US FCC: "Huawei is a National Security Threat... China Telecom is Subject to Removal"
Unanimous Rejection of Request to Reconsider National Security Threat from Huawei
Huawei and ZTE Communication Equipment Replacement Program Also Revealed
China's Largest Telecom Operator Faces US Business Ban Measures
[Asia Economy New York=Correspondent Baek Jong-min] The U.S. Federal Communications Commission (FCC) has concluded that Huawei, China's largest telecommunications equipment company, poses a threat to U.S. national security. Additionally, measures have been prepared to remove equipment from Huawei and Zhongxing Telecommunications Equipment Corporation (ZTE) from U.S. communication networks and to halt China Telecom's operations within the United States.
According to U.S. media on the 10th (local time), the FCC made this decision unanimously through a vote on the same day.
The FCC held a meeting and rejected a request to reconsider the FCC decision made last June that Huawei poses a threat to U.S. national security. In June, the FCC officially designated Huawei and Zhongxing Telecommunications Equipment Corporation (ZTE) as companies that threaten U.S. national security.
As a result of this decision, U.S. telecommunications companies will no longer be able to use government subsidies amounting to $8.3 billion (approximately 9 trillion KRW) to purchase equipment from these companies.
The FCC also decided to start a program to compensate costs amounting to $1.6 billion for the removal of Huawei and ZTE network equipment within the United States as soon as congressional approval is obtained.
The FCC also announced that it has begun reviewing measures to block China Telecom, China's largest telecommunications company, from operating within the United States.
FCC Chairman Ajit Pai explained, "Several U.S. government agencies have recommended the removal of China Telecom due to national security concerns." Chairman Pai added, "There are serious concerns that China Telecom would comply with the Chinese government's requests for communication blocking and information provision."
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Earlier, U.S. senators had demanded a review of the authorization for China Telecom, owned by the Zhengzhou government, to operate telecommunications businesses within the United States last year.
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