US regulator to bar China's Huawei and ZTE from government subsidy program
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Sunday
August 14, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
SUNDAY, AUGUST 14, 2022
US regulator to bar China's Huawei and ZTE from government subsidy program

Global Economy

Reuters
29 October, 2019, 09:00 am
Last modified: 29 October, 2019, 09:04 am

Related News

  • Will US-China tensions boil over?
  • Wide-body jet demand humming again as Boeing 787 rejoins the fray
  • US House gives Biden a win with massive bill on climate change, drug prices
  • US inflation outlook brightens as import prices fall, consumer sentiment rises
  • Iran may accept EU proposal to revive nuclear deal if demands met, IRNA reports

US regulator to bar China's Huawei and ZTE from government subsidy program

Several European countries in recent months have not agreed to bar Huawei, despite US pressure

Reuters
29 October, 2019, 09:00 am
Last modified: 29 October, 2019, 09:04 am
File Photo: A Huawei company logo is pictured at the Shenzhen International Airport in Shenzhen, Guangdong province, China July 22, 2019/Reuters
File Photo: A Huawei company logo is pictured at the Shenzhen International Airport in Shenzhen, Guangdong province, China July 22, 2019/Reuters

The US telecommunications regulator plans to vote in November to designate China's Huawei and ZTE as national security risks, barring their US rural carrier customers from tapping an $8.5 billion government fund to purchase equipment or services.

The Federal Communications Commission (FCC) also plans to propose requiring those carriers to remove and replace equipment from such designated companies, FCC officials said on Monday.

At a meeting set for Nov. 19, the FCC said it plans to vote to ask carriers how much it would cost to remove and replace Huawei Technologies Co Ltd [HWT.UL] and ZTE Corp (000063.SZ) from existing networks and to establish a reimbursement program to offset the costs of removing the equipment.

"When it comes to 5G and America's security, we can't afford to take a risk and hope for the best," FCC Chairman Ajit Pai said in a statement.

"As the United States upgrades its networks to the next generation of wireless technologies - 5G - we cannot ignore the risk that the Chinese government will seek to exploit network vulnerabilities in order to engage in espionage, insert malware and viruses, and otherwise compromise our critical communications networks."

This is the latest in a series of actions by the US government aimed at barring US companies from purchasing Huawei and ZTE equipment. Huawei and ZTE would have 30 days to contest the FCC's national security risk designation and a final order compelling removal of equipment is not expected until next year at the earliest.

"In 30 years of business, Huawei has never had a major security-related incident in the 170 countries where we operate," said a Huawei spokesman in Shenzhen, China.

"Today's proposal, released by the FCC Chairman, only impacts the broadband providers in the most unserved or underserved rural areas of the United States," the spokesman said. "Such action will further widen the digital divide; slowing the pace of economic development without further securing the Nation's telecommunications networks."

ZTE did not immediately respond to a Reuters' request for comment.

Pai first proposed in March 2018 to bar companies that posed a national security risk from receiving funds from the FCC's Universal Service Fund, but did not name Huawei or ZTE. The fund provides subsidies to provide service in rural or hard-to-reach areas, and to libraries and schools.

FCC Democratic Commissioner Jessica Rosenworcel noted the move comes after 18 months of review and the FCC should take additional action.

"We need to be mindful that in a global economy, our networks will still connect to insecure equipment abroad. So we should start researching how we can build networks that can withstand connection to equipment vulnerabilities around the world," Rosenworcel said.

The FCC argued the companies' ties to the Chinese government and military apparatus, and Chinese laws requiring that such companies assist the Chinese government with intelligence activities, pose a US national security risk.

Congress has been considering legislation to authorize up to $1 billion for small and rural wireless providers to replace network equipment from the Chinese companies. The FCC could tap the fund itself to pay for replacing equipment if Congress does not act.

About a dozen rural US telecom carriers that depend on inexpensive Huawei and ZTE switches and equipment were in discussion with Ericsson (ERICb.ST) and Nokia (NOKIA.HE) to replace their Chinese equipment, Reuters reported in June.

The United States has been pressing nations not to grant Huawei access to fifth-generation networks and alleged Huawei's equipment could be used by Beijing for spying, which the Chinese company has repeatedly denied.

