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Huawei, ZTE equipment sales banned by U.S., citing national security risk

The administration of Joe Biden has banned the approva of new telecommunications equipment from China’s Huawei Technologies (HWT.UL) and ZTE fearing “an unacceptable risk” to U.S. national security.

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On Friday, the U.S. Federal Communications Commission said that it had adopted the final rules, which also prohibit the sale or import of equipment made by Chinese surveillance equipment maker Dahua Technology Co., video surveillance firm Hangzhou Hikvision Digital Technology Co Ltd and telecoms firm Hytera Communications Corp Ltd.

The move shows Washington’s latest crackdown on the Chinese tech giants amid threats that Beijing could use them to spy on Americans.

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

However, Huawei refused to comment. ZTE, Dahua, Hytera and the Chinese embassy in Washington did not immediately respond to requests for comment.

In a statement, Hikvision said that its products don’t threaten U.S. security.

The logo of Huawei is seen at the Mobile World Congress in Barcelona, Spain
Image Courtesy: Sergio Perez

“This decision by the FCC will do nothing to protect U.S. national security, but will do a great deal to make it more harmful and more expensive for U.S. small businesses, local authorities, school districts, and individual consumers to protect themselves, their homes, businesses and property,” Hikvision said, adding that it will continue to serve U.S. customers “in full compliance” with U.S. regulations.