Aside from Huawei and ZTE, the ban also extends to the “sale or import” of equipment manufactured by Chinese surveillance equipment maker Dahua Technology Co as well as Hangzhou Hikvision Digital Technology Co Ltd and Hytera Communications Corp Ltd. The United States is concerned that such technology could be used by China to spy on Americans.
In March 2021, the U.S. government published its “covered list” that designated five Chinese companies as threats to national security. This was followed by an announcement by the FCC in June 2021 that it was considering banning all equipment authorizations for all companies on the covered list.