Pai said in a Wall Street Journal opinion piece on Monday that "China could compel Huawei to spy on American individuals and businesses. Imagine if a 5G network with Huawei equipment were operating near a US military installation, critical infrastructure facility or other sensitive location."

He also cited a report by cybersecurity firm Finite State that "found a majority of the Huawei firmware images it analyzed had at least one potential back door and that each Huawei device had an average of 102 known vulnerabilities."

Several European countries in recent months have not agreed to bar Huawei, despite US pressure.

In May, Trump signed a long-awaited executive order declaring a national emergency and barring US companies from using telecommunications equipment made by companies posing a national security risk. The order directed the Commerce Department, working with other government agencies, to draw up an enforcement plan by mid-October. The Commerce Department has yet to publish a plan.

The US government added Huawei to its economic blacklist in May, saying the Chinese company was involved in activities contrary to US national security.

World+Biz / Top News

Huawei / US / bar

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • ADB pledges $9.46 for next three years
    ADB pledges $9.46 for next three years
  • Sought info on 67 Bangladeshis from Swiss banks, got only one: BFIU tells HC
    Sought info on 67 Bangladeshis from Swiss banks, got only one: BFIU tells HC
  • Excess liquidity Tk2 lakh cr again but banks have little in hand
    Excess liquidity Tk2 lakh cr again but banks have little in hand

MOST VIEWED

  • The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause
    Ukraine in default according to Fitch and S&P
  • The fuel price hike is triggering a chain effect on the whole economy on top of making lives costlier - and for many unaffordable - for the masses. Photo: Rajib Dhar/TBS
    How world media depicts recent economic situation in Bangladesh
  • Debt crisis in the real estate sector has discouraged loan taking in China. Local residents look at a property model in Shanghai, China. Photo: China Daily
    China hits 'liquidity trap' as low rates fail to spur bank loans
  • Deutsche Bank Co-Chief Executive Anshu Jain speaks during the Institute of International Finance Annual Meeting in Washington October 10, 2014. REUTERS/Joshua Roberts
    Former Deutsche Bank co-CEO Anshu Jain dies
  • Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22, 2022. REUTERS/Brendan McDermid
    Global stocks rise, US yields fall as inflation slows
  • The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause
    Ukraine in default according to Fitch and S&P

Related News

  • Will US-China tensions boil over?
  • Wide-body jet demand humming again as Boeing 787 rejoins the fray
  • US House gives Biden a win with massive bill on climate change, drug prices
  • US inflation outlook brightens as import prices fall, consumer sentiment rises
  • Iran may accept EU proposal to revive nuclear deal if demands met, IRNA reports

Features

Infigraphic: TBS

The dollar crunch chronicles

2h | Panorama
The proposed playground for disabled people has long been left to grow bushes on the premises of the National Parliament Building in the city. Photo: Noor-A-Alam

Whatever happened to the ‘promised land’ for the disabled?

48m | Panorama
Toes and talons of Shikra. Photo; Enam Ul Haque

Shikra: A leopard with wings!

1d | Panorama
Photo: Noor-A-Alam

Around the world in 10 days: A chance to taste global cuisines

23h | Food

More Videos from TBS

This train will run on carbon dioxide

This train will run on carbon dioxide

13m | Videos
Students will evaluate the teachers

Students will evaluate the teachers

13m | Videos
Qatar World Cup will start a day earlier

Qatar World Cup will start a day earlier

13m | Videos
Eggs are selling at record prices

Eggs are selling at record prices

14h | Videos

Most Read

1
Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 
Banking

Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 

2
Photo: Collected
Transport

Will Tokyo’s traffic model solve Dhaka’s gridlocks?

3
Representational Image. Photo: Collected
Bangladesh

Air passengers should plan extra commute time to airport: DMP

4
Arrest warrant against Habib Group chairman, 4 others 
Crime

Arrest warrant against Habib Group chairman, 4 others 

5
File Photo: State Minister for Power, Energy and Mineral Resources Nasrul Hamid
Energy

All factories to remain closed once a week under rationing system

6
Ambassador of Switzerland to Bangladesh Nathalie Chuard. Photo: Courtesy
Bangladesh

Bangladesh never asked for particular info from Swiss bank: Ambassador

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]