US Parliament Approves Law Banning Chinese Companies From Getting New Licenses From FCC, Here's Why!

Huawei has again encountered obstacles from the US Government. (photo: doc. unsplash)

JAKARTA - The U.S. Senate voted unanimously on Thursday, October 28 to approve legislation that prevents companies such as Huawei Technologies Co Ltd or ZTE Corp that are considered a security threat from receiving licenses for new equipment from US regulators.

The Secure Equipment Act, the latest effort by the US government to crack down on Chinese telecommunications and technology companies, was approved last week by the US Parliament by a 420-4 vote, and now the legislation is being presented to US President Joe Biden for signature.

"China-controlled companies such as Huawei and ZTE are recognized national security threats and have no place in our telecommunications network", said Republican Senator, Marco Rubio.

The move would prohibit the Federal Communications Commission (FCC) from reviewing or licensing new equipment to companies on the FCC's "List of Covered Equipment or Services".

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

Affected companies include previously designated Huawei and 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 met resistance 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 the proposed rules that won preliminary approval in June, the FCC could also revoke previous equipment authorizations issued to Chinese companies.

A spokesman for Huawei, which has repeatedly denied being controlled by the Chinese government, declined to comment on Thursday, but in June they called the FCC's proposed regulatory revision "misguided and unnecessary punishment".

FCC Commissioner, Brendan Carr, said the commission had approved more than 3,000 apps from Huawei since 2018. Carr said last Thursday that the bill "will help ensure that insecure equipment from companies like Huawei and ZTE can no longer be fed into America's communications networks".

On Tuesday, the FCC voted to revoke authorization for China Telecom's US subsidiary to operate in the United States, citing national security concerns.