Joe Biden Signs Law Preventing Huawei Or ZTE From Licensing Telecommunications Equipment

U.S. President Joe Biden signs a law banning licensing for Huawei and ZTE. (photo: twitter @potus)

JAKARTA - US President Joe Biden on Thursday, November 11, signed a law to prevent companies such as Huawei Technologies Co or ZTE Corp, which are considered a security threat, from receiving licenses for new equipment from US regulators.

The Secure Equipment Act, the latest attempt by the US government to crack down on Chinese telecommunications and technology companies, was unanimously approved by the US Senate on October 28 and earlier this month by the US House of Representatives by a 420-4 vote.

The signing came days before Biden and Chinese leader Xi Jinping are expected to hold a virtual summit. Reuters reports the meeting is expected on Monday, November 15, amid tensions over trade, human rights and military activity.

The new law requires the Federal Communications Commission (FCC) to no longer review or approve any authorization application for equipment that poses an unacceptable risk to national security.

FCC commissioner Brendan Carr said the commission has approved more than 3,000 applications from Huawei since 2018. The law "will help ensure that unsafe equipment from companies like Huawei and ZTE can no longer be entered into America's communications networks, " said Carr.

In March, the FCC designated five Chinese companies as threats to national security under a 2019 law aimed at protecting US communications networks.

The companies named include Huawei and the previously appointed ZTE, as well as Hytera Communications Corp, Hangzhou Hikvision Digital Technology Co and Zhejiang Dahua Technology Co.

The FCC in June voted unanimously to advance plans to ban approvals for equipment on US telecommunications networks from Chinese companies even as lawmakers pursue legislation to mandate it.

The FCC vote in June drew opposition from Beijing.

"The United States, without any evidence, is still abusing national security and state power to pressure Chinese companies," Zhao Lijian, a spokesman for China's foreign ministry, said in June.

Under proposed rules that won preliminary approval in June, the FCC could also revoke previous equipment authorizations issued to Chinese companies.

Huawei in June called the proposed FCC revision "misguided and unnecessary punishment."

Last month, the FCC voted to revoke authorization for its Chinese subsidiary, US Telecom, to operate in the United States, citing national security concerns.