US FCC classifieds Huawei and ZTE as security threats

New Delhi, July 01: Huawei and ZTE have been classified as security threats by the US FCC. Both have been banned as suppliers for projects under its Universal Service Fund due to alleged ties to the Chinese military and intelligence services.

"As a result of today's action, money from the FCC's $8.3 billion (approximately Rs. 62,676 crore) a year Universal Service Fund may no longer be used to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by these suppliers," FCC said in a release.

"With today's orders, and based on the overwhelming weight of evidence, the Bureau has designated Huawei and ZTE as national security risks to America's communications networks-and to our 5G future," FCC Chairman Ajit Pai said.

"Both companies have close ties to the Chinese Communist Party and China's military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country's intelligence services."

"The Bureau also took into account the findings and actions of Congress, the Executive Branch, the intelligence community, our allies, and communications service providers in other countries. We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure," Pai also said.