Biden Signs Bill Banning Approval of Chinese Telecom Equipment from Huawei, ZTE, and Others

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] U.S. President Joe Biden has signed a bill banning the use of telecommunications equipment from Chinese companies such as Huawei, citing national security concerns.

On the 11th (local time), the White House announced that President Biden signed the Secure Equipment Act, which had passed Congress, on the same day.

This law prohibits the Federal Communications Commission (FCC) from authorizing products from certain companies and was passed with overwhelming support from both the House and Senate.

President Biden’s signing of the bill came just before a scheduled virtual summit with Chinese President Xi Jinping next week. The summit is expected to cover trade disputes, human rights, and Taiwan issues, and the signing of this bill is interpreted as the U.S. sending a message to counter China ahead of the talks.

Previously, Huawei and ZTE have been subject to various sanctions since the Trump administration, which took a hardline stance against China.

Former President Trump signed a bill last year prohibiting the use of federal funds to purchase Huawei equipment.

Additionally, the FCC established a $1 billion fund to assist small and medium-sized U.S. telecom companies in replacing existing equipment from Huawei and others with alternative equipment.

Huawei and ZTE are also on the U.S. Department of Commerce’s blacklist, which restricts transactions with American companies.

According to the political media outlet The Hill, the FCC unanimously classified Huawei and ZTE as national security threats last year due to their connections with the Chinese Communist Party and concerns over espionage activities.

Furthermore, in June, the FCC prepared measures to revoke authorization for Chinese telecommunications equipment that had already been approved for use.

Following this, last month, the FCC fully revoked the business license of China Telecom’s U.S. branch.

This content was produced with the assistance of AI translation services